Customs

Customs debunks reduction in duty on vehicles.

CGC, Ali

It was an error– still 35 percent, not 20 percent—Customs NPRO

Opeyemi Adesogbon

The management of the Nigeria Customs Service has debunked widespread speculation that it has reduced duty on vehicles from the current 35 percent to 20 percent.

Speculation was rife at the weekend that the duty rate applicable on Common External Tariff (CET) trade portal on vehicles under HS Code 8703 was on Friday reduced to 20 percent Duty rate.

But Timi Bomodi, a Deputy Comptroller of Customs and the National Public Relations Officer of the Service, who exclusively spoke with our reporter Saturday, claimed that the so-called reduction was an error.

” I want to confirm to you that there was no reduction in duty on vehicles.

“What the agents claimed to be a reduction was an error which is being corrected”

When asked what will happen to any payment made on the so-called error, Bomodi piqued that anyone who made payment based on the error on the portal will be made to pay the difference.

” Is it not an irony that the agents find it convenient to quickly pay when the duties are reduced but will carry placards when the same duties are increased”

He was however evasive on possible disciplinary action the Customs management might take on whoever made the costly” error” that has far-reaching implications on the cargo clearance and revenue generation of the customs.

“We shall deal with the situation and the management will soon come up with its position on the matter” he declared, foreclosing further inquiry.

The so-called error was said to have created an atmosphere of uncertainty among customs brokers who said the development caught them unawares.

However, some of the clearing agents are still not convinced that the reduction was an error as they claimed it was on the Customs portal.

The National Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA), Alhaji Babatunde Mukaila said that the reduction was not a mistake.

“Members are enjoined to remain calm as this is not an error, but the extant regime.

“This has gone a long way to buttress ANLCA’s position that information and communication gap between NCS and general trading community is still at the lowest ebb.

“We shall continue to keep members abreast of this development ” he stated.

The National Vice President of ANLCA, Kayode Farinto, said the proper HS Code for used Vehicles before now is 8733320 at 35 percent.

Farinto however said that this negates the CET tariffs where it was agreed that all member states should allow vehicles to be cleared at 20 percent until Nigerians reported the rip-off by the Nigeria Customs Service to the ECOWAS.

“I have noticed that some agents have been capturing vehicles under Hs code 87033319 ( which is reserved for other Fully Built Units (FBU), for assemblers).

“NCS must make a categorical statement between now and Monday to inform people to continue to capture on 87033320 which has been reduced to 20 percent rate of duty”

“In view of this development, we urge our members not to force themselves to capture on 35 percent rate of duty for vehicles.

“Get it at the back of your mind that henceforth, vehicles will be on 20 percent,” he said.

These divergent positions of the customs and the clearing agents have muted clearing activities at the RORO ports in Tin Can as most of the customs brokers are in a dilemma.

The Public Relations Officer of ANLCA at Tin Can Port, Mrs. Onome Monije, said importers and agents are at the crossroad over the conflicting situation.

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Customs

Customs, UN agency collaborate to fight smuggling

The Eyewitness Reporter

The anti-smuggling efforts of the Nigeria Customs Service has received a boost with the support of the United Nations agency,

United Nations Human Settlements Programme, UN—Habitat.

The Customs got the assurance of collaboration from the UN agency on Tuesday, September 19, 2023, when the acting Comptroller General of Customs, Adewale Adeniyi hosted the ambassadors of the global agency led by Dr. Raymond Edoh in his office.

Adeniyi told his guests that the Service, under his watch, will implement every necessary action against saboteurs of Nigeria’s economy to cripple their ‘illegitimate’ business of smuggling.

“On behalf of the entire Management Team of the Nigeria Customs Service, I wish to inform you that we will partner with you in this campaign, and we will grant you all forms of support you may need to carry out this campaign — and I want to assign one of our amiable DCGs, Abba Kura, to work with you closely.”

He appreciated how they traveled from afar to inform the Nigeria Customs Service of their campaign against smuggling, which, according to him, the Nigeria Customs Service has already started yielding positive results in suppressing the menace of smuggling.

The CGC also welcomed Dr Raymond’s offer to engage officers and men of the Service in capacity—building to enhance their understanding of digital literacy skills, adding that the Service has already started embracing technology to advance its work by introducing related courses to officers.

The CGC appreciated the collaborative effort between the Nigeria Customs Service and UN—Habitat and believes that the collaboration signifies a commitment to tackling smuggling and enhancing trade facilitation in the nation, setting the stage for a more prosperous future.

“What we’re trying to do is to raise a modern Customs Service through partnering with stakeholders to achieve our goals because we value partnership, and I am happy that you extended your hands of collaboration to work with us.”

He also appreciated their pledge to train officers and men of the Service in digital literacy skills, assuring that the Service will continue to prioritize proficiency in the fight against smuggling through a technological approach.

He underscored the importance of digital skills, promising that the relevant Service department will enhance trade facilitation.

On his part, the Director of UN—Habitat, Dr. Raymond Edoh, appreciated President Bola Ahmed Tinubu for reposing the responsibility of heading the Nigeria Customs Service on the Acting Comptroller-General, describing him as “a competent Customs officer who knows the terrain and masters the job.”

According to him, they decided to visit the Ag. CGC at the Customs Headquarters to express their interest in partnering with the Service.

He appreciated the Service for being a “gatekeeper of the country” that protects citizens against border threats, stressing that his organization will collaborate with NCS to mitigate the smuggling of illicit goods and train officers and men of Customs on digital literacy skills and certification.

UN-Habitat is the United Nations entity responsible for developing urban policies and translating them into action to create sustainable cities and promote viable urban development and adequate shelter for all.

Customs

MARAN raises alarm over continued depreciation of Customs’ N180 billion boats on Lagos Marina waters —- calls on CGC Adeniyi to deploy the assets

Wale Adeniyi, Ag, CGC

The Eyewitness Reporter

The Maritime Reporters Association of Nigeria (MARAN) has called on the Comptroller General of the Nigeria Customs Service, Adewale Adeniyi, to rescue the N180 billion Customs patrol boats from further depreciation on the Lagos Marina waters.

In a statement issued by the foremost maritime journalists group, the anti-smuggling patrol boats procured by the former President Goodluck Jonathan Administration for the Nigeria Customs Service (NCS), have been abandoned since 2015 at the Marina Lagos waterfront.

The group noted with concern that more than eight years after procurement, and many years after the immediate past administration of Customs led by Hameed Ali promised that the two patrol boats would be rescued from disuse, the boats have rather become a pitiable sight as most of its gadgets have gone useless.

” More pathetic and anger-inducing is the fact that the patrol boats, which consume more than N5 billion as annual maintenance fees have, however, not been put into use even after being commissioned by former Customs boss, Rtd Col. Hameed Ali.

“It is more unpardonable to note that while these vessels are being eaten away daily by termites, the officers and men of the Western and Eastern Marine Commands of the Customs go on patrol operations on the waterways with obsolete and smaller patrol boats that have made them easy prey for smugglers.

“Many have lost their lives in the process.

“Inside sources claimed that the boats are more than overdue for dry-docking and routine maintenance, going by the manufacturer’s specification.

“It will be recalled that the procurement of the patrol boats was initiated by the management of NCS led by the late Abdullahi Dikko Inde, to boost its marine anti-smuggling operations.

“At that time, the NCS operations, according to research, were at their lowest point because of a lack of functional patrol boats and other operational equipment to withstand smugglers with sophisticated fast-moving equipment, fully armed.

“The government awarded the contract to build the boats to a South African firm, Kobus Naval Design , KND, in 2012.

“The then Jonathan-led Federal Executive Council, FEC, approved N3 billion for the procurement of the two NCS patrol boats for the surveillance of Nigeria waters.

“Based on the order, the two vessels, named ”Customs Pride” and” Group of Nine” were slated to be delivered to the NCS within 10 months but were not until April 2015, three years behind schedule.

“The total cost of building the two patrol boats by the firm catapulted to over N180bn from the initial approved sum, raising questions about perceived sharp practices.

“The patrol boats, which were delivered to the NCS in April 2015 have since then berthed at the Marina Waterfronts, Lagos, where it is idling and rotting away at significant cost of maintenance to the NCS.

“While commissioning the two sea-going boats in September 2019, the CG of Customs, Hameed Ali, admitted that the Service has been weak on the waterways compared to the land and that this necessitated the purchase of the two boats.

“This situation, he agreed, led to the death of nine Customs marine officers while confronting deadly petrol smugglers on the sea in 2012.

“It was in honour of this group of nine gallant officers who died in the service of their fatherland that one of the seagoing vessels was named ‘Group of Nine’ while the other represents the ‘Customs Pride’ on the sea.

“One would expect that since the Service now has four marine commands, namely Western Marine, Eastern Maritime, North-Western Marine and North Eastern Marine commands, there is no better time than now to put the boats the effective.

“Presently Nigeria is going through economic turbulence, and cannot afford the culture of waste amplified by the past administration”

The group therefore called on the Acting CG of Customs, Bashir Adewale Adeniyi, to deploy his dynamic attention to this issue and take immediate steps to get the boats functional as the Customs operations, more than ever, require these vessels to confront smugglers.

“We advise that the issues surrounding the abandonment of the vessels should be sorted out immediately or the Customs management should seek the help of experts to rescue them.

“Nigeria Customs management should purge itself of the indifference and above board attitude of its immediate predecessor that led us to this sorry state”

Customs

Nigeria, Republic of Benin deepen cross-border trade facilitation

The Director General of Benin Republic Customs, Alain Hinkati, signing the agreement while CGC Adeniyi looks on

— as importers of both countries can clear goods, pay duties at either of the countries’ ports

The Eyewitness Reporter

The Nigeria Customs Service has signed an agreement with the Customs administration of the Republic of Benin where importers of both countries can use the ports of either of the countries to clear their goods and pay the relevant customs duties.

Consequently, a Nigerian importer can use Benenoise port to clear his goods destined for Nigeria and equally pay customs duties.

The same scenario applies to a Benenoise importer who can equally make use of Nigerian Ports.

This was part of the agreement reached by the two neighboring countries at the end of the two-day interactive session between the Customs Administrations of the two countries.

The session, which started on Monday, 11th September 2023, at the Abuja Intercontinental Hotel, is expected to deepen the relationship between Nigeria and Benin while promoting their age-old bilateral trade ties.

The Acting Comptroller-General of Customs, Bashir Adewale Adeniyi therefore expressed his commitment to synergize with the Benin Republic to enhance trans-border security and regulate trade between the two countries.

“We are building confidence in the system offered by the Republic of Benin; our importers will use their ports and vice-versa.

“If there are people in the Benin Republic who want to use our ports, we try to build trust in our systems.

“And by virtue of this agreement, what it means is that Nigerian importers willing to use the ports in Cotonou can have their goods cleared in those ports because there would be an opportunity for them to pay duties on goods that are liable for payment of duties.”

Adeniyi made this known on Tuesday, 12th September 2023, when he officially received Senior Officers of Benin Customs, led by their Director-General, Alain Hinkati, at the Nigeria Customs Headquarters Abuja, in continuation of their two-day interactive session.

Other areas that the partnership will address include enhancing the proper use of International Transit Guidelines to govern transit-bound goods and fees from Cotonou Port to Nigeria and integration of Nigeria into the Interconnected System for the Management of Goods in Transit.

The Customs boss further highlighted that the treaty between the two Agencies “will prepare the way for an in-depth mechanism to harmonize the import prohibition lists of products banned by the two countries.

“In view of our commitment to curb smuggling and unlawful trade through our borders, we deemed it necessary to meet and form a strong agreement that will support our strategic plans to implement technological-base measures of clearing and tracking of items at our borders.”

The Ag. CGC, however, affirmed that the Nigeria Customs Service has concluded plans to promote good relations with border communities with a view to actualizing full participation of private sectors and frameworks of border Customs Units.

Speaking further, the Ag. CGC appreciated the Benin Customs and Embassy of the country for expressing interest in collaborating with the Nigeria Customs Service to enhance trade facilitation.

“The Customs administration in both countries have a very good idea and technical know-how on what it means with trade; thus, we are back with a renewed enthusiasm to foster our relationship and make an impact on our trade facilitation roadmap.

“We hope that the program will address the issues of trade and set a roadmap for the implementation of new strategies that will enhance the economy and revenue in Nigeria and Benin Republic.”

The Director General of the Benin Republic Customs, Alain Hinkati, said, “It is our hope that the program will address the issues of trade and set a roadmap for implementation of new strategies that will enhance the economy and revenue in Nigeria and Benin Republic.”

According to him, the two organizations need to develop ideas to address transit issues and other progressive measures.

He said with the increasing global security challenges, the need for both customs administrations to work in synergy cannot be over-emphasized, adding that their intended mutualism will boost their relationship to improve the economy of both nations.

Meanwhile, the joined communique signed by the Ag. Comptroller-General of the Customs, Bashir Adewale Adeniyi and Director-General of the Bennese Customs, Alain Hinkati, highlighted that their meeting favours the desire of the two countries’ presidents: Bola Ahmad Tinubu and Patrice Talon to strengthen the shared commitment to enhancing trade facilitation and promoting economic development.

Other areas that will benefit the countries are fostering closer ties to Nigeria and Benin and reactivating the joint committee for monitoring trade and transit relations.