Lagos chamber seeks urgent reform of Customs cargo clearing processes

Worried by the challenges faced by Nigerian business community during cargo clearance at ports, the Lagos Chamber of Commerce and Industry (LCCI), has called for urgent reform of the Nigeria Customs Service (NCS) cargo clearing processes and procedures.

According to the chamber, the situation is severely hurting investors and adversely affecting economic recovery efforts.

“The situation calls for urgent intervention and reforms of the Nigerian Customs Service. There are issues of undue delays, weak application of technology, arbitrariness in valuation, impunity, uncertainty of international trade transactions, cost escalation, negative investment climate perception, ineffective mode of seeking redress, pervasive human interface, among others,” said a statement signed by Muda Yusuf, director general, LCCI.

Yusuf stated that the business community is compelled to interface with too many units of Customs and other government agencies which makes doing business extremely difficult, frustrating and predisposes the system to brazen extortionist practices.

He listed the units to include the Pre-Arrival Assessment Report (PAAR) office, Valuation units, examination, releasing, unblocking, DC Report, Stamping Unit, Exit Gate, and Enforcement, including other government agencies at the ports such as NAFDAC, SON, Plant Quarantine, SSS, Police Anti Bomb Squad, and the Port Police.

He however stated that importers are confronted with Federal Operations Unit (FOU) of the Customs, Customs Strike Force, and the Customs Police outside the ports. He added that encounters by the private sector with these numerous agencies imposes unbearable burden on importers and investors in terms of costs, time, and bureaucracy.

“There are also recurring issues of valuation of imports and HS Code classification of products. PAAR issued by Customs headquarters are frequently queried by Customs operatives at the ports. Many businesses have suffered severe disruptions in their investment projections because of large variations arising from revision of value and re-classification of imports by the PAAR office at the Customs headquarters and the Customs units at the ports. This phenomenon has become persistent and hurting investors. It has also become a major source of uncertainty for businesses,” Yusuf stated.

He further stated that it has become imperative for the Federal Government to urgently domesticate the World Trade Organisation (WTO) Trade Facilitation Agreement to which Nigeria is not only a signatory but ratified on 16th January 2017.

“The trade facilitation role of the Nigerian Customs Service has been practically jettisoned in pursuit of revenue targets. This disposition is impacting negatively on investors. There are too many queries on imports emanating from diverse sources and too many discretionary powers exercised by Customs operatives in valuation and classification decisions. The frustrations of Importers are compounded by the clumsy, long winded, bureaucratic processes for seeking redress. Importers hardly get fair hearing because the Customs are the accusers and the judge,” he said.