Exporters from Bono, Bono East and Ahafo regions were sensitized on Bank of Ghana (BoG) Letter of Commitment (LOC) requirements for repatriation of export proceeds during a seminar hosted by Ghana Shippers Authority (GSA), in collaboration with the BoG.
The seminar which took place at Tyco City Hotel, Sunyani on Tuesday, August 9, 2022 was the first in a series to be held across the country.
This follows engagements between the GSA and the BoG after several complaints from exporters and some customs officials about the implementation of the credit line since its introduction in 2016.
GSA Managing Director, Ms. Benonita Bismarck, in her opening remarks, observed that challenges in implementing the line of credit included lack of time allocated for repatriation of export proceeds and blocking of transactions subsequent export for non-repatriation of receipts beyond 60 days. .
Others were delays in accessing repatriated products from commercial banks, low exchange rates offered by banks, high commissions charged by commercial banks, and the unsuitability of the current form of credit line for cross-border trade. on a small scale.
Commenting on the importance of the seminar, she noted that most of the problems encountered by exporters stem from non-compliance and insufficient knowledge of the procedures involved, hence the collaboration between the two (2) organizations to remove these bottlenecks. of strangulation.
For his part, GSA’s Kumasi Branch Manager, Mr. Isaac Tersiah Ackwerh, noted that Non-Traditional Export (NTE) revenue for 2021 stood at around $3.330 billion, an increase of 17 % over 2020 figure in US dollars. 2.846 billion.
This clearly indicated the importance of repatriating export earnings to the country and, therefore, the need to comply with Section 15 of the Foreign Exchange Act 2006 (Act 723).
The Head of Foreign Operations at the BoG, Mr. Eric Hammond and the Deputy Director of Operations at Ghana Link Network Services in charge of ICUMS operations at the port of Tema, Mr. Lipton Baffour Nsoah, briefed the participants on the legal framework of the LoC, transaction and extension regimes. and technical details to educate them on the need and use of the LoC.
The participants came from export companies and associations of exporters, banks and other relevant institutions.