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ECOWAS Customs Chiefs meet to strengthen regional ties, improve revenue generation.

 

Eyewitness reporter

The Directorate of Customs Union and Taxation of the ECOWAS Commission Thursday converged on Accra, Ghana for its 6th meeting of Heads of Customs of ECOWAS member states to discuss the ECOWAS community levy and consolidate the ECOWAS customs union.

The main objective of the meeting was to examine and validate some community legislations that are meant to improve the collection and management of Community levy as well as secure revenue collection, enhance the fluidity of intra-community trade and strengthen the ECOWAS Customs union.

The discussion of the regional Customs egg heads centred on the Draft Supplementary Act laying down the conditions and modalities of application, monitoring and management of the Community levy, Draft Supplementary Act on ECOWAS Community Transit, Draft Regulation relating to the modalities for the functioning of the ECOWAS community transit guarantee mechanism, Draft Regulation relating to the additional modalities for the application and management of decisions, including advance rulings, relating to the implementation of Community Customs regulations, Draft Regulation relating to the determination of Community regime for customs duty reliefs in the ECOWAS Region and Draft Regulation amending regulation C/REG.18/12/16 of 18 December 2016 defining the list of categories of goods contained in the ECOWAS Tariff and Statistical Nomenclature as well as the adoption of the 2022 amendments of the Harmonized System nomenclature.

Others are Draft Regulation on the procedures for the recognition and certification of the origin of products from ECOWAS member states, Draft Regulation on the determination of the components of ex-factory price and the value of non-originating materials.

Col. Kwadwo Damoah (rtd), Commissioner,Ghana Customs, who chaired the meeting,  welcomed all participants to Accra on behalf of the President of Ghana and Chair of ECOWAS Authority, Nana Addo Dankwa Akufo-Addo.

He acknowledged with great delight, the high turnout of delegates despite the challenges faced by the Covid-19 pandemic.

He reemphasised the importance of tariffs in revenue mobilisation within the subregion as well as the obligation for Member States to go along with the World Customs Organisation (WCO) in implementation of the best practices in order to deliver world-class services to clients.

Col Damoah said the two top issues expected in the report which need urgent attention are the Community Levy and the Transit of goods and services across ECOWAS borders for trade facilitation .

He sought for the removal of the numerous barriers across the transit corridors like delays, revenue leakages, high costs of duties, etc.
One of the major issues discussed at the technical meeting was the national guarantor, which they agreed will go a long way in eliminating a lot of the problems at various corridors in the region.
Halima Ahmed, in her opening remarks, stressed the importance and the critical role of the ECOWAS Customs authorities in the mobilisation of vital resources for the Community.”I am, therefore, very happy to be here to personally wish you the best in your deliberations.

“I thank you sincerely for your unwavering support in the implementation of the Protocol on the Community Levy.

” The Community Levy has significantly improved the revenue profile of ECOWAS and it contributes about 80% of the Community finances.

“This would not have been possible without your cooperation and support. We are, therefore, grateful”

“This meeting is historic in view of the number and relevance of the regulations presented for your consideration.

“These instruments are critical for the promotion of economic integration and development of our sub-region.

“They are the pillars upon which a solid economic union would be built. This cannot be achieved without your inputs.

“We, therefore, welcome your usual insights and recommendations which would help us to do better” she declared.

ECOWAS Commissioner for Trade, Customs and Free Movement, Mr. Konzi Tei, explained that the 6th meeting was held in a context marked by the persistence of the COVID-19 pandemic impacts which he said has slowed down world trade and the logistics chain of supplying goods to States.

 He however praised the Customs Administrations of member-states for their resilience and effective mobilisation of public resources for their various Governments and ECOWAS through funds collection for the Community Levy.

“Furthermore, I would like to inform you that the process of the interconnection of customs administrations is continuing despite the COVID- 19 pandemic which has impacted and changed the world order.

With the operationalization of the Interconnected System for the Management of Goods in Transit (SIGMAT), he noted that seven  States are already interconnected.

The Customs ECOWAS Commissioner disclosed that training on the functional specialties of SIGMAT have been organised for Ghana, Nigeria and The Gambia.

“The mobile version, as well as the rail version of SIGMAT, are in the process of being operationalised. Tests have already been carried out”  he said.

The various supplementary Acts and regulations as recommended and validated from the meeting were presented to the ECOWAS Ministers of Finance on Friday who will review and approve them for submission to the Council of Ministers in December 2021.

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Customs

Customs buckles as it suspends implementation of 4 per cent FOB charge

Funso OLOJO 
In a manner demonstrative of a listening administration,the management of the Nigeria Customs service has suspended the implementation of the controversial 4 per cent Free on Board(FOB) charge on imports.
The suspension followed the outcry that greeted the implementation of the novel charge which importers and their agents said was jumped on them by the customs without notice nor consultation.
To allow enough time for stakeholders’ consultation and sensitization, the Customs said the suspension was sequel to the ongoing discussion with the Minister of Finance, Mr Adewale Edun.
In a press statement by the Customs management , the service disclosed that the timing of the suspension aligns with the exit of the contract agreement with the Service providers, including Webb Fontaine, which were previously funded through the 1% Comprehensive Import Supervision Scheme (CISS).
” The Nigeria Customs Service (NCS) hereby announces the suspension of the
implementation of 4% Free-on-Board (FOB) value on imports as provided in Section 18(1)(a) of the Nigeria Customs Service (NCSA) 2023.
“This is sequel to ongoing
consultations with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Olawale Edun and other Stakeholders.
“This suspension will enable comprehensive stakeholder engagement and consultations regarding the Act’s implementation framework.
“This presents an opportunity to
review our revenue framework holistically.
“Under the previous funding arrangement repealed by the NCSA 2023, separating the 1% CISS and 7% cost of collection created operational inefficiencies and funding gaps in customs
modernisation efforts.
“The new Act addresses these
challenges by consolidating “not less than 4% of the Free-on-Board value of
imports,” designed to ensure sustainable funding for critical customs operations and modernisation initiatives.
“This transition period will allow the Service to optimise the management of these frameworks to serve our stakeholders and the nation’s interests better.
“The Act further empowers the Service to modernise its operations through
various technological innovations.
“Specifically, Section 28 of the NCSA 2023 authorises developing and maintaining electronic systems for information exchange between the Service, Other Government Agencies, and traders.
“The Service is already implementing several digital solutions, including the recently deployed B’Odogwu clearance system, which stakeholders are benefiting from through faster clearance times and improved transparency.
“Other innovative solutions authorised
by the Act include; Single Window implementation (Section 33), Risk management systems (Section 32), Non-intrusive inspection equipment (Section 59) and Electronic data exchange facilities (Section 33(3)).
“The suspension period will allow the Service to further engage with
stakeholders while ensuring proper alignment with the Act’s provisions for
sustainable funding of these modernisation initiatives.
 “The NCS remains committed to implementing the provisions of the Act in a manner that best serves our stakeholders while fulfilling our revenue generation and trade facilitation mandate.
“We will communicate the revised implementation timeline following the conclusion of stakeholder consultations” the service promised.
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Customs

We feel your pains — Customs seeks support of stakeholders over introduction of 4 percent levy on customs operations

Funso OLOJO
Nigeria Customs service has explained the rationale behind the introduction of the 4 percent  levy on the value of imported goods which has now become a subject of controversy among the freight forwarders.
The levy, which is the 4 percent Free on Board (FOB) of imported goods, was introduced into the assessment notice of a cargo declarant.
This has caused an outrage among stakeholders, especially the freight forwarders who have vowed to resist it.
However, in its official reaction to the new fee, the Customs management sought the understanding of the agitated stakeholders, acknowledging their importance relevance and invaluable contributions to the emergence of the new Customs Act.
Explaining the rationale behind the new fee, the Customs said this was in line with the provisions of the Customs Act of 2023.
“The Nigeria Customs Service (NCS) proudly recognises the invaluable
contributions of stakeholders in shaping and actualising the Nigeria Customs Service Act (NCSA) 2023.
“This landmark legislation, which replaces the long-standing
Customs and Excise Management Act (CEMA) and other related laws is a product of extensive consultations, constructive dialogue, and collaborative efforts with key industry players, government agencies, and other stakeholders.
“Their insights, expertise, and unwavering commitment have been instrumental in ensuring a robust legal framework that enhances efficiency, promotes innovation and strengthens transparency in customs operations.
“In line with the provisions of Section 18 (1) of NCSA 2023, the NCS is
implementing a 4% charge on the Free On-Board (FOB) value of imports.
“The FOB charge, which is calculated based on the value of imported goods, including cost of goods and transportation expenses incurred up to the port of loading, is essential to driving the effective operation of the Service”
The customs also acknowledged the  concerns raised by stakeholders over the
sustained collection of 1 pet cent Comprehensive Import Supervision Scheme (CISS) fee (a regulatory charge imposed for funding Nigeria’s Destination Inspection
Scheme) alongside the 4% FOB charge.
“As a responsive and responsible government agency, the Service wishes to assure the general public that extensive consultation is ongoing with the Federal Ministry of Finance to address all agitations raised by our esteemed stakeholders” the service pledged
 “Under the leadership of the Comptroller General of Customs, Bashir Adewale
Adeniyi, the NCS reaffirms its commitment to transparency, fair
trade practices, and efficient revenue management.
“All stakeholders are urged to
support this legally binding initiative, as the measures introduced in alignment with the NCSA 2023 reflects a balanced approach born out of extensive consultations with industry players, importers, and regulatory bodies, the service concluded.
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Customs

ANLCA divided over increment in CISS fee

Funso OLOJO 

There seems to be a discordant tune from the umbrella body of the freight forwarders in Nigeria, the Association of Nigerian Licensed Customs Agents(ANLCA) over the increment of the Comprehensive Import Supervision Scheme(CISS).
It would be recalled that the Customs brokers woke up on Tuesday, February 4th, 2025 to discover that the CISS fee, which used to be 1 per cent of the value of Import has been jerked up to 4 per cent.
The increment,which they claimed was slammed on them without a prior notice, has therefore sparked off heightened tension among the agitated freight forwarders who were said to be calling for a showdown with the customs.
While some of them were hinting at possible shut down of the Port to give vent to their anger and frustration, the National President of ANLCA, Mr Emenike Nwokeoji, has backed the decision of the Customs to increase the CISS fee.
Apparently scolding those who are allegedly “spoiling for war” with the Customs for their lack of knowledge of Customs law, Emenike said the Customs acted within the 2024 Customs Act to make the increment.
“I am not aware that ANLCA is protesting over the increment of the CISS from one per cent to four per cent.
“What I am aware of is that the ANLCA NECOM is meeting to take a decision on the increment.

“I, however, know that the increment is backed by the Nigeria Customs Service Act 2023. The increment is in the Act. That is where they brought it from” Emenike declared.

He however expressed his disappointment over the manner the customs jumped the increment on Customs brokers.
“They( Customs )should have, however, held sensitisation meetings to ensure all stakeholders are well aware.

“The increment started today. NECOM will be meeting very soon to take a stance on the new development.”, the ANLCA high Chief stated.

His stance on the issue contradicted the position of Alhaji Mukaila Abdullaziz, the former Sole Administrator of ANLCA who believed the increment by the customs may spark off an outrage among freight forwarders.
Also, Segun Oduntan, the Vice President of ANLCA holds contrary view with his principal, Mr Emenike when he allegedly issued 24 – hour ultimatum to the Customs to reverse the increase or get prepared to contend with the wrath of the irate customs brokers.
“We noticed the NCS has introduced 4% and renamed it Customs Operation Finance as appeared on this assessment.
“The Customs CG needs to call for an emergency meeting within 48 hours to address this development because it is already causing uproar in the freight forwarding system.

“All the freight forwarding associations would have to come together on this matter” Oduntan thundered .

Kayode Farinto, the former Acting National President of ANLCA however advised freight forwarders not to pay the increased tariff, asking the Customs authority to give the Customs brokers 90- day window through which the trading public will be adequately sensitized about the new fee
Meanwhile, the customs authority has said it would respond to the development as soon as possible in order to douse the gathering tension.
The CISS is a regulatory fee charged by Customs on all imported goods into Nigeria.
The fee, which used to be 1 per cent of the FOB (Free on Board) value of the shipment, has now been adjusted to 4 per cent, according to Section 18 of the Nigeria Customs Service Act 2023.
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