Ports: Excessive Taxation by Customs Destroying Trade, Aniebonam Laments, Seeks CG’s Intervention
DR. BONIFACE ANIEBONAM
Ports: Excessive Taxation by Customs Destroying Trade, Aniebonam Laments, Seeks CG’s Intervention
*Says baseless, frivolous demand notices being issued to importers to meet revenue targets
*Accuses Ali of failing to restructure Customs, empower zonal coordinators
By Francis Ugwoke
Founder, National Association of Government Approved Freight Forwarders (NAGAFF), Dr. Boniface Aniebonam, has raised alarm over excessive taxation on imports which according to him is destroying trade in the country.
Aniebonam also expressed dismay that the Comptroller General of the Nigeria Customs Service, Col. Hammed Ali (retd) has failed in his promise to restructure the Zonal Commands for the purpose of empowering the Coordinators.
The NAGAFF founder in a chat with SHIPPING DAY said Nigerian importers are being bombarded with heavy taxation, adding that this has become a big burden to businesses with consequences on final consumers of goods being imported.
Applauding the Customs leadership for being able to address the problem earlier experienced in VIN valuation of vehicles imports, he said this has not been the case in the area of general cargo.
He said that importers are still being faced with overbearing Demand Notices (DNs) which he said were mainly designed by the customs commands to either meet or exceed their revenue targets.
Describing some of the DNs as “baseless and frivolous”, he said this policy which is in the name of reaching revenue targets has not allowed trade to be seamless.
He said that the situation has reached a point where the CGC’s intervention was urgently needed.
He told SHIPPING DAY, “coming to general cargo, instances of what I consider baseless and frivolous Demand Notices are being issued in the name of reaching target and the target we are talking about is supposed to be free flowing – supposed to be seamless . To me under the present dispensation, the regime of Destination Inspection, what is the difficult thing, open the container, take inventory of what is there – refer the entry to Valuation Unit if there are infractions, and they moderate the DN and you carry your goods and go.
“ Over taxation of cost is destroying trade. Do you need anybody to tell you that. Imports are being over-taxed, that is the truth. This requires the attention of the CGC and of course the DCG Tariff and Trade. Issues are being raised, what we are at the moment doing is the regime of DI which is outrightly called customs examination and I guess the customs is taking the authority to act under section 27 – 28 in what you may refer as Bill of Sight”.
Aniebonam said the CGC has failed to restructure the Zonal Commands and give powers to the Coordinators, adding that this was affecting importers and customs agents who have to fly to Abuja Headoffice of the Customs with all the risks and cost implications to solve issues that can be resolved at the zonal commands.
He said surprisingly, the CGC had promised to address this when he visited the NAGAFF Headquarters some years ago.
But he added that all the promises the CGC made in respect of restructuring that will empower the Zonal offices were yet to be fulfilled.
“I still remember that CG visited NAGAFF headquarters and extensively we engaged him and which he responded positively. Up till now, some of the things he said he was going to do, they have not been done. For instance, the restructuring of the Customs. In the instance, what are the responsibilities of the Zonal commands. Why must all of us be going to Abuja over an issue that should be resolved at the zonal level. The zonal level should be able to address them but why must everyone be going to Abuja. So what is restructuring all about. I can give you an example , where somebody does well., we say yes, you have done well, the VIN Valuation has for long now stabilized clearing of vehicles from the ports and all that.
“There is nothing that I have told you that the CGC is not aware. They have intelligence unit and I am sure they are writing intelligence report. It is just like the scanning operations. I am sure you know what is going on there. Creating so many problem for the Controller to manage this kind of situation. How many containers can be scanned in a day…….So right now, the customs, particularly the controller of the area Apapa is risk-managing the whole process in order to downgrade the level of hardship that is there. To me, must everybody go to scan. If somebody says, if this scanning operation will delay me, let me go for physical examination, allow him so that you take inventory, take the documents and exit him out of customs control. I think those in Abuja are over-bearing . When you deploy a controller to an area, there must be an element of trust for that officer to do his job. Some of these things, many of us are really not happy”.
*Says baseless, frivolous demand notices being issued to importers to meet revenue targets
*Accuses Ali of failing to restructure Customs, empower zonal coordinators
By Francis Ugwoke
Founder, National Association of Government Approved Freight Forwarders (NAGAFF), Dr. Boniface Aniebonam, has raised alarm over excessive taxation on imports which according to him is destroying trade in the country.
Aniebonam also expressed dismay that the Comptroller General of the Nigeria Customs Service, Col. Hammed Ali (retd) has failed in his promise to restructure the Zonal Commands for the purpose of empowering the Coordinators.
The NAGAFF founder in a chat with SHIPPING DAY said Nigerian importers are being bombarded with heavy taxation, adding that this has become a big burden to businesses with consequences on final consumers of goods being imported.
Applauding the Customs leadership for being able to address the problem earlier experienced in VIN valuation of vehicles imports, he said this has not been the case in the area of general cargo.
He said that importers are still being faced with overbearing Demand Notices (DNs) which he said were mainly designed by the customs commands to either meet or exceed their revenue targets.
Describing some of the DNs as “baseless and frivolous”, he said this policy which is in the name of reaching revenue targets has not allowed trade to be seamless.
He said that the situation has reached a point where the CGC’s intervention was urgently needed.
He told SHIPPING DAY, “coming to general cargo, instances of what I consider baseless and frivolous Demand Notices are being issued in the name of reaching target and the target we are talking about is supposed to be free flowing – supposed to be seamless . To me under the present dispensation, the regime of Destination Inspection, what is the difficult thing, open the container, take inventory of what is there – refer the entry to Valuation Unit if there are infractions, and they moderate the DN and you carry your goods and go.
“ Over taxation of cost is destroying trade. Do you need anybody to tell you that. Imports are being over-taxed, that is the truth. This requires the attention of the CGC and of course the DCG Tariff and Trade. Issues are being raised, what we are at the moment doing is the regime of DI which is outrightly called customs examination and I guess the customs is taking the authority to act under section 27 – 28 in what you may refer as Bill of Sight”.
Aniebonam said the CGC has failed to restructure the Zonal Commands and give powers to the Coordinators, adding that this was affecting importers and customs agents who have to fly to Abuja Headoffice of the Customs with all the risks and cost implications to solve issues that can be resolved at the zonal commands.
He said surprisingly, the CGC had promised to address this when he visited the NAGAFF Headquarters some years ago.
But he added that all the promises the CGC made in respect of restructuring that will empower the Zonal offices were yet to be fulfilled.
“I still remember that CG visited NAGAFF headquarters and extensively we engaged him and which he responded positively. Up till now, some of the things he said he was going to do, they have not been done. For instance, the restructuring of the Customs. In the instance, what are the responsibilities of the Zonal commands. Why must all of us be going to Abuja over an issue that should be resolved at the zonal level. The zonal level should be able to address them but why must everyone be going to Abuja. So what is restructuring all about. I can give you an example , where somebody does well., we say yes, you have done well, the VIN Valuation has for long now stabilized clearing of vehicles from the ports and all that.
“There is nothing that I have told you that the CGC is not aware. They have intelligence unit and I am sure they are writing intelligence report. It is just like the scanning operations. I am sure you know what is going on there. Creating so many problem for the Controller to manage this kind of situation. How many containers can be scanned in a day…….So right now, the customs, particularly the controller of the area Apapa is risk-managing the whole process in order to downgrade the level of hardship that is there. To me, must everybody go to scan. If somebody says, if this scanning operation will delay me, let me go for physical examination, allow him so that you take inventory, take the documents and exit him out of customs control. I think those in Abuja are over-bearing . When you deploy a controller to an area, there must be an element of trust for that officer to do his job. Some of these things, many of us are really not happy”.
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