Customs introduces new fiscal policy to boost revenue
A new fiscal policy approved by the Federal Government to address the issue of granting of waivers has been introduced by the Nigerian Customs Service (NCS). The new policy will aid the service to meet its N1.4 trillion revenue target by the end of the year.
The nation’s fiscal policy grants discretionary duty waivers, concessions and incentives to companies and individuals on importation of particular kinds of goods, especially machinery and equipment. This policy has resulted, over the years, to loss of billions of naira in revenue to the service because it mandates Customs to give less import levy or 100 free import levy to importers of such consignment.
Speaking to maritime journalists in Abuja during a courtesy visit, Garba Makarfi, who represented the comptroller general of Customs, said such duty waivers contributed to the inability of the service to meet its N1.2 trillion target in 2012.
This confirms BusinessDay earlier report that Nigeria lost N40 billion to duty waivers granted to seven companies in the steel sector.
Meanwhile, the service has reaffirmed its readiness to take over the destination inspection (DI) programme from the service providers. As a result, Customs is perfecting plans to introduce a new online clearing system to enable the release of cargo within six hours at the takeover from DI service providers.
The new clearing system called ‘Nigeria Trade Hub’ will bring into play the Pre-Arrival Assessment Report (PAAR) and the Single Window cargo clearance for all agencies involved in the cargo clearance at port to fast-track cargo clearance and facilitate legitimate trade at the port.
Explaining further on the new online clearing system, Bashar Yusuf said Customs has developed a ruling centre for carrying out of classification, intelligence and risk profiling, valuation, quality control, fast-tracking of trusted trader, check of documentation and supplier of transaction value confirmation.
According to him, PAAR, which is to be issued within six hours before the arrival of the consignment, will override the current Risk Assessment Report (RAR) issued by destination inspection service providers that takes five days.
He said Customs has employed and trained hundreds of young officers who work six-hourly in four separate shifts everyday to drive the system.
Listing the benefits of the new clearing system, Yusuf said it would facilitate trade, decongest the port, reduce demurrage and cost of doing business at port, reduce discrepancy in cargo value and improve government revenue.
“To ensure that we carry every stakeholder along, we are embarking on a sensitisation programme for clearing agents and other operators. And we have given a Master User Status access to agencies like National Agency for Food and Drug Administration and Control (NAFDAC), Federal Inland Revenue Service (FIRS), etc,” he said.
UZOAMAKA ANAGOR