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Home » The Unending Nigeria Customs Service Benchmark Volte- face

The Unending Nigeria Customs Service Benchmark Volte- face

by Joshua
June 22, 2012
in Uncategorized

Every year the Nigeria Customs Service is given a revenue target by the Federal Government and almost every year, the target is surpassed and for this, the Service’s Comptroller General gets accolade from his employers.

Every year the Nigeria Customs Service is given a revenue target by the Federal Government and almost every year, the target is surpassed and for this, the Service’s Comptroller General gets accolade from his employers.
In 2011, the Service ‘broke’ revenue records when by the end of October of that year; it had already met its target of N596 Billion. The Service excitedly announced that “as at the end of October 2011, the Service has generated a total of N602 Billion into the Federation Account. By the end of the year, we hope to have generated bonus revenue of over N100 Billion into Government Coffers”.

And buoyed by this achievement, it set for itself an unprecedented target of N1.2Trillion for 2012, even though; it was given a target of N800Billion by the federal government.
To meet that target, it created a novel idea of benchmarking duties that are payable on about 23 items and with that, the battle line was drawn with its immediate publics; the importers and their licensed agents.
But the policy only lasted for about two months; that is, between February and April after series of overt and covert opposition from stakeholders led to its cancellation.
After the cancellation, the Nigeria Customs Service declared a ‘war’ on importers and their licensed customs agents, reading the riot act to anyone who violates import guidelines and especially, the provisions of the Customs and Excise Management Act (CEMA).  
At a function of the Association of Nigerian Licensed Customs Agents (ANLCA), shortly after the customs rethink, its Assistant Comptroller General (ACG) in charge of Zone A, Mr Victor Gbemudu told the licensed customs agents that the Service will commence strict enforcement of sections 46, 47, and 164 of the (CEMA) and that goods that are not properly declared are liable to outright seizure.
And to underscore the link between the benchmark and the 2012 revenue target, the ACG told the clearing agents that the Customs indeed needed all the money it could collect so as to meet the N1.2Trillion target.
Since the benchmark cancelation was announced, it has dawned on importers and their agents that Customs meant business and that it would not be to their advantage if the benchmark cancellation is not reversed.
This is where the dilemma is and this is probably what is responsible for the present subtle campaign to return to the customs benchmark era.
We have observed that a coalition of licensed customs agents associations, importers and traders have been campaigning for this, even as we have observed a seeming division in the position of the Association of Nigerian Licensed Customs Agents (ANLCA). The national president of the association; Prince Olayiwola Shittu has not hidden his preference for benchmark, but the chairman of Tin Can Island port chapter of the same association, Mr Kayode Farinto has pointedly disagreed with his boss, saying that it is only the association’s NECOM that can take a decision on benchmark.
While the position of ANLCA remains ambiguous that of other freight forwarding associations has been unveiled, that is, if the public statement that was published in a national newspaper is anything to go by.
It is correct to infer that the national president of the National Association of Government Approved Freight Forwarders (NAGAFF), Mr Eugene Nweke who facilitated   the coalition traders, importers and others to canvass for the return of benchmark did this on behalf of his association, the same goes for  the factional president of National Council of Managing Director of Licensed Customs Agents, Chief Festus Ejiofor, his counterpart at the Association of Registered Freight Forwarders, Nigeria, Dr Frank Ukoh, all of whom have come out with their stands.
Could it be true that those who are clamouring for a return are this who now see that it is better to abode with the pill called benchmark than be forced to swallow the bitter one called; CEMA.
But we think that for as long as it is agreed that benchmark is an anathema (of sort) to the importing community, then, its reintroduction should be resisted. But curiously, even those who are still opposed to benchmark are also making an exception of imported used vehicles.
We find this position unacceptable, whatever is applicable to other categories of imports should be applicable to used vehicles as well.
Perhaps, the best thing for the Nigeria Customs Service is to stick to its guns by insisting on applying relevant sections of the Customs and Excise Management Act (CEMA)  in its dealings with importers and their agents, therein lies our path to sanity  in cargo  clearance.  Perhaps!


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