Agent Accuses Customs of Twisting Law To Extort Importers
Former President of the National Association of Government Approved Freight Forwarders (NAGAFF), Eugene Nweke has accused the management of the Nigeria Customs Service (NCS) of distorting the Customs Excise Management Act (CEMA) for ulterior motives.
In an open letter to the Customs Comptroller General, Col. Hameed Ali (rtd), he alleged that the management was engaging in a fraudulent policy twist that allows the service to extort importers.
Nweke advised the comptroller general to purge himself of his undemocratic tendencies, respect the articles of customs trade and desist from using internal memos as a weapon of extortion.
In the letter entitled, “Passionate appeal to uphold the sanctity of the rule of engagements in the import valuation applications,” he noted that the Comptroller General of Customs’ Memo of September 2021 on second-hand import items was barefaced extortion of importers and clearing agents.
Also, the former president accused Ali of appropriating policy issues that were clearly outside its purview and urged him and his management to respect the rules of engagement and stick with the provisions of the customs’ extant laws.
Nweke averred that the import benchmark application linked with the PAAR Ruling Centre Administration was causing unnecessary conflicts in documentation, adding that the documentation stampede had created avoidable delays in the smooth flow of the import clearance process.
Nweke noted: “May I respectfully refer to an earlier private memo to management on the 22nd September 2021, via the office of the National Public Relations Officer (NPRO), NCS HQ, titled: “Used items imports valuation quagmire – An Appeal To Save Traders, Souls.
“Following the internal directive to benchmark goods imported into the country by the management to the Pre –Arrival Assessment Report (PAAR) Ruling Centre. In practice the memo implies initial imports documentation before the issuance of PAAR certificate; instead of N2 million payable surface duty benchmark for a 20 feet Container and N3 million as payable surface duty benchmark, excluding other taxes.
“I am concerned that this act now causes documentation stampede in addition to the associated delays in the smooth flow of import clearance process.”
Nweke contended that the directive on used items imports valuation had displaced trade flexibility/fluidity and in its place created trade high handedness and subjectivity, as importers and their imports are stampeded in the Customs ports – terminals, more so at the Lagos ports.
He said: “Through pains, they accept the obnoxious value application in other to salvage their imports in the face of the exorbitant demurrage and storage charges by both Shipping Lines and the Terminal Operators.
“Whereas some other importers who cannot access credit facilities had helplessly abandoned their cargo, other importers now depends on the financial solidity of their agents, as your directive has inflicted unbearable customs trade pains; eliciting official high-handedness and hopelessness.”
He noted that having embarked on checks at the port to cross-check and compare notes, confirmed the inappropriateness of the directive; presently causing operational abuses, saying that this uncommon and arbitrary internal directive by all standards of import value applications, defies known universal Customs’ Valuation application.
Nweke also said that the internal directive was general whereby used import items of value are as well compelled non-determinable import to pay the same benchmark as new items.
The former president said that at the last check on the imports prohibition lists, used items (dismantled vehicles parts, electronics, bicycles, sewing machines, etc) were not on the list, making them legitimate (noon-offensive imports to the country.
He stressed that the customs internal directive defied the rule of trade engagements, as there was no formal ‘payable import value increment pre-notice or grace period issued to the trading public other than that it was an internal directive issued to the PAAR Ruling Centre for immediate implementation starting from September, 021.
He teds that the directive is contrary to universal customs practice and that it should be reversed.
According to him, “by the provisions of the CEMA Cap. C45; First Schedule – “Value of Imported Goods.” The schedule provide that, the “transaction value of imported goods,” remains a unique general principle of application.
“For emphasis, it states that the Customs value of goods bought or imported for use in Nigeria shall be the transaction value of the goods adjusted in the provisions of paragraph 7 (1).
“However, by application where there is disputes or argument over import value: it provides 6 other methodology or options to follow to arrive at the reliable and consistent value of imported goods, and this methodology must be applied in sequential order.
“It is obvious that this internal directive does not only fall short but negates the whole essence of the provisions of this first schedule in its entirety, therefore, it constitutes a major breach to the rule of trade engagements.”
Nweke plained that the whole thing was done in bad faith, and as an act of official recklessness.
He urged the Customs boss to reconsider the directive and to re-adapt to the rules of engagement and spare importers and freight forwarders the unwarranted pains caused by September 22, 2021, circular to customs formations, nationwide.
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