Customs

Customs disagrees with CBN over import/ export policy.

Governor of Central Bank of Nigeria, Godwin Emefiele

—-says adjudication on customs value resides with the service

Opeyemi Adesogbon

The Nigeria Customs Service (NCS), on Thursday, reiterated its objection to the introduction of e-valuator and e-invoicing for import and export businesses in Nigeria by the, Central Bank of Nigeria (CBN).Recall, that the CBN had in a letter dated July 8, 2021, informed NCS that they were deploying a mechanism for verification of prices of goods before allocation of forex at the point of e-form M registration. The policy in summary seeks to benchmark the price of the imported and exported cargo.

In a press statement, by the national public relations officer of the service, Timi Bomodi, benchmarking of valuation as proposed by the CBN’s policy will negate the WTO’s Agreement on Customs Valuation (ACV), and result in disputes, delays and uncertainties.

He, however, stated that the service still stands by its earlier submissions on the matter, as was clearly communicated to the House of Representatives Joint Committee on Customs and Excise, Banking and Currencies on March 3, 2022.

He said further that the CBN’s move had raised objections from critical stakeholders within and outside the industry, who expressed valid concerns that required critical considerations.

The statement reads, “The practice world over is to domicile adjudication on Customs values for import and export within the Customs administration of every country. The NCS, undoubtedly, is alive to its statutory functions and has a vibrant Valuation Unit under the Tariff and Trade Department whose roles among others includes the proper interpretation of WCO/WTO rules and agreements concerning the valuation of goods.”

“Nigeria being a member of the World Customs Organization (WCO), World Trade Organization (WTO) and also a signatory to international trade treaties, including Article VII of the General Agreement on Tariffs and Trade is constrained to abide by the principles contained therein.”

“Article VII stipulates that the value for customs purposes of imported/exported goods should be based on the actual value paid or payable for them. This is commonly referred to as transaction value.”

“This agreement also prescribes five other methods for arriving at Customs value where the transaction value is unacceptable. They are the transaction value of identical goods, the transaction value of similar goods, the Deductive value method, the Computed value method, and the Fallback method applied sequentially.

Bomodi stated in the press statement, that the House of Representatives, Joint Committee on Customs and Excise, Banking and Currencies had directed that all agencies with defined roles in the supply chain meet to harmonise procedures with particular reference to resolving the issue of value for trade purposes.

He added that the said meeting is yet to take place and there could not have been any agreement supporting the CBN initiative as reported in the media.

“The NCS as a government agency aligns with the WTO Agreement on Customs Valuation (ACV) as it aims for a fair, uniform and neutral system for the valuation of goods for Customs purposes. This conforms to commercial realities, and outlaws the use of assumed values for customs purposes.

“It is our view that the use of benchmarking in valuation as proposed by the CBN policy will negate the aim of the ACV and result in disputes, delays and uncertainties.

“The WTO Trade Facilitation Agreement (TFA) remains the Service’s principle guide for trade facilitation. Therefore, NCS is always seeking new approaches to enable the expedited clearance of goods from our ports by adopting new technologies, harmonizing and simplifying our procedures all of which is purposely designed to reduce cost.”

The NCS said it shall continue to abide by the principles as contained in the ACV for all import/export transactions, as it looks forward to the robust deliberation that is expected to occur from the meeting as directed.

ReplyForward

Customs

Tin Can Customs nets N574.3 billion in 2022 —–records N242.365 billion in exports

The Eyewitness reporter

The Tin Can Command of the Nigeria Customs Service has realized a sum of N574.3 billion in 2022.

The Customs Area Controller (CAC), Tin Can Island Port Command, Comptroller Olakunle Oloyede, disclosed this at a news conference at weekend.

Oloyede said the figure represented an increase of N80.90 billion or 16.39 percent when compared with N493.4 billion recorded in 2021.

“This feat can be attributed to the constant rejigging of the existing measures geared toward sustaining the command’s revenue profile.

“It is as well as utilisation of some disruptive strategic measures such as: periodic capacity building, reshuffling and redeployment of officers using the Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis and implementation of the Vehicle Identification Number (VIN) valuation,” he said.

He noted that the command also ensured robust and continuous stakeholder engagements and collaborations with all sister government agencies and maritime associations.

“These led to timely intelligence sharing, utilisation and voluntary compliance to government’s extant laws by the trading public,” Oloyede said.

He added that the command increased surveillance on declarations made in order to sniff out improper declarations as well as offending items.

He pointed out that the system paid off with the command recording a total of 38 seizures with a Duty Paid Value (DPV) of N1.85 billion.

“These seizures comprise 763kgs of Colorado (Cannabis Sativa) weighing 345.1kg with a street market value of N714.6 million only as given by the National Drug Law Enforcement Agency (NDLEA), 5 x 40 containers of used motor tyre (5,060 pieces).

“Also among seized items are 1,150 bales of second-hand clothing, 1,190 cartons of 20 per carton of potassium bromate and baking powder, 11,392 cartons of 1,200 per carton Pharmacol injection chloroquine phosphate 322.5mg.5ml (IV and IM), 206,000 pieces of finished machetes.

“Also, 1,383 cartons of 50 rolls per carton of cigarettes, 650 cartons of 50 pieces per carton of new ladies shoes, 2,666 pieces in 36 pallets of new starter Ex-Premium Inverter Battery, 1,980 cartons of assorted non-alcoholic beverages and 1,048 cartons of Tilda basmati rice,” he said.

Oloyede listed others as 2,594 pieces of ammunition and 20 pieces of arms comprising of one pistol with 611090 (S/W) model JCP 40mm, one used Co2 air pistol with accessories cal 117(4.5m)BM, one marksman repeater pistol, six Mace pepper gun and 10 suspected arms of various types.

He said that the seizures when compared with the 2021 record of 27 seizures with a Debit Note of N607.27 only, show an increase of 11 seizures and N1.24 billion.

He said that the increase in the DPV rate could be associated with increased surveillance and intensified anti-smuggling drive, the high value of seized items and Naira depreciation that led to higher exchange rates on imported items.

“These prohibited items were seized and forfeited to the Federal Government in line with the provision of Sections 46 and 161 of the Customs & Excise Management Act (CEMA) Cap 45 LFN 2004 and Absolute Prohibition List of CET 2022- 2026.

“The command pertinently acknowledges the prominent roles played by the Customs Intelligence Unit, Valuation Unit, Federal Operations Unit, CGC Strike Force as well as interventions of Sister Regulatory Agencies like the NDLEA, Standards Organisation of Nigeria SON, the Nigeria Police and others in ensuring these seizures and detentions were made.

“A total of 60 suspects were detained in 2022 and were granted administrative bail while the command has 8 cases pending in court,” he said.

Oloyede said the command recorded a significant increase in the Free On Board (FOB) of exports in the period under review to the tune of $589,696,648 (N242,365,322,333.00) as against the $496,075,796 (N141,985,109,159.00) recorded in 2021.

He attributed the increase of 34.4 percent in the FOB to the high quality and value of exported commodities.

“However, the export report shows a decrease in tonnage of export from 1,723,986.8 in 2021 to 336,179.5 in 2022.

“The decrease in tonnage could be connected to current government fiscal policy which prohibited the export of wood and wood products as well as the global unrest with its concomitant economic challenges,” he said

He listed the commodities exported through the command to include: cocoa beans, insecticides, dried ginger, empty bottles, soya beans, cashew nuts, cigarettes, rubbers, cocoa butter, frozen shrimps, copper ingots, aluminum ingots, sesame seeds and other manufactured items.

“Cocoa beans were the highest exported commodity while the legend stout was the least exported commodity.

“The future of export in the command looks brighter as the command in line with the headquarter circular on Export Standard Operating Procedure (SOP) released a Port Order on the Command’s harmonised SOP for the seamless facilitation of Export Trade in strict compliance with Extant Laws and guidelines on Export,” he said.

Customs

”No container will leave Apapa Port without 100 percent physical examination”

declares Auwal Mohammed as he takes over as new Apapa Customs Area controller

—promises to surpass N1 trillion revenue mark

—vows not to facilitate non-compliant traders

The Eyewitness reporter

Despite the deployment of cargo scanning machines, the new area comptroller of the Apapa command of the Nigeria Customs Service, Comptroller Auwal Mohammed, has vowed that no container shall leave the Apapa port without a 100 percent physical examination.

Comptroller Mohammed, who formally took over the mantle of leadership of the command Friday, 27th, January 2023, from Ag. Assistant Comptroller-General of Customs(ACG) Malanta Ibrahim Yusuf, said that the decision to subject all cargo to physical examination was meant to account for every content of container passing through the command and to maximize revenue returns to the Federal Government.

He, therefore, warned non-compliant traders to steer clear of the command as he would not facilitate their trade as he desired to surpass the one trillion revenue mark achieved by the command under the former area controller Yusuf.

”We shall continue to conduct 100 percent physical examination of cargo so that we can account for all the cargo in the containers and to generate more revenue so that we can surpass the one trillion revenue collection that the command has already achieved. No package, no container should leave Apapa port without a proper 100 percent physical examination.” the new Comptroller told his officers who had gathered to welcome him.

He continued ”Today marks another era in the history of the Apapa command of the Nigeria Customs Service. I am inheriting a well-structured area command. The level of achievements and status achieved under my predecessor will be sustained while I will look for all means to surpass them.

I am ready for the job. I am aware of the big shoe I am stepping into but I am well prepared for it”, Comptroller Mohammad said.

He, therefore, asked the officers to be at their utmost best to cooperate and work with him to sustain and surpass the legacies of his predecessor.

He also solicited the support and cooperation of stakeholders whom he promised to engage with and updated frequently on all issues and policies that will enhance their trade and performance of the command.

The new helmsman also charged all the releasing officers and the image analysts who will be conducting the scanning of cargo to be diligent and exhibit the utmost sense of responsibility and professionalism in their duty so as not to release uncustomed goods.

Mohammed, who was redeployed from Onne Port Area Command when he was the area controller, also enjoined the importers and their agents to be compliant with the cargo clearance procedural processes in order to enjoy a seamless cargo release.

”The goods clearance procedure is simple. Everything starts and ends with declaration and if there is a proper and correct declaration of cargo, there won’t be any need for delay and unnecessary interference with the process”, he admonished.

Earlier, the outgoing Area Controller, Ag. Yusuf, while handling over the operations and procedures of the command to his successor, solicited the support and cooperation of all the officers and other stakeholders for the new helmsman, urging them to avail the new comptroller of the same level of support, guidance, and cooperation and advice they gave him.

He also lauded the untiring efforts of his officers whom he said were instrumental in the monumental achievements recorded by the command under his watch.

Consequently, some officers who excelled in the discharge of their duties were commended and awarded certificates of merit, including the indefatigable Public Relations officer of the Command, CSC Abubakar Usman.

Customs

Hameed Ali, Customs boss, in last minute frenzied promotion, reshuffle of officers

CGC, Ali

The Eyewitness reporter

In what appears to be his last major assignment before his second-term tenure as the Comptroller General of the Nigeria Customs Service winds down on May 29th, 2023, Hammed Ali, the Customs boss, has undertaken a comprehensive restructuring of the service through mass promotion, a reshuffle of the management team and rejigging of the area Controllers.

Col.(rtd) Ali kickstarted the massive exercise with a promotion galore of officers when on January 5th, 2023, three ACGs were appointed and 1490 officers were promoted to their next ranks by the Customs board upon his recommendation.

Not done yet with what stakeholders described as his parting gift to officers, a week later, the CGC announced the reshuffle of the management team of the service by infusing some newly promoted ACGs into the team while swapping the positions of some old members.

The icing on the cake was when he reshuffled the Area Controllers by rewarding some newly promoted Controllers with juicy Area commands while swapping the positions of the old ones.

The latest exercise, announced Saturday, January 21st, 2023, was the new disposition at the command structure of the service.

In the new posting, Comptroller Timi Bomodi, who was until now, the National Public Relations Officer of the Service and newly promoted to the Comptroller cadre, was posted to head the Kirikiri Lighter Terminal (KLT) in Lagos, while Comptroller Dera Nnadi, who had just concluded his management course at the National Institute of Policy and Strategic Studies, Kuru, near Jos, was posted to Seme Area Command as its Area Controller.

Nnadi had a short stint at Ogun Command, Idiroko, as its Area Controller before he left for NIPSS.

In the new posting, Comptroller Auwal Mohammed was moved from Port Harcourt Area 2 command to head Apapa Command vacated by the revenue czar in the service, ACG Malanta Ibrahim Yusuf.

Others include Compt OA Salefu who now heads Western Marine Command Lagos, Compt AM Ibrahim heads PTML Terminal Lagos and Compt M.S Yusuf superintendents over the Muritala Muhammed Airport command in Lagos.

Compt CD Wada goes to Port Harcourt Area1 command as its Area Controller, while M.I Jalo heads Federal Operations Unit Zone B while B . Mohammed heads Lillypond command in Lagos.

The promotions and reshuffle of officers have however elicited mixed reactions among the Customs officers.

For those who benefited from the parting gift of Hammed Ali, it was a welcome development, but for those who hold the short end of the stick in the exercise, it left a sour taste in their mouth.