The attention of the National Association of Government Approved Freight Forwarders (NAGAFF) has been drawn to the various meetings, assembles, comments and withdrawal of Services by some freight forwarders at the border locations due to the seeming irrational exchange rate of N313 to $1 being used to assess imports for Customs purposes in Nigeria.
The Nigeria Customs as an Agency of Government has the statutory mandate to implement and enforce Government regulations in relation to revenue collection, trade facilitation and suppression of smuggling activities etc. This is without prejudices to the powers of the board of Customs as contained in Sections 4, 5 and 6 of CEMA Cap C45 2004 as amended. The powers of the Board to exercise due discretion and to vary conditions in favour of proper management and administration of CEMA.
It shall be the duty of the aggrieved stakeholders to make appropriate representation to the Government through the Central Bank of Nigeria in that regard to benchmark the exchange rate. We indeed advise that the Minister of Finance in consultation with the CBN Governor can benchmark the exchange rate for Customs duty purposes. It is legal and legitimate in favour of trade and the society in Nigeria. Wherein we canvass for solutions to the consequences of high exchange rate for Customs purposes it shall be most appropriate to draw the attention of the trading public and the freight forwarders to Section 166 of CEMA.
PENALTY FOR ASSEMBLING TO CONTRAVENE PROVISIONS OF THE CUSTOMS OR EXCISE LAWS
Section 166 of CEMA as amended states inter alia;
Any person who assembles with two or more other persons for the purpose of contravening any of the provisions of the Customs and Excise Laws shall be liable to imprisonment for one year.
It is therefore necessary that we advise all NAGAFF members and our principals to be conversant and familiar with the provisions of the law. Those who may be acting against the law at the border areas should exercise restraint and follow due process and rules of engagement on matters of Customs and Excise Laws.
The facts on ground are to preempt the seeming radical approach of the Government to stem the tide of unnecessary dependence on importation. The need for diversification of our economic base is quite essential at the moment. There are clear indications that the Government is obviously discouraging importation to reduce the pressure on foreign exchange. You will recall that well over 41 items have been denied access to foreign exchange including the long list of prohibitions and other restrictions on imports. What is playing out at the moment is that we must change as the Government may be doing in line of the change we voted for.
We are therefore advising and compelling our members to encourage their principals to look inward in the area of manufacture and exportation of Nigerian products to other foreign countries with a view to earning forex and balance of trade. It is most unfortunate that the Nigeria Customs Service is unduly strict on revenue matters leaving core areas of their ancillary functions to encourage trade. The Customs must do away with impunity and abuse of powers with a view to facilitating and growing trade and commerce in Nigeria. A deliberate attack and suppression of systemic corruption in the Service operations shall go a long way in checking compliance related issues.
To achieve some of the expected changes and reforms in the Customs operation, the urgent need to do away with corporate licensing of agents cannot be over emphasized. This is because the corporate veil has been a huge source of revenue leakage. It is alleged that the greater numbers of licenses issued by Customs to corporate bodies belong to retired and serving Customs officers. Others are to the few agents who can afford the high fees and some foreigners in Nigeria involved in freight forwarding and logistics businesses. The new concept of shutting down the Direct Traders Input (DTI) café and the release of password to the corporate bodies licensed by the Nigeria Customs Service may not be a good idea because it is like the pot and the kettle. Story of blackness.
The good news is the forthcoming review of the Customs law at the National Assembly. We hope that Sections 153, 154, 155 and 156 shall be repealed and deleted from the Act to give way to professionalism as envisaged by the CRFFN Act. We do hope that our sister Associations of Customs Licensed Agents should start thinking of winding up because the new Act is about Customs representative.
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