Like any other country, Ghana has import duties on goods entering the country. If you are thinking of importing goods, it is important to familiarise yourself with the import duty rates.

What is import duty?

Import duty is a tax collected by government customs authorities on the value, including freight and insurance, of imported goods.

In Ghana, import duty is calculated for goods entering the country and is assessed based on customs value, including the item's cost, insurance, and freight (CIF).

Here’s a breakdown of the key components and how to calculate import duty in Ghana:

The first step is determining the customs value, also known as CIF. As previously mentioned, the CIF includes the:

1. Cost: the invoice value or price of the goods
2. Insurance: the cost of insuring the goods during transport
3. Freight: the cost of transportation

The Formula: CIF= Cost + Insurance + Freight

Import duty calculation

Import duties in Ghana vary based on the type of goods being imported. These duties can be categorised as follows:

• General Import Duty Rate: Varies from 0% to 35% depending on the item category HS code (e.g., consumer goods, raw materials, capital goods, etc.).

Some rate examples:

• Raw materials and capital goods: 0% - 5%
• Consumer goods: 10% - 20%
• Luxury items: 20% - 35%

The Formula: Import Duty = CIF x Duty Rate

Other taxes and fees on imported goods

In addition to import duty, there are other charges to consider:

• Value-Added Tax (VAT): Usually 12.5% of the VAT base.
• National Health Insurance Levy (NHIL): 2.5%.
• ECOWAS Levy: 0.5% (for goods originating outside the ECOWAS region).
• African Union (AU) Import Levy: 0.2%
• EXIM Levy: 0.75%

Determine the VAT Base

The VAT Base is the total amount to which the VAT will be applied. The VAT Base is calculated as:

VAT Base = CIF + Import Duty Rate + NHIL + EXIM Levy. 

Example Calculation

Let's assume you're importing a good with a CIF value of $1,000 and a duty rate of 10%.

Import Duty:

Import Duty = 1000 × 10% = 100

NHIL:

NHIL= 1000 × 2.5% = 25

EXIM Levy:

EXIM Levy= 1000 × 0.75% = 7.5

VAT Base:

VAT Base= 1000 + 100 + 25 + 7.5 = 1132.5

VAT:

VAT= 1132.5 × 12.5% = 141.56

Total Cost of Importing:

Total= 1000 +100 + 25 + 7.5 + 141.56 = 1274.06

So, the total import cost, including all taxes and duties, would be $1,274.06.

The above represents the basic calculation of import duty in Ghana, for more accurate information please hire a customs broker and consult the Ghana Revenue Authority.