Customs

Customs commences phased destruction of seized 88 containers of illicit drugs.

Funso OLOJO

In a concerted efforts to stamp out the proliferation of unapproved and harmful substance in the country, the Nigeria Customs Service, in collaboration with other relevant agencies, carried out a nationwide destruction of expired and fake pharmaceutical products in Lagos.

Assistant Comptroller General of Customs, (ACG) Timi Bomodi, from the Enforcement, Inspection, and Investigation Department, led the initial phase of the operation on Thursday, 22 January 2025, at the Alaro Dump site in Epe, Lagos.

Bomodi, who also chairs a committee on identifying, isolating, evacuating and destroying illegal imports, established by the National Security Adviser (NSA), emphasised the significance of the nationwide exercise.

“We’re starting here in Lagos, specifically with about 88 containers.

“We’ll also be going to Port Harcourt, where we have over 20 containers. Then we’ll go to Calabar, Kano, and other locations”. Bomodi disclosed.

He highlighted the operation’s impact, noting that the exercise is integral to safeguarding public health and security.

“These products are offensive, fake, unregistered, and pose a serious threat to the well-being of Nigerians.

“Some are linked to criminal activities, including kidnapping and other crimes.”

The ACG stressed that the multi-agency approach spearheaded by the NSA involves the NCS, NAFDAC, NDLEA, and other bodies working together to curb the menace.

He pointed out that while the destruction is critical, efforts to prosecute offenders are underway, with several cases already in court.

During the initial operation in Lagos, five containers of illicit pharmaceuticals were destroyed.

ACG Bomodi stated that this is the first phase of a continuous exercise until all intercepted containers are eliminated.

Beyond the destruction of the seized goods, the ACG disclosed that authorities are also investigating illicit products’ origins and importation methods.

“We are looking at the items and examining their countries of origin, importers’ histories, and the agencies they use.

“This enables us to build a robust risk management system to tackle this menace effectively.”

He also called on the public to collaborate with authorities, emphasising that tackling this issue requires a collective responsibility.

Speaking on behalf of the NSA, Commodore Kelechi Ogbonna reiterated the government’s commitment to eradicating the menace.

“The NSA is concerned about ensuring these substandard and contraband pharmaceuticals are destroyed and kept out of the system due to their harmful nature.”

He further emphasised the NSA’s firm stance on this issue, stating his passion not to allow such items to find their way into society.

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.

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.

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.