In a significant move to enhance trade facilitation, the Bank of Ghana has announced an increase in the maximum advance payment for the importation of goods and services to $200,000. This adjustment, marking a substantial 300% hike from the previous cap of $50,000, is set to take effect from Monday, July 1, 2024.
This revision in the advance payment rules means importers can now make advance payments up to $200,000 per transaction. This policy shift is aimed at easing the financial constraints on importers and promoting smoother trade operations.
The Bank of Ghana, in its official notice, stated, “With effect from 1st July 2024, the maximum amount permitted using the Advance Payment option for imports has been increased from US$50,000.00 to US$200,000.00 per transaction, per importer.”
Advance payment is a prevalent method in international trade where buyers transfer funds to sellers before the shipment of goods or services. This method is crucial for securing transactions and ensuring trust between international trade partners.
This policy update is expected to significantly benefit importers by providing greater flexibility and financial capability, fostering an environment conducive to robust economic growth and international trade.
Payments are done within 24 hours after receipt of customer request.
In addition, documents required for the amendment are as follows:
- A Customer instruction or request.
- A valid Import Declaration Form (IDF).
- A Pro forma or Commercial Invoice outlining the details of the transaction.
- An Undertaking by the importer to submit clearing documents within a period not exceeding: (i) 90 days from payment of invoice for general merchandise or finished goods. (ii) For capital goods such as plant, machinery and equipment with long manufacture periods, the period shall be 180 days which can be extended with prior approval from the Head, Financial Markets Department, Bank of Ghana.
- A Sales Contract or Supplier Agreement detailing payment terms and schedules. (Optional)