Customs Corner
Nigeria Customs control caught importation from US after weeks of duty payment
Nigeria Customs control caught importation from US after weeks of duty payment
A Nigerian importer based in the United States of America is currently in a bad mood over a consignment that has remained at the Tin Island Port for over a month, breeding demurrage costs despite paying all tariffs to the Nigeria Customs Service at the port.
Babatunde Bashorun, during an inquiry to Business a.m maritime desk said he shipped a container loaded with two cars from New York to Nigeria destined to the Tin Can Island Port in Lagos and the container arrived the port on April 6, but up till May 8, the container was yet to be released by the Customs after his clearing agents had paid all duties.
Bashorun said the delay by the Customs in releasing his cargo had led to incurring demurrage of over N500,000 which his agent had also paid.
He blamed the Nigeria Customs Service for the delay, saying the Customs cited problems relating to the COVID-19 pandemic and that one of the cars had issues with date of manufacture, an error the importer claimed was committed by same Customs.
The importer also lamented paying over N500,000 despite a directive by the Nigerian Ports Authority (NPA) seeking to stop port operators from collecting demurrage charges from importers during the period of lockdown in Lagos occasioned by the COVID-19 pandemic.
He said, “I shipped a container to Nigeria and it arrived at Tincan Sea Port on April 6th, 2020. On the same day, my agent commenced duties payment amidst the slow pace at which NPA was conducting its business due to COVID-19. Roughly 30 days of the container’s arrival at the port, the Customs has not conducted container inspection.
“I am aware of the directive from the Federal Government asking terminal operators and shipping companies to waive storage fees on consignments for a period of 35 day, beginning from March 23rd, (the initial 21 days followed additional 14 days). Yet, I have paid well over $500,000.00 in demurrage.
As at this afternoon, May 8th, 2020, the container that arrived the Tin Can Island on April 6th is yet to be released.
However, the Customs command, Tin Can Port responded to the importer’s complaints saying the importer might be having issues with the port terminal and not the Customs as it was the responsibility of the importer to book his cargo for the Customs to examine it after he had cleared with the destination port terminal.
“Usually, when goods arrive,it is the duty of the importer or his agent to book for examination of the container with the terminal operators. Once it has been booked for examination, the terminal will drop it and it now behooves the importer or his agent to notify all other agencies, including the Customs for examination.
“I believe probably he may be having some challenge at the terminal because we have a responsibility to examine any container that is billed for examination,provided duty has been paid,” said Uche Ejesieme, spokesman of command.
Ejesieme said issues around date of manufacture of any of the cars would not hinder inspection of the cargo as the importer would only be required to go for amendment at the shipping company.
“Issues of date of manufacture will not hinder examination, as the chief examiner will normally indicate in the examination report. For cases of this nature, the importer would be required to go for an amendment at the shipping company, because sometimes, we discover that the so called mistaken identity, may be deliberate, in order to circumvent a process,” he said.
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Customs Corner
Customs Lilypond Command Facilitates 5,891 Containers of Export Commodities Valued at $236M
By Lucy Nyambi
The Nigeria Customs Service, Lilypond Export Command, has processed 5,891 (20ft and 40ft) containers of export commodities valued at $236,087,888.53 in the 1st quarter of 2024.
Announcing the Command’s outstanding performance to Newsmen on Tuesday, 16 April 2024, Comptroller Ajibola Odusanya revealed that the commodities comprise Agricultural produce, manufactured goods, solid and extractive minerals, among others.
Comparing activities with the corresponding period in 2023, Comptroller Odusanya noted that analysis revealed a substantial growth trajectory in Q1 2024.
According to him, “total containers processed in 2024 Q1 surged by 44% to reach 5,891(20ft and 40ft) containers as against 3,784 (20ft and 40ft) containers processed in 2023 Q1, signifying heightened trade activity at the Command.
“Export commodities’ value also surged by 42% to USD$236,087,888.00 as against $154,459,566.39 recorded in 2023 QI, underlining the sustained momentum in export performance.”
The Area Controller stated that the Nigeria Export Supervision Scheme (NESS) also witnessed an impressive 114% increase, “reaching N1,389,331,520.15 from N378,268,430.57 received in 2023 Q1, indicative of enhanced revenue generation and compliance.
“Surcharge payment for plants & machinery, and imported goods doubled from NGN 8,785,188.00 in 2023 Q1 to NGN 18,218,964.00 in 2024 Q1, representing a 70% difference, aligning with fiscal policy directives.”
Comptroller Odusanya emphasised the importance of increased export trade activities in firming up the Naira value.
He attributed the surge in export trade activities to President Bola Tinubu’s vision to encourage export, stating that, “the Nigeria Export Promotion Council (NEPC) has been on top of that sensitisation, and the little we can do at our end in customs, is to support them.”
He reiterated the Command’s commitment to fostering consolidation, collaboration and innovation to ensure seamless trade facilitation.
“Export business is our business here. We facilitate the trade of export and give maximum corporation to those people that are ready to do legitimate export trade,” he stressed.
Customs Corner
Federal Government Launches National Single Window Steering Committee to Enhance Trade Efficiency
Author: Folusho Adeogun.
In a bid to enhance trade facilitation and efficiency within the nation’s import and export value chain, the Federal Government has inaugurated the National Single Window Steering Committee, with the Nigeria Customs Service (NCS) serving as a key member.
The launch took place at the Presidential Villa Abuja on Tuesday, with President Bola Tinubu presiding over the inauguration.
The Committee is composed of representatives from key federal ministries and agencies, including the Ministry of Finance, the Marine and Blue Economy, Transportation, Trade and Investment, as well as the Federal Inland Revenue Service. Other agencies involved are the Nigeria Sovereign Investment Authority (NSIA), the Central Bank of Nigeria, the National Agency for Food and Drug Administration and Control (NAFDAC), the Standards Organization of Nigeria, and the Nigerian Maritime Administration and Safety Agency (NIMASA).
The Nigerian Customs Service is playing a crucial role in the effort, given its direct involvement in trade facilitation and border security.
The newly established committee will oversee the implementation of the National Single Window project, a real-time digital trade compliance system aimed at modernising and streamlining trade processes.
The project is expected to facilitate paperless trade and provide an annual economic benefit of around $2.7 billion, contributing to national revenue and improving port efficiency.
President Tinubu emphasised the importance of the initiative. He said, “Nigeria cannot afford to lose an estimated $4 billion annually due to bureaucratic delays, red tape, and corruption at the nation’s ports. By embracing the single window system, Nigeria hopes to join countries like Singapore, Korea, Kenya, and Saudi Arabia that have already experienced significant improvements in trade efficiency,” he stated.
The Nigeria Customs Service supports the initiative as it aligns with the service’s goal of enhancing trade facilitation and national security.
NCS’s involvement will ensure the successful implementation of the project, helping to expedite cargo movement and optimise inter-African trade.
The initiative is seen as a bold statement of the government’s commitment to progress, prosperity, and the well-being of all Nigerians. It represents a significant step towards regional integration and collaboration, ultimately contributing to a better future for the country.
Customs Corner
Nigeria Customs Service Bolsters Collaboration with Benin Republic Counterpart
By Ruth Akata
In an effort to strengthen the longstanding partnership between the Nigeria Customs Service (NCS) and its counterpart in the Republic of Benin, a high-powered delegation led by the Comptroller-General of Customs (CGC), Bashir Adewale Adeniyi MFR, embarked on a crucial mission to meet with the Director-General of the Customs Administration of Benin Republic on Thursday, 11 April, 2024.
The primary focus of the meeting, as outlined by the CGC, was to deliberate on strategies aimed at amplifying trade activities between the two nations and ensuring the seamless implementation of recommendations previously discussed during their rendezvous in Cotonou.
Highlighting the significance of the collaboration, the CGC underscored, “We are cognizant of the established framework for cooperation between our respective customs administrations. This framework was established at a higher level by the authorities of the heads of State, President Patrice Talon of Benin and His Excellency President Bola Ahmed Tinubu of Nigeria, both expressing a desire to work together. It is upon this foundation that the customs of both countries are united in their efforts.”
Welcoming the delegation with open arms, Mrs Adidjatou Hassan Zanouvi, the Director-General of Benin Customs Administration, reiterated their steadfast commitment to executing the mutually agreed-upon measures, emphasising the importance of thorough monitoring to ensure effective implementation.
The collaborative endeavours between the Nigeria Customs Service and the Benin Republic Customs Administration, according to her, serve as a testament to their shared commitment to facilitating seamless trade operations and ensuring the efficient management of cross-border activities for the mutual benefit of both nations.
In the meantime, during the visit, the CGC seized the opportunity to inspect ongoing projects within the Nigeria Customs Service, Seme Area Command. Accompanied by the Customs Area Controller, Comptroller Timi Bomodi, the CGC meticulously assessed the progress of the projects and received assurances of diligent oversight from the responsible authorities.
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