The idea of the scheme called Destination Inspection of imports was first mooted in 2001, with July of the same year fixed as its commencement date, but that was not to be as the Federal Government through the then- minister of finance; Dr Ngozi Okonjo-Iweala announced a new take-off date of 2004. But these dates kept changing, until 2006 when it finally took-off.
At the flag-off, Cotecna was given the contract for destination of all imports into Nigeria; a development which was resisted by some interest groups. This delayed the take-off date.
The idea of the scheme called Destination Inspection of imports was first mooted in 2001, with July of the same year fixed as its commencement date, but that was not to be as the Federal Government through the then- minister of finance; Dr Ngozi Okonjo-Iweala announced a new take-off date of 2004. But these dates kept changing, until 2006 when it finally took-off.
At the flag-off, Cotecna was given the contract for destination of all imports into Nigeria; a development which was resisted by some interest groups. This delayed the take-off date.
But on account of the myriads of disagreements and opposition to Cotecna’s exclusive contract, government eventually agreed to split the deal among the three destination inspection agents, hence, the commencement on January 1, 2006.
We recall that at the flag-off destination inspection scheme in 2006, the nation’s entry points were farmed out to the three service providers, such that, Cotecna was given Lagos seaports, Jibya and Banki land borders in Katsina and Borno states respectively. SGS won the contract to inspect imports coming into the country through Onne port (Rivers state), Idiroko land border (Ogun state) and Port Harcourt airport. Lastly, Global Scan got the deal for Warri and Calabar seaports, Seme land border in Lagos state and Murtala Mohammed International airport and the PTML port in Lagos.
Certainly, expectations have been very high as to whether or not the scheme was capable of correcting the shortcomings of many years of pre-shipment inspection of imports, which we are told, was fraught with many problems such as: discrepancies in value, quantity and delay in issuance of the all-important Clean Report of Inspection (CRI) by the pre-shipment inspection agents. There were also allegations of discovery of large-scale importation of prohibited items upon physical examinations by the Nigeria Customs Service personnel.
It’s alternative, that is, the Destination Inspection scheme is hinged on two principles, which are: risk profiling and scanning. Upon its introduction in 2006, government had stated that it was dropping pre-shipment inspection system in order to enhance trade facilitation, protect the nation’s security and increase customs revenue collection capability.
Opinions may be divided as to the extent to which these objectives are being met, but we are sure of certain facts. One is that the revenue profile of the Customs has been on the rise since destination inspection scheme was embraced, so also has the incidence of interception of contraband been on the rise.
We recall that a few months after destination inspection came on stream, the then-Comptroller General of Customs, Alhaji Hamman Bello Ahmed, at a meeting with the Manufacturers Association of Nigeria (MAN) alluded that many years of pre-shipment inspection had eroded the capability of Customs to perform its statutory roles which include collection of revenue accruable from imports through accurate valuation and classification.
We are convinced that since 2006 when destination inspection came up, the Nigeria Customs Service has become more professional.
If Nigeria were to hold on to pre-shipment inspection, we doubt if the Customs will today be talking of Automated System for Customs Data (ASYCUDA++), Direct Traders Input (DTI), e- payment method, fast track, single window and other innovations which the Customs has either witnessed or which the import duty collection process has assumed.
Perhaps, the greatest challenge to destination inspection remains the quest to clear cargo within 48 hours of arrival in the ports. It is the need to achieve this that has given rise to DTI, fast track, e-payment and other innovations that the nation’s cargo clearance procedure has witnessed in the last couple of years.
We may not yet have a perfect and iron-cast system, but the average importer or freight forwarder will agree with us that the destination inspection scheme has engendered a new lease of life for Nigerian importers.
But since the Nigeria Customs Service was cleared to take over the scheme, there have been mixed reactions about its possible success or otherwise. Some have raised alarm over the possibility of hackers penetrating the system, while others have pointed at the possibility of power failure crippling the exercise.
We are quite happy that the Customs CG has answers for these apprehensions. He told stakeholders that the service has trained competent hands to forestall the possible activities of internet hackers. He also assured that there is adequate power back up.
Given the facts that are available, and the need to start sorting out our problems and begin to grow our indigenous capacities, the Nigeria Customs Service should be supported. This can be done when importers adhere to the guidelines that have already been made public. Now is the time also for licensed customs agents to get adequate training, because certainly the face of cargo clearance and delivery will change.
Most importantly, the Customs must not rest on its oars, thinking that by retrieving destination inspection from the service providers is the ultimate. There is a lot more work ahead if the service must succeed in the new task. It must start with the Nigeria Customs Service inventing a mechanism to stop its officers from frustrating the process.
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