Ghana's Integrated Customs Management System (ICUMS) is facing scrutiny for its automated customs valuation practices. The system's use of artificial intelligence (AI) tools, such as Publican AI, often relies on benchmark pricing and depreciation schedules. This approach frequently overrides the actual price importers pay for goods, even with valid documentation.
This practice raises significant legal and economic questions regarding compliance with Ghana's tax laws and international trade agreements. Specifically, it challenges the World Trade Organization (WTO) Agreement on Customs Valuation. The WTO agreement mandates that the primary basis for customs duties is the transaction value, which is the actual price paid for goods.
Ghana is a signatory to the WTO Trade Facilitation Agreement (TFA) of 2017 and the WTO Valuation Agreement. Domestically, Section 67 of the Customs Act, 2015 (Act 891), codifies these international obligations. This law establishes a strict, mandatory sequence of six valuation methods, with the transaction value (Method 1) as the primary foundation. Customs authorities are legally prohibited from skipping any step without thoroughly investigating and disproving the preceding method.
Dr. A. M. Mashood, in an analysis, highlighted these concerns. He noted that the WTO explicitly forbids customs administrations from using arbitrary or artificially generated values through AI assistance systems. The transaction value, even if it reflects a significant discount, must be accepted unless Customs has verifiable reasons to suspect fraud or a non-arm's length transaction. For example, an importer buying a 2025 Mercedes-Benz GLC 43 AMG for $12,000 at a genuine auction should have that price accepted for duty calculations, provided the transaction was legitimate.
The implications of ICUMS's current valuation practices are far-reaching. Importers face potential over-taxation if their genuine transaction values are disregarded in favor of higher, algorithmically determined benchmarks. This could increase the cost of doing business in Ghana and deter legitimate trade. It also creates uncertainty and potential disputes between importers and the Ghana Revenue Authority (GRA).
Decision-makers must ensure that technological advancements in customs administration align with established legal frameworks. Ghana's approach should mirror jurisdictions that use automated valuation systems as risk-management tools, not as final determinative mechanisms. This would allow for efficiency gains while upholding the principles of due process and the rule of law in international trade. The government must address these concerns to maintain investor confidence and ensure fair trade practices.