TRADE ALERT: E-SONCAP AS A TOOL FOR TRADE FACILITATION

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The essence of e-SONCAP application is basically to facilitate and ensure that goods imported into Nigeria are in conformity with Nigeria’s specification of quality and standards.  It is no longer news that over time Nigeria may have become a dumping ground for substandard, adulterated and fake products mostly coming from the Asian Countries.

It is therefore unfortunate that most Nigerians who are engaged in international trade voluntarily seek for substandard products with a view to maximizing profit.  The situation became more worrisome at a time the Government asked SON to operate from outside the ports, border and airport cargo arena.  It is very unfortunate that the Government may not be conscious of the flair of most traders to breaching the import and export regulations using the platform of false declaration, concealment and wrong description of imports etc.

It is common knowledge that compliance to import regulations is the major problem facing regulatory functions, revenue and security matters in our international Gateways of the Nigeria Customs Service.

In order to bridge the irregularities and facilitate trade equally, the SON entered into strategic partnership with the Nigeria Customs Service Single Window approach of clearing goods out of Customs control.  In this regard, the NICIS (Nigeria Integrated Customs Information System) has provided an avenue for SON to interact and track imports that attract regulatory concern.  While appreciating the effort of the management of SON and NCS towards facilitating trade through NICIS, it is equally important that both agencies harmonize their cooperation especially on matters of Customs Examination.

The point herein canvassed is to advise NCS, SON and NAFDAC to ensure that they imbibe the culture of One-stop shop Customs examination with regard to regulatory interest duty.  The situation at the port instead of facilitating trade is the reverse because of the prevalence of double examination.

NAGAFF through reports from our intelligence Committee and members have discovered that double examination is now a major problem in Nigerian Ports and Border Stations.  We have noted that either by omission or commission, it is usually discovered that after Customs has concluded examination and release of imports to the owners, the SON and NAFDAC enforcement unit are usually in the habit of putting on-hold such cargo that has their concern from leaving the port which usually leads to second examination.

It is our opinion and advise that NCS and the regulatory agencies should harmonize hour of examination to stem the avoidable loss of resources and delays associated with it.  It is also important that freight agents should endeavour to check the status of any job before examination to see if regulatory agencies indicated interest in such cargo to avoid double examination.  It is the view of NAGAFF that if importers and freight forwarders can endeavour to be compliant to import regulations thus making honest declarations for Customs purposes, it would translate to regulatory agencies ease of doing business with the public and this shall help in no small measure in facilitating legitimate trade.

The NAGAFF trade alert is to state the obvious that except otherwise to the contrary, the way we are going about our businesses at the Customs entry points is not encouraging.  The instances of over taxation of import by the Customs, the attitude of regulatory agencies (SON and NAFDAC) to act as revenue collecting agencies are injurious to international business in our country.  The billing method and the application of unapproved charges by the terminal operators is a disservice to trade and the Nigerian economy.  The sad thing is the attitude of the Nigerian Shippers to enrich other Nations through the importation of substandard, adulterated and fake products into Nigeria.  In this wise wherein we enrich other nations in return we impoverish our people through avoidable loss or destructions or seizure of trade goods.

The freight forwarders who are expected to be professional in their duty are usually compromised by the importers to cheat the Government and circumvent due process through falsification and faking of documents.  The implication of these vices without prejudices to the forex related and monetary policies of the Government, trade is dying in Nigeria through criminal diversion of imports into Nigeria.  The exploits of the Boko Haram sect have shown that the Nigerian borders are porous.  At the moment, Ijora, KLT, outer terminals, PTML, Area I PH, Cargo Airports etc are seemingly out of business yet Government agents are being paid salaries without adding any value to the economy for not being productive.

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