In a swift response to concerns raised by the Nigeria Customs Service (NCS) regarding repeated violations in duty payment for used vehicles (Tokumbo), the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has demanded accountability and penalties for officers involved.
A memorandum bearing reference number NCS/T&T/SYSAUD/S.5 Vol.1, issued by Assistant Comptroller General of Customs, Tariff and Trade, ACG Musa MBA, in collaboration with DC S/A, dated July 17th, 2023, has unveiled a disturbing trend where certain freight forwarders have been skirting regulations, causing financial losses for the Federal Government.
Customs officials identified a new pattern of violation whereby the approved value on assessment slips for the extended procedure code 846 was not being entirely adhered to. The memo urged the Customs Area Controller (CAC) to take immediate action to halt these infringements and collaborate with the DC Revenue, DC Valuation, and DC Post Clearance Audit (PCA) departments to recoup lost revenues. The memorandum included a list of C numbers with such infractions, promising that further C numbers would be furnished as the investigation progressed.
Responding to the memorandum, APFFLON’s National President, Otunba Frank Ogunojemite, offered guidance to those implicated in the “value cut” scheme under extended procedure code 846, while condemning officers who exploited their positions to accept money from clearing agents for vehicle releases.
Ogunojemite emphasized that it was implausible for freight forwarders to undercut the government without collusion from releasing officers, particularly in an era of automation. He contended that not only should freight forwarders and importers bear the consequences, but the releasing officers who facilitated the violations should also be held accountable.
The National President stressed, “To be just and professional, any officer who partnered with freight forwarders to shortchange the Federal Government must face prosecution. If found guilty, they should face imprisonment or be required to refund the ill-gotten gains along with a substantial fine. Such officers cannot be spared; this will deter others from abetting financial misconduct in public roles.”
He maintained that the fight against corruption necessitates stringent actions against corrupt public officials. Ogunojemite criticized the celebration of corrupt individuals, advocating for their prosecution and, if proven guilty, suitable punishment.
Highlighting the economic distress experienced by the public, he called on the Federal Government to reevaluate duty rates to alleviate the burdens on businesses and individuals. Ogunojemite lamented the dire state of the freight forwarding subsector, where job opportunities have dwindled, and importers and freight forwarders face severe economic challenges due to exorbitant duty rates and high inflation.
In conclusion, Ogunojemite urged the Nigeria Customs and the supervising Ministry of Finance to urgently reconsider import duty rates to combat the prevailing economic hardships and protect livelihoods.
