GUTA Raises Alarm Over AI Valuation System, Calls for Suspension

The Ghana Union of Traders’ Associations (GUTA) has raised concerns over the use of an Artificial Intelligence (AI) system in customs valuation, describing it as costly and harmful to importers and businesses.

Speaking in an interview with Kofi Boakye on Nkwantannaso on Opemsuo Radio, the President of GUTA, Mr. Clement Boateng, said the system, which is currently being used to determine the value of imported goods, is significantly increasing duties paid by traders.

He explained that while AI is globally used to support decision-making but its application I. valuation in Ghana has shifted the responsibility to the system itself.

“In Ghana, valuation is the responsibility of Customs as mandated by law, but with the introduction of this AI system, it is now the system that determines the values used for duty calculation,” he stated.

Mr. Boateng noted that instead of relying on the actual invoice value of goods, the AI generates a price range based on market data and often selects the highest value for duty assessment.

“If you present an invoice of $10, the system can generate a range and pick the highest value, which increases the cost significantly,” he explained.

He indicated that this has led to sharp increases in import duties, with some payments rising from tens of thousands of cedis to several hundreds of thousands.

“In some cases, duties that used to be about GH¢20,000 have increased to around GH¢200,000, while others have moved from GH¢60,000 to GH¢400,000,” he said.

Mr. Boateng further cited the example of the Toyota Voxy, where duties have seen a drastic increase under the new system, raising concerns about affordability for traders.

He also criticised the implementation process, stating that although the system was officially introduced on March 10, a pilot phase had already begun in December without the knowledge of stakeholders.

“It was only around mid-February that we were invited for engagement, by which time the system was already in use,” he added.

According to him, although the government may be recording increased revenue, the burden is being transferred to traders and ultimately to consumers, who will have to pay higher prices for goods.

“If this continues, many people will not be able to afford goods in Ghana because traders will pass on the cost,” he warned.

Mr. Boateng emphasised the need for proper stakeholder engagement before the implementation of such policies, noting that inclusive consultations help ensure balanced and workable outcomes.

He disclosed that GUTA has engaged the Ministry of Finance on the matter over the past month, including writing formally to the Ministry, but received no response initially.

He said the association later formed a coalition and held a press conference in Tema, which led to a meeting with the Ministry just before Easter, although no resolution was reached.

“We have written again requesting another meeting, and our main demand is the suspension of the AI system,” he stated.

Mr. Boateng stressed that while traders understand the government’s need to generate revenue, policies must not come at the expense of businesses and economic sustainability.