Saturday 7 September 2013

Nigeria trade hub and Customs modernization

Maritime operators, especially importers
and exporters, have often accused the
Nigeria Customs Service of paying more
attention to revenue collection than trade
facilitation. They allege that Customs
neglects this fundamental responsibility as they strive to meet their annual revenue
targets. In time past, the above allegation could
hardly be totally denied. But in the past few
years, four years to be precise, things have
really changed. Customs Service, under the
present dispensation of Comptroller-
General Dikko Abdullahi Inde, has made progressive efforts to facilitate trade while
collecting the maximum collectible revenue
for government. Trade facilitation aims at making trade
across borders faster, simpler and cheaper
while ensuring its safety and security. The
World Trade Organisation (WTO) defines
trade facilitation thus: “Simplification and
harmonization of international trade procedures. Trade procedures include the
activities, practices, and formalities
involved in collecting, presenting,
communicating and processing data and
other information required for the
movement of goods in international trade.” By implication, it is not only the physical
movement of goods that is important in the
supply chain but also the associated
information that flows from the relevant
governmental agencies and the private
sector. As part of the efforts of the present
Customs administration towards facilitating
trade, the Service has come up with
different initiatives such as the Single
Window project, the Pre-Arrival Assessment
Report (PAAR), IT-based services and computerization of its operations etc. Only recently, the Customs Service formally
launched its brainchild, the Nigeria Trade
Hub (NTH) and the Nigeria Import, Export
and Transit Process Manual. The portal,
developed with the cooperation of other
government regulatory agencies and some private sector players, seeks to provide
invaluable guide and reliable reference tools
to the global trading community that wish
to do business in or with Nigeria. At the launching ceremony in Abuja, the
CGC acknowledged that all over the world,
Customs administrations are coming under
intense pressure to facilitate legitimate
cross-border trade. “For a long time, the trading community
has yearned for information to promote
transparency in the conduct of business.
With the development of this hub,
information is now placed at their disposal
in a fast, convenient and cost-effective manner. I hope this development will help us
achieve a new regime of trade facilitation in
a corrupt free environment,” Dikko noted. He expressed optimism that the portal will
help to improve Nigeria’s ranking in the
World Bank’s Ease of Doing business Index,
stating: “We now have a world class portal
which we are putting up at the disposal of
the global trading community especially those doing business with Nigeria.”


*Customs boss, Dikko

According to the CGC, the portal boasts of
the following features: classification tool,
currency converter, tax simulator, web link
to other government agencies, 24/7 online
accessibility, availability on mobile apps and
interactive and intuitive features. He said the Single Window held many
benefits for Nigeria such as increased level
of service efficiency, transparent and
predictable processes, elimination of
bureaucratic bottlenecks and ultimately,
increased revenue and economic growth. Also speaking at the event, the Minister of
Finance and the Coordinating Minister for
the Economy, Dr. Ngozi Okonjo-Iweala,
noted that all over the world, many
emerging economies are reforming their
investment climates by addressing the regulatory bottlenecks which increase
operational costs for business. “Nigeria is
similarly making progress in harmonizing
domestic business regulations and
rationalizing operations at various
government institutions to increase efficiency,” she said. The minister noted that the Nigeria Trade
Single Window was a useful step towards
improving trade facilitation in the nation’s
economy. “This initiative will simplify, harmonize and
standardize procedures for cross- border
transactions in Nigeria. As a result, it will
further reduce delays associated with cross-
border trade and enable us attain our goal
of 48-hour cargo clearance time at the ports”. Okonjo-Iweala said the Nigeria Single Trade
Window provides for importers and
exporters, an integrated environment
where appropriate regulatory information
may be obtained, adding that “the system
would greatly facilitate commerce across our borders and reduce costs for
businesses operating in Nigeria.” While commending Customs, the various
agencies and the private sector
stakeholders who collaborated on the
project, she expressed confidence that the
framework will contribute towards
improving the nation’s investment climate and support its transformation as an
emerging market economy. The Minister of Industry, Trade and
Investment, Dr.Olusegun Aganga, who also
spoke at the occasion, described the Nigeria
Customs as a trade facilitator. “In playing its own fundamental role as
trade facilitator, the Nigeria Customs
Service has embarked on the introduction
of the Single Window. The application of the
Single Window aims principally to modernize
and simplify processes and procedures of international trade (imports and exports) in
Nigeria. An efficient application will help in
creating a competitive and enabling
environment for cross-border trade in
terms of reducing processing times and
costs and simplifying procedures. It ensures transparency and creates a level-playing
field, thereby encouraging trade
compliance,” he said. “I have seen the single Window in operation
and am proud that to boldly declare that it
will provide the required solution to the
problems and challenges experienced by
players in the past. Trade facilitation is all
about simplicity, predictability and sustainability of import/export regimes,
regulations and procedures”. Aganga said the system provides the
platform for reliable data collection,
collation, retrieval and dissemination and
will improve collaboration amongst the
different operators, public and private, to
exchange data electronically as well as reduce trade related costs through on-line
processing of information while shortening
processing times. The present manual is rich enough to
educate and provide clear guidance not only
on the operations of the Single Window, but
more importantly, it serves as a reference
material to national and international
players trading with Nigeria and those contemplating to do so in the near future”. He commended the Customs and its
leadership for the foresight and the
resources committed to the actualization of
the platform which he said will sanitize
Nigeria’s international trade environment
and bring it at par with the most efficient economies in the world. Speaking for the private sector, Chief Kola
Jamodu, President, Manufacturers
Association of Nigeria (MAN), stressed that
in this increasing globalized world, the
primary role of customs is trade facilitation
across the borders. The introduction of a Nigeria Trade Single Window by customs at
this stage, he said, is a welcome
development. “From all accounts, the aspiration of the
government and the private sector is the
attainment of 48-hour cargo clearing, which
at present is about five days, having come
down from the abysmal 40 days obtainable
three to four years ago. This impressive reduction in the long chain of regulatory/
security agencies at the port from about
nineteen (19) to seven (7) was to prepare
the ports for Single Window Clearing
System. This will no doubt significantly
reduce both direct and indirect costs of clearing cargoes in the country. The
outcome would further contribute towards
improving the competitiveness of locally-
produced goods either for domestic
consumption or for export,” he said. Jamodu stated that MAN as a key
stakeholder in the trans-border business
had been a consistent voice in cooperating
with the Nigeria Customs Service for the
introduction of the Single Window
Clearance System. However, for the scheme to work as
expected and achieve the desired purpose,
the MAN President said the following issues
should be taken into consideration: -Government should immediately appoint
customs, the lead agency for the
implementation of the Single Window
roadmap. -Necessary back up/safety nets should be
put in place to prevent system collapse
during the implementation process. -Creation of a transparent work-flow to
ensure that manufacturers/port users
enjoy the true value of this transformation
system; and -Establishment of a functional regulatory
body to oversee the activities of shipping
agencies and terminal operators. The NTH is an interactive portal, designed
to assist the importer or exporter, with
obtaining correct and timely information. NTH provides necessary information about
all the Government Agencies required to
liaise with to obtain the necessary import
permits and certificates that are needed to
import or export product into or out of
Nigeria. Based on the product and transaction type
selected, the portal will provide details
including the regulatory stakeholders of
that particular product and transaction
type, documents required, the cost of
administering those documents, duties and tax payable, the number of processing days
and any controls/restrictions that might
apply. The NTH is seamlessly linked to the
Nigeria National Single Window ensuring
that once the decision is made to go ahead
with the import or export transaction all selected details captured during the search
are transferred to the Nigeria National
Single Window, saving the time and cost of
rekeying all information. This is in the spirit of “Single Submission of
Data” as per UN/CEFACT’s
Recommendation 33 on Single Window. The Features of the NTH Are:
*Interactive and intuitive.
*Classification tool.
*Contact directory.
*Document library.
*Currency converter. *Customs procedure code search.
*News.
*Documents, payments, tax simulator.
*Duty and Payment Calculator. Okey Ibeke is the Publisher of Business
andMaritime West Africa

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