NPP Government Makes U-Turn on Salvage Cars.. Suspends Law That Bans It

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The ruling NPP Government has suspended the implementation of the law banning the importation of salvaged vehicles and those older than 10 years into the country.

The Customs Amendment Act, 2020, which was passed in Parliament in March this year was supposed to take effect on November 1, 2020.

Tema Regional Chairman of the Ghana Institute of Freight Forwarders (GIFF), Alex Asiamah, in an interview on Accra-based radio station, Citi FM, said the Customs Commander at the Tema Port announced the suspension.

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“Just this evening I received information informing the general public, stakeholders and the importing public that, Customs will continue to do their normal clearance of such vehicles.

So, the importers can go on with their business of importing such cars.

So that’s the news at the moment. It is coming from the Ministry [of Finance], but through our sector commander, the Assistant Commander of Customs in Tema,” he said.

The Customs Amendment Act 2020 among other things, provides incentives for automobile manufacturers and assemblers registered under the Ghana Automotive Manufacturers Programme and prohibits the importation of salvaged motor vehicles and cars over ten years of age into the country.

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It was passed by Parliament in March and is expected to be rolled out in November 2020.

The announcement by the government to implement the said Act effective November 1, 2020, was received with much agitation by industry players including the coalition of car and spare parts dealers association of Ghana as well as freight forwarders who had threatened to stage a demonstration to protest against the implementation of the Act.

Mr. Alex Asiamah insisted that the law really made vehicle importers unhappy.

“You could remember that when the news came, importers or dealers in those cars were not happy about it and then it was even twisted in different directions to make it look like something odd,” he said.

He indicated that based on the suspension of the law, “for us as freight forwarders, we will continue to enjoy our business of providing such cars for our customers and when that one happens, it means we are going to continue to enjoy the service so it’s welcoming news.”

What is a Salvage Car?

Put simply, a salvaged car is one that an insurance company no longer considers fit for use on the road in its current state.

If a vehicle has been in an accident, stolen or weather-damaged and repairs will cost more than the vehicle is worth, the insurance company will write it off and take possession.

Sources : Graphic.com.gh and Newshubgh.com

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