Following a public outcry and huge condemnation that trailed its implementation, the Nigeria Customs Service, NCS, has announced the suspension of the implementation of 4% Free-on-Board, FOB value on imports as provided in Section 18(1)(a) of the Nigeria Customs Service, NCSA 2023.
A statement signed by the National Public Relations Officer, NPRO of the Service, Abdullahi Maiwada, in Abuja on Tuesday stated that the suspension was sequel to ongoing consultations with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun and other stakeholders.
According to Maiwada, the suspension would enable comprehensive stakeholder engagement and consultations regarding the Act’s implementation framework adding that “The timing of this suspension aligns with the exit of the contract agreement with the Service providers,
including Webb Fontaine, which were previously funded through the 1%
Comprehensive Import Supervision Scheme, CISS. This presents an opportunity to review our revenue framework holistically.”
He explained that under the previous funding arrangement repealed by the NCSA 2023, separating the 1% CISS and 7% cost of collection created operational inefficiencies and funding gaps in customs modernisation efforts.
“The new Act addresses these
challenges by consolidating “not less than 4% of the Free-on-Board value of
imports,” designed to ensure sustainable funding for critical customs operations and
modernisation initiatives. This transition period will allow the Service to optimise
the management of these frameworks to serve our stakeholders and the nation’s
interests better.
“The Act further empowers the Service to modernise its operations through various technological innovations. Specifically, Section 28 of the NCSA 2023 authorises developing and maintaining electronic systems for information exchange between the Service, Other Government Agencies, and traders.
“The Service is already implementing several digital solutions, including the recently deployed B’Odogwu clearance system, which stakeholders are benefiting from through faster clearance times and improved transparency. Other innovative solutions authorised by the Act include; Single Window implementation (Section 33), Risk management systems (Section 32), Non-intrusive inspection equipment (Section 59) and Electronic data exchange facilities (Section 33(3).
“The suspension period will allow the Service to further engage with stakeholders while ensuring proper alignment with the Act’s provisions for
sustainable funding of these modernisation initiatives”, explained.
The Customs spokesman assured that the NCS remained committed to implementing the provisions of the Act in a manner that best served her stakeholders while fulfilling her revenue generation and trade facilitation mandate.
“We will communicate the revised implementation timeline following the conclusion of stakeholder consultations”, he concluded.
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