Days after the Federal Government raised the Comprehensive Import Supervision Scheme from one per cent to four per cent, licensed agents operating at the nation’s seaport fear that the development may likely lead to 20 per cent additional to the cost of clearing goods at the ports.
The agents, in a separate chat with The PUNCH on Wednesday, maintained that the development would hurt the cost of clearing.
The PUNCH reported on Tuesday that the federal government has raised the Comprehensive Import Supervision Scheme from one per cent to four per cent at the close of work on Monday.
A finding revealed the implementation of the CISS started on Tuesday.
The former acting National President of the Association of Nigerian Licensed Customs Agents, Mr. Kayode Farinto, said that it would lead to an additional cost of 29 per cent to the cost of clearing goods at the ports.
He added that it will be difficult to know the exact effect it will have on the cost of clearing because it is based on Free-on-Board.
“It will cause an additional 29 per cent increase in the cost of doing business because it is based on Free-on-Board. The reason it will be difficult to predict the exact cost effect on clearing is because it is based on FOB. If your FOB is very high, that money will be high, but minimally; optimally, the effect should be around 29 per cent. If your FOB is $5m, then multiply by four per cent of that amount, and you will see that it will be a whole lot of money. They were very smart to have placed it on FOB instead of cost insurance and freight; that is the reason the cost of clearing will be very expensive, Farinto said.
Head of the Tincan Island Chapter of the National Council of Managing Directors of Licensed Customs Agents, Mr. Abayomi Duyile, lamented the biting effects, “We now spend higher. What we were paying about six to seven years ago was what they added; you know, four per cent is very huge. The government has added four per cent to the one per cent it was before, making it a total of five per cent.”
Meanwhile, the Nigeria Customs Service on Wednesday said it is acknowledging the strategic role of stakeholders towards the emergence and implementation of NCS ACT 2023.
The Service, in a statement by its National Public Relations Officer, Abdullahi Maiwada, added that the charge is essential to driving the Service’s effective operation.
“In line with the provisions of Section 18 (1) of NCSA 2023, the NCS is implementing a four per cent charge on the Free On-Board value of imports. The FOB charge, which is calculated based on the value of imported goods, including the cost of goods and transportation expenses incurred up to the port of loading, is essential to driving the effective operation of the service,” Maiwada said.
He reiterated that the service recognises the invaluable contributions of stakeholders in shaping and actualising the NCSA 2023.
According to him, the legislation, which replaces the long-standing Customs and Excise Management Act and other related laws, is the result of extensive consultations, constructive dialogue, and collaborative efforts with key industry players, government agencies, and other stakeholders.
“Their insights, expertise, and unwavering commitment have been instrumental in ensuring a robust legal framework that enhances efficiency, promotes innovation, and strengthens transparency in customs operations,” he said.
The NCS image-maker mentioned that the service acknowledges concerns raised by stakeholders over the sustained collection of a one per cent Comprehensive Import Supervision Scheme fee (a regulatory charge imposed for funding Nigeria’s Destination Inspection Scheme) alongside the four per cent FOB charge.
“As a responsive and responsible government agency, the Service wishes to assure the general public that extensive consultation is ongoing with the Federal Ministry of Finance to address all agitations raised by our esteemed stakeholders,” he said.
Maiwada reaffirms the Service’s commitment to transparency, fair trade practices, and efficient revenue management.
He nevertheless urged all stakeholders to support the legally binding initiative, “as the measures introduced in alignment with the NCSA 2023 reflect a balanced approach born out of extensive consultations with industry players, importers, and regulatory bodies.”