1. Basic situation

The Republic of Ghana (Ghana for short) is a country in western Africa. Its capital is Accra. It has a land area of 238537 square kilometers and a population of approximately 33.743 million. According to statistics from the International Monetary Fund, in 2024, Ghana's GDP will be US$75.3 billion, with a growth rate of 1.4%. The population will be 34.43 million, and the per capita GDP will be US$2406. In recent years, China's position in Ghana's foreign trade has continued to rise and has become Ghana's largest trading partner. According to China customs data, in 2024, the bilateral trade volume between China and Ghana will be US$11.84 billion, a year-on-year increase of 7.1%. Among them, China's exports to Ghana reached US$9.84 billion, a year-on-year increase of 6.7%; China's imports from Ghana reached US$1.99 billion, a year-on-year increase of 9.3%. China mainly exports machinery and electronics, textiles, and steel, and mainly imports crude oil, manganese ore, cocoa beans, etc.

Ghana is rich in mineral resources. Gold reserves are estimated to be 2 billion ounces, and proven reserves are nearly 200 million ounces, ranking second in Africa. Diamond reserves are estimated to be 100 million carats, ranking fourth in the world. The proven reserves of bauxite and manganese ore are 130 million tons and 102 million tons respectively. In addition, there are limestone, iron ore, andalusite, quartz sand and kaolin.

2. Automobile market situation

Ghana's automobile market is dominated by second-hand cars, importing about 100,000 vehicles every year, accounting for about 70% of Ghana's domestic automobiles, of which about 90% are second-hand cars. The import market includes imported and hybrid vehicles sold in the secondary market. Imported vehicles mainly come from the United States, Japan, Germany and other regions. The United States is Ghana's largest importer of used cars. At the same time, Ghana is also actively seeking to change this situation by attracting investment from leading OEMs and consolidating Ghana's strong position in the West African regional automotive industry.

At present, Ghana's electric vehicle market is in its infancy. The Ghanaian government is actively promoting the development of new energy vehicles by building charging infrastructure and introducing electric vehicles into Ghana. Starting from January 1, 2024, Ghana will exempt imported electric vehicles from tariffs for eight years. The exemption aims to accelerate the use of electric vehicles in the country and encourage domestic manufacturing and assembly of electric vehicles. At present, the main new energy models in the Ghanaian automobile market include Nissan Leaf, Tesla Model S and BMW i3. Most of the related vehicles are imported vehicles and relatively expensive. The Ghanaian government is actively exploring establishing cooperative relationships with international automobile companies and promoting relevant companies to establish manufacturing facilities for electric vehicles and related parts in Ghana.

3. Policies and regulations on used car import

1. Import policy

Ghana bans the import of accident and scrapped cars. Ghana's automotive policy defines used cars as previously registered vehicles with odometer readings exceeding 5000 kilometers. Imported used cars must be left-hand rudder vehicles (except for some special purpose vehicles). The import of right-hand rudder vehicles requires application. At the same time, the process needs to be completed in the port and the modification of right-hand rudder to left-hand rudder is completed, and only allowed to travel on the road in Ghana after confirmation by customs. Starting from October 2020, Ghana banned the import of used cars over 10 years old (previously, used cars imported for more than 10 years old were subject to an "overage fine" of 5-100% of the CIF price) to encourage international companies including Volkswagen and Nissan Motors to establish local factories in West African countries, helping Ghana become a car manufacturing center in West Africa. Starting from January 1, 2023, used cars imported from Ghana must be accompanied by a valid Certificate of Compliance (CoC) issued by a standards body.

2. Tax policy

Used cars imported into Ghana are subject to tariffs, value-added tax, national health insurance premiums and other taxes, as follows:

(1)Tariffs: Different tax rates such as 0%, 5%, 10%, and 20% apply depending on the type of vehicle, displacement and number of seats. For example, a 5% tax rate applies for passenger cars with displacement below 1900ml; a 10% tax rate applies for 1900-3000ml; 20% applies for those greater than 3000ml. The tax rate for used cars with 10 to 30 seats is 5%; the tax rate for used cars with more than 30 seats is 0.

(2)VAT: 0% or 12.5%

(3)National Health Insurance Tax (NHIL):0% or 2.5%

(4)Export Development Fund (EDIF) fee: 0% or 2.5%

(5)AU LEVY:0.2%

(6)Economic Community of West African States ECOWAS tax: 0.5%

(7)Import and export tax: 0.75%

(8)Inspection fee: 1%

(9)Special import duty: 2%

3. Documents required for import

● Name and address of manufacturer

● Year of production

● The value of used car door-to-door delivery

● Ownership and registration certificate

● Purchase invoice (original)

● Insurance policy (original)

● Bill of lading (original)

● International driver's license

● Customs Form C-12(SAD)

● Valid certificate of conformity COC

Source: "China's Used Car Export Country Guide 2024"

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