The government’s newly deployed AI value verification system for customs has come under scrutiny, with international trade expert and 2024 NPP Parliamentary Candidate for Tema West, Hon. Dennis Amfo-Sefah, warning that the technology risks violating Ghana’s domestic and international trade laws while driving up the cost of doing business.
In a statement titled “My Professional Perspective on the New AI Value Verification System Deployed by Government and Its Impact on Trade and the Cost of Doing Business”, Amfo Sefah argued that while technology in customs administration is commendable, its current application “risks undermining both domestic law and Ghana’s international obligations”.
Legal Conflict With Act 891 and WTO Rules
Drawing on over 24 years of experience as an international trade consultant, freight forwarder, and logistician, Amfo Sefah pointed to the Customs Act, 2015 (Act 891), specifically sections 66, 67, and 68. The Act incorporates principles from the WTO Agreement on Customs Valuation (ACV), which is rooted in Article VII of GATT 1994.
“These provisions establish a structured and sequential application of six methods of valuation, with the transaction value method — the price actually paid or payable for imported goods — as the primary basis,” he stated. “This is not optional; it is a legal requirement.”
He stressed that under the ACV, customs authorities must rely on the declared transaction value except in specific, justifiable circumstances. “The movement away from these prescribed methods toward an AI-driven verification mechanism, which may override or substitute declared values, constitutes a potential breach of both Act 891 and Ghana’s international commitments.”
WTO Jurisprudence
Amfo Sefah cited WTO dispute cases to back his position. In European Communities — Selected Customs Matters (DS315), the Appellate Body emphasised uniform, predictable, and transparent customs procedures consistent with WTO obligations. Arbitrary practices were found inconsistent with the Agreement. Similarly, Thailand — Customs and Fiscal Measures on Cigarettes (DS371) reinforced that customs authorities cannot disregard transaction values without valid legal justification.
Practical Risks: Inflated Duties, Higher Prices
On practical grounds, he warned that AI benchmarking risks selecting the highest available market value, inflating duties on legitimately lower-priced imports.
“International trade recognises that identical goods may be sold at different prices depending on market conditions, geography, and consumer segmentation,” he explained. “For example, a 500ml bottle of Bel-Aqua water may retail for 2 cedis at a local container shop, yet the same product can be sold for 20 cedis at a premium establishment like Kempinski Hotel.”
The result, he said, is that “increased customs values translate directly into higher import duties, which are inevitably passed on to consumers.” This comes “at a time when the cedi has shown relative stability”, and such measures risk increasing the cost of living.
Policy Inconsistency Questioned
Amfo Sefah also flagged policy inconsistency, noting a similar service under the SML arrangement was previously discontinued because the ICUMS platform already offered such capabilities at no additional cost. “The reintroduction of a comparable system under a different provider raises legitimate questions about efficiency, transparency, and policy coherence,” he said.
Call for Stakeholder Engagement
According to Amfo Sefah, the reaction from the trading community is “understandable and justified”, reflecting “not only immediate commercial pressures but also a broader defence of legality and fairness within Ghana’s trade regime.”
He urged the government to engage stakeholders and ensure technological innovation complements the law. “Customs valuation is not merely a technical exercise; it is a legal process governed by both domestic statutes and binding international agreements. Any deviation from these principles risks eroding confidence in Ghana’s trade environment.”
He concluded: “Trade facilitation should reduce the cost of doing business, enhance compliance, and promote economic growth. If the current approach is not reviewed, the consequences will extend beyond importers to the ordinary Ghanaian consumer who will bear the final cost.”
By: Boshyeba Afriyie/Rainbowradioonline.com/Ghana