The Bank of Ghana (BoG) has announced an adjustment to the regulations regulating Advance Payments for Imports, raising the maximum amount authorized per transaction from $50,000 to $200,000.
This modification will go into effect on July 1st, 2024. An announcement from the BoG states that the purpose of this modification is to increase importers’ flexibility and boost transaction efficiency.
According to the notification, the change is a part of larger initiatives to simplify and make clear the processes pertaining to import advance payments.
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To effect advance payments, the following documentation will be required:
1. A Customer instruction or request
2. A valid Import Declaration Form (IDF)
3. A Pro forma or Commercial Invoice outlining the transaction details
4. An Undertaking by the importer to submit clearing documents within a specified period:
– 90 days from the payment of the invoice for general merchandise or finished goods
– 180 days for capital goods such as plant, machinery, and equipment with long manufacture periods, extendable with prior approval from the Head of the Financial Markets Department at the BoG
5. A Sales Contract or Supplier Agreement detailing payment terms and schedules (optional)
This increase in the maximum advance payment is expected to ease the burden on businesses, allowing for larger transactions without the need for multiple payments.
The BoG has stated that this notice supersedes all previous notices regarding Advance Payment transfers.
