Setting the record straight on the Customs Commissioner’s comments on personal effects and duty exemptions
Over the past few weeks, comments by the Commissioner of the Customs Division of the Ghana Revenue Authority (GRA), advising travelers to exercise caution when receiving parcels for delivery to relatives and friends in Ghana, have generated considerable public debate.
What should ordinarily have been welcomed as useful guidance instead produced misleading headlines, sharp commentary, and public anger. The episode exposes a real gap between the tax authority and taxpayers on the Customs laws and procedures that govern imports, not because the GRA has neglected stakeholder engagement, but a call to intensify the engagement.
Back to the Brouhaha
Was the Commissioner right to say that excess mobile phones attract duty and tax? To answer that fairly, his comments need to be placed in their proper legal context.
The Legal Foundation
The Customs Division of the GRA is a member of the World Customs Organization (WCO) and a signatory to several international agreements and conventions. Ghana’s import and export procedures mirror standard WCO and World Trade Organization (WTO) protocols, which find expression in the country’s tax laws. Every decision taken by Customs is therefore grounded in law and in line with international conventions and protocols, based on the following:
1. The Constitution of Ghana
2. The Customs Act and its regulations
3. The Exemptions Act and its regulations
4. The relevant World Customs Organization Conventions
5. The protocols set out in the various trade agreements to which Ghana is a signatory
The 1992 Constitution, Ghana’s supreme law, sets out the basis for taxation under Chapter Thirteen, on Finance. Article 174(1) states that “no taxation shall be imposed otherwise than by or under the authority of an Act of Parliament,” while Article 174(2) provides that any power to waive or vary a tax must first secure Parliament’s approval by resolution. In short, Article 174 makes clear who has the authority to impose taxes in Ghana, Parliament. The GRA, and for that matter, the Customs Division, is mandated to enforce the tax policies set by government through the Ministry of Finance.
Acting on Article 174, Parliament has enacted, and periodically amended, the tax laws to reflect the policy direction of successive governments. The current, consolidated law governing Customs operations is the Customs Act, 2015 (Act 891).
As a revenue-collection institution, the GRA’s foremost mandate is to mobilize revenue for national development. Fittingly, Section 1 of the Customs Act imposes duty and tax on goods imported into or exported from the country, at the rates specified in the Harmonized System (HS) code. Section 2 of the Act, however, provides for exemptions on specified goods for certain persons, organizations and institutions, and Section 2(3) specifically exempts “removal articles” from duty.
The General Customs Procedure
To mobilize revenue, facilitate legitimate trade, safeguard public security and safety, and prevent smuggling, all imports into and exports from Ghana follow standard procedures that require a true and candid declaration of the purpose of every imported item, whether by importers, traders or travelers.
One of the most frequently used procedures is Direct Import, commonly known as “Home Use” or “Home Consumption,” used to process goods imported for use or consumption in Ghana, whether personal or commercial. Section 74 of the Customs Act provides that goods intended for the market, or for private use or consumption, must be placed under the Home Use procedure and are subject to duty where applicable, along with any relevant charges, fees, prohibitions, restrictions or other formalities.
What Is a Removal Article?
Section 107 of the Customs Act makes provision for “removal articles”, items, other than a motor vehicle, spare part or building material, brought into the country by a citizen who was previously resident abroad, or by a member of that person’s household, which are exempt from duty. Section 151 defines a removal article as movable personal belongings or effects, domestic appliances, household provisions normally kept in stock, collectors’ pieces, pet animals and tools of trade (excluding agricultural, commercial or industrial plant), but the definition explicitly excludes arms, ammunition, motor vehicles, spare parts and building materials.
To claim this exemption, an applicant must submit a written application, with a list of the items being removed, to the Commissioner-General or an authorized officer, either before or after arriving in the country. The Commissioner-General grants the exemption once satisfied that the items are for the personal use of the applicant or a household member, and not imported in commercial quantities. Crucially, the applicant must have lived outside Ghana continuously for at least twelve months immediately before returning. Persons above eighteen years are also entitled to import limited quantities of potable spirits, perfumed spirits, mineral water, soft drinks or wine, and tobacco products, within the limits set by law.
What Does the Exemptions Act Say About Personal Effects?
The Exemptions Act, 2022 (Act 1083), the principal law regulating exemptions for entitled entities, privileged persons, organizations and institutions, makes clear provision for passengers’ baggage. Section 17(1) exempts the baggage accompanying a travelling passenger from Customs duty and tax, provided the goods are not for sale, barter, exchange or as a gift.
In other words, goods imported in commercial quantities, or for commercial purposes, remain liable for the relevant duty and tax. This is precisely what the Commissioner was reminding the travelling public about.
The WCO and International Conventions
To regulate trade and facilitate the movement of persons across borders and among member states, specific provisions have been made for the treatment of personal effects, passenger baggage and removal articles. The Revised Kyoto Convention (RKC) and the Istanbul Convention are among the instruments that distinguish genuine personal effects or baggage from commercial goods, or from goods that exceed the permitted conditions.
Specific Annex J, Chapter 1, of the Revised Kyoto Convention defines “personal effects” as “all articles (new or used) which a traveler may reasonably require for his or her personal use during the journey.” The definition expressly excludes goods imported or exported for commercial purposes, exactly what the Commissioner was communicating to the travelling public.
Standard 20 of the Revised Kyoto Convention also offers an illustrative list of personal effects, including:
Clothing and toilet articles • Jewelery • Cameras • Binoculars • Portable musical instruments • Mobile phones • Portable computers • Calculators • Baby carriages • Wheelchairs • Sporting equipment
The fundamental test is whether the item is reasonably required for the travelers’ personal use during the journey. International Customs standards make clear that not everything carried in a travelers’ baggage qualifies as a personal effect, personal effects do not mean everything in one’s luggage.
Customs can therefore legitimately distinguish between genuine personal effects and commercial merchandise intended for sale, barter, exchange, distribution or other commercial purposes. Packing goods into a suitcase does not, by itself, convert commercial merchandise into a personal effect.
Grounded in Law, Not Improvised
The Commissioner’s comments are therefore grounded in the combined WCO and WTO conventions and standards, Article 174 of the 1992 Constitution, the Customs Act, 2015 (Act 891), and the Exemptions Act, 2022 (Act 1083), together with the protocols of various trade agreements.
What the Commissioner said is not new, many frequent travelers already know it. Unfortunately, this exemption has suffered considerable abuse over the years, with some people deliberately disguising dutiable commercial items as personal effects to avoid paying duty and tax. It is equally important to note that no law sets a specific numerical limit on how many mobile phones, or any other item, a traveler may import. The bottom line is simpler: any quantity beyond what is reasonable for personal use will attract the relevant duty and tax.
In all honesty, if a traveler arrives at the airport with three or more brand-new, top-of-the-range iPhones or Samsung devices of identical specification, and claims they are all for personal use, how convincing would that be to the ordinary Ghanaian? The law was never about punishing travelers’ for owning phones, it is about distinguishing genuine personal belongings from undeclared commercial trade.
Conclusion
The brouhaha appears to have been fueled more by misunderstanding and a lacuna the law in terms of the numbers. Ghana’s laws, together with international Customs standards and conventions, recognize personal effects and provide exemptions in appropriate circumstances. At the same time, neither domestic law nor the international framework treats commercial merchandise as a personal effect simply because it is packed in a traveler’s luggage.
The Commissioner’s comments, therefore, amount to little more than a reminder of an existing Customs principle: that personal effects are not a blanket exemption for everything a traveler chooses to carry into Ghana. We seek not to defend the law but to communicate it better.
Customs will continue to facilitate legitimate travel and trade while safeguarding the revenue of the state, and the public, in turn, must understand their obligations and make truthful declarations to help the government generate the necessary revenue for national development. Be truthful in your corner, and together, we shall all help build Ghana.
Authors
Christopher K. Beyereh
The co-author is a Chartered Marketer, a tax & AI expert with over 10 years of experience. He is the Founder of the African Center for tax education and Policy (ACTEP), and the African Society of Artificial Intelligence (ASAi). He can be reached via +233246440723 or [email protected]
Mr. Edward Kofi Bagyiri
Mr. Edward Kofi Bagyiri is a seasoned retired Assistant Commissioner of Customs, with extensive experience in Customs administration, revenue mobilization and trade facilitation. He can be reached on +233245616188
Disclaimer: The views and opinions expressed in this article are solely those of the author(s) and do not necessarily reflect the views or position of The High Street Journal.
