Participation in the Auto Programme
In order to participate in the Auto Programme, interested OEMs and investors are required to satisfy three main administrative requirements, namely:
- Qualifying Criteria
- Registration into the Auto Programme
- Inspection and Monitoring
Register Here
Registration into the Auto Programme
The Ministry of Trade and Industry will,
- Develop and effectively administer a Two-Tier Registration System to register s into the Auto Programme as follows:
- Pre-assembly Bonafide Assembler: This status enables a new assembly plant to import assembly plant equipment at 0% duty and also import CKD/SKD kits for trial/test production purposes at 0% import duty. To ensure that the investor can start preparations as quickly as possible, even while further checks and due diligence is being carried out by MOTI before final registration is granted (prior to the start of actual production).
- Bonafide Assemblers: This status is granted to assembly plants that are ready to start volume production. (The registered assembler would only qualify for the benefits from the programme after this status has been confirmed)
- Register the Assembler with Ghana Revenue Authority (Customs Division) to ensure that their details are incorporated into the Customs and Domestic Tax Systems.
A. The following constitute the qualifying criteria for registration as a Pre-assembly Bona Fide Assembler.
The Applicant:
1. Should be a recognized global OEM or have a technical agreement or assembly agreement with such global OEM or have an appointed contract assembler operating under supervision of such global OEM. The corporate entity and its structure must be clearly identified. To ensure the objective of developing the assembly industry, the economic interest of the OEM and any equity participation in the corporate entity must be fully outlined. There is a distinct difference between the Registered Assembler and the Assembler. It could be the same entity, but it could also be separate entities. The commitment/contract with Ghana Government is the Registered Assembler and he should also be the importer of SKD/CKD kits as well as the FBU’s that he wants to get complementary benefits on. He will manage the contract assembler to ensure that the planned commitments are met.
2. Will be required to submit a local value addition development and progression plan towards CKD. In the event that the Applicant is not an OEM, such progression plan should include a technical partnership agreement with an OEM. The progression plan should be based on market growth and volume (rather than specific timeframes). The progression plan must be documented and lodged with MOTI so as to confirm the Applicant’s intentions and to facilitate the technical monitoring of progress against the planned commitments.
3. The factory address to be provided at registration must include copies of title deed or lease document of the factory address.
4. The Applicant should submit to MOTI an Equipment List for the Vehicle Assembly Plant supplied by the OEM. Such list is necessary for tariff concessions provided under the GIPC Act and MOTI reserves the right to use it in the physical confirmation and tracking of the preparations for production.
5. The minimum requirements for SKD are: –
- At least 2 workstations for assembly process.
- Utility supply – compressed air, electricity and water.
- Tester line with:
- Wheel alignment tester.
- Brake tester.
- Head light aiming.
- Static Quality check.
- Road test.
- Water test.
- Repair station.
- Final Buy-off.
iv. Hand tools for assembly process.
v. The Applicant should present an Assembly and Investment Plan clearly indicating the start of production timing and how it plans to progress to CKD assembly level. The minimum requirements for the Assembly Plan should be:
a) Plant Layout.
b) Future expansion towards CKD.
c) Utility supply requirement plan.
d) Human resource plan, including organisation structure and skills development plan.
vi. The application should clearly indicate the installed capacity of at least 5,000 vehicles per year.
The Applicant may engage with MOTI to provide explanations and seek clarification. Likewise, MOTI may engage with the Applicant for like purposes. However, no material variation from these requirements will be accepted
MOTI will inform the Applicant in writing that it has become eligible for the status of a Pre-assembly Bona Fide Assembler.