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ARRANGEMENT OF REGULATIONS
Regulation
Imposition of Excise Duty
1.Rate
of excise duty payable
2.Exemption
on goods purchased for the
purpose of manufacturing
excisable goods
3.Exemption
on Diplomatic Missions and
International Agencies
4.Exemption
on goods destroyed by natural
causes·
5.Exemption
on goods deteriorated or damaged
in a warehouse
6.Exemption
on exported or re-exported goods
7.Exemption
on goods removed from warehouse
8.Goods
not accounted for
Collection and Recovery
9.Books
and records to be kept
10.Excise
duty returns
11.Assessment
of excise duty
12.Credit
and refund for excise duty paid
on raw materials
13.Application
for refund of excise duty
Manufacturers and Approved
Warehouses
14.Registration
of manufacturers
15.Application
for registration
16.Change
in relevant events or goods
17.Death
of holder of certificate of
registration
18.Notice
to Commissioner-General
19.Approval
of premises as warehouse
20.Operation
of an approved warehouse
21.Removal
of excisable goods from Approved
Warehouse
22.Application
of penalty
23.Interpretation
IN exercise of the power
conferred on the Minister of
Finance by Section 36 of the
Excise Duty Act, 2014, (Act
878), these Regulations are made
this 30th day of June, 2016.
Imposition of excise duty
Rate of excise duty payable
1. (1) In accordance with
section 1 of the Act and with
tariff numbers 2 and 3 of the
First Schedule of the Act, the
rate of excise duty payable on
malt drink, beer, stout, other
than indigenous beer shall be
determined by the percentage use
of local raw materials in the
manufacture of the product.
(2) The determination of
percentage use of local raw
materials in subregulation (1)
shall not include water.
Exemption on goods purchased for
the purpose of manufacturing
excisable goods
2.
(1) In accordance with section 2
(a) of the Act and with
tariff number 2.3 of the Second
Schedule to the Act, excise duty
is not payable on all goods
purchased by a manufacturer
licensed under the Act for the
purpose of manufacturing
excisable goods.
(2) A manufacturer licensed
under the Act who requests for
an exemption shall submit a
written application on goods to
be purchased for the purpose of
manufacturing excisable goods to
the Commissioner- General.
(3) The Commissioner-General
shall approve the application
upon the determination that
(a)
the raw materials have been
registered;
(b)
the raw materials are relevant
to the manufacturing process;
and
(c)
the applicant is tax compliant.
Exemption on Diplomatic Missions
and International Agencies
3.
(1) In accordance with section 2
(a) of the Act and with
tariff number 2.4 of the Second
Schedule to the Act, excise duty
is not payable on goods
purchased for use in Diplomatic
Missions where a similar
privilege is ac- corded by the
Diplomatic Mission to the Ghana
representative in that country.
(2) Goods purchased for
official use in Diplomatic
Missions and for the use of a
permanent member of a Diplomatic
Mission shall be accompanied
with
(a)
letters of recommendation from
the Ministry of Foreign Affairs
with clearly stated validity
periods; and
(b)
certified invoices.
(3) Where an application is made
for exemption from excise duty
for goods purchased by personnel
engaged by an International
Agency or in a Technical
Assistance Scheme, the
application shall be accompanied
with
(a)
documentation indicating the
terms of the agreement with the
Government; and
(b)
certified invoices that indicate
the exemption.
Exemption on goods destroyed by
natural causes
4. (1) In accordance with
section 2 (b) (i) of the Act,
excise duty is not payable on
goods that have not been entered
for home use from the ware-house
of the manufacturer where the
Commissioner-General is
satisfied that the goods have
been destroyed by natural
causes.
(2) The owner or operator of a
warehouse where goods are
destroyed by natural causes
shall notify the
Commissioner-General in writing
within seven days of the
incident.
(3) The owner or operator of a
warehouse where goods are
destroyed by natural causes may
make a claim to the
Commissioner- General for the
remission of excise duty within
twenty-one days of the incident.
(4) The claim shall indicate the
(a)
description,
(b)
quantity, and
(c)
value
of the goods destroyed.
(4) The claim shall be in a form
determined by the Commissioner-
General.
(5) The Commissioner-General
shall confirm the destruction of
the goods and take into
consideration the bond executed
in respect of 4ke goods
in deciding whether or not to
remit.
Exemption on goods deteriorated
or damaged in a warehouse
5. (1) In
accordance with section 2 (b)
(ii) of the Act, excise duty
is not payable on goods that
have not been entered for home
use from the ware- house of the
manufacturer where the
Commissioner-General is
satisfied that the goods have
deteriorated or have been
damaged while stored in the
warehouse of a manufacturer and
have been securely disposed of
in a manner satisfactory to the
Commissioner-General.
(2) The owner or operator of a
warehouse where goods are
deteriorated or damaged shall
apply in writing to the
Commissioner- General for their
disposal.
(3) The application shall
indicate the
(a)
description,
(b)
quantity, and
(c)
value
of the goods deteriorated or
damaged.
(4) The application shall be in
a form determined by the
Commissioner -General.
(5) The Commissioner-General
shall confirm the state of the
goods before granting approval
for their disposal.
(6) Where approval has been
granted to a manufacturer to
destroy any goods liable to
excise duty before the goods
have been delivered from the
factory of the manufacturer or
from a warehouse, the goods
shall be destroyed in accordance
with directives issued by the
Commissioner- General and upon
their destruction, the duty on
the goods shall be remitted.
(7) The destruction of the
deteriorated or damaged goods
shall be witnessed and attested
to by the relevant regulatory
body on a form determined by the
Commissioner-General in
duplicate.
(8) The manufacturer shall be
given the original of the form
for purposes of inspection and
the Ghana Revenue Authority
shall retain the duplicate.
Exemption on exported or
re-exported goods
6. (1) In
accordance with section 2 (c) of
the Act, excise duty is not
payable on goods that are
exported.
(2) The export of goods from a
warehouse shall be covered by an
export declaration or a
re-export declaration in the
case of imported goods.
(3) A particular or general
re-exportation or exportation
bond, or other approved form of
security shall be required to
cover the movement and export of
the goods from the warehouse.
(4) A copy of the export
declaration endorsed by an
authorised officer at the
authorised exit point shall be
required as proof of export of
the goods.
(5) Despite subregulation (4),
the Commissioner-General may
demand the production of a
landing certificate by the
exporter.
Exemption on goods removed from
warehouse
7.
(1) In accordance with section 2
(d) of the Act, excise duty is
not payable on goods that are
removed from a warehouse of a
registered manufacturer to
another warehouse of the same
manufacturer or to the warehouse
of another registered
manufacturer.
(2) A person who requires goods
to be removed from the ware-
house of that person shall apply
in writing to the
Commissioner-General requesting
the removal of goods.
(3) The removal shall only be
made upon approval of the
application by the
Commissioner-General.
(4) The removal of the goods
shall be from a warehouse of a
registered manufacturer to
another warehouse of the same
manufacturer or to the warehouse
of another registered
manufacturer.
(5) The application shall
indicate the
(a)
description of the goods;
(b)
quantity and value of the goods;
and
(c)
the particulars of the
warehouses involved.
(6) The application shall be in
a form determined by the
Commissioner -General.
(7) The delivery and receipt of
the goods from the warehouse of
delivery to the warehouse of
receipt shall be recorded on an
form approved by the
Commissioner -General.
(8) Where the goods are removed
to the warehouse of a different
manufacturer, the delivery and
receipt shall reflect in the
books and subsequently in the
monthly returns of both parties.
Goods not accounted for
8.
(1) A notice required under
section 4 (1) of the Act shall
be in a written form and shall
include
(a)
the date the discrepancy was
detected;
(b)
the nature of discrepancy;
(c)
the description of the goods;
(d)
the actual and recorded
inventory of the manufacturer;
and
(e)
the value of the goods.
(2) The Commissioner-General
shall consider the nature of the
discrepancy and may direct the
manufacturer to make the
necessary adjustments on the
relevant monthly returns.
Collection and Recovery
Books and records to be kept
9.
(1) A registered manufacturer
shall be required to keep
accurate books and records
(a)
to explain the excise duty
returns of the manufacturer; and
(b)
in support of the determination
of the excise duty liabilities
of the manufacturer under the
Act.
(2) The books and records under
subregulation (1) shall be in
the
form approved by the
Commissioner-General and shall
relate to
(a)
the manufacture;
(b)
the storage;
(c)
the removal;
(d)
the delivery; and
(e)
any other information that the
Commissioner-General may
request.
(3) Without limiting
subregulations (1) and (2), a
registered manufacturer shall
maintain and shall be able to
produce on demand, records that
are required at any time to show
evidence of
(a)
all excisable goods that have
entered each approved warehouse
of the manufacturer; .
(b)
all excisable goods that have
been removed from the ware-
house;
(c)
all excisable goods that have
been exported;
(d)
all excisable goods damaged,
deteriorated, destroyed,
expired or generally found
unwholesome;
(e)
local purchases, records on
purchase of raw materials with
the date of purchase, source of
purchase and duty paid shall be
indicated;
(f)
all import documents and import
declaration in terms of imports;
(g)
all other goods that have
entered and been removed from
the warehouse, if those goods
are raw materials used in the
manufacture of excisable goods
at the warehouse, or are used to
contain, store, label, or
measure excisable goods held or
manufactured at the warehouse;
and
(h)
excisable goods stored in the
warehouse including the physical
location of the goods within the
warehouse.
(4) A registered manufacturer
shall keep any other record that
may be required to support any
information required by the
Commissioner- General.
(5) A registered manufacturer
shall maintain the books and
records kept in their original
forms.
Excise duty returns
10.
(1) The excise duty return for a
manufacturer for each calendar
month shall be a monthly
reconciliation statement in a
form approved by the
Commissioner-General for
(a)
raw materials and other
packaging materials; and
(b)
production activities for the
month.
(2) The return on raw material
and packaging material stock
shall include the following:
(a)
the tax office of the
manufacturer;
(b)
the period of the return;
(c)
the name of the company or
individual;
(d)
the Taxpayer Identification
Number;
(e)
the excise certificate number;
(f)
the type of raw material;
(g)
the unit of measure;
(h)
the opening stock;
(i)
the additional stock;
(j)
the quantity delivered;
(k)
the closing stock; and
(I)
any other information that the
Commissioner-General may
require.
(3) The return on production
activities for the month shall
indicate
(a)
the tax office of the
manufacturer;
(b)
the period of the return;
(c)
the name of company or
individual;
(d)
the Taxpayer Identification
Number;
(e)
the excise certificate number;
(f)
the commodity;
(g)
the product type;
(h)
the unit of measure;
(z)
the opening stock;
(j)
the quantity produced;
(k)
the quantity delivered;
(I)
the closing stock;
(m)
the ex-factory unit price;
(n)
the rate of duty;
(0)
the up front excise duty
payment;
(p)
the exemption on purchases by
relieved person;
(q)
the exemption on damaged and
deteriorated goods approved
for destruction;
(r)
the exemption relating to
exports;
(s)
the net tax liability; and
(t)
any other information that the
Commissioner-General may
require.
(4) The manufacturer shall make
a written declaration that is
signed and dated to indicate
that all the particulars
contained in the respective
returns are true and accurate.
Assessment of excise duty
11.
The Commissioner-General may, in
accordance with section 10
(1) (a) of the Act, assess
the upfront excise duty on
imported ethyl alcohol for
payment at the point of
importation.
Credit and refund for excise
duty paid on raw materials
12.
(1) For the purposes of
establishing (
(a)
the amount of credit due for the
purchase of excisable raw
materials; and
(b)
the amount of excise duty to be
refunded where applicable
for purchases made in accordance
with section 11 of the Act, the
Commissioner-General may require
an importer of excisable raw
materials who is not a
registered manufacturer to be
registered with the Authority.
(2) An importer registered under
subregulation (1) shall submit
monthly returns on the imports,
sale and disposal of excisable
raw materials of the importer to
the Commissioner-General not
later than the twenty- first day
of the following calendar month.
(3) A person who purchases
imported excisable raw materials
from an importer for the purpose
of selling to other users shall
(a)
register with the Authority; and
(b)
submit monthly returns on the
purchase, sale and disposal of
the goods to the
Commissioner-General not later
than the twenty-first day of the
following calendar month.
(4) A person who files a return
in accordance with subregulation
(2) or (3) shall indicate the
following on the return:
(a)
the name of the tax payer;
(b)
the Taxpayer Identification
Number of the person;
(c)
the tax office of the tax payer;
(d)
the nature of the raw material;
(e)
the date of purchase or
importation;
(f)
the import declaration numbers;
(g)
the quantities imported;
(h)
the value of the goods;
(i)
the excise duty paid;
(j)
the name of the buyer;
(k)
the period for the return
(I)
the quantity bought by each
buyer;
(In)
the date of sale; and
(n)
any other information that the
Commissioner-General may
require.
Application for refund of excise
duty
13.
(1) An application for refund
under section 13 of the Act
shall be made for each calendar
month to which the refund claim
relates.
(2) An application for refund
with respect to section 12 (2)
of the Act shall be supported by
the following documents:
(a)
an export declaration;
(b)
a landing certificate where
appropriate;
(c)
an import declaration;
(d)
a Value Added Tax and a National
Health Insurance Levy invoice;
and
(e)
evidence of repatriation of
export proceeds.
Manufacturers and Approved
Warehouses
Registration of manufacturers
14.
(1) A person who intends to
register as a manufacturer
shall, not later than thirty
days before the commencement of
the business, apply in writing
to the Commissioner -General.
(2) The person shall have a
valid Taxpayer Identification
Number. (3) The
Commissioner-General shall issue
a certificate to manu- facture
excisable goods on the payment
of the required fee determined
in accordance with the Fees and
Charges (Miscellaneous
Provisions) Act, 2009 (Act 793).
(4) A certificate to manufacture
excisable goods shall expire one
year after the date of issue and
shall be renewed on the payment
of the required fee determined
in accordance with the Fees and
Charges (Miscellaneous
Provisions) Act, 2009 (Act 793).
(5) A person who manufactures
excisable goods chargeable at
excise duty rate of zero may be
exempted from registration under
the Act.
(6) The filing of returns shall
commence from the month of
registration.
Application for registration
15.
For the purposes of section 15
of the Act, an application for
registration shall be
accompanied with the following:
(a)
documents to show evidence of
the intention of the applicant
to operate a manufacturing
facility which includes
(i) copies of articles of
association, relevant
certificates and documents from
the Registrar-General's
Department;
(ii) the title deed or lease to
the warehouse;
the written consent from the
landlord for the use of the
premises;
(iii) a written description and
plan of the warehouse including
its secure perimeters;
(iv) the location and physical
details of the area to be
designated as the warehouse such
as the size, materials of
construction; and
(v) the external security of the
warehouse such as fences and the
internal security such as
entries, exits, alarms and
lights;
(e)
a statement of the manufacturing
process;
(f)
the list of plants and
machinery;
(g)
the list of raw materials;
(h)
a statement of the composition
of each product; and
(i)
any other requirements that the
Commissioner-General may Impose.
Change in relevant events or
goods
16.
(1) Where there is a change in
the place of business, a
registered manufacturer shall
seek the approval of the
Commissioner-General for the new
premises and the approval is
subject to regulations 15 (d)
and 19.
(2) Where there is a change in
the nature of the principal
activity of a manufacturer,
paragraphs (e), (f), (g)
and (h) of regulation 15
shall apply.
(ii) the names, addresses,
qualifications, and other
identifying information in
relation to the directors, if
any, and senior managers of the
applicant;
(b)
evidence of the ability of the
applicant to maintain proper
accounts and records;
(c)
a statement on the procedures or
manual that is acceptable to the
Commissioner-General that
(i) sets out how excisable goods
with duty unpaid will be
handled, secured, tracked, and
monitored while in the
warehouse; and
(ii) specifies the persons, or
classes of persons, who will
have access to the goods, and
under what conditions;
(d)
in relation to the particulars
of the application for a ware-
house;
(3) Where there is a
notification of change in the
nature or quantity of excisable
goods manufactured in the
country by a manufacturer, the
notification shall be subjected
to verification and the
registration process in
paragraphs (e), (f), (g), (h)
of regulation 15 and
regulation 19 shall apply.
(4) The Commissioner-General
may, after the verification and
registration process, direct for
a change in the records of the
manufacturer and amend the
registration certificate as
appropriate.
Death of holder of certificate
of registration
17. Where a holder of a
certificate of registration is a
sole proprietor of the business
of manufacturing excisable goods
and that holder dies, the
Commissioner-General shall
cancel the registration and
re-registration shall be
required.
Notice to Commissioner-General
18. (1) Where a manufacturer who
ceases to manufacture excisable
goods notifies the
Commissioner-General in writing
in accordance with section 22 of
the Act, the notification to
cease manufacturing shall
indicate the reason for the
cessation of manufacturing
excisable goods.
(2) Where the manufacturer has
to recommence business after
cancellation, the manufacturer
shall re-apply in accordance
with regulation 14 for
registration as a new
manufacturer.
(3) Further to section 22 (4) of
the Act, where the purchaser of
the business of manufacturing
excisable goods has not been
registered under the Act as a
manufacturer of excisable goods,
the purchaser shall be
registered in accordance with
regulation 14.
(4) Further to section 22 (4) of
the Act, where the purchaser of
the business of manufacturing
excisable goods has been
registered under the Act as a
manufacturer of excisable goods,
the registration records shall
be updated to include the new
acquisition.
Approval of premises as
warehouse
19. (1) Pursuant to section 24
of the Act, the following
requirements shall be met in
order for a warehouse to be
approved by the-
Commissioner-General:
(a)
the warehouse shall be
controlled or operated by the
applicant who makes the
application to be a registered
manufacturer; and
(b)
the applicant shall state in the
application the following:
(i) the nature 'Of the goods to
be manufactured or stared in the
warehouse;
(ii) the estimated value ' of
goods likely to be stored in the
warehouse, and the estimated
excise duty liability of the
manufacturer in respect of a
subsequent
removal ' of those goods from
the warehouse; and
(iii) the expected method 'of
disposal 'of the goods by way of
local sales, export sales, use
in the manufacture ' of other
excisable goods, or other means
of disposal, including an
estimate ' of the anticipated
percentages ' of each type of
disposal.
(2) An approval to manufacture
excisable goods shall authorise
the manufacture of the goods in
one set of premises to be
specified in the certificate and
the whale of the premises shall
be adjoining and held together
for the same purpose.
(3) A certificate shall not be
considered ta extend to any part
of the premises not described in
the written description and plan
'Of the ware- house required
under regulation 15 (d) (i).
(4) Despite subregulation (3),
the Commissioner-General may
approve a part of particular
premises as an approved
warehouse if that part is
clearly delineated and secured
to the satisfaction of the
Commissioner-General.
Operation of an approved
warehouse
20.
(1) A warehouse in which
excisable goods with duty unpaid
are stared shall 'only be
entered into by the following
persons:
(a)
the registered manufacturer;
(b)
an 'Officer 'or employee of the
registered manufacturer, or of a
carrier delivering 'or removing
goods from the warehouse;
(c)
any 'Officer delegated to enter
the warehouse by the
Commissioner -General;
(d)
any other authorised person,
subject to the written approval
of and the conditions determined
by the Commissioner- General.
(2) Excisable goods with duty
unpaid shall not be stored in an
approved warehouse unless
(a)
the goods are to be used as raw
materials in manufacturing other
excisable goods; and
(b)
the duty paid excisable goods to
be used as raw materials are
separately stored and secured
away from the place where
excisable goods with duty unpaid
are stored.
(3) A registered manufacturer
shall provide and maintain at an
approved warehouse
(a)
adequate lighting;
(b)
correct weights and scales; and
(c)
personnel necessary for
(i) weighing excisable goods
received into, excisable goods
manufactured in and excisable
goods removed from the approved
warehouse; and
(ii) taking stock of all
excisable goods in the
warehouse.
Removal of excisable goods from
approved warehouse
21.
(1) Excisable goods with duty
unpaid shall only be removed
from an approved warehouse with
authorisation from the
Commissioner- General and in
accordance with the terms and
conditions imposed by the
Commissioner-General on the
registered manufacturer from
whose warehouse the goods are to
be removed.
(2) The Commissioner-General may
specify that a manufacturer
shall remove excisable goods
with duty unpaid from a
warehouse only in the physical
presence of and under the
supervision of an authorised
officer.
Application of penalty
22.
The provisions in the Act on the
various offences and penalties
apply to these Regulations.
Interpretation
23.
In these Regulations, unless the
context otherwise requires,
"indigenous beer" means a
traditional beer brewed by a
cottage industry from locally
obtained raw materials
originating wholly from the
country; and
"relevant regulatory body"
includes
(a)
the Ministry of Health;
(b)
the Environmental Protection
Agency; \
(c)
the Food and Drugs Authority;
and
(d)
the Standards Authority.
MR. SETH E. TERKPER
Minister responsible for
Finance
Date of Gazette
notification: 4th July, 2016.·
Entry into force: 3rd August,
2016.
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