The National Association of Nigerian Traders (NANTS) yesterday called for the establishment of an independent body to review all applications for import waivers and concession.
NANTS said that the demand was to ensure transparency and accountability.
The President of the association, Mr Ken Ukaoha made the appeal in a statement made available to newsmen in Abuja.
It said the public policy could only be measured by its impact in promoting the common good.
The National Association of Nigerian Traders (NANTS) yesterday called for the establishment of an independent body to review all applications for import waivers and concession.
NANTS said that the demand was to ensure transparency and accountability.
The President of the association, Mr Ken Ukaoha made the appeal in a statement made available to newsmen in Abuja.
It said the public policy could only be measured by its impact in promoting the common good.
“Weak institutions produce dysfunctional policies and dysfunctional policies only breed corruption, waste and retrogression, and this is what we are currently facing with the waivers and concessions,’’ it said.
NANTS, a trade union, said that the body would be drawn from the private sector, civil society, consumer associations, academia and representatives of relevant government agencies such as the Ministry of Finance, agriculture and Nigeria Investment Promotion Council.
It said that the use of waivers and concessions was one of the legitimate tools available to any government in its pursuit of economic development and poverty eradication.
“Waivers and concession could also be used as an instrument to regulate the economy like tariff. In principle, waivers and concessions themselves are not bad.
“By nature, waivers and concession are prone to abuse and that is why any serious nation ought to pay attention to the manner such instruments are administered.
He stressed the need for adequate and appropriate laws to guide, control and regulate the use of the instruments.
It said that the body would receive and review all applications for waivers, exemptions or other forms of import duty concession and to advise the president on the merit of such applications.
The statement said that any person or sector that seeks to be added on the list must apply to the administrative body which would in turn review such application and only recommend its addition on meeting the criteria.
It said that waivers and concessions could only be granted for such category of goods as raw materials to feed domestic industries and spare parts for certain equipment maintenance for industries.
Others include certain goods that have implication for the social wellbeing of the citizens like education and health related goods.
It, however, said that since the abuse of waivers raised fundamental questions of market elimination of competition in the industry or sectors involved, the nation should hasten to enact a competition law.
According to the statement, the body should also have the mandate to set targets on productivity, investment, innovation and employment for any industry or sector enjoying such concession.
“It should be mandated to monitor the use of such concessions to ensure that the set targets are met.
“We advocate the setting up of an administrative body in the form of the International Trade Administration Commission (ITAC) in South Africa.
“ITAC is not the line ministry but has the mandate of administering international trade. It has the mandate to control import and export with the use of tariff and other measures.
“It collates and investigates applications from industries and sectors for supportive tariff measures aimed at boosting productivity, investment and employment in the industry or sector.
“The result of its investigation could lead to raising or reduction of tariff on some imported items.
“Waivers and exemption must be granted in such a way as not to cause unnecessary distortions or eliminate competition in the particular sector or related sector of the economy,’’ it noted.
“To further ensure political accountability, the body with import duty waivers responsibilities and other tariff measures, should be made to present a report to the National Assembly at such intervals as may be determined in the enabling statute.’’
It advised against the design of waivers in such a way that it would not give one or more operators undue advantage over the others, thereby eliminating competition in the market.
Discussion about this post