Customs: Reps call for strict implementation of executive order on ease of doing business

The House of Representatives, on Wednesday, called for full implementation of the executive order on the ease of doing business in Nigeria by the Nigeria Customs Service (NCS) as well as the need to ensure 24-hour cargo clearance at the ports.

Worried by the impacts of various challenges militating against clearance of cargoes at the port which has stifled businesses and investment, the House mandated its Committee on Customs to investigate the alleged importing and clearing at the Nigeria Customs Service and report back within three weeks for further legislative action.

The resolution was passed sequel to the adoption of a motion sponsored by Hon Abbas Adigun who expressed grave concern over the loss of revenue to the country, closure of companies due to prolonged delay in clearing procedures at the ports and hike in the prices of goods across the country, among others.

According to him, the erstwhile Acting President and current Vice-President, Professor Yemi Osinbanjo, had on May 18, 2016, signed an executive order on the ease of doing business in Nigeria, part of which was regulation of operations at the ports, which empowered the Nigeria Customs Service to coordinate other examining agencies.

“The House also notes that around 80 per cent of global trade by volume and over 70 per cent of global trade by value are carried out by sea are handled by ports worldwide.

“The House further notes that the executive order was issued to eliminate the problems that were hitherto associated with clearing goods at the port to ease doing business in the country.

“The House is aware that the executive order is in tandem with the Revised Kyoto Convention (RKC), which is aimed at facilitating trade by harmonizing and simplifying customs procedures and practices.

“The House is concerned that despite the executive order, the level of delay in clearing procedure at the ports in Nigeria is still alarming and has resulted in situations where importers and clearing agents are made to pay exorbitant charges for demurrage to shipping companies and terminal operators.

“The House is also concerned that the delay in clearing procedures has negatively impacted Nigeria’s economy as many companies have closed down, thereby contributing to the rise in prices of goods.

“The House is further concerned that when cargoes are eventually cleared after a long delay, the importers tend to adjust prices of the goods to reflect the additional expenses, thus creating a situation that is perpetually reducing the purchasing power of the masses.

“The House is also aware that the National Single Window project was introduced in Nigeria to integrate all agencies involved in the clearance of cargoes at the ports to ease and hasten inspection, calculation and payment of all import duties, levies and other charges at the nation’s ports.

“The House is disturbed by allegations of artificial bottlenecks devised by customs officials to exploit importers, which has resulted in huge financial losses for importers and clearing agents.

“The House is cognizant that unless there is a reform of ports operations to reduce the number of Customs units involved in cargo cleaning, the turn-around time will continue to be impacted negatively.”

To this end, the House urged Nigeria Customs Service to ensure that import duties and levies for all categories of goods are clearly stated online and at all customs offices so that intending importers can simply use their bill of laden details to make payment and that the 24-hour cargo clearance stipulated by the Service is implemented.

The House also urged Federal Government to ensure that all examining agencies, especially the Nigeria Customs Service are connected to the National Single Window project to make the ports more effective.

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Customs: Reps call for strict implementation of executive order on ease of doing business