Reduction in custom revenue drop by 6-7%..... compliance finance intelligence

Several cargo laden containers have been trapped at the various seaports across the country due to the alledged removal of First Bank of Nigeria (FBN), from the Nigeria Customs Service (NCS), portal by the Central Bank of Nigeria (CBN).

Freight forwarders under the aegis of National Association of Government Approved Freight Forwarders (NAGAFF) have threatened to shut down the port on or before May 29th if solution is not found for goods presently tripped at the port following the suspension of First Bank  by the Central Bank of Nigeria (CBN).

The suspension of First Bank by the CBN is denying importers who have opened Form M for their transaction the opportunity of making declaration to kick start the process of clearing their consignments from the port.

Giving the ultimatum in Lagos yesterday, the National Coordinator of the 100 percent Compliance Team of NAGAFF, Ibrahim Tanko, said unless the Nigerian Customs Service, NCS and the Federal Ministry of Finance look for a way out of the problem freight forwarders may be forced to shut down the ports on or before May 29th.

On the options available for solving the problem, Tanko said the Customs should open the option of alternative window known as "Alternative Area Window Code" that enables those with Form M in the affect bank to make declaration in other banks to enable them commence clearing process.

Tanko explained most shippers route their Form through First Bank, noting that with the ban, the bank cannot attend to affected shippers.

This he said has resulted in about 6-7 per cent reduction in the collectable revenue of the Customs while consignments trapped at the port are accumulating demurrage.

He also explained that the exemption of multi-nationals from duty payment has also effected the collectable revenue of Customs. 

Alhaji Tanko suggested that imported goods should not be depended on, that local Industries should be considered and given loans to carry out their businesses.

He called for the review of duty exemption for these group of companies because the good intention of government is being exploited for selfish purposes.

He noted some other importers are shipping their consignments through these companies because they know that they will not pay duty when go through these companies.