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Customs Corner

NCS Debunks Claim of Intended Hikes in Customs Charges

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NCS Debunks Claim of Intended Hikes in Customs Charges

The Nigeria Customs Service has rebutted a rumour of hike in License Fees, Duties and Values of Pre Arrival Assessment Reports issued to Importers. This is according to a press release by the Deputy National Public Relations Officer of the Service, DC Timi Bomodi.

He said “The attention of the Nigeria Customs Service has been drawn to online news reports of a meeting which took place at Rockview Hotel Apapa, Lagos on Monday 26th September 2021. The meeting was purportedly called by members of freight forwarding associations and Customs Licensed agents, including executives and members of Association of Nigeria Licensed Customs Agents ( ANLCA), National Association of Government Approved Freight Forwarders (NAGAFF), and three other associations. Among other things they were reported to have complained about an intended hike in license fees, arbitrary increases in Customs duty, hikes in the values of Pre Arrival Assessment Reports issued to importers, the conduct of Valuation officers, uncertainty or inconsistencies in tariff classifications for certain goods, frequent alerts, and the illogic of government giving revenue targets to Customs especially in an era of trade facilitation”.

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Bomodi explained that there is no attempt to arbitrarily increase the license fee of Customs Licensed Agents. “It is important to note that the fees payable by Customs Licensed agents are as approved by law outlined in section 156 of CEMA as amended. The only recourse to a revision in fees can only be as dictated to by extant laws”.

The Deputy Comptroller further explained that there are two main avenues for the adjustment of duty payable to the government. Where the transaction value declared for an item is questionable and where the classification of the item is wrong.

The former, he said refers to the declared CIF value, while the latter concerns the HS code for that item. Part II of the Common External Tariff prescribes ‘General Rules for the interpretation of the Harmonised System’.

“There are six rules in total and they provide clear, unambiguous guidelines for the classification of all goods under the CET. These rules are not subject to the interpretation of Customs officers alone as they are captured in simple English for the enlightenment of all persons equipped with the proper understanding of that language. In addition to the interpretative rules are chapter headings and the explanatory notes which are designed to further highlight grey areas both of inclusions and exclusions as deemed appropriate for classification purposes” He explained.

He further highlighted that the issue of value has also been comprehensively addressed in the WTO Agreement for Customs value adopted in Article VII of General Agreement on Trade and Tariffs, 1994. This agreement provides a Customs Valuation method primarily based on the transaction value of the imported goods, also known as either the price ACTUALLY PAID or PAYABLE for the goods when sold for export to the country of importation.

In addition to the transaction value, he stated that WTO prescribes 5 other methods that can be applied successively. Impliedly the transaction value is followed by; the transaction value of identical goods, the deductive value method, the computed value method and the fall-back method.

“Finally, the NCS awaits the success of their recommendations to government regarding revenue targets to Customs, so we can concentrate on trade facilitation and anti-smuggling activities alone. As always, our resolve for fulfilling our mandate is matched only with our determination for success and we remain totally focussed in this regard” He declared.

 

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Customs Corner

Apapa Customs Celebrates Exemplary Leadership, as Comptroller Jaiyeoba Takes a Bow

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Apapa Customs Celebrates Exemplary Leadership, as Comptroller Jaiyeoba Takes a Bow

By Lucy Nyambi

Officers and men of the Nigeria Customs Service, Apapa Area Command, as well as stakeholders within the environs, have extolled the Customs Area Controller Apapa Command, Comptroller Babajide Jaiyeoba, as he takes a bow after 35 years of dedicated service.

A send-off party was held at the Command in honour of the CAC on Friday, 3 May 2024.

The event had in attendance the Assistant Comptroller General of Customs/Zonal Coordinator Zone A, Hammi Swomen, Comptroller Ajibola Odusanya, Comptroller Caroline Ayo, Commissioner of Police, Western Port Authority Command, Olanrenwaju, Ishola, Representatives of sister agencies, stakeholders, as well as family and friends.

In his goodwill message, ACG Swomen congratulated Comptroller Jaiyeoba on his retirement while also commending the recent innovations and achievements of the Command.

 

He said, “We are highly impressed by the innovations and the things that are happening here since the last time we came. I would like to thank all the Officers and Men of the Command because, without your support, it would have been difficult to achieve all these”.

Guests and stakeholders, as well as officers, described the Area Controller as an astute administrator and leader who always showed a willingness to teach his subordinates.

In his remarks, Comptroller Jaiyeoba appreciated God for a successful 35 years of meritorious service.

In his words, “I give all glory, all honour to God, Almighty. And I also thank the Officers and Men of Apapa Command and our stakeholders for your cooperation. We came, we told you our agenda, and you keyed into it, and together, we delivered”. He said.

“I can boldly say since January till now, there has been an increase in revenue collection. We set a target for ourselves, beat it, and reset another target, which, before we know it, we have also beaten it.
Because of the cooperation, because of the commitment and because of the will, all of us have to deliver. And I must say I thank all of us for that”.

The CAC further urged Officers and stakeholders to extend the same cooperation to the incoming Customs Area Controller.

“We have set a standard in Apapa Command, and with or without Comptroller Jaiyeoba, we must maintain that standard. I want to plead with us that whoever is coming to take over, the same cooperation you extended to me, I want us to give the same or more than that cooperation so that together, you can deliver”.

Comptroller Babajide Jaiyeoba hails from Oyo state and has a Bachelor’s Degree in Computer Science from the University of Lagos.

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Customs Corner

Customs Again Visits Families of Rice Sale Stampede Victims

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Demonstrate Unwavering Support

Author: Lucy Nyambi.

The Nigeria Customs Service (NCS) has once again expressed compassion and empathy towards the families affected by the tragic stampede that occurred during the sale of 25kg bags of rice in Lagos on 23 February 2024.

A delegation sent by the Comptroller-General of Customs (CGC), Bashir Adeniyi, led by the Assistant Comptroller-General of Customs/Zonal Coordinator Zone “A,” Hammi Swomen, visited the family of the Late Comfort Ajayi on Tuesday, 30 April 2024, in Anthony, Lagos.

Stating the purpose of the visit, ACG Swomen said, “In line with the CGC’s directive, it is an ongoing interaction and support for the families, so even after today, we will continue to keep in touch with them and see the best ways going forward that we can support them in this difficult time.

“It just tells you that the service is responsive, we are caring, we are a responsible Nigerian Government Agency, and even though those events happened outside our premises, we are still touched by it and we will continue to see the best way going forward to support these families.”

Responding, the husband of the late Comfort Ajayi, Murphy Ajayi, appreciated the delegation for their visit, saying, “They have been trying in their effort to get in touch with us and check on us. I say a big thank you, though it has not been easy, but life continues.”

In the same vein, the team also reached out to the families of late Eugene Anyanwu and late Mercy Christopher, who were also victims of the unfortunate incident on Thursday, May 2, 2024.

Sarah Anyanwu, wife to late Eugene Anyanwu
commended the gesture by the Nigeria Customs Service. She prayed to God to enable customs to succeed in their endeavours.

Similarly, Christopher Onah, husband to late Mercy Christopher, also appreciated the service for remembering and commiserating with his family during this trying period.

Recall that the delegation earlier visited the family of the late Susan Odulaja in Jibowu, Lagos, on Friday, 26 April 2024.

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Customs Corner

Nigeria Customs Launches Advance Ruling System for Effective Trade Facilitation

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Author: Muhammad Bashir.

The Nigeria Customs Service (NCS) has, in conjunction with the Nigerian Energy Support Programme (NESP), launched an auspicious scheme aimed at enhancing trade facilitation and creating a more transparent business environment for the Service’s stakeholders in trade space, named Advance Ruling.

Speaking at the venue of launching the project on Thursday, 2nd May 2024, at Envoy Avenue in Abuja, Comptroller-General of Customs Bashir Adewale Adeniyi described ‘Advanced Ruling’ as a critical mechanism that allows traders to obtain binding decisions from Customs administrations on the classification, origin, and valuation of goods before importation.

Appreciating the stakeholders and partners for gracing the event, CGC Adeniyi emphasised that the launched project will also serve as a tool for reducing compliance costs and fostering a conducive business environment for traders.

He said, “Today, we shall be taking the first step towards launching the Nigeria Customs Service Advance Ruling, starting with stakeholder engagement.”

The CGC, who recognised the significance of the project, as it aligns with the World Customs Organization (WCO) and the World Trade Organization (WTO), also emphasised its relevance in facilitating both domestic and international trade while also promoting Customs compliance.

“According to the WCO and the WTO, Advanced Ruling enhances predictability and transparency in customs procedures, streamlining trade processes and minimising delays, uncertainties, and costs associated with Customs clearance.” CGC Adeniyi added.

Commending President Bola Ahmed Tinubu for laying the ground to enhance the economy of Nigeria and supporting the Service, CGC Adeniyi emphasised that the launch of Advanced Ruling at this time aligns with the policy directive of President Tinubu’s administration to facilitate trade for legitimate traders.

He highlighted, “This is reflected in the Policy Advisory Document of the government, which signifies recent achievements, such as the approval to decongest the ports and make them free and accessible for importers and operators.”

As the Comptroller-General of Customs championed the laying of a foundation for Advance Ruling to enhance trade in Nigeria, he revealed that the Service has made all arrangements to conduct workshops and sensitisation sessions at Customs Area Commands to ensure that all stakeholders are well-informed and prepared to utilise this new mechanism effectively.

He, however, applauded the German International Cooperation Agency (GIZ) and other partners for their unwavering partnership and continued support of achieving a significant milestone in trade facilitation activities under the Nigeria Energy Support Programme.

“It is essential to acknowledge that initiatives like Advanced Ruling necessitate investments in capacity building for both officers and stakeholders. We are committed to leveraging our internal capacity while exploring collaboration opportunities with external partners like GIZ.” He said.

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