Nigeria Customs Service (NCS) has launched the Advance Ruling System to enhance trade facilitation and create a more transparent and predictable business environment for the stakeholders.
Advanced Ruling is a critical mechanism that allows traders to obtain binding decisions from customs administrations on the classification, origin, and valuation of goods before importation.
The tool is essential for promoting trade facilitation, reducing compliance costs, and fostering a conducive business
environment.
It is crucial to note that the absence of this mechanism has implications beyond Trade Facilitation, as it also impacts revenue generation.
The Comptroller-General of Customs Bashir Wale Adeniyi while launching the Nigeria Customs Service Advance Ruling System and stakeholder engagement on Thursday in Abuja recounted how it all started.
“The path toward implementing Advanced Ruling in Nigeria has been fraught with challenges and setbacks. Previous attempts to introduce this
mechanism were unsuccessful, despite its recognized importance.
“However, in 2020, we initiated a scoping mission to review our processes and align them with
global best practices. This comprehensive review yielded valuable recommendations that have informed our efforts to relaunch the Advanced Ruling today,” Adeniyi said.
He pointed out that the launch of Advanced Ruling at this time aligns with the policy directive of the Bola Ahmed Tinubu administration to facilitate trade for legitimate traders.
This, Adeniyi noted, is reflected in the Policy Advisory Document of the government, which highlights recent achievements, such as the approval to decongest the ports and make them free and accessible for importers and operators.
“Additionally, the recent inauguration of the Single Window steering committee by the President underscores high-level commitment to enhancing trade facilitation in Nigeria” the Comptroller-General of Customs further stated.
He added that the implementation of Advance Ruling is timely, given the significant number of disputes the Service has had to handle between 2020 and 2023.
Adeniyi explained that out of the 34 disputes encountered, 31 have been resolved, while 3 cases remain pending, and despite the absence of a structured mechanism, a total of 296 requests for Tariff opinions were received, with 266 processed and 30 pending.
He noted that the event serves as both a launch and a stakeholder consultation, laying the groundwork for the rollout of Advanced Ruling.
“In the coming weeks, we will conduct workshops and sensitisation sessions at Customs Area Commands to ensure that all stakeholders are well-informed and prepared to utilize this new mechanism effectively,” Mr. Adeniyi stated.
Recognising the importance of Advanced Ruling, both the World Customs Organisation (WCO) and the World Trade Organisation (WTO) have
emphasised its significance in facilitating international trade and promoting customs compliance.
According to the WCO and the WTO, Advanced Ruling enhances predictability and transparency in customs procedures, streamlining
trade processes and minimizing delays, uncertainties, and costs associated with customs clearance.
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