The Nigeria Customs Service, (NCS) has come under fire from maritime stakeholders over the recent court judgment on collection of import duty on personal effects that are brought into the country.
The stakeholders also knocked the Customs Service over the decision to appeal the Court ruling describing the decision to be an overzealous act that could bring embarrassment to the country and its citizenry.
Recall that the NCS was slammed a fine of N5 million naira by a Federal High Court in Abuja for imposing an import duty of N156, 955.20k on a personal Louis Vuitton Laptop Bag brought in by a Nigerian.
The customs officials had on the 24th of June 2019 imposed the duty on an imported Laptop Bag found in a luggage owned by one Kehinde Ogunwumiju despite his protest that the bag was for personal use.
The court had ruled that for customs duty collected on items to be considered legal, the officers of the NSC must have established that the items are meant for sale, barter or exchange and are not for personal or household use.
However, the decision by the Customs service to appeal the judgment has generated backlash from maritime industry stakeholders who believe the service is just being overzealous.
Reacting to the judgment, the founder of the National Council of Managing Directors of Licensed Customs Agents (NCMDLA); Mr. Lucky Amiwero stated that it is wrong for the Customs to demand duty on personal effects, stating that a person is entitled to personal and household effects having spent up to nine months in a particular country.
“It is wrong, you don’t pay duty on personal effect, but you pay duty on some of the items that are not personal effect, once you have spent up to nine months in any country, you are entitled to your personal effects, you are entitled to your household and personal effects, but if the items are not personal effects then those items are dutiable, and there is nothing like the price is above normal price once it is personal effect the items should be free of duty”, he said.
Also speaking, a former National President of the National Association of Government Approved Freight Forwarders (NAGAFF), Dr. Eugene Nweke also commended the ruling of the court, he stated that there have been unnecessary abuses on the issue of personnel effect, he said the judgment is a good way of ending the nuisance practice.
Nweke added that there is need for maritime industry stakeholders to look at the application of the ruling as it affects personal effects that come through the seaport.
He urged freight forwarders and maritime industry stakeholders to go the way of the court rather than absorbing every decision of the Nigeria Customs Service, he said the ruling is an eye-opener to the fact that some issues should be decided in court.
“We also need to look at the application of personal goods from the seaport, we need to know to what extent the judgment also applies to the seaport? Are there goods that fall under the personal effects from the seaport that customs have been collecting duty on; if there is, why should they be collecting duty on it?
“How come nobody has sued Customs from the seaport in the same way? I believe for every freight forwarder; the judgment is a good one because there have been unnecessary abuses of the issue of personnel effect”, he said.
Also speaking, the National Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA); Mr Babatunde Mukaila, also knocked the NCS for always being the judge and the jury, he commended the ruling, stating that ANLCA is interested in the case and will pursue the case to the end.
“The customs have always been the judge and the jury over time as much as customs have stepped out to challenge this ruling, we are going to see how it is going to end and ANLCA is an interested party, we would like to follow the proceeding to the end, so that we can be properly guided” he said.
Also speaking from the angle of the law, a maritime lawyer and the president of Women in Maritime Africa (WIMAFRICA); Mrs Jean Chiazor Anishere also condemned the rationale of the NCS to impose duty on personal effects, she stated that the provisions of section 8 of the Customs Excise Management Act and the 2nd schedule to it are quite clear and unambiguous.
She urged the service to ensure that their actions be in full compliance of the law, otherwise she said their actions will not only be ludicrous, but extremely embarrassing to the country and its citizenry
“I don't understand the NCS rationale of imposing a duty on some personal belongings that are obviously not meant or proven to be for commercial purpose?
“The provisions of section 8 of the Customs Excise Management Act and the 2nd schedule to it are quite clear and unambiguous. Honestly, while I appreciate the immense efforts of our Customs in revenue collection for our country, surely, their actions must always be in full compliance with the Law. Otherwise, their actions will not only be ludicrous, but extremely embarrassing to our Country and its citizenry.
“I applaud the decision of the Court and I do hope that the exemplary damages awarded, which I consider to be punitive, will serve as deterrence for future illegal and rather overzealous acts”, she concluded.
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