Customs Acknowledges Strategic Role of Stakeholders on Emergence, Implementation of NCS Act 2023

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• As stakeholders applaud quick response, call for suspension of collections 4% FOB charge

The Nigeria Customs Service (NCS) has said that it recognises the invaluable
contributions of stakeholders in shaping and actualising the Nigeria Customs Service
Act (NCSA) 2023.

The Service in a statement said that the landmark legislation, which replaces the long-standing Customs and Excise Management Act (CEMA) and other related laws is a product of extensive consultations.

In a statement issued by the National Public Relations Officer, Abdullahi Maiwada, the Service described the new Act as one achieved based on constructive dialogue, and collaborative efforts with key industry players, government agencies, and other stakeholders.
The statement said the stakeholders 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”.
According to the statement, the Service said that 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 statement reads: “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.

“ Furthermore, the NCS acknowledges concerns raised by stakeholders over the
sustained collection of 1% 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.

“ 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”.

Reacting to the statement, the former President of National Association of Government Approved Freight Forwarders, Dr. Eugene Nweke Rff, applauded the Customs management for the quick response to critical trade concerns as raised by stakeholders.

Nweke said, “Indeed, it is a indication that the service is on top of its legitimate functions, being responsive and has a listening ears 24/7.

“However, it is pertinent to further posit an addendum to my earlier explanation on the 4% FCS FEE collection.

“Permit me, to state with deep sense of responsible partnership and utmost duty and obligation as an industry leader, understanding that consistent and positive public policy advocacy entails engaging authorities constructively for shaping the public enterprises and for the overall interest of the larger populace, which prompted my earlier explanation offered on the subject matter, thus, culminating into this reactionary circular and the acknowledgement press release of obvious reality from the PR department of the service.

“It is also important to appreciating the management team efforts towards addressing the issue at stake and heeding to voice of reasoning canvassed by leadership of the associations and find a most proactive approach of coming together and constructively engage each other over trade policy issues before lunching out to the larger public.

“I must insist here by stating that, in this particular matter, the principles of “burden of proof and burden of integrity”, should be adequately considered and observed, succinctly.

“Though it was reported that divergent views were expressed by few industry leaders regarding the newly introduced fee, as such, the larger practitioners opined that with such uncoordinated views, it was easier for the Service to presume that, the Associations and practitioners are divided along pecuniary interests, as such it will go ahead with the implementation of the said fee without recourse.

“To me, the reactionary circular which seems to have been hand dated with a pen is rather a primus test of the collective will of the freight forwarding associations and its leadership to prove to their followers that, they can represent them, constructively, timely and evenly.

“At this juncture, my last take on this particular circular is that, it is yet to met with the appropriate standard application or undergo through administrative due process nor in line with the international best practices, and reason’s for stating so being that, this circular could not be rated in all standard as having judiciously gone through the requisite provisions of the section 18 of the customs act 2023 , in particular, no Presidential notifications to the National Assembly nor Presidential approval or consent could be referenced to in this regards, except if such process will be back dated and reference over night.

“Let me state here without prejudice, other than, directing the area comptrollers to kick start stakeholders engagement, it is most administrative appropriate to firstly, suspend the collections of the fee, go back to drawing board and issues an implementation grace period for the collection of the 4% FCS fee across board. This to me squares up with due process and international best practices, thus, advancing the culture of responsible partnership between the Service and the Stakeholders, especially the trading public and the forwarders.

“This is so because, a serious unequal trade treatment has been committed, base on operational findings, while the implementation of the 4% fee has been integrated into the Apapa and Tincan command revenue assessment portals, it is same with the PTML command portal.
“This development, thus causing trade distrusts, distortions and disruptions in financial budgettings of the shippers, as it casts a heavy competition burden amongst the trading public who clears their shipments from customs ports to sell in a common market, one paying the 4% fees and the other not paying.

“Finally, with regards to the right and left customs 7C’s and 7C’s, I wish to urge the management to revisit it and attend to this trade policy concern with prompt sense of administrative diligence, as foreign investors and global stakeholders are watching with keen interests”.