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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 grants one- month extended window to illegally imported private aircraft owners to regularise their documents to avoid sanction 

Funso OLOJO
The Nigeria Customs Service has given a month extension for owners of illegally imported aircraft to come forward to pay necessary charges and regularise their documents.
The grace period, which is from Monday, October 14th, 2024 to Thursday, November 14th, 2024, is to enable the affected owners to complete the verification exercise for the recovery of import duties which they had earlier evaded.
According to the statement by the Service, “the extension is to further engage operators who have expressed willingness to regularize their import duties, providing them with an additional window to comply with the necessary regulations.
 “The NCS is committed to ensuring that all illegally imported aircraft meet the legal requirements, thereby promoting transparency and accountability in the aviation sector.
“In light of this extension, the NCS encourages aircraft operators to take full advantage of the extended period to fulfill their obligations, avoiding sanctions that may arise from non-compliance after the deadline.
 “The Comptroller General of Customs, Bashir Adewale Adeniyi  reiterates the Service’s dedication to enforcing the laws governing import duties and maintaining the integrity of Nigeria’s aviation sector.
 “He further appreciates the cooperation and understanding of stakeholders in this ongoing exercise” the statement concluded.
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Customs

AfCFTA scribe commends Nigeria Customs over deployment of trade facilitation tools for efficient service delivery

— engages CGC Adeniyi on how to dismantle bottlenecks in intra-African trade.
Funso OLOJO 
The Secretary General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene had commended the Nigeria Customs Service on the deployment of the Authorized Economic Operator (AEO) programme, the Advanced Rulings, and the conduct of Time Release studies which he said have greatly improved trade facilitation at the Nigerian ports and border posts.
According to him, these initiatives have positioned the NCS as a benchmark for customs administrations across Africa.
Wamkele Mene gave this commendation while meeting the Comptroller General of the Nigeria Customs Service, Adewale Adeniyi on the sideline of the Biashara Afrika 2024 forum, hosted in Kigali, Rwanda, from 9th to 11th October 2024.
The Rwanda engagement brought together key stakeholders to discuss ways to enhance intra-African trade and foster deeper economic integration.
The meeting between the CGC and the Secretary-General provided a unique opportunity to refine strategies aimed at improving trade facilitation under the AfCFTA agreement.
 Discussions centered on addressing existing bottlenecks and encouraging small and medium-sized enterprises (SMEs) to take advantage of the opportunities provided by the agreement, given their critical role in boosting intra-African trade.
 Particular emphasis was placed on the role of Customs in these efforts.
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 In his response, Comptroller-General Adeniyi commended the Secretary-General for his unwavering commitment to advancing the AfCFTA’s goals, despite the resource constraints faced by the Secretariat.
 He also acknowledged the critical support provided by President Bola Ahmed Tinubu’s administration and the legislative arm through the Nigeria Customs Service Act 2023.
 “The Act has been instrumental in providing the necessary legal framework for implementing initiatives that align with the government’s vision of making Nigeria the most efficient trading nation on the continent, fostering SME growth, and boosting exports to strengthen intra-African trade,” he said.

The high point of the conversation was the recent achievement of Mrs Chinwe Ezenwa, CEO of LE LOOK Nigeria Limited, who became the first woman to export goods under the Guided Trade Initiative (GTI) of the AfCFTA to East, Central, and North African countries.

 Her success, marked by the export of goods on 16th July 2024 from Apapa Port in Lagos, underscores the growing opportunities for Nigerian businesses in the continental market.

A key outcome of the meeting was the AfCFTA Secretariat’s commitment to develop a concept note outlining the way forward for the free trade area.

 In turn, the NCS pledged to bring these discussions to the Heads of Customs Administrations platform in Africa, ensuring a coordinated approach to addressing customs-related challenges across the continent.

The Biashara Afrika, now in its second edition, has established itself as a formidable platform for engagement between African public and private actors on the effective implementation of the AfCFTA.

 This year’s forum focused on addressing the evolving challenges in the business environment and seeking innovative solutions to facilitate cross-border trade.

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Customs

Stakeholders accuse Finance Ministry of frustrating government’s six-month duty waiver on food imports

–as December deadline beckons, hungry Nigerians eagerly await dividends of  presidential initiative
Funso OLOJO
Nigerian importers and their agents have accused the Federal Ministry of Finance of deliberate efforts to frustrate the government’s initiative at encouraging massive importation of food items to cushion the country’s current food crisis.
Following the acute shortage of food items due to debilitating insecurity, which has driven the cost of foodstuffs through the roof, the federal government announced a six-month window of zero duty and VAT on the importation of some critical foodstuffs to provide an immediate solution to the widening gap in the food supply.
Consequently, the government announced, through the Federal Ministry of Finance, an executive order that effective from 15th July 2024 to  31st December 2024, there is a six-month window of duty waivers on the importation of some selected food items such as husked brown rice, beans, wheat, millet, maize and grain sorghum.
However, three months into the special offer, no single importation of the selected food items has been made.
Kayode Farinto, the Chairman and Chief Executive officer of Wealthy Honey Nigeria Limited pointedly accused the Finance ministry of putting a wedge in the implementation of the policy.
Farinto, a former Acting National President of the Association of Nigerian Licensed Customs Agents(ANLCA), said the stringent conditions attached to importation under the special Presidential duty waivers were the killjoy that has scared importers away from participating in the programme.
He expressed dismay on why the ministry should place such a burden on the importers who wish to help the government achieve food sufficiency in the country if not to deliberately frustrate and sabotage the process.
” Government in its magnanimity realised that Nigerians are hungry and should have food in excess, rolled out that very good executive decision on duty waivers on some selected food items.
” But its implementation has been bastardised and I predicted when the announcement on this special arrangement was made that after three months of the executive order, there won’t be any importation of these food items under this programme.
” Three months into the programme, there is no importation.
” Go to the port terminals, you won’t find a single containerised food item under the duty waivers programme.
” Nobody is willing to import under such stringent conditions by the Ministry of Finance. The ministry has put a wedge in the smooth implementation of the policy.
” Most of us travelled abroad and saw these food items which we would have containerised and shipped to Nigeria under this programme but we couldn’t because of the stringent criteria set up by the ministry.
” How do you expect people to import food items and have a food surplus in the country when you put these tough conditions?” Farinto queried.
It could be recalled that the Ministry of Finance through the Nigeria Customs Service in August 2024  spelt out certain conditions to be met by importers willing to participate in the special Presidential duty waivers programme.
“To participate in the zero-duty importation of basic food items, a company must be incorporated in Nigeria and have been operational for at least five years.
“It must have filed annual returns and financial statements and paid taxes and statutory payroll obligations for the past five years.
” Companies importing husked brown rice, grain sorghum, or millet need to own a milling plant with a capacity of at least 100 tons per day, operated for at least four years and have enough farmland for cultivation.
“Those importing maize, wheat, or beans must be agricultural companies with sufficient farmland or feed mills/agro-processing companies with an out-grower network for cultivation”
Farinto said these conditions were not necessary as they would certainly be too cumbersome to meet.
” It should have been left open for those who have interest and capital to participate, a sort of all-comers affair to encourage massive importation of foods to saturate the market and bring the prices down.
“After all, the window is only for six months and after that, you close the window” the ANLCA chieftain declared.
Our reporter further gathered that apart from the stringent conditions attached to the zero duty programme which stakeholders believed have resulted in apathy, the Nigeria Customs Service, three months into the implementation of the duty waivers, said it was still waiting for the Federal Ministry of Finance to provide the agency with the list of importers eligible to participate in the programme.
According to the guidelines, the Federal Ministry of Finance is supposed to provide the Customs with the list of importers qualified to benefit from the duty waiver.
With three months remaining before the duty waiver window is shut, hungry Nigerians are still waiting to benefit from the massive importation of food items expected from the special Presidential duty waiver programme.
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