The Central Bank of Nigeria (CBN) has said that delay in clearance of goods at the ports by importers is one of the reasons for the increase in port cost as well as port congestion. The apex bank also shed more lights on challenges facing Nigeria importers which had led to the bank’s rejection of Form M, a basic requirement for importation of goods into the country. The Form M is valid for six months and /or one year depending on items of import.
Some of the challenges listed by CBN include shipment of goods into the country by importers before they realized that they (importers) ought to open Form M which has led to constant rejections at various stages of the importation process.
At a one day Importers’ Sensitization Seminar organized by the CBN’s Technical Committee on Comprehensive Import Supervision Scheme held in Lagos, the assistant director, PFIO Trade and Exchange Department of the bank, Mrs Onyinye L Ahuchogu, also ascribed the rejection of Form M from importers to high level of insincerity such as, late submission of final shipping documents, incorrect declarations, as well as suspect cargo.
Ahuchogu also explained that in a situation where an incomplete documentation, insurance certificate, non attachment of required licences, incorrect description of items, port charges, expired proforma invoices, incomplete address and conflicting FOB, freight, and C&F values constantly lead to frictions between importers and CBN.
She therefore advised importers to ensure that the Form M is accepted by the appropriate scanning company before proceeding to ship their goods.
The CBN director also advised suppliers and shipping lines to comply with import procedures stipulated in the import guidelines.“Importers and their agents are, therefore, encouraged to understand the documentation requirements and comply with them, as lack of compliance translated to additional costs of doing business”, she noted.
In a paper presented during the seminar, Comptroller Umar Iyar, of the Nigeria Customs Service (NCS), said the service has put up measures and tools on ground to ensure that clearance procedure is simplified and efficient.
“Among the measures adopted by the service includes the automation of the clearance process. From the simple use of IDERA software, an entry form of the 1980s, the service through the Federal Government adopted the use of ASYCUDA 2.7 version software which aimed at speeding up Customs clearance, through the introduction of computerization and simplification of procedures and thus minimize administrative costs to the business community”, the Customs boss said.
The national secretary of the Importers Association of Nigeria, (IMAN) Honourable Kingsley Chikezie lamented that successive governments may have been misled in the past through alleged falsification of trade data and statistics which had led to the banning of certain goods such as vegetable oil, jean trousers and brief cases with the belief that the goods can be produced in Nigeria.
“Let it be on record that we are tired of illegal businesses occasioned by concealment, false declaration and wrong description of cargo as being masterminded by shippers. We are not prepared to be used by any body to cheat the government and the people of Nigeria any more. All shippers either as organized or unorganized must be prepared to pay correct import duty by making genuine declarations,” Chikezie said.
In a keynote address by Baba Gidado Mohammed, director, home affairs, at the Federal Ministry of Finance, the challenges facing the Destination Inspection were created by some importers either intentionally or inadvertently.
According to him, the identified challenges include over invoicing, under invoicing, abuse of quantity and quality assurance, insufficient description of goods, documentation discrepancies, duplication of final documents, non opening of Form M for transaction, expired Form M, incomplete and improper documentation and importation of prohibited or exempted goods.
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