National Association of Government Approved Freight Forwarders (NAGAFF) has warned its members especially those at the border locations to desist from any assembly for the purpose of contravening any of the provisions of the Customs and Excise law as it relates to the new exchange rate for import duty assessment as implemented by the officials of the Nigeria Customs Service (NCS).
It will be recalled that the NCS on 1st August, 2016 adjusted the exchange rate for import duty calculation from N282 to N313 to $1 having done similar exercise on June 1, 2016, an action that did not go down well with the freight forwarding practitioners in the nation’s maritime industry.
But in a press release issued in Lagos by the National Publicity Secretary of NAGAFF, Mr. Stanley Ezenga, the association called on those who may be acting against the law at the border areas to exercise restraint and follow due process and rules of engagement on matters of Customs and Excise Laws as anyone caught contravening the Customs and Excise Law would be liable to imprisonment for one year.
It noted that the Nigeria Customs as an Agency of Government had the statutory mandate to implement and enforce Government regulations in relation to revenue collection, trade facilitation and suppression of smuggling activities among others adding that this was without prejudices to the powers of the board of Customs as contained in Sections 4, 5 and 6 of CEMA Cap C45 2004 as amended.
NAGAFF therefore warned aggrieved stakeholders to instead make appropriate representations to the government through the Central Bank of Nigeria as regards the benchmark for exchange rate for import duty calculations noting that the Minister of Finance in consultation with the CBN Governor could benchmark exchange rate for customs duty purposes.
According to the release,” The attention of the National Association of Government Approved Freight Forwarders (NAGAFF) has been drawn to the various meetings, assembles, comments and withdrawal of Services by some freight forwarders at the border locations due to the seeming irrational exchange rate of N313 to $1 being used to assess imports for Customs purposes in Nigeria.
“The Nigeria Customs as an agency of government has the statutory mandate to implement and enforce government regulations in relation to revenue collection, trade facilitation and suppression of smuggling activities etc. This is without prejudices to the powers of the board of Customs as contained in Sections 4, 5 and 6 of CEMA Cap C45 2004 as amended, the powers of the Board to exercise due discretion and to vary conditions in favour of proper management and administration of CEMA.
“It shall be the duty of the aggrieved stakeholders to make appropriate representation to the government through the Central Bank of Nigeria in that regard to benchmark the exchange rate. We indeed advise that the Minister of Finance in consultation with the CBN Governor can benchmark the exchange rate for Customs duty purposes. It is legal and legitimate in favour of trade and the society in Nigeria. Wherein we canvass for solutions to the consequences of high exchange rate for Customs purposes it shall be most appropriate to draw the attention of the trading public and the freight forwarders to Section 166 of CEMA.
“Section 166 of CEMA as amended states inter alia; Any person who assembles with two or more other persons for the purpose of contravening any of the provisions of the Customs and Excise Laws shall be liable to imprisonment for one year”.
The association advised all its members and principals to be conversant and familiar with the provisions of the law adding that those who may be acting against the law at the border areas should exercise restraint and follow due process and rules of engagement on matters of Customs and Excise Laws.
The release continued,” The facts on ground are to preempt the seeming radical approach of the government to stem the tide of unnecessary dependence on importation. The need for diversification of our economic base is quite essential at the moment. There are clear indications that the government is obviously discouraging importation to reduce the pressure on foreign exchange. You will recall that well over 41 items have been denied access to foreign exchange including the long list of prohibitions and other restrictions on imports. What is playing out at the moment is that we must change as the government may be doing in line of the change we voted for.
“We are therefore advising and compelling our members to encourage their principals to look inward in the area of manufacture and exportation of Nigerian products to other foreign countries with a view to earning FOREX and balance of trade”.
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