Contrary to reports in the Ghanaian media that the Greenview International Company Limited, the Nigerian owned cement manufacturing company, is causing huge economic loses to the state by paying less duties on its imported finished products through misclassification, the vice chairman of the company has stated otherwise.
Mr. Tajudeen A. Sijuade said the allegation by his competitors that his company by the close of 2010 imported about 265,000 tonnes of finished cement into the country, and misclassified it as raw materials, and as such paid a concessionary duty rate of five percent instead of 20 percent, which is equivalent to GH¢6.9 million is erroneous and misleading.
The Greenview International Company Limited vice chairman denied the allegation during a press tour of the factory at Tema on Wednesday.
GHACEM and Diamond Cement, the two leading cement manufacturing companies in the country, filed a joint petition against the company, alleging that while they import clinker, which is the main raw material for the production of cement anywhere in the world to produce cement in the country, Greenview Cement imports finished cement and misclassify it as raw materials, under the label 'Grey Ordinary Portland Cement'.
The two companies further alleged that as per internationally acceptable standards, Clinker as imported by them is clearly classified under HS Code 2523.10.00.00, while Finished Grey Ordinary Portland cement is explicitly classified under HS Code 2523.29.00.00.
The petitioners claimed that because of the misclassification by Greenview Cement, the government of Ghana only raked in a quarter of the actual duty rate that it was expected to make from the importation of the finished cement product.
They continued that Greenview Cement has set up an import terminal at the light industrial area around Tema Community Three (3), where its cement bagging activities, as approved on the schedule of environmental permit issued by the Environmental Protection Agency (EPA) in 2003 are carried out.
The two companies claim further that what Greenview is doing does not encourage fair competition and, therefore, called on the government to address the problem promptly.
Denying the allegation by GHACEM and Diamond Cement, Mr. Sijuade explained that his company had satisfied all the requirements under the laws of the land, and subsequently getting the approval from all the institutions involved.
He elucidated that under the laws of Ghana, a company is allowed to pay the five percent concessionary duty rate if it invests over US$15million and also add value to its products.
Continuing, he pointed out that the power to determine what is value addition does not rest with the two companies and, therefore, it is not right for the two companies to try and twist facts about their operations.
According to him, the Ministry of Finance and Economic Planning and Customs, Excise and Preventive Service (CEPS) among others, are very much aware of their existence in the country, and have approved of the activities, referring to a letter from the Finance Ministry to the Commissioner of VAT Service about a year and two months ago as evidence.
The letter, dated July 2nd, 2010, under the caption 'Application To Renew 5% Tax Revision Letter Granted Greenview International Company on 1st June, 2007,' and signed for the Minister by Dr. Samuel D. Ameyaw, Technical Advisor, was very explicit on the issue.
It states; 'Investigations by the Tax Policy Unit of this Ministry confirm that Greenview International Company is a manufacturing concern whose business involves the manufacturing of Portland cement. Besides, the company has invested in excess of $15,000.000 in infrastructure.
'In view of the value addition, I am directed by the Minister of Finance and Economic Planning to inform you that MOFEP letter reference SA/MOFEP/CEPS/015, dated 1st June, 2007, and CEPS letter no. H/DUTY/11 of 6th June, 2007, granting Messrs Greenview International Company the 5% concessionary import duty on its semi finished unprocessed bulk cement, under Chapter 98 of the Customs Tariffs is still valid, copies of letters are attached for perusal.
'It must be noted that the concession granted is not a permit and, therefore, cannot be said to have expired as the circumstances and basis under which the 5% concession was granted still pertain and have not changed', the letter explained.
Mr. Sijuade explained that the Grey Portland cement in simple terms is the powdered form of clinker, which is produced within a much polluted environment, which creates much more dust.
'We do not bring clinker to Ghana for ecological reasons. The whole world is now working hard to protect the environment. To discharge clinker from the vessel will create a lot of dust that will pollute the environment.
'The long run effect on humans, plants and aquatic life of the Port is immeasurable. For this simple reason, we decided to join the world to protect the environment by bringing Grey Portland Cement to produce cement in Ghana', he noted.
Touching on the staff strength of the company, the vice chairman said there are three (3) Nigerians, one permanent staff and two (2) trainers who come and go, two Indians and 325 Ghanaians, 183 permanent and 142 contract staff.
Mr. James Jeyakumar, acting General Manager of Greenview International Company conducted members of the press round some of the departments of the company, including the control room, packer department, power house, generator room, silo discharge, pipes, material traps, vibrating screen, compressor room and loading base.
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