It said the system, which is being used for import valuation and clearance processes, was resulting in unusually high duty assessments creating operational and financial difficulties for its members. 

CropLife Ghana, which is an association of manufacturers, importers and distributors of pesticides, fertilizers, seeds and other agricultural inputs, said it supported efforts to modernise customs operations but cautioned against unintended consequences on the agricultural sector. 

In a press release issued and signed by Mr Kadiri Rashad, Executive Director of CropLife Ghana, and copied to the Ghana News Agency, CropLife Ghana cited a recent case involving one of its members where the declared value of imported goods was significantly increased beyond both the invoice value and the established benchmark value. 

It explained that traditionally, adjustments to invoice values were aligned with benchmark values but under the AI system, the valuation exceeded those benchmarks leading to a sharp rise in payable duties. 

It said an expected duty of about GHc900,000 in the cited case was escalated to approximately GHc2.1 million under the system. 

It said “Despite multiple attempts to seek clarification and resolution through the appropriate channels, the matter remains unresolved.” 

The statement said consultations within the industry suggested that the issue was not isolated as several companies were facing similar challenges under the current system. 

It warned that the situation posed immediate operational risks including mounting demurrage costs as consignments remained at the port’s severe cash flow constraints on businesses and disrupted the supply chain for essential agricultural inputs. 

It expressed concern that beyond the immediate effects, the system could have far-reaching implications for the agriculture sector. 

It indicated that, artificially, high import valuations could inflate the cost of inputs while sustained high costs might discourage importers, leading to reduced availability of essential crop protection products. 

The statement cautioned that shortages and high prices could push farmers towards unregulated and counterfeit pesticides posing risks to human health, crop yields, and the environment. 

It also warned that limited access to quality inputs could lead to declining agricultural productivity, which in turn, could affect national food supply and drive up food prices. 

It called for an urgent review of the system and greater stakeholder engagement to address the challenges, and recommended the introduction of safeguards to prevent AI-generated valuations from exceeding benchmark values without justification, improved transparency in the valuation process, and the establishment of faster and more accessible dispute resolution mechanisms. 

The statement urged authorities to engage industry players to refine the system to ensure practical and efficient implementation. 

It said “While CropLife Ghana supports efforts to modernise and digitise customs processes, it is critical that such systems do not inadvertently disrupt trade, burden businesses, or undermine Ghana’s agricultural productivity and food security.” 

It reaffirmed its commitment to constructive engagement with stakeholders to achieve a balanced and effective solution.