The Nation Newspaper

Tag: NCS

  • Fed Govt’s ports policies bleeding economy

    Fed Govt’s ports policies bleeding economy

    Stakeholders say Federal Government’s policies at the nation’s seaports in recent times are becoming unpopular.  While terminal operators, importers and clearing agents were still battling to come to terms with the 110 per cent duty imposed on rice importation, car dealers and would-be car owners were shocked when officials of the Nigeria Customs Service (NCS) suddenly commenced the implementation of the 70 per cent tariff imposed on fairly-used vehicles.  OLUWAKEMI DAUDA reports that these policies have taken its toll on the economy.

    A new duty regime on imported fairly used vehicles  (known in local parlance as Tokunbo) will formally come into force at the end of this month. Under the new  scheme, automobile importers who hitherto paid 20 per cent duty on used vehicles will now pay 70 per cent as duty.

    The new tariff is a product of the new government’s automotive policy which states that fully built cars (ready to drive) will henceforth attract 35 per cent duty plus another 35 per cent levy. This brings the total payable tariff  by importers to 70 per cent.

    It also pegs the age ceiling of 10 and 15 for private and commercial vehicles respectively.

    The policy has caused disquiet among clearing agents. It is also bad news for intending car owners whose hope of ever owning a car have been dashed by the new policy. Importers are worried that the imposition of such duties will affect their businesses and hike vehicle prices by at least 300 per cent.

     

    Cost of Made-in-Nigeria cars

    The Federal Government says Made-in-Nigeria vehicles would sell for between N1.2million and N1.5million.

    Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, said it was part of measures to develop local capcity in the automotive industry.

    He said: “The importation of Tokunbo vehicles will not be a major threat to the automotive development plan. The tariff for the importation of cars has been reviewed upward and will be announced soon.”

    Aganga also said the ministry had commenced the implementation of the Automotive Industrial Policy Development Plan, whih is expected to place the country  in the club of auto-producing countries.

    He said with the new measures, the automotive industry will create significant, good quality employment and a wide range of technologically advanced manufacturing opportunities. Aganga added that this will enable the country to acquire the requisite technologies of mass production and quality control. He said arrangements have been made to manufacture new cars that will be sold for between N1.2million and N1.5million.

     

    Clearing costs rise 

    Determined to test the waters, the Federal Government suddenly began the implementation of the policy on March 1.  As expected, importers and clearing agents revolted as the cost of clearing cars and commercial vehicles shot up to between 300 and 450 per cent respectively.

    A similar government policy on rice had resulted into massive smuggling of the staple food and attendant loss of revenue to the government.

    The agents did not only stopped work, they also blocked all ports’ entrance and exit gates, especially at the Tin Can Island Port (TICP), Apapa, the country’s only Roll-On Roll-Off (RoRo) facility. No movement was allowed in and out of the ports throughout the day. This forced the government to revert to the status quo a day after the showdown.

    The government has concluded plans to relaunch the policy at the end of this month. Stakeholders say if the government worked its talks,  importers will have no choice but resort to smuggling the vehicles into the country through her numerous porous borders.

     

    Cargo diversion imminent

    The effects of the hike in duty on used vehicles and rice and the total ban on other goods is telling negatively on the revenue earnings of the NCS.

    Stakeholders say the government did not realise that the country’s neighbours are always praying that it made unpopular policies the advantage of which they take to boost their trans-border business. For instance, any time Nigeria government hikes payable duty on any commodity or bans its importation outrightly, the reaction of neighbouring countries is usually a reduction of the tariff of such goods in their country.

    Findings show that ahead the implementation of the auto policy,  Nigerian importers have started diverting their consignments to those countries from where they will be moved, through approved and unapproved routes, into the local markets.  More than 70 per cent of such goods find their way into the country through smuggling.

     

    Stakeholders to resist policy implementation

     

    The Maritime Workers Union of Nigeria (MWUN)  said it will resist the  implementation of the new tariff by the NCS.

    Its President, Comrade Anthony Nted, said as long as the local automotive industry is yet to stand on its feet, the union will not allow its implementation.

    He expressed anger that despite the outcry of Nigerians and efforts by maritime stakeholders to get the government to rescind its unpopular rice and vehicle tariff policies, men of the NCS have commenced its implementation ahead the July 1 implementation date.

    He said: “We heard that the implementation is going to take place by July but we heard that Customs has started the implementation. I don’t know how it works. We will find out if that is true, the MWUN will do everything it can to resist the policy. The best thing we can do to draw the attention of the government to these policies that are inimical to the existence of the Nigerian people is for us to call our workers out of service after every other options have failed.”

    National Coordinator, Save Nigeria Freight Forwarders Importers and Exporters Coalition (SNIFFIEC), Osita Chukwu said the policy is completely anti-masses and should be resisted.

    He said the new policy, aside hurting the masses, will push a lot people out of the cargo broking job.

    He said: “We cannot accept the 70 per cent tariff hike. It’s going to kill the masses. How many people will be able to buy used vehicles now? How many people can afford new ones as well? We totally reject this.

    “We are going to shut down the ports if the government doesn’t rescind its decision on this matter. By the time over three million importers, exporters and other stakeholders withdraw their services from the ports, you can only imagine the implication of that action on the economy.”

     

    Customs’ revenues dip

    In the first quarter report declared by the NCS, revenue earnings between January and March this year, was a meagre N77.9 billion out of the projected figure of N400 billion representing a 19.5 per cent or a N322.1 billion loss. The amount collected was also less than half of the N191.3 billion collected by the NCS during the corresponding period under review.

    According to figures from NCS Headquarters in Abuja, N27.4 billion was collected in January, N23.8 billion in February and N26.7 billion in March. The NCS said  out of the revenue collected in the period under review, N41.7 billion was remitted to the Federation Account and N36.2 billion paid to the non-federation account.

    According to the record, revenue collected came from duties, fees and levies,  N7.2 billion was collected on port levy; N1.4 billion from levy on sugar; N7.2 billion from wheat grain levy and N1.0 million from flour levy. Again, N41.7 billion of the revenue figure was realised from five per cent Value Added Tax (VAT) while N131.8 million was from the National Export Supervision Scheme (NESS). Other special levies which provided revenue during the period, according to the NCS, were Comprehensive Import Supervision Scheme (CISS) and Economic Community of West African States (ECOWAS )Trade Liberalisation Scheme (ETLS), which accounted for N10.5 billion and N6.3 billion respectively.

    A further breakdown of the revenue figure showed that N2.6 billion was generated from 100 per cent levy on rice, N79.2 million from brown rice levy and N112.5 million from steel levy. It added that textile levy accounted for N24.1 million, N4.8 million from wine, cement levy, N274.9 million and N135 million from cigarette levy.

    A Lagos based car dealer, Mr Daniel Joseph said the new tariff will fuel smuggling if it becomes the last option.

    “With the new tariffs, it means cars of 2003 are no longer to be allowed into the country. That’s bad. Nigeria currently makes about N30 billion yearly from used vehicle importation. It will lose that revenue with the new policy because only very few importers can afford to pay all the legitimate duties and levies. When you pay that, how much will you now sell the vehicles? Over 300 per cent increase. A car of N400,000 will jump to over a million naira. Do you know the implication of that? People will resort to smuggling because they want to evade taxes and duties. When this starts, it will be another headache for the government and its agencies at the borders,” he said.

     

    Losses from rice

    Stakeholders blamed the 110 per cent hike in the payable duty on rice for the dip in Customs’ revenue collection.

    In 2012, import duty on rice was 50 per cent and 10 per cent levy totaling 60 per cent. But during 2013 fiscal year, it was shot up to 110 per cent shooting up the cost of importation and the market price.

    Based on the astronomical increase on the  duty, many importers had diverted their cargoes to Cotonou, Benin Republic, where the duty was slashed to as low as 10 per cent.

    This inevitably made smuggling of the staple food attractive an inevitable.

    The ENL Consortium Terminal, Lagos Port Complex (LPC), Apapa, where over 60 per cent of rice imported into the country is discharged, recorded near-zero import of the commodity last year.

    The Chairman, Seaport Terminal Operators Association of Nigeria (STOAN), Princess Vicky Haastrup, said the total revenue loss  to duty hike on rice last year was N300 billion.

    In the first quarter of this year, she said N80 billion was lost as over 150 shiploads or 600,000 metric tons of rice were diverted to the neighbouring ports of Benin Republic, Cameroon, Ghana and Togo.

    Haastrup said: “This is becoming rather unfortunate. Our economy is bleeding seriously because of this policy. The loss to other countries, as a result of the high tariff on rice was over N300 billion last year while in the first quarter of this year alone, both government and private operators have lost a least N80 billion.

    “Even the Federal Government through the Minister of Finance and Coordinating Minister of the Economy, Mrs. Ngozi Okonjo-Iweala, admitted the shortcoming of this policy. The truth is that the policy has done more harm than good to our economy and government should waste no further time before reversing it.”

    Haastrup, who is also the Executive Vice Chairman, ENL Consortium Limited, said the 110 per cent duty imposed on rice affected the revenue of the NCS, terminal operators, dockworkers and the Nigerian Ports Authority (NPA).

    The STOAN chair said: “The fact of the matter is that the policy cannot work. Even if you place heavily armed Customs officers in every corner of our borders, it won’t stop smuggling. It is a fact that local production cannot match local demand which creates a recipe for smuggling. “There is a lot of pressure on Customs because the quantity of rice produced locally can only satisfy 30 per cent of local demand. It is easy to point fingers but I believe Customs officers are giving their best.

    “And don’t forget that our neighbouring countries are profiting from the policy by dropping their own tariffs on rice and because they are benefitting, they give tacit support to these smugglers.”

    Haastrup said the 110 per cent policy would not encourage local production but rather stifle it due to the high rate of smuggling.

     

    High import prohibition list

    Stakeholders said the country has the longest import prohibition list (IPL) in the world. While other nations use tariff to discourage the importion of some goods into their countries, the country uses outright ban to achieve same goal. Stakeholders said the practice is at variance with modern day international trade. Response from the government is that the policies were introduced to protect the country from being turned into a dumping ground by other nations and invariably to protect local industries that are too weak to compete with their counterparts in other parts of the world.

     

    Policy somersault

    At the Centenary Award held in Abuja, Dr.  Okonjo-Iweala, said the Federal Government was contemplating a downward review of tariff on imported rice. According to her, a  reduction in tariff will reduce smuggling of the commodity into the country, lamenting  that the existing 110 per cent duty was an incentive to smugglers.

    “We increased the tariff to110 per cent, and it encouraged some people to go and grow rice and we grew 1.1 million metric tons of the product. But it also encouraged smuggling by neighbouring countries because they immediately dropped their own tariffs to 10 per cent. For rice, we see that it is not working,” she said.

     

    Furniture import ban reversal

    For over a decade, furniture has remained in the country’s IPL with its consequent huge revenue loss. Even with the ban in place,  foreign furniture continued to flood the country, finding their ways into the homes of the elites. Apparently realising the losses, the Federal Government recently unbanned the item through a circular Ref. No. BD.12237/S.403/T1/221 dated 23rd January, 2014. The document conveyed to all relevant agencies, the extension of the ECOWAS Common External Tariff (CET) 2008 – 2012 until 31st December 2014 and 2014 Fiscal Policy Measures.

    Rather than an outright ban, a duty rate of 35 per cent has been slammed on the item, which as at the time of this report may not have been officially gazetted for capture in Customs’ procedures for import duty collection purposes.

    In the circular, furniture was listed as numbers 195 and 196 under HS Code 9401.3000.00-9401.8000.00 and 9403.1000.00-9403.6000.00 respectively.  It was titled, “Extension of ECOWAS Common External Tariff 2008 – 2012 and the Fiscal Policy Measures 2014” and signed by Okonjo-Iweala.

    The Customs in Circular No.005/2014 dated March 4, 2014, directed all concerned including Deputy Comptrollers General, Zonal Coordintors, Customs Area Controllers (CACs) and heads of units, to comply with the minister’s directive. The Customs’ circular was signed by Adesina Odunmbaku, the Assistant Comptroller General in charge of Trade and Tariff (T&T), for the Comptroller General of Customs.

     

    Policy obnoxious, anti-people

    The Conference of Nigerian Political Parties (CNPP), joined other Nigerians in condemning the 70 per cent hike in import tariff on Tokunbo vehicles.

    Its spokesman, Osita Okechukwu, said the hike was obnoxious, anti-people and capable of inducing smuggling, which would further impoverish Nigerians.

    “The Automotive Industry Policy Development Plan is defective and utopian, as you cannot build nothing out of nothing.  How can you reduce import dependency on automobiles when there is electricity supply deficit, iron manufacturing deficit, rail transport deficit, high cost of finance and absence of motor vehicle manufacturing plants?

    “It is a trite economic law that you can only protect existing factories, not futuristic factories; we must develop and address the supply side,” the CNPP said.

    It called on President Goodluck Jonathan to cancel the Tokunbo vehicle import tariff.

    The National President of the Association of Nigerian Licenced Customs Agents (ANLCA), Prince Olayiwola Shittu, however, said based on the interaction between the group and  Federal Government representatives, the automotive policy will be reviewed. He said: He said: “The contentious automotive policy is to be revisited with a view to reversing the policy in favour of a phased increase in the tariff regime over a period of 10 years.”

     

    Auto policy promises more jobs

    The Director-General, National Automotive Council (NAC), Mr. Aminu Jalal, said many international automotive manufacturers in particular, Toyota, Nissan, Renault and General Motors, have indicated interest in investing in the country following the evolution of the automotive development plan.

    He said: “Nissan, Toyota and others are now conducting a feasibility study on vehicle assembly in Nigeria.

    “At full capacity, the Nigerian automotive industry has the potential to create 70,000 skilled and semi-skilled jobs along with 210,000 indirect jobs in the Small and Medium-scale Enterprises (SMEs) sector that will supply the assembly plants.”

    Jalal said 490,000 other jobs would also be created in the raw materials supply industries.

     

  • Customs officer ‘bathes woman with acid’

    Customs officer ‘bathes woman with acid’

    A personnel of the Nigerian Customs Service (NCS), has been arrested by the police for allegedly pouring acid on a woman.

    The victim, Tope Fadipe, a sales girl in a restaurant owned by the officer, was seriously wounded and is lying in critical condition at the Emergency Unit of the Badagry General Hospital, Lagos.

    The officer, who heads NCS’s unit at Mosafejo Aradagun, has been transferred to the State Criminal Investigation Department (SCID) for further interrogation.

    It was gathered  the incident occurred over N50,000 which was allegedly unremitted by the sales girl.

    An eyewitness said an argument ensued over the missing money and the enraged officer stormed off and later returned to bathe the victim with acid despite insisting on her innocence.

    Although the matter was initially reported to the Badagry Police Division, the suspect was said to have evaded arrest until he was later caught by the police.

    The Badagry Divisional Police Officer (DPO), Ibrahim Hassan, a Chief Superintendent of Police (CSP), said the suspect has since been arrested, contrary to claims that he was still at large.

    He added: “We have arrested the suspect. We have also transferred the case to the State Criminal and Investigation Department (SCID), Panti, Yaba, where investigations are currently ongoing.”

     

  • Fed Govt imposes 70 per cent tariff on Tokunbo vehicles

    Fed Govt imposes 70 per cent tariff on Tokunbo vehicles

    The Federal Government has directed the Nigerian Customs Service (NCS) to collect 35 per cent duty and 35 per cent levy (on the cost of the vehicle) on every imported used (popularly known as Tokunbo) vehicles  from July 1.

    The Nation gathered that the directive is contained in a circular No: BD/FB/09/224 dated February 28 and another circular No: NAC.993/5 dated April 28.

    It was gathered that the Customs at Tin-Can Island port and other terminals in Lagos have commenced full implementation of the directive.

    Under the new policy,  Fully Built Unit  (FBU) cars would attract a duty of 35 per cent and 35 per cent levy.

    “If the bill of lading is dated not later than March 31, and its arrival date is not later than June 30, (you) will pay old duty rate irrespective of the date of opening of Form ‘M’ and letter of credit.

    “Whereas, used vehicles will be imported at 35 per cent duty rate without levy till June 30, this year,” the circular added.

    Commercial vehicles, such as Danfo bus, which paid only 10 per cent duty, are to pay 35 per cent duty and 35 per cent levy by the importers.

    The new policy has been uploaded into all Customs systems, making it difficult for importers or their agents to pay old rate.

    A senior Customs officer who carved anonymity said the policy ought to have started on January 1, if not because of the position of the Controller General of Customs Alhaji Dikko Abdullahi that its implementation should come to effect now.

    Custosms Public Relation Officer at Tin-Can command said the 35 per cent duty on used vehicles has been enforced by Customs formations across the country.

    “The Circular is a Federal Government circular that has to be implemented by all Customs commands,” Osunkwo said.

    But the National President, Association of Nigerian Licensed Customs Agents (ANLCA) Alhaji Olayiwola Shittu said most agents had wished that the implementation commenced in July.

    “There is no reason for the government to start collecting 35 per cent duty on used vehicles now and imposed another 35 per cent levy in July. We had expected that the full implementation of the policy would commence in July, if the government is determined to go ahead with the policy despite the public outcry against it,” Shittu said.

     

  • Customs okays new vehicle clearing method at borders

    The Nigeria Customs Service(NCS) has introduced a new vehicle transit regime for imported automobiles through neighbouring countries, such as Benin, Cameroon, Chad and Niger Republic, beginning with Benin Republic and Seme Border for the pilot implementation.

    The new scheme will promote regional security, facilitate genuine trade and improve the existing synergies between the NCS and other Customs administrations sharing common borders with the country, the Custooms said.

    The initiative will also facilitate interstate effort in the fight against smuggling and boost the revenue being generated from imported vehicles

    The new policy, which is a fall out of last month meeting of Directors -General of Customs of the five proximate countries held in Abuja, and in line with the Transit Code,would see all Nigerian-bound vehicles imported from these countries being handed over to the NCS by officers of the neighbouring countries after clearing the vehicles from their ports.

    The scheme will create room for accountability, transparency and easy personal evaluation and monitoring.

    The names of officers responsible for transfers and receipts of manifests/vehicles from both countries would also be documented.

    Sources also said the document will indicate location of formal handing and taking over of imported vehicles coming to the country on transit.

  • Customs redeploys 1,000 officers to boost PAAR

    Customs redeploys 1,000 officers to boost PAAR

    The Nigeria Customs Service (NCS) has redeployed over 1,000 officers to facilitate the processing of Pre-Arrival Assessment Report (PAAR) at the ports and other designated clearing outlets.

    The exercise is to ensure that only officers with the requisite knowledge of classification and valuation man PAARs desk, it was learnt.

    Sources said the Customs Comptroller-General, Alhaji Dikko Abdullahi, ordered the redeployment to end the initial challenges.

    Senior officers are working with young officers knowledgeable in computers to produce between 1,800 and 1,900 PAARs daily.

    At the Apapa Customs Command, which is said to be the fulcrum of PAAR’s implementation, the Customs is making progress in the generation and transmission of the document.

    According to findings, the Command generated and transmitted 19,198 PAARs between last December and last month. About 6,632 were utilised, leaving a balance of 12,566.

    A breakdown of the figures indicated that 781 PAAR were transmitted in December, 372 were utilised and 409 unutilised. In February, the Command recorded 5,365 PAARs; 1,792 were utilised and 3,573 were unutilised.Of the 9,722 PAAR generated and transmitted last month, only 3,338 were used, 6,384 were not.

    The Area Comptroller, Apapa Command, Charles Edike, said the Customs began the transmission of 250 PAARs daily in December. He said Abdullahi complained that the figure was too small and ordered that “we should increase to two shifts, morning and evening. With two shifts, we transmitted 500 per day. He was still not satisfied with this, despite the backlog of 99,000 RAR left behind by the service providers”.

    Edike also said the opposition against the PAAR regime by a section of stakeholders was a smear campaign to discredit the process.

    ‘’We are aware that there is a lot of smear campaign to discredit the PAAR initiative. Not everybody likes good things, some people thrive on confusion.

    ‘’If Customs is not ready, how would this quantum of PAAR be generated? How many Form’ M’ are processed in a day? How many declarations are processed in a day? People are being mischievous in their assessment of the process and their view is myopic. Even the three service providers combined could not generate this much RAR in a month throughout the eight years they operated,” he argued.

    He noted that importers waited until their cargoes arrived before they began to process their Form ‘’M’’ and they are laying the blame on PAAR, saying it is a pre-arrival method. But importers and their clearing agents, are doing post-arrival, he said.

    “For RAR, it is fine, but for PAAR, that is not the concept,’’he said.

    He noted that an importer is not supposed to start importation until his Form ‘’M’’ is approved.

    ‘’It is after the bank has forwarded the Form ‘’M’’ to the Customs’ portal that you place order. But some people want to circumvent the process and when they run into a hitch, they blame PAAR.’’

    He said: ‘’The purpose of this new clearing procedure is to engender change in our attitude. It is to infuse efficiency into out clearing procedure, to change from being analogue to electronic for speed, efficiency and cost-effectiveness.”

    The National President, National Association of Nigerian Licensed Customs Agents, Prince Olayiwola Shittu, confirmed that Customs has improved on the issuance of PAAR, urging the Comptroller-General not to relent in his resolve to forge ahead.

    “The truth is that Customs has improved tremendously on its operation. We are happy with the level they are issuing PAAR, but the C-G must not relent in his effort. If he goes to sleep, his work will also go to sleep,” Shittu said.

    An importer, Mr Solomon Adeseye, urged Dikko to involve more of his officers in PAAR operation so that the initial problem associated with the scheme would not repeat itself.

  • Customs intensifies clampdown on smugglers

    Customs intensifies clampdown on smugglers

    The Federal Operations Unit (FOU) Zone C of the Nigeria Customs Service (NCS) has intensified onslaught against the smuggling syndicates in the Southeast and South-South. They are believed to be behind the smuggling of contraband and counterfeit products into the country, especially rice and fairly used vehicles popularly known as tokunbo.

    In the last two years, it had recorded unprecedented breakthroughs in the war against saboteurs of the country’s economy.

    First was the bursting of a powerful syndicate that specialised in importation of banned poultry products that are injurious to consumers’ health. Currently, they had been neutralised due to the proactive and effective tactics employed by the officers in the zone under the leadership of the Controller of FOU Zone C, Victor David Dimka.

    After they had been dislodged in the business of smuggling contraband poultry products, the smugglers began smuggling unapproved variety of rice which they cleverly mix with bags of approved ones.

    Once again, the FOU Zone C has lived up to its constitutional responsibility of protecting the country’s economy from the activities of smugglers.

    At the last count, the zone had made seizure of smuggled rice with total duty paid value (DPV) of over N375, 634 million at two different occasions.

    Displaying the seized smuggled lorry loads of rice which included fake Mama Africa brand of rice valued at N160, 440 and other brands of rice, with a total DPV of N235, 634,000 assured that the synergy currently existing between the NCS and other security agencies, especially the Police, Army, the State Security Services (SSS) and NAFDAC, would be strengthened to reduce the menace of smuggling in the country.

    He expressed optimism that despite the upsurge in smuggling in recent times, the scourge could be effectively tackled with the support and co-operation of all patriotic Nigerians with security agencies, stating that the Nigeria Customs Service would sustain its public enlightenment/sensitisation campaign on the dangers inherent in the illegal business of smuggling, patronage and consumption of contraband goods.

    “The items were brought in with every amount of ingenuity and if we are not able to check them, those who criminally brought them in would eventually have their way to the market,” said Dimka who expressed shock over the resilience of the smugglers after losing so much money as a result of the clampdown on their illegal trade. He warned transporters to always be careful and mindful of the purpose for which their vehicles are being used at any point in time since ignorance of the use of any vehicle for a criminal act can never be tolerated as an excuse.

    Continuing, he said: “The story behind our success is the co-operation and support we receive from the Comptroller-General of Customs Abdullahi Dikko Inde, the management. We have also embarked on training and re-training, even as our intelligence unit is at its best to meet our challenges.

    “The Nigeria Customs Service, more than ever before, is adequately trained and motivated to confront the smuggling racket. This is a warning to smugglers and would-be-smugglers that it is no longer business as usual.

    “No matter the tactics they employ to deceive security agents, they cannot escape the eagle eyes of the officers of FOU Zone C and they will be arrested, prosecuted and punished. But we will continue to partner with the public on the area of intelligence gathering to help in curbing the menace.”

    Disclosing the method of operation of the rice smugglers, Dimka said. “The syndicate, after buying large quantities of the banned rice, discharge them in neighbouring countries, where they are re-bagged with the bags of the ones that are approved for importation and then smuggle them into the country in small quantities.

    “Despite their tricks, we are able to identify the fake products and pick them up when they have entered into the country. What we normally do is to keep tracking them until they enter into safe zone when we can move in and round them up.”

    He said the consignments were intercepted along the Agbor-Okpanam Road, Onitsha/Asaba Road and Benin/Onitsha Road by his men who acted on a tip-off.

    Dimka further stated that five suspects arrested in connection with the crime are currently detained in Benin, Enugu and Calabar and are helping Customs officials in their investigations, adding that those already granted bail would soon appear in court.

    He warned that although officers of Nigeria Customs Service are to shoot to maim, they can shoot to kill whenever it becomes inevitable in the discharge of their duties, especially when a smuggler is armed and their lives are in danger. “They are now better trained, equipped, motivated and informed to meet their challenges in the interest of the country’s economy,” he said.

    Dimka attributed the upsurge in smuggling to unbridled quest to make quick money by desperate Nigerians. He assured that his men would always support the government and implement its policies and programme geared towards the elimination of smuggling.

    Seizure made in the zone which covers Edo, Bayelsa, Delta, Anambra, Enugu, Abia, Ebonyi, Rivers, Cross River, Imo and Akwa Ibom states in the last one month included lorry loads of smuggled rice with Duty Paid Value of N235, 634 million, 31 assorted types of vehicles valued at N18 million.

     

    This is in addition to 14 cartons of contraband Tramadol with 300 pieces of 100mg capsules suspected to have been illegally imported from England without NAFDAC’s officially approved registration numbers.

    The Controller explained that the Tramadol capsules were deceitfully packed and concealed in a luxury bus along with many other contraband goods before it was intercepted by officers attached to the zone.

    Despite the upsurge of smuggling in the country, Dimka expressed optimism that the scourge could be effectively tackled with the support and co-operation of all patriotic Nigerians, stating that the NCS would sustain its public enlightenment/sensitisation campaign on the dangers inherent in the illegal business of smuggling, patronage and consumption of imported contraband goods.

    Receiving the drugs impounded on behalf of the Director-General of National Agency for Food, Drug Administration and Control (NAFDAC) Dr. Paul Orhii, the Chief Regulatory Officer of NAFDAC Mrs. Esther Itua commended the NCS for its spirited effort to contain the problem of smuggling, even as he assured that the agency will stop at nothing to apprehend those behind the importation.

    However, businessmen in the Southeast have decried the incessant seizure of their goods by the Customs officers in the zone who they accused of systematically clamping down on their trade because of their alleged refusal to pay exorbitant and illegal levies imposed by the Customs.

    In a swift reaction, the Controller dismissed their claims as frivolous and unfounded, challenging anyone with genuine complaint to come up and report any case of extortion as claimed to any anti-graft agency in the country, stating that no amount of cheap blackmail will deter the officers from carrying out their legitimate duties.

     

     

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  • Customs impounds N235.6m worth of rice, vehicles

    Customs impounds N235.6m worth of rice, vehicles

    The Federal Operations Unit (FOU) Zone C of the Nigeria Customs Service (NCS) has impounded smuggled rice with Duty Paid Value (DV) of N235.634 million, 31 assorted types of vehicles valued at N18million all illegally imported through the nation’s borders.

    This, in addition to 14 cartons of contraband Tramadol with 300 pieces of 100milligram (mg) capsules suspected to have been illegally imported from England and with no officially approved registration numbers of the National Agency for Foods, Drugs Administration and Control (NAFDAC).

    According to its Area Controller, Mr. Victor David Dimka, the Tramadol capsules were deceitfully packed and concealed in a luxury bus along with many other contraband goods even as he assured that the poisonous drugs would be handed over to NAFDAC for necessary action.

    Dimka disclosed that five suspects are now in police net in connection with the smuggling and would soon be charged to court as soon as investigations are concluded.

    He assured that the synergy currently existing among the NCS, the police, army, the State Security Services (SSS) and NAFDAC would be strengthened to drastically reduce smuggling in the country.

    The FOU Zone C boss who also displayed bags of imported rice, including fake Mama Africa Rice valued at N160, 440, containing 382 metric tons put the grand total of the DPV of all the items seized at N235, 634,000.

    Dimka expressed optimism that the smuggling could be effectively tackled with the support and cooperation of all patriotic Nigerians with security agencies, stating that the NCS would sustain its public enlightenment/sensitisation campaign on the dangers inherent in smuggling, patronage and consumption of contraband goods imported.

    “The items were brought in with every amount ingenuity and if we are not able to check them, those who criminally brought them in would have eventually had their way to the market,”

    According to him, the DPV of the rice imported were N235 million just as he warned transporters to always be careful and mindful of the purpose for which their vehicles are being used at any point in time since ignorance of the usage of any vehicle for a criminal act can never be tolerated as an excuse.

    Dimka said although Customs men were not trained to kill but to maim when ever it becomes inevitable in the discharge of their duties, they are now better trained, equipped, motivated and informed to meet their challenges in the interest of the nation’s economy.

  • Customs gets June ultimatum on destination inspection

    Customs gets June ultimatum on destination inspection

    • 9,000 uncleared PAAR documents in banks

    • ‘It’s a ploy to bring back ex-service providers’

    The Nigeria Customs Service (NCS) has up till June to get it right with the Pre-Arrival Assessment Report (PAAR) under which goods are expected to be cleared in six hours, The Nation has learnt.

    NCS was given the ultimatum because the Federal Government is worried by what it perceives as the slow pace of the process, sources said.

    The government, a source said, is worried that there are over 9,000 PAAR documents belonging to importers at many commercial banks in Lagos yet to be delivered by the Customs.

    PAAR encompasses information about a cargo, its country of origin and the value of goods imported.

    At a town hall meeting to kick-off the scheme last year, the Comptroller-General of Customs, Alhaji Dikko Abdullahi, assured importers that they would clear their consignments in less than six hours. He said the first PAAR with reference number CN20130017589/001 was issued by Customs within 58 minutes.

    But the Coordinating Minister of the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, and the Minister of Transport, Senator Idris Umar, a source said, are not happy that payment of import duty has become a major challenge to many importers under the scheme.

    This has fueled speculations that the government may ask the former service providers to return if the Customs fails to use PAAR, which is also known as Destination Inspection (DI), to facilitate trade at the ports in the next three months.

    In anticipation of the government’s move, the Customs uploaded a new platform last week to resolve the PAAR crisis.

    Our souce said part of the PAAR challenge was caused by the Customs because of what was described as “inconsistency” in its billing system. Some importers reportedly complained to Dr Okonjo-Iweala that they were initially asked to pay N1million for their cargoes, only for the Customs to raise it to N20 million.

    This, it was learnt, has made the finance ministry to have a rethink on the Customs’ ability to issue PAAR within an hour.

    The source said many of the yet-to-be-cleared cargoes at the ports do not have PAARs with which the banks could work.

    The government, the source said, is also aware that over 7,000 containers imported between December and February this year, are at some terminals in Lagos, awaiting the issuing of PAAR.

    The government is concerned that the volume of uncleared containers may rise if the Customs fails to come out with a plan on how best to manage the crisis.

    But, the Customs is denying responsibility for the crisis, accusing those clamouring for the service providers’ return as having something to hide.

    Customs National Publicity Officer Mr Wale Adeniyi wondered why the importers who have not utilised thousands of PAARs issued to them between January and March were complaining of not having the document.

    He said: “Customs is also not happy that we have several thousands of PAARs that we have issued and have not been utilised. Who are the owners of these PAARs? Some of them were issued in January, some in February and they have not been utilised. May be the owners are part of those calling for the extension of the provisional-release of their cargoes, or those calling for the reinstatement of the service providers.”

    He said the job of the service providers, which lasted for eight years was to build, operate and transfer to the Customs.

    “If these people did it for eight years and we have just done it for four months and they are complaining, how are we sure of what will happen in six months, or more? he asked.

    Adeniyi said the Customs record showed that there is an improvement in the number of PAARs issued daily.

    “Statistics doesn’t lie. When we started, we were doing in the region of 200 and 500 per day. Now, we have done over 1,700 and on March 26, we did 1,900. Our statistics showed that there is an increase in the number of PAARs we are generating,” he said.

    The problem the Customs is facing, Adeniyi said, is with the initial platform it was using. He said it had a problem with the platform because it was slow to transmit finished PAARs. But the platform, according to him, has since been upgraded and things are now moving faster. The banks, he said, were now responsible for data capturing because the importers pay for the service, adding that the banks have employed more people to hasten the process.

    On errors in the amount to be paid by importers, he said the Customs has established an error resolution centre in Abuja to resolve the problem.

    “They are not unusual things. When they happen, they are resolved,” he said.

    On the huge number of uncleared containers at the ports, Adeniyi said the Customs, in a few days, would take an inventory of containers with PAAR to ascertain their contents, warning that if the containers contain prohibited items, the importers would pay for it.

    But a clearing agent, Mr Segun Ogunsanu, said they were groaning under demurrages that had accrued on their consignments because of the failure of Customs to generate PAAR on time.

    Director-General of Nigerian Chambers of Shipping (NCS) Mrs Ify Akerele urged the Customs to abolish PAAR so that there would be smooth clearance of cargoes at the ports.

    “I am only being realistic about the situation on ground, because PAAR cannot work except you put the experts on ground to handle it,” she said.

    The President, Association of Registered Freight Forwarders of Nigeria (AREFFN), Dr. Frank Ukoh, said many of the documents needed for issuing PAAR were not generated, adding that new ones are coming in and piling up, leading to congestion at the ports.

    The President, Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, said his association was aware of the problems created by PAAR. He said he knew that the Customs had come up with a new platform to tackle the issue.

    “I know the Comptroller-General of Customs and the Ministry of Finance are working assiduously to clear all the backlog of PAARs. Customs has introduced a new platform to address the challenges but how effective the new platform would be is what I don’t know,” Shittu said.

  • Customs seizes hard drugs at airport

    Customs seizes hard drugs at airport

    The Murtala Muhammed International Airport Command of Nigeria Customs Service (NCS) has detected substances suspected to be hard drugs in a consignment containing various spares and household goods packaged for export to Gabon.

    The suspected agent of the illicit substances, Mr Nyeaka Anslem, The Nation learnt, is being detained by the Drug Law Enforcement Agency (NDLEA).

    The command’s spokesperson, Deputy Superintendent of Customs (DSC) Mrs Thelma Williams, said the substances were detected during a joint examination by customs officers led by Toyin Momoh, a Deputy Superintendent of Customs (DSC), and other agencies.

    The agencies include: State Security Services (SSS), Directorate of Military Intelligence (DMI) and the Anti-Bomb Squad of the police.

    Mrs Williams, who said five wraps of the substances were found concealed in a stabiliser, explained that tests by the NDLEA confirmed them to be cocaine, which weighed 600 grammes.

    She further explained that the package in which the hard drug was uncovered was in NDLEA’s custody, adding that the remaining five packages of the consignment had been transferred to government warehouse pending further investigations.

     

  • Customs intercepts 30,000 live cartridges in Oyo

    Customs intercepts 30,000 live cartridges in Oyo

    The Nigeria Customs Service (NCS) has intercepted 30,000 live cartridges at the border town of Saki in Oyo State.

    The cartridges were being transported to Ibadan from Benin Republic.

    They were concealed under tubers of yam, cassava and yam flour.

    Men of the Customs Service stopped the white Toyota Hiace bus conveying the items at Oje-Owode on the Saki/Ago-Are road.

    The bus driver, Abdulraheem Adegoke (45), was arrested.

    Oyo/Osun Customs Area Commander Richard Oteri told reporters yesterday in Ibadan that the items were packed in 20 cartons.

    He said a team, led by S.C. Okoli, arrested the bus: KW 286 SHH, on Monday.

    On May 18, last year, the command seized 56,750 rounds of live cartridges on the same route.

    Oteri said the seizure was commendable, considering the country’s security challenges, adding: “We are determined to make Oyo/Osun Command a no-hiding place for their nefarious activities and promise trade facilitation to legitimate businessmen and women.

    “We will continue to partner security agencies to make the command and the country a safe place.”

    Adegoke said he did not know that live cartridges were hidden in the vehicle, adding that he was hired to transport the goods to Ibadan.

    Oteri handed the items and Adegoke over to the police.

    Deputy Commissioner of Police Musa Kimo hailed the Customs officers, describing them as “go-getters and highly patriotic.”

    He assured them that the matter would be investigated and the culprits prosecuted.