Manufacturers seek solutions to EEG suspension, smuggling, FOB
Nigerian manufacturers are seeking solutions to critical challenges affecting them, which supposedly emanate from the Nigeria Customs Service (NCS).
Some of these challenges include the Export Expansion Grant (EEG) suspension, smuggling, arbitrary uplift of the Freight on Board (FOB) and late response to queries.
At a meeting between members of the Manufacturers Association of Nigeria (MAN) and the NCS, led by its new comptroller-general Hameed Ibrahim Ali, weekend in Lagos, manufacturers said the challenges have been a clog in the wheel of progress of the real sector and need to be urgently addressed.
Frank Udemba Jacobs, president, MAN, said the suspension of the EEG, its lingering review and challenges relating to non-utilisation of the Negotiable Duty Credit Certificates (NDCCs) are issues that require immediate attention.
The EEG was the only incentive given to non-oil exporters to make them competitive in the international market and ensure they help diversify the Nigerian economy. But it was suspended in August 2013 and has been on review since then.
According to Jacobs, though the issue of arbitrary raising of FOB value and Freight and Insurance was earlier addressed, it is remains a challenge.
“There is also the challenge of smuggling of fake and counterfeit products into the country, which threatens the survival of our members,” MAN’s helmsman told the new Customs boss.
“There is also late response to queries raises by our members on issues that are being handled at the headquarters of the NCS,” he added, while urging the comptroller-general to give urgent attention to activities of smugglers and fakers who, without fear, utilise Nigerian seaports.
He also called for the decentralisation of the complaints unit of the NCS to six geo-political zones of the country and clarification of the yardstick used by the Customs to determine FOB value, Freight and Insurance for manufacturers.
He also lamented the slow pace of cargo clearing even for members on Fast Track System, stressing the need for a greater synergy between the manufacturers and the Customs.
Other manufacturers also raised different concerns. A manufacturer complained that it takes 70 signatures to clear goods in Tin Can Island but only 40 to do so in Apapa, adding that Customs’ use of Alibaba to determine prices of goods is wrong as it does not give the true prices of items. Another manufacturer said that ever since the Textile Development Levy was instituted, fabric makers have not accessed it, lamenting that smuggling has thrown a lot of players in the sector out of business.
In his response, Hameed Ali said it is the Customs role to enforce the law and manufacturers’ role to obey it. Ali said that one basic problem he has seen is compliance to due process, asking manufacturers to follow the due process when they have issues or complaints.
He promised to take manufacturers complaints to the Customs’ office, examine them and get back with appropriate responses.
“I know the Fast Track System was given to manufacturers because we believe that whatever is put on the paper is true. I am glad it is working and I have no reason to tinker with it,” he said.
ODINAKA ANUDU