BREAKING: Clearing Agents Spoil for War As Customs Introduces 4% Collection on Imported Cargoes
Nigeria Customs Officers
By DAPO OLAWUNI
There are reports emanating from the ports that the Nigeria Customs Service has in addition to the Comprehensive Import Supervision Scheme (CISS) introduced a “4% Customs Operation Finance” according to its Section 18 of the Nigeria Customs Service Act 2023.
Meanwhile, the development has incured the wrought of clearing and forwarding agents.
Some of them who spoke with DAILY TREND on Tuesday, gave conflicting reports, while some believed that the service renamed the 1% CISS to a nomenclature; Customs Operation Finance.
DAILY TREND reports that the 1% CISS is a regulatory fee charged on all imported goods into Nigeria. The fee is 1% of the FOB (Free on Board) value of the shipment.
However, former Sole Administrator of Association of Nigerian Licensed Customs Agents (ANLCA) Babatunde Mukaila claimed the customs introduced 4% Customs Operation Finance. According to him, this new introduction is different because the 1% CISS still stands.
He claimed the new 4% is being collected by customs as “Payment for doing their job. Its like they want us to start paying them for doing their jobs and for coming to office.
This is why we are spoiling for war.
“We have also been calling for a percentage of the collection in our revenue we generated but they didn’t approve, now they want us to pay them 4%” Mukaila stated
Also confirming the increment to our correspondent the Vice President of Association of Nigerian Licensed Customs Agents (ANLCA) Prince Segun Oduntan complained that the management of Customs did not consult or sensitised the stakeholders before making the introduction.
According to him, the new 4% levy would further impoverish Nigerians, as the cost doing business at the ports is bound to skyrocket.
“We noticed the NCS has introduced 4% and renamed it Customs Operation Finance as appeared on this assessment.
The Customs CG needs to call for an emergency meeting within 48-hours to address this development because it is already causing uproar in the freight forwarding system.
“All the freight forwarding associations would have to come together on this matter” he fumed
Also confirming the development, a freight forwarder, John Uwemediomo, said the freight forwarders would call for a total shutdown of the port system if the 4% is not rescinded.
According to him “Up till yesterday evening, we were still at the port, only to wake up this morning to see the increment in the CISS without any consultation.
“This is an additional cost to the cost of goods clearance. We cannot continue to do things with impunity in the port system. Here we are, talking about single window and from nowhere, they are bringing this in.
The whole association are coming together to fight this” he said
All import clearance charges made by the Customs are eventually passed to the consumer or end users.
Thus increasing the inflation rate.
The government can pay the Customs staff from the import and excise duties revenue
Please anlca national executive should please go to any length with custom they just like to be exhausting we custom brokers we should not allow this to take place they are bunch of robber’s
There is no Association in this field. All Agents are all fighting for their own interest that’s why government can implement any thing at their own will without conducting agent first. Agent have sold their birth rights to customs and customs took advantage of it.
Expect the more taxes
NCS is a government agency, and the federal government has been building infrastructure and paying officers remuneration from the taxes collected. Which one is ‘Customs Operations Finance’ again, and for what purpose?
It’s like the NCS is trying to gazette collection bribe and make it a statutory payment for importers, in addition to OD collected from customs brokers/clearing agents. This will pose multiple negative impacts on the economy by hindering trade facilitation, hiking the cost of doing business, and increasing the costs of goods and services beyond the reach of ordinary citizens of this great country.
The customs management should rescind the punitive policy of COF against the port community in particular and Nigerians in general. Failure to do so within 48 hours, the clearing agent associations should rise up to the occasion and stop these ‘unfriendly friends’ from massively exploiting Nigerians.
NCS should lias with the federal government for any financial benefit.
If there is an association of the clearing agent, let them handle it. The Business men can not be paying any 4% on imported cargo for the Nigerian Customs. Service. Let’s consider the long run effect of such decision.
Nigeria with unstructured tax reform.
In a good environment…!!!
There should be at least 6 months Notification before any increment or additions to the Import Duty or related.
This will finally bounce back on final consumers.
May God heals our Land/ country.