Customs, Agents in Crossroad over N1 Trillion Targets

With the urge to meet the 2012 self imposed revenue target of N1 trillion, the Nigeria Customs Service (NCS) may have found itself at crossroads with the licensed customs agents who are critical of the service’s engaged processes to achieve the feat. Alhaji Abdullahi Dikko , comptroller general of Customs, had during a press chat recently related that the federal government did not give N1.2 trillion targets, rather it was self imposed. “I gave it to myself. The actual target by the government was N800 billion and I should thank the country and the President, his excellency, Dr. Goodluck Jonathan for giving me the opportunity to serve my country. We are working hard to make sure that we collect the maximum revenue as stipulated in the law and to do away with corruption and corrupt officers. Honestly, I don’t think the amount is too much for me, but we pray we work for the benefit of all Nigerians. “What is to be expected this year is high level compliance of stakeholders, because we have mapped out a time table and the first point of call is Lagos. In fact, I hope to meet with the importers of electronics at Alaba International Market, the importers of spare parts at Ladipo and Manufacturers Association of Nigeria (MAN). We will have a very friendly customs, a customs that would do away with corrupt tendencies and work with importers to make their business less stressful. “I envisage a customs that will do things when they are expected to be done; a customs that will advise port users on what to do when they find themselves in difficulties. We are expecting an excellent 2012. We pray God to give us good health and the will to execute our programmes dutifully,” Dikko said. Penultimate week to the said meeting, Nigeria CommunicationsWeek investigations reveal that Nigeria Customs Service new levy scheme tagged: Identified commodities and average transaction values and duty payable,’ shows that a 40- foot container will henceforth attract a custom duty based on a C.I.F value of between N4 million and N10 million, depending on the commodity. Further more, a 20- foot container is to attract a customs duty based on a CIF value of between N2 million and N6.25 million. Scrutinizing the transactional fees the duo of National Association of Government Approved Freight Forwarders (NAGAFF) and the Save Nigeria Freight Forwarders Importers, Exporters Coalition (SVGFFIEC) frowned at the move. While, the Save Nigeria Group pleaded with the federal government to reverse the decision taken by the Customs Service, NAGAFF, in a statement pragmatically said the N2.5Million benchmark on 40-foot container of electronics goods and others should be reviewed downward in the interest of trade. Chief Osita Chukwu, national coordinator, Safe Nigeria Group, asserted that the decision made by the Comptroller General of Customs will lead to breach of multi –lateral international agreement on trade facilitation, thus breach the national law on customs value of imported items. “The Nigeria Customs Service has by a stroke of the pen revoked an Act of the National Assembly, that is, the Customs and Excise Management [Amendment ]Act No.20 of 2003,which provides that Customs duty shall be determined sequentially by reference of six methods’’. Osita, while listing the adopted method as: “transaction value method, identical value method, similar value, method computed and fall back value method,” he noted that “Importers will not be able to clear goods imported into the country and may be tempted to abandon their goods in the port. Freight forwarders may be tempted to evade duty and fly containers out of the port. \ “Congestion in the port will return as importers will take unnecessarily long periods to secure funds to clear their cargoes,” he predicted. Similarly, Dr Boniface Aniebonam, NAGAFF founder, in a remark advised the customs service to close all loop-holes through which revenues are diverted out the system, instead of imposing strangulating bills on the people.