Lagos – The Comptroller-General, Nigeria Customs Service (NCS), Retired Col. Hameed Ali, has urged stakeholders to consider national interest in their inputs to the review of the Customs and Excise Management Act (CEMA).
Ali made the plea during a stakeholders’ engagement on the “Review of CEMA’’ held on Thursday in Lagos.
The News Agency of Nigeria (NAN), reports that the NCS was tasked with the important functions of collecting fees, duties and charges at the nation’s ports and border posts.
NAN also reports that Customs is the second most important source of revenue to the Federal Government’s of Nigeria after the petroleum sector.
NCS was also the principal agency responsible for enhancing laws at the nation’s borders, facilitating trade, implementing the government’s policy on trade and protecting the society from smugglers of illegal weapons.
The comptroller-general said that the review was necessary and overdue to enable the NCS to meet up with modern Customs administration under a template provided by the World Customs Organisation (WCO).
Ali said that the consulting stakeholders were strong pillars for any modern Customs administration, adding that “Customs legal framework defines who Customs is, what it does and how or who the laws relate with’’.
“Over the years, both Customs and stakeholders have clamoured for a review of our enabling law which was first enacted in 1958.
“CEMA did not undergo any major review for over half a century. This attempt represents a collective resolve to update our laws and realign its provisions with modern realities.
“Most importantly, we need to take a second look at the provisions for sanctions that are neither punitive nor deterrent enough to promote compliance,’’ the News Agency of Nigeria (NAN) quotes Ali as saying.
He explained that the review of the CEMA was originally initiated by the last administration of Customs, adding that they could not get Presidential assent after undergoing the legislative processes.
Ali said that review process by the last administration, therefore lapsed and “the present administration is back at the starting blocks again to review the CEMA law’’.
The comptroller-general urged government agencies and stakeholders to always access customs trade hub for any information relating to any consignment coming into the country, without visiting any Customs office.
The Legal Adviser to the NCS, Mr Paul Ikhenoba, who is also the Chairman of the Review Committee, said that the review was fundamental to Customs modernisation efforts, which was a sound legal structure in line with international norms and best practices.
“The CEMA law was enacted in 1958 and the initial gap analysis of the Act was conducted in 2009 which discovered that the law was lacking, with the respect to the WCO Revised Kyoto Convention (RKC).
“The law does not contain provisions to support the use of modern Information Technology (IT), such as use of electronic documents, signatures and payments as well as application of risk management, post clearance audit and special, simplified procedures for qualified readers.
“The penalty structure of CEMA is also severely outdated to the point where it may be more affordable for less ethical traders to break the law,’’ NAN quotes Ikhenoba as saying.
He said that the NCS operated within a consolidated legal framework and supporting laws as well as legal notices.
According to him, these are meant to complement the existing laws by reflecting current realities.
Ikhenoba said that, “The challenge remains with the use of Circular and Customs Notices in implementing operational procedures.’’
The legal adviser said that the replacement of CEMA with modern Customs legislation procedures and a revised enforcement regime would substantially increase collection of revenue by the service.
He said that the World Bank currently ranks Nigeria 146th out of 183 Economies surveyed in the
World Bank’s “Trade Across Borders Annual Survey’’.
Ikhenoba further said that Nigeria’s rating was low because the average time spent to export goods from Nigeria is calculated at 25 days, compared to 10.5 days for developed countries and five days for Singapore.
He said that the average time spent to import goods into Nigeria was calculated at 41 days, compared to 11 days for developed countries and five days for Singapore.
Also speaking the Chief Shipping Development Officer, Nigerian Maritime Administration and Safety Agency (NIMASA), Mr Momoh Alhassan, pleaded with the customs to grant the agency access to electronic manifest of importers before arrival of the goods.
Alhassan said that most government agencies could not operate without the manifest, adding that if the manifest was available, it would enable other agencies meet their targets.
He also urged NCS to standardise information and statistics for oil rigs that come into Nigerian
waters to enable NIMASA to obtain statistics for revenue collections.
“NIMASA should be included among agencies that usually train Customs officers because NIMASA has the facilities to train Customs officers and other agencies.
“Customs should also include government agencies like Nigerian Ports Authority, NIMASA, and the Nigerian Navy into the Board of Customs.
“Customs should also fast track the manifest for exports because exports’ manifest can be delayed for 30 days before importers can have access to it, which could also frustrate the efforts of the exporters.
The President of the Manufacturers Association of Nigeria (MAN), Dr Jacobs Udemba, said that the association recommended that the Minister of Finance should be the Chairman of the Board of Customs and not the Customs boss.
Jacobs said that there is the N1.5 million fine proposed to be paid by any person who infringed on imports, exports, transit laws or two years imprisonment.
He said that such fine should be increased to enable importers desist from such acts of infringement.
A member of the Lagos Chamber of Commerce and Industry (LCCI), Mrs Julie Ogboru, suggested
that the Finance Minister should be the Chairman of the Board, while the Comptroller-General of Customs should be the Deputy Chairman of the Board.
Ogboru said that the inputs of all the stakeholders should be included in the review to enable them have a say in the implementation.
The President of the Association of Nigerian Licensed Customs Agents (ANLCA), Mr Olayiwola Shittu, said that all administrations set up for checks and balances should be abrogated.
Shittu said that Section 58 (1) of CEMA Law says “examination of goods should be at the examination bay.
He said that where was no reason for officers to continue taking samples when there was no dispute on a particular consignment.
Shittu suggested that penalty for touting, instead of the recommended fine of N500,000 in Section 107 (10) of the CEMA law.
The clearing agent said that there should be clearly approved procedures for disposition of goods or seizures, adding that if infraction is suspected, a detention notice should be given rather than what was mentioned in Section 119.
He said that Section 119 talked about disposal of goods without prejudice in line with the extant provisions of status of goods and Customs procedures.
The Chairman, Murtala Airport Chapter of the National Association of Government Approved Freight Forwarders (NAGAFF), Dr Segun Musa, said that there was need to review all fees imposed by all government agencies on importation, exportation as well as Transit goods.
Musa said that there should be fact of value of any particular consignment, saying that Customs officers should stop using their discretion to value consignments.
A representative of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), Mr Okudili Alagbi, said that the CEMA law should allow the council to be issuing licences to all freight forwarding practitioners to fulfill the Council Act.
Alagbi said that the CRFFN Act 2007, stated that the council’s functions to all freight forwarding practitioners.
The comptroller-general said that all the inputs of the stakeholders and other agencies would be looked into.
Ali said that the Senior officers of Customs and the Review Committee would be having a three-day to review all contributions.
He said that about five chapters of the laws related to the stakeholders were the critical aspects of the law.
The comptroller-general said that all the suggestions would go through scrutiny, adding that only those suggestions that would add value to operations would be considered.
Ali said that every suggestion that would be added must be in conformity with the existing laws. (NAN)