IEAG Urges Ghana FDA: Resolve Import Code Issuance Delays

• The Importers and Exporters Association of Ghana (IEAG) has urged the Food and Drugs Authority (FDA) to resolve delays in issuing import codes and permits at Ghana's ports.
• These delays are preventing consignments from being cleared, hindering customs processes, and leading to significant financial penalties for importers.
• The FDA's permit approval, integrated into the ICUMS system, is a prerequisite for cargo release, and its delays disrupt the entire clearance chain.
• Prolonged cargo dwell time results in escalating costs like demurrage, storage, and handling fees, which the IEAG fears will be passed on to consumers.
• The IEAG calls for investigations, expedited processing, system fixes, clear communication, and administrative relief for compliant importers affected by regulatory or system failures.

Prolonged cargo dwell time could result in additional terminal storage charges, shipping-line demurrage, container detention charges, handling and documentation costs, increased financing costs and additional trucking and logistics expenses.

The Importers and Exporters Association of Ghana (IEAG) has issued an urgent appeal to the Food and Drugs Authority (FDA), pressing for an immediate resolution to persistent delays in the issuance of import codes and permits for regulated consignments arriving at Ghana's ports. These reported delays are preventing numerous consignments from being cleared, as importers are unable to complete the necessary FDA processes, subsequently hindering customs clearance and the ultimate delivery of their cargo.

Speaking through its Executive Secretary, Samson Asaki Awingobit, the IEAG underscored the critical need for swift intervention. The association highlighted that the current situation exacerbates existing operational and financial pressures already prevalent within Ghana's port system, posing significant challenges to trade and logistics.

The IEAG acknowledges the FDA's vital statutory mandate to regulate a wide array of products, including food, drugs, cosmetics, household chemicals, and medical devices, as they enter Ghana. According to the FDA's own published procedures, its Centre for Import and Export Control (CIEC) operates at the Tema Port, with permit control seamlessly integrated into the Integrated Customs Management System (ICUMS).

Under these established procedures, the requisite permit must be approved by the FDA before any verification and final release of regulated consignments can occur. Consequently, any delays in obtaining this crucial FDA approval or the necessary import codes can create significant Ghana customs clearance bottlenecks, impacting subsequent stages of the clearance chain such as customs declaration, duty payment, customs release, terminal release, and the physical evacuation of containers.

The prolonged cargo dwell time resulting from these Ghana FDA import code issuance delays translates directly into substantial financial burdens for importers. These include additional terminal storage charges, shipping-line demurrage, container detention charges, increased handling and documentation costs, higher financing expenses, and supplementary trucking and logistics outlays. The IEAG expressed deep concern that these mounting costs, incurred through no fault of compliant importers, will inevitably be passed on to consumers, leading to higher prices for goods.

The association stressed that avoidable delays within the port clearance system should be addressed, ensuring effective regulatory enforcement without creating unnecessary bottlenecks for legitimate cargo. This balance is crucial to prevent compliant importers from bearing escalating costs arising from systemic or administrative inefficiencies.

In response to the ongoing challenges, the IEAG has called upon the FDA to conduct a thorough investigation into the reported delays, aiming to identify any underlying technical, operational, or administrative issues. The association urges the FDA to restore normal processing times for compliant applications and to expedite the handling of pending applications, particularly those involving consignments already landed at the ports and accruing significant storage and related charges.

Furthermore, the IEAG recommends that if the problem stems from system-related issues or ICUMS integration issues Ghana, the FDA should collaborate with relevant technical agencies to resolve these challenges. The association also emphasized the importance of clear and consistent communication to all stakeholders, including importers and customs house agents, regarding the nature of the problem, affected applications, and expected timelines for resolution. Crucially, the IEAG advocates for appropriate administrative relief or intervention for compliant importers who have incurred additional costs due to demonstrable regulatory or system failures, highlighting the need for fairness when delays are beyond an importer's control. Ghana's ports are vital gateways for trade, industry, and manufacturing, necessitating improved inter-agency coordination to eliminate such avoidable bottlenecks.

Lawyers and compliance officers should advise clients on the increased financial risks (demurrage, storage) associated with potential delays in FDA import code and permit issuance in Ghana. They should also explore avenues for seeking administrative relief or challenging additional costs incurred due to regulatory or system failures, as highlighted by the IEAG.

Source: Original reporting via GNA