By Uzor Odigbo
The Area Controller of Apapa Port Command of Nigeria Customs Service (NCS), Comptroller Babatunde Olomu, has disclosed that corruption within customs agencies and stakeholders can impede the timely release of goods and cargoes which will in turn lead to increase in costs for traders.
Comptroller Olomu said this at the Association of Maritime Journalists of Nigeria (AMJON), annual Maritime Finance Conference held at Sheraton Hotel and Towers, Ikeja, Lagos with the theme: “Vessel Acquisition/Construction: Nigerian Banks, Insurance Firms, Government & the Blue Economy.”
Comptroller Olomu who was represented by SC Evelyn Enweani, dwells on the topic, “Customs Role in Trade Facilitation:- Issues and Challenges. Vis-a-Vis Advance Rulling, Automated Economic Operator(AEO) and Time Release Study.”
He said the role of Customs administration in international trade has evolved significantly over the years and has transitioned from a mere revenue collector to a facilitator of trade.
He said the shift is evident in the increasing emphasis on trade facilitation measures aimed at streamlining processes, reducing costs, and enhancing the efficiency of cross-border trade.
He explained that Advance Ruling (AR) is a pre-shipment advisory mechanism that provides importers and exporters with a definitive determination of the applicable customs duties, taxes, and other charges before goods are imported or exported, and the measure aims to reduce uncertainty, minimize disputes and expedite customs clearance procedures.
He added that it’s a tool provided by the Customs Authority in advance of trade transactions which offers clarity on the classification, valuation and origin of goods, providing businesses with predictability in customs processes and was launched in conjunction with the Nigeria Energy Support Programme (NESP) in May 2024.
He however lamented that many stakeholders in Nigeria are unaware of the existence of the AR or its benefits, leading to its underutilisation and urged key stakeholders especially importers and exporters of goods to make use of the mechanism in fast tracking their businesses.
He noted that although the application process of AR could be cumbersome and time-consuming, thereby deterring potential applicants from using the process but it’s worth inculcating into importers/exporters schedule or business plans.
The Customs boss also observed that some Customs brokers may lack the necessary expertise to provide accurate and timely rulings on complex trade scenarios, but affirmed that customs officers are always on ground to assist the importers and exporters navigate the processes of AR for proper implementation.