The on-going reforms in the Nigerian Customs Service recently received a
pat on the back, from President Goodluck Jonathan during a tour of the Apapa Command,
on the visit of the Secretary General of the World Customs Organistation (WCO),
Kunio Mikuriya to the Apapa Area Command in Lagos.
In his speech, President Jonathan stated that the reforms will ‘boost security in the country by helping to curtail the influx of
illegal small arms and light weapons into the country and enhance trade in the
West African sub region’.
Earlier in an
interview on ‘Sunrise Daily’ on Channels Television, in Dec. 2013,
the Public Relations Officer, Nigeria Customs Service, Deputy Comptroller Wale
Adeniyi, confirmed that apart from
check - mating illegal business transactions across borders, this step has
generated great revenue for the Nation.
According to him, “In
the last few years the roles of customs has gone through some changes. There
have been more challenges, more functions. The dynamics of situations in the
international system has changed, so much so that we now have other issues
related to border security.”
“While trying to guaranty that the bad guys do
not come in, we also must ensure that the good ones who are doing legitimate
trade must have their processes facilitated.”
In achieving these
goals, Adeniyi listed the key standards employed by the Nigerian Customs. These
standards include quick service delivered in good time and simple
procedures, with a mind-set of achieving quick turnover. He said.
Notwithstanding, despite the Common External Tariff Concordance linked to the Customs
PAAR for easy navigation and accurate classification to ensure its feasibility,
the introduction of the PAAR has been greeted with knocks.
Before now, government appointed destination inspectors at the Nigerian
Ports were saddled with the responsibility of issuing the Risk Assessment
Report (RAR) to vessel owners during clearance, which was issued in five
working days. This contract was terminated
by the Federal Government in the last quarter of 2013 and the Nigerian Customs Services
took over with the introduction and issuance of Pre Arrival Assessment Report (PAAR)
to “fast-track goods clearance at the ports”. A move reportedly taken 'in accordance with international
best practice, economic competitiveness, enhancing trade, revenue collection
and border security'.
The impact of the Pre Arrival Assessment Report PAAR and FOB reforms on
small and medium scale businesses is not without criticisms as some genuine entrepreneurs have expressed frustrations over challenges confronted
when clearing their cargoes, due to delays in the issuance of the Pre Arrival
Assessment Report (PAAR) and the increased FOB value of imports. They appealed to
relevant government functionaries to intervene in their plight.
According to the Managing Director of Cambistry Ventures Limited - Lagos,
Mr. Ikechukwu Okafor whose business is one out of the many businesses currently
affected by the tardiness in issuing the Pre Arrival Assessment Report.
The long process involved in the new Customs reforms have been unfair to genuine business owners as they have to wait for months before their consignments will be attended to, a development he said is rather stalling business activities, likewise, the longer the goods are delayed, the demurrage keeps skyrocketing. “My consignment arrived on 24th February, 2014. As at today, PAAR has not been issued. I have approached my bank to find out why and their response is that they have in arrears 3,000 PAAR yet to be issued. My Business is suffering the loss of revenue with unnecessary demurrage charges. You can verify these from any of the banks.
The long process involved in the new Customs reforms have been unfair to genuine business owners as they have to wait for months before their consignments will be attended to, a development he said is rather stalling business activities, likewise, the longer the goods are delayed, the demurrage keeps skyrocketing. “My consignment arrived on 24th February, 2014. As at today, PAAR has not been issued. I have approached my bank to find out why and their response is that they have in arrears 3,000 PAAR yet to be issued. My Business is suffering the loss of revenue with unnecessary demurrage charges. You can verify these from any of the banks.
“The other problem is
the uplifting of the FOB value of the imports therefore making the importer to
pay more duties. This action is of the belief by Nigeria Custom Service that
most importers under- invoice their imports. The FOB value of my recent import
was uplifted from $52,000 to $71,000. A 36% increase. This alone translated to
increased duty of circa N700, 000. This development is certainly not favourable
for genuine private business operators in the country”. He said.