CHALLENGES AND SOLUTIONS FOR CUSTOMS CLEARING IN NIGERIA PRESENTED BY DEPUTY COMPROLLER OF CUSTOMS ANTHONY AYALOGU AT THE INDIAN PROFESIONALS FORUM NIGERIA HELD ON THE 9TH OF SEPTEMBER, 2017 AT THE INDIAN HIGH COMMISION LAGOS

NIGERIA CUSTOMS SERVICE

FUNCTION OF THE NCS Core Functions Collection of Revenue i.e. Import and Excise Duties and Accounting for same. Prevention and suppression of smuggling

FUNCTION OF THE NCS Other Functions Implementation of Government Fiscal Measures Generation of statistical data for planning purpose Trade Facilitation Implementation of bilateral and multilateral agreements entered into by government Collection of levies and charges Collaborative functions with government Agencies including CBN, Police, NDLEA, SON, NAFDAC, FIRS, etc.

FUNCTION OF THE NCS The Service also supports the combating of: Illegal commercial activities and trade in illicit goods, e.g. import of fake and sub-standard goods Infraction on Intellectual Property Rights Illegal international trade in endangered species Illegal trade in arms and ammunition Money laundering Traffic of illicit drugs Illegal trade in cultural Artifacts. Importation of pornographic materials Importation of toxic and hazardous substances

IMPORT GUIDELINES Duly completed e-Form ‘M’ shall be submitted electronically to an Authorized Dealer bank with the following attached document: Profoma Invoice. Insurance Certificate Regulatory Certificate/Permits ( e.g. NAFDAC, SONCAP Pharmaceutical Board of Nigeria, etc. and any additional documents that might be prescribed by relevant government agency). 2. However the originals of the Documents listed 1"a", "b", "c" should be submitted to the processing bank prior to validation.

IMPORT GUIDELINES 3. Upon receipt of duly completed and submitted copy of the e-Forms ‘M’ from the importer, the Authorized dealer bank shall: 1. Ensure that the e-Form ‘M’ is duly completed with detailed description of goods clearly stated; 2. Compare the attached documents with the original; 3. Ensure that the entire relevant documents that are to accompany the completed e-Form ‘M, are actually provided. It should be stated that the Authorized Dealer bank is expected to carry out proper Know – Your – Customer (K-Y-C) and be satisfied that all the relevant documents forwarded are genuine 4. After completion of (a) and (c) above, the bank shall validate and transmit the e-Form ‘M’, to Nigeria Customs Service (NCS).

IMPORT GUIDELINES 4. Upon receipt of the e-Form 'M' with other necessary pre-import documents, NCS shall: 1. Carry out a preliminary review on the application, using information provided therein and accept or reject the e-Form M within one working day. 2. If " ACCEPTED", NCS shall register the e-Form 'M' on the system. 3. However, if the e-Form “M” is “REJECTED”, NCS shall state reason(s) for rejection and the e-Form M automatically returned for necessary rectification. 4. After registration of the e-Form "M" and the receipt of the Final Import Documents from the Authorized Dealer Banks, NCS shall generate Pre Arrival Assessment Report (PAAR) within six (6) hours.

IMPORT GUIDELINES The Nigeria Customs shall coordinate the Mandatory Joint Examination and sign-off Form within Official working hours, including Saturdays. The Nigeria Customs Shall circulate cargo manifests to other examination agencies, as soon they are received to enable enough time for risk assessment and profiling.  

IMPORT DUTY PAYMENT Importer shall continue to pay an administrative charge of 1% of FOB value of all imports based on the exchange rate on the approved e-Form M and the assessed value on the PAAR. All imports shall continue to be assessed for duty at the C. I. F. value of the goods using the rate of exchange on the approved e-Form M. It shall be the duty of the importer’s bank through which the e-Form M was processed to collect the amount of import duty as assessed, if it is a Designated Bank. However, for e-Form M transactions processed by non Designated Bank, payment of import duty shall be at any of the Designated Banks, while a copy of the duty payment receipt shall be made available to the processing bank by the importer.

IMPORT DUTY PAYMENT For transactions in respect of dutiable personal effects payment of duty can be made at any preferred Designated Bank. The Designated Bank will match printed assessment notice with the electronically received assessment notice for the Single Goods Declaration (SGD). if the information tallies, the bank will receive payments and issue signed Bank receipt. The designated bank shall send an e-confirmation message to NCS acknowledging receipt of duty and taxes in respect of the SGD. All payments shall continue to be electronically transferred daily by Designated Banks to the respective pool accounts with CBN, failing which necessary sanctions shall apply.

The Harmonized System 2012 THE GIRs WCO HS Seminar in place, date The Harmonized System 2012 THE GIRs GENERAL RULES FOR THE INTERPRETATION OF THE HARMONIZED SYSTEM : - THERE ARE SIX GENERAL RULES - THEY ARE AN INTEGRAL PART OF THE NOMENCLATURE - THE RULES SET OUT THE PRINCIPLES FOR CLASSIFICATION IN THE HS - THEY PROVIDE FOR UNIFORM APPLICATION OF THE NOMENCLATURE - THEY SHOULD BE APPLIED IN A HIERARCHICAL ORDER - THE FIRST FIVE RULES RELATE TO THE 4-DIGIT HEADINGS; RULE 6 RELATES TO CLASSIFICATION IN THE 5- OR 6-DIGIT SUBHEADINGS Copyright© 2010 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to copyright@wcoomd.org.

The Harmonized System 2012 THE GIRs GIR 1 GENERAL RULE WCO HS Seminar in place, date The Harmonized System 2012 THE GIRs GIR 1 GENERAL RULE GIR 2 (a) INCOMPLETE OR UNFINISHED, UNASSEMBLED OR DISASSEMBLED GIR 2 (b) MIXTURES OR COMBINATIONS GIR 3 TWO OR MORE HEADINGS GIR 3 (a) MOST SPECIFIC GIR 3 (b) ESSENTIAL CHARACTER GIR 3 (c) LAST IN NUMERICAL ORDER GIR 4 MOST AKIN GIR 5 (a) SPECIAL CONTAINERS GIR 5 (b) PACKING MATERIALS & CONTAINERS GIR 6 SUBHEADING TEXTS, 5,6-DIGIT LEVEL Copyright© 2010 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to copyright@wcoomd.org.

WTO Customs Valuation Agreement

Why an Agreement on customs valuation? customs valuation and ad valorem customs duties Article VII of GATT 1947 The Tokyo Round Code The WTO Agreement on Implementation of Article VII of GATT 1994 (Customs Valuation Agreement)

What does the Agreement do? Provides uniformity and certainty Transparency and consistency Neutral system for valuation of goods Basis should be the transaction value

Customs valuation methods Primary basis for customs value is “transaction value” of the goods sold If customs value cannot be determined on the basis of transaction value of the goods, alternative methods are provided: --transaction value of identical goods --transaction value of similar goods --deductive value --computed value --”fall-back” method

CLASSIFICATION OF GOODS IN THE HARMONISE SYSTEMS NOMENCLATURE There are 6 General Rules in all, which must be applied in consecutive order. GRI 1 prescribes how to classify products at the 4-digit Heading level, based on the wording of the headings and the relative HS Section and Chapter Notes. GRI 2 prescribes how to classify both incomplete and unassembled goods, and mixtures and combinations of goods.

CLASSIFICATION OF GOODS IN THE HARMONISE SYSTEMS NOMENCLATURE . GRI 3 prescribes how to classify products that are, prima facie, classifiable under two different HS headings. GRI 4 prescribes how to classify products that cannot be classified according to GRI’s 1, 2, and 3. GRI 5 prescribes how to classify packaging. GRI 6 prescribes how to classify products at the 6-digit subheading level, based on the wording of the subheadings and the relative HS Section and Chapter Notes.

CUSTOMS DISPUTE RESOLUTION DISPUTES CAN BE HANDLED AT THREE LEVELS CUSTOMS COMMAND CUSTOMS HEADQUATERS WORLD CUSTOMS ORGANISATION

CUSTOMS DISPUTE RESOLUTION POINT TO NOTE IN DISPUTE RESOLUTION; GOODS MUST NOT BE DELAYED IMPORTER HAS A RIGHT TO ALL THE CUSTROMS BOOKS OF INSTRUCTIONS IMPORTER MUST PROTEST IN LINE WITH THE RULES

NIGERIA CUSTOMS TRADE FACILITATION FAST TRACT Authorized Economic Operator (AEO)

CUSTOMS COMPLIANCE MONITOR SYSTEMS AUDIT POST CLEARANCE AUDIT CUSTOMS INTELLIGENT UNIT

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