Effag Opposes Proposed Reintroduction of Smart Port Note System

The Exim Frozen Foods Association of Ghana (EFFAG) has vehemently opposed the proposed reintroduction of the Cargo Tracking Note (CTN), also known as the Smart Port Note (SPN) or Electronic Cargo Tracking Note (ECTN), system. EFFAG argues that the system, which has faced consistent stakeholder resistance for over a decade, would impose substantial additional costs on businesses and consumers, estimated between €187.2 million and €382.8 million annually. The association contends that the SPN duplicates functions already performed by existing digital platforms like the Integrated Customs Management System (ICUMS) and the Ghana Integrated Cargo Clearance System (GICCS), leading to increased bureaucracy, delays, and a potential erosion of Ghana's competitiveness as a regional trade hub. EFFAG has urged the Ministry of Transport to reject the proposal, emphasizing that the system appears to be more of a revenue-generating mechanism than a trade facilitation tool.

Ghana's trade and logistics sector is once again grappling with the contentious issue of the Cargo Tracking Note (CTN), also referred to as the Smart Port Note (SPN) or Electronic Cargo Tracking Note (ECTN). The Exim Frozen Foods Association of Ghana (EFFAG) has recently voiced strong opposition to the proposed reintroduction of this system, urging the Ministry of Transport to abandon any such plans. This renewed debate highlights persistent concerns within the business community regarding the efficiency, cost implications, and necessity of additional layers of regulation in port operations.

EFFAG's stance is rooted in the belief that the CTN/SPN system would introduce significant financial burdens on importers and ultimately consumers, without delivering tangible improvements in trade facilitation or cargo clearance. The association estimates that the system could cost Ghanaian shippers hundreds of millions of Euros annually, a burden they argue is unwarranted given the existence of other robust digital platforms already in use. This article delves into the legal and economic arguments surrounding the CTN/SPN, examining its history, the statutory framework governing port operations, and the implications for legal practitioners and businesses operating in Ghana's maritime trade sector.

The concept of a Cargo Tracking Note (CTN), an official loading certificate also known as a BESC waiver, has been a recurring feature in the regulatory landscape of several West African nations, designed to provide pre-shipment information to destination port authorities. In Ghana, the CTN system was previously announced by the Ghana Revenue Authority (GRA) in October 2018, with an effective implementation date of July 1, 2018. However, its implementation was met with widespread opposition from various stakeholders, including importers, exporters, and freight forwarders, leading to its suspension.

The legal framework governing Ghana's maritime and port operations is primarily overseen by the Ministry of Transport (MoT), with key agencies such as the Ghana Shippers' Authority (GSA) and the Ghana Ports and Harbours Authority (GPHA) playing crucial roles. The GSA, established to protect the interests of shippers, is empowered by legislation such as the Ghana Shippers' Authority Act, 2024 (Act 1122), which aims to streamline oversight of commercial shipping. Customs procedures are governed by the Customs Act, 2015 (Act 891), which outlines regulations for cargo declaration, valuation, and clearance. Proponents of the CTN/SPN argue that it enhances port security, improves regulatory compliance, and aligns Ghana with international trade standards, while critics consistently point to its redundancy with existing systems like the Integrated Customs Management System (ICUMS), introduced in June 2020 as Ghana's national Single Window platform.

The core of the opposition to the CTN/SPN system lies in its perceived redundancy and the significant financial burden it imposes. EFFAG, in line with previous stakeholder groups, contends that the system duplicates functionalities already provided by Ghana's existing digital trade infrastructure, particularly the Integrated Customs Management System (ICUMS) and the Ghana Integrated Cargo Clearance System (GICCS). ICUMS, a comprehensive platform for end-to-end customs management, already handles valuation, classification, risk management, and payment processing for cross-border trade. The argument is that introducing another mandatory pre-shipment document merely adds an unnecessary layer of bureaucracy and cost without addressing any identifiable gap in the current port ecosystem.

EFFAG has quantified the potential financial impact, estimating that the CTN/SPN could cost Ghanaian shippers between €187.2 million and €382.8 million annually, based on Ghana's 2024 container traffic. These costs, the association warns, would inevitably be passed on to consumers through higher prices for imported goods, exacerbating existing economic pressures. This concern echoes the reasons for the system's previous suspension in 2018, when a presidential directive cited increased costs of doing business and duplication of information as key factors.

Furthermore, EFFAG has questioned the reported partnership between the Ghana Shippers' Authority (GSA) and the Inter-Ocean Maritime and Logistics Institute (IOMLI) in advocating for the CTN/SPN. The association argues that such an arrangement appears inconsistent with the GSA's mandate to protect shippers' interests, suggesting that the initiative is driven more by revenue generation than genuine trade facilitation. This perspective is reinforced by the historical context of CTN systems in Africa, which, while initially conceived for security post-9/11, have evolved to become significant revenue-generating tools for port authorities and shippers' councils.

The reintroduction of the CTN/SPN also raises concerns about Ghana's adherence to international trade facilitation standards. EFFAG argues that the proposal is inconsistent with frameworks such as the African Continental Free Trade Area (AfCFTA) and the World Trade Organization Trade Facilitation Agreement, both of which advocate for seamless and paperless trade systems. Imposing additional charges and administrative requirements could undermine Ghana's competitiveness as a regional logistics hub, potentially diverting trade to neighboring ports with more streamlined processes. The ongoing debate underscores a fundamental tension between the desire for enhanced cargo monitoring and revenue assurance, and the imperative to reduce the cost and complexity of doing business at Ghana's ports.

The renewed push to implement the Cargo Tracking Note/Smart Port Note system in Ghana presents a critical juncture for the nation's trade policy. EFFAG's strong opposition, grounded in concerns over exorbitant costs, duplication of existing systems, and potential negative impacts on trade competitiveness, necessitates a thorough re-evaluation by the Ministry of Transport. The historical precedent of the system's previous suspension due to similar objections serves as a potent reminder of the challenges it poses to the business community.

Legal practitioners advising clients in the import and export sectors should closely monitor developments surrounding this proposal. The potential reintroduction of the CTN/SPN could significantly alter compliance requirements and operational costs, demanding proactive adjustments to supply chain strategies and financial planning. It is imperative for policymakers to engage in transparent dialogue with all stakeholders, prioritizing solutions that genuinely enhance trade facilitation and reduce the cost of doing business, rather than introducing measures that could inadvertently stifle economic growth and undermine Ghana's position as a regional trade leader. The call to strengthen existing digital platforms and eliminate unlawful port charges remains a pragmatic path forward, aligning with both national development goals and international trade best practices.