Connect with us

Customs

Freight Forwarders may drag Customs to WCO over VIN controversy

Kayode Farinto, VP, ANLCA
—-say 30-day window not enough to clear backlog of cargo
Opeyemi Adesogbon
There seems no end to the war of attrition between the Nigeria Customs Service and the agitating freight forwarders over the controversial Vehicle Identification Number (VIN) evaluation policy.
The freight forwarders, who seem not satisfied with the way the Customs authority is handling the issues despite the suspension of the policy, have vowed to drag the revenue-generating agency before the World Customs Organisation (WCO) for resolution of the impasse.
Ventilating the grievances of the Customs brokers, Kayode Farinto, the Vice President of the Association of Nigerian Licensed Customs Agents (ANLCA) said the confraternity of the clearing agents has mapped out a multi-prong approach to tackling the problem of VIN and making the Customs authority play the game by the rules.
Farinto, in an exclusive interview with our reporter over the weekend, lamented that the agency has not yet engaged the agitating freight forwarders in any strategic discussion on how the VIN policy would be reviewed.
“The customs haven’t engaged us in discussion up till now. If we have not forced them to do the right thing, probably the 30-day window they conceded to us would not have been possible.
”It is unfortunate that Nigeria is a country where anything goes. By now, somebody should have lost his job for making Importer pay over N600millon as storages charges, which was not the fault of the importers but due to lack of professionalism of the Customs, which is very very unfortunate,” Farinto lamented
He revealed that the customs brokers have decided to, first of all, take the customs before the National Assembly and if nothing meaningful comes out of that, the body will eventually petition the World Customs Organisation (WCO).
“We are going to report this issue to the National Assembly and by next week(this week), a letter will be going to the National Assembly on this issue in the interest of the nation.
“What happened at the National Assembly yesterday( last week Thursday) on the issue of e-invoicing and e-valuation where CBN thought that it can arrogate power to herself and we had to go there and discuss it.
“We must force Customs to go to National Assembly which will be subjected to debate and we will now look at the laws.
“There are two laws that we are talking about (1) we have the Customs and Excise Management Act (2)we have legal notice 30 which talk about wear and tear, wear and tear means that by virtue of your year of manufacture, you are entitled to 10% rebate, even a 2021  used vehicle, if you import it to Nigeria now, whatever is the value of that vehicle is entitled to 10 percent rebate and most of these vehicles are even entitled to 50% rebate, so what we were telling customs is that the value you have gotten, where did you get it from? where did it emanate from?
“We are talking about artificial intelligence, the issue of artificial intelligence deals with data and existing data.
“Where did you get your data from, what they did was to go on the internet, look at values, supposed values, assumed values that they imputed into the system. That is criminal, it’s illegal, it’s not in line with international best practices, it’s not professional.
“If WCO hears about this, it is going to expose Nigeria customs and we are going to give National Assembly one week, if by one week nothing is done, we will report this whole issue to WCO because in Nigeria now, we are suffering” declared the ANLCA Chief.
Farinto, who said the 30-day window created by the customs to enable the clearance of the backlog of cargo caught up in the strike action would not be enough, claimed that some importers have decided to suspend importation due to VIN controversy and watch until there is a clear-cut direction taken by the customs.
He further claimed importers have incurred a whooping sum of N600m demurrage charges due to the strike action instigated by the VIN controversy.
“They won’t be able to clear the backlog of goods within the 30-day period”
“I have like 20 importers who have told me that they would stop importation because they said they didn’t have an enabling environment, that the situation is unclear” Farinto declared.
“So, the 30- day window will not be enough and even at that, it is expected that they should engage the stakeholders. Who are the stakeholders, we are the licensed Customs agents?
“The WCO (WORLD CUSTOMS ORGANIZATION) yearbook 2013, said that every Customs nation must engage the stakeholders,  the licensed Customs brokers in the area of operations, and that will give you the smooth running of the operation, that will make you achieve whatever is your policy.
“The Customs cannot shave our heads in our absence.   Whether they like it or not, it’s a two ways thing.
” Nigeria customs service is looking at this as a bossy affair, it’s not true. We have licensed Customs Agents, I pay duties on behalf of my importers.
” All Customs does is to midwife the duties we pay. So the issue that Customs generate revenue is even an aberration, it is a wrong use of English Language.
“When you say somebody generates revenue, that means someone takes the money to the bank, and that is what we do and then give Customs the receipt who then midwife whatever we have paid.
“Our Customs operations here in Nigeria is still in a medieval stage despite the so-called automation processes.
“Even the Customs operations in the neighboring Cotonou is far better as they operate according to international best practices.” the ANLCA stated.
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

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.
Continue Reading

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.
Continue Reading

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.
Continue Reading

Trending