Ghana Revenue Authority to impose 35.77% duty on cheap aluminium products from China
The chairman of Aluworks PLC, Prof Lade Wosornu stated that the Ghana Revenue Authority’s custom division has stirred to impose an additional duty of 35.77% on cheap aluminium products imported from China, that will empower Aluworks, the aluminium continuous casting and cold rolling mill of Ghana to compete favourably in terms of the pricing of its products.
Prof Wosornu, while speaking at the 34th annual general meeting, which was held virtually, said: “The Ghana International Trade Commission (GITC) wrote to the company to confirm that the customs division had commenced the processes for the implementation of the ruling on Aluworks' petition.”
In 2020, Aluworks petitioned GITC to put measures in place to deal with the dumping of cheap aluminium products imported from China that was delivering a negative impact on the survival of domestic industries.
However, GITC ruled that such imports were denting the Ghana industry and imposed an additional penalty in the form of duty at the rate of 35.77% cost and freight.
Prof Wosornu exhorted the company's major shareholders SSNIT and Caitlyn Limited to accomplish their collaborative investment discussion that will enable the company to secure working capital to meet the gradual rise in demand, which is anticipated under the Africa Free Trade Initiative.
He said: “The economic downturn resulting from the Coronavirus pandemic, border closure and the rising world market price of aluminium negatively affected their business last year.”
“In 2020 we purchased 3,776 tonnes from Volta Aluminium Company(against a budget of 5,600 tonnes)and produced for the market 3,672 tonnes compared to 2019 where we purchased 4,302 tonnes and sold 4,318 tonnes," he added.
“Cheap aluminium imports from China affected their operations to the extent that in 2020 they sold only 3,665 tonnes (GH¢68.975 million) a 12% drop compared to 2019 where they recorded sales of 4,168 tonnes (GH¢76.993 million).”
Prof Wosornu commented: “The Board and management were committed to repositioning Aluworks PLC as a resilient trustworthy leader of industry and supplier of choice offering tailor-made products to discerning customers.”
Ernest K. Okoh, the Managing Director of Aluworks, said: “We were pleased that the Customs Division was implementing the ruling of GITC to ensure the sustainability of the local industry.”
“We would monitor the process keenly to see how the implementation works out".
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