Customs Gives Soft Landing To Importers On Valuation, Tariff Classifications
By Stphen Ubanna
For years importers within the Lagos ports of Apapa, Tin can Island, Port Terminal Multi service Terminal Limited, PTML, Kirikiri Lighter terminal, KLT, phases I and II, and the south eastern ports of Onne, Rivers and Warri including Calabar port in Cross river state have been experiencing problems concerningvaluation, tariff classification and origin of goods before they are imported.
The situation is so worrisome that importers had cried out Hameed Ali, a retired Army Colonel and immediate past Comptroller General of the Nigerian Customs Service, NCS, that the service highhandedness in addressing valuation and classification of cargoes if not put under control by the Management will continue to hinder ease of doing businesses in the country’s seaports.
There is no gain saying the fact that over the years under valuation and wrong classification of imported cargoes and rules of origin had been abused which was said to have posed challenges to efficient service delivery at the ports. Informed sources had told The Value News that the ‘’wrong classifications of cargoes usually arise from inaccurate or wrong allocation of harmonised tariff codes, leading to wrong cargo description in terms of type, weight and commercial value of the item.
The fallout was that many of the imported cargoes that had landed at the nation’s seaports, particular, were ultimately undervalued or overvalued, resulting in payment of wrong duties or tariffs, leading to costly queries, surcharges and fines or delays at the exit ports.
Note that classification of goods as defined in article 57 of the Union Customs Code, UCC, as reported by the Vanguard, means determining the sub-headings or sub-divisions of the combined nomenclature under which the cargoes will be classified.
A senior Customs officer who spoke to The online Magazine on condition of anonymity disclosed that classification of cargoes is not just used to determine the duty rate to be paid for a specific subheading but also used to apply for non- tariff measures. The Leadership of the Lagos state Chamber of Commerce, and Industry, LCCI, who could no longer bear the hardship had said that importers, including Manufacturers at various times in the nation’s seaports have been subjected to arbitrary valuation and classification which was said to have repeatedly resulted in increases in the cost of imports including raw materials used in the factories to produce goods for the local market, West and Central African subregions.
Some importers, through their contracted agents who had succeeded in exiting their client’s Containerised cargoes at the ports were said to have been given outrageous Debit Note when they fall into the waiting hands of Patrol team officers of any of the Federal Operations Unit, FOU, across the country in the guise of wrong classification , under valuation or over valuation.
Wale Adeniyi, the acting Customs Comptroller General and a chip of the old block and his new Management team, may have read the hand writing on the wall that this hindering trade facilitation at the ports that they have established a Standard Operating Procedure, SOP, for the implementation of Advance Ruling.
Abdullahi Maiwada, a Chief Superintendent of Customs and the service spokesperson had said that the decision was reachedduring the 6th Management meeting on Wednesday, August 23, 2023. The Customs spokesperson had said that that ‘’the basis of the SOP, lies in section 24, sub-sections 1-9 of the new Customs and Excise Management Act, Cap 2023 and article 3 of the World Trade Organisation, WTO, under the close watch of Ngozi Okonjo-Iweala, a former minister of Finance and Coordinator of the Economy, during an exstwhile President Goodluck Jonathan, trade facilitation agreement.
He noted that Advance Ruling concept wherein the nation’s Customs administration provides a written decision upon request from the importer concerning their valuation, tariff classification and origin of goods before they are imported into the country and pushed into the market.
CSC Maiwada, had alluded to the fact that the move by the NCS, aligns with the principles outlined in the Revised Kyoto Convention of 2006 and the WTO Trade Facilitation Agreement of 2017. According to him, ‘’ the Advance Ruling has been proven as a valuable tool for trade facilitation, benefiting both Customs administrations world over and traders’’.
The Customs National Public Relations Officer, further disclosed that ‘’it enhances predictability and certainty in Customs treatment for goods at the seaports, airports and Land border areas. This procedure he said, also ‘’ promotes cooperation and confidence between Customs personnel and the traders’’, following the new guidelines that had been set out by the World Customs Organisation, WCO, Safe Framework of Standards.
Appealing to stakeholder to take advantage of the new initiate to take delivery of their cargoes at the seaports, airports and the Land border areas, stating that’’ the application process will be automated and integrated into the NCS Trade portal in with international best practices’’. Vintage Adeniyi
By Stphen Ubanna
For years importers within the Lagos ports of Apapa, Tin can Island, Port Terminal Multi service Terminal Limited, PTML, Kirikiri Lighter terminal, KLT, phases I and II, and the south eastern ports of Onne, Rivers and Warri including Calabar port in Cross river state have been experiencing problems concerningvaluation, tariff classification and origin of goods before they are imported.
The situation is so worrisome that importers had cried out Hameed Ali, a retired Army Colonel and immediate past Comptroller General of the Nigerian Customs Service, NCS, that the service highhandedness in addressing valuation and classification of cargoes if not put under control by the Management will continue to hinder ease of doing businesses in the country’s seaports.
There is no gain saying the fact that over the years under valuation and wrong classification of imported cargoes and rules of origin had been abused which was said to have posed challenges to efficient service delivery at the ports. Informed sources had told The Value News that the ‘’wrong classifications of cargoes usually arise from inaccurate or wrong allocation of harmonised tariff codes, leading to wrong cargo description in terms of type, weight and commercial value of the item.
The fallout was that many of the imported cargoes that had landed at the nation’s seaports, particular, were ultimately undervalued or overvalued, resulting in payment of wrong duties or tariffs, leading to costly queries, surcharges and fines or delays at the exit ports.
Note that classification of goods as defined in article 57 of the Union Customs Code, UCC, as reported by the Vanguard, means determining the sub-headings or sub-divisions of the combined nomenclature under which the cargoes will be classified.
A senior Customs officer who spoke toThe online Magazine on condition of anonymity disclosed that classification of cargoes is not just used to determine the duty rate to be paid for a specific subheading but also used to apply for non- tariff measures. The Leadership of the Lagos state Chamber of Commerce, and Industry, LCCI, who could no longer bear the hardship had said that importers, including Manufacturers at various times in the nation’s seaports have been subjected to arbitrary valuation and classification which was said to have repeatedly resulted in increases in the cost of imports including raw materials used in the factories to produce goods for the local market, West and Central African subregions.
Some importers, through their contracted agents who had succeeded in exiting their client’s Containerised cargoes at the ports were said to have been given outrageous Debit Note when they fall into the waiting hands of Patrol team officers of any of the Federal Operations Unit, FOU, across the country in the guise of wrong classification , under valuation or over valuation.
Wale Adeni, the acting Customs Comptroller General and a chip of the old block and his new Management team, may have read the hand writing on the wall that this hindering trade facilitation at the ports that they have established a Standard Operating Procedure, SOP, for the implementation of Advance Ruling.
Abdullahi Maiwada, a Chief Superintendent of Custooms and the service spokesperson had said that the decision was reachedduring the 6th Management Metting on Wednesday, August 23, 2023. The Customs spokesperson had said that that ‘’the basis of the SOP, lies in section 24, sub-sections 1-9 of the new Customs and Excise Management Act, Cap 2023 and article 3 of the World Trade Organisation, WO, under the close watch of Ngozi Okonjo-Iweala, a former minister of Finance and Coordinator of the Economy, during an exstwhile President Goodluck Jonathan, trade facilitation agreement.
He noted that Advance Ruling concept wherein the nation’s Customs administration provides a written decision upon request from the importer concerning their valuation, tariff classification and origin of goods before they are imported into the country and pushed into the market.
CSC Maiwada, had alluded to the fact that the move by the NCS, aligns with the principles outlined in the Revised Kyoto Convention of 2006 and the WTO Trade Facilitation Agreement of 2017. According to him, ‘’ the Advance Ruling has been proven as a valuable tool for trade facilitation, benefiting both Customs administrations world over and traders’’.
The Customs National Public Relations Officer, further disclosed that ‘’it enhances predictability and certainty in Customs treatment for goods at the seaports, airports and Land border areas. This procedure he said, also ‘’ promotes cooperation and confidence between Customs personnel and the traders’’, following the new guidelines that had been set out by the World Customs Organisation, WCO, Safe Framework of Standards.
Appealing to stakeholder to take advantage of the new initiate to take delivery of their cargoes at the seaports, airports and the Land border areas, stating that’’ the application process will be automated and integrated into the NCS Trade portal in with international best practices’’. Vintage Adeniyi
