SYMPOSIUM ON WTO TRADE FACILITATION FOR
AFRICAN COUNTRIES, NAIROBI, KENYA
NOVEMBER 13 - 15, 2012
Best Practices in Trade Facilitation: Nigeria
Customs Service Experience
Paper delivered by;
Taju Olanrewaju
Comptroller of Customs, Headquarters, Abuja
[email protected], +234-7037979000
[email protected]
OUTLINE
1. INTRODUCTION
2. TF MEASURES UNDER IMPLEMENTATION IN NIGERIA
•How long the measures have been in place
•Benefits
•Issues in Implementation
•How the issues were overcome
•Recommendations
3. CONCLUDING REMARKS
1. Introduction
• Ongoing reform and modernization in the Nigeria Customs Service
[NCS] is guided by best practices in trade facilitation towards
speedy clearance of cargo at the border.
• NCS actively participates in the ongoing Trade Facilitation [TF]
textual negotiations at the WTO and is currently implementing
some of the TF measures under negotiations by the WTO
Negotiating Group on Trade Facilitation [NGTF].
2.0
TF Measures Under Implementation In Nigeria
Relevant Articles: Draft Consolidated Negotiating Text No.
TN/TF/W/165/Rev.13 of 17 Oct. 2012; Articles 1 and 7.
2.0.1a. Proposals under Article 1: Publication and Availability of
Information, focusing on internet publication.
2.0.1b Proposals under Article 7: Release and Clearance of Goods,
focusing on Pre-arrival processing, Separating release from
clearance procedures, Risk management for Customs control.
2.1.
Details of TF Measures under implementation:
2.1.a. Internet Publication: Article 1.1 requires information to be
published “in order to enable governments, traders and other
interested parties to become acquainted with them.” NCS
maintains a website; http://www.customs.gov.ng that provides
information on importation, exportation, transit procedures,
and other vital information to guide parties intending to
transact international trade with Nigeria.
• How long has the measure been under implementation? –
The NCS website has been functional since 2008.
• Benefits:
- Transparency and increased access to information on
customs procedures – first step in trade facilitation
- Improved compliance to rules.
- Enhanced trade facilitation.
• Issues in implementation:
-Infrastructure, including equipments.
- Information management system.
-Updating information on the website.
• How the issues were overcome:
-Provided infrastructure.
-Enhanced capacity to update by Public Relations unit.
-Technical support by Webb Fontaine company managing NCS
ICT system.
•
2.1b

Recommendation
Implementation requires a strong ICT policy including technical
assistance and financial support, particularly the challenge is
real in updating information.
Pre-arrival processing: Article 7.1.2 of the negotiating text
requires Members to “provide for advance lodging of
documents in electronic format for pre-arrival processing of
such documents.” NCS allows pre-arrival processing through
submission of advanced manifest by shipping companies,
electronic declaration and e-payment by traders.
How long has the measure been under implementation?: NCS
commenced implementation by 2009.
 Benefits:
- Enhanced speedy clearance of cargo through online submission
of declaration, e-payment and e-release of compliant cargo.
- Increased revenue through more efficient service.
- Enhanced custom and security control through advance
manifest.
- Promotes application of risk assessment and low dwell time.
 Issues in implementation:
-Legal framework supporting electronic operations.
-Stakeholders understanding of process.
-Limited skill in computerization by operatives and operators.
 How the issues were overcome:
- Sought legal framework.
- Consulted stakeholders and organized awareness workshops.
- Capacity building in ICT for operators and operatives.
•
2.1c
•
•
Recommendation:
This measure is critical to trade facilitation and most enhanced
through automation, also requires high compliance by operators.
Separating release from clearance procedures: Article 7.2
proposes that Members adopt procedures, which allow release of
goods prior to final determination and payment of customs duties and
taxies upon provision of sufficient guarantee. NCS allows release of
goods prior to the payment of duties and taxies pending final
classification of goods, assessment of value and other pending
transactions having secured guarantee.
How long?: Electronic implementation commenced in 2009
Benefits:
-Speedy clearance of cargo
-Timely delivery of goods to the traders’ premises
-Reduces cost of warehousing
• Issues in implementation:
-Trust between Customs and trading community.
-Security for payment.
-Training of operatives and operators.
• How the issues were overcome:
-Built trust in Customs trading community relations.
-Established a guarantee system that allows use of variety
instruments like bank guarantees, bonds, and cash deposits.
-Trained operatives and operators, and simplified procedures.
• Recommendation:
A reliable and simplified security system will facilitate
implementation of this measure.
2.1d. Risk Management: Art 7.3.1 seeks Members to apply risk
management to Customs control in connection
with importations, exportations and transit. NCS
electronics simplified clearance procedures enable
application of risk management information to
determine the level of scrutiny NCS will accord a
consignment.
Four possible risk outcomes are;
FOUR POSSIBLE RISK OUTCOMES
GREEN:
RB
Consignment is
released
automatically.
Consignment is
released. may
conduct
documentary
.post clearance
audit check in
future.
Documentary
check at Customs
Processing Centre
(CPC) and if the
officer is satisfied
otherwise the
cargo is routed
for physical
examination.
Scanning or physical
Examination and if
the examination
officer is satisfied
the Cargo is
released, otherwise
reassessed.
 How long has the measure been in place? Since 2006.
 Benefits:
- Enhanced revenue through improved efficiency and
professionalism.
- Helps towards improved compliance because of transparent
analysis of risk element.
- More efficient use of human resources as a result of
application of risk assessment that isolates high risk goods from
low risk goods.
-Better understanding between Customs and the trading
community flowing from enhanced service delivery reducing
transaction time.
 Issues in implementation:
- Understanding the process by operatives and operators
- Creating a specialized unit to drive the process
- Selectivity criteria
• How the issues were overcome:
- Awareness programs to sensitize the operatives and the
operators.
- Trained personnel in risk assessment and established a Risk
Management Unit [RMU] to drive the process.
- Continuous assessment of risk parameter.
• Recommendation:
Successful implementation may require technical assistance to
train and establish a risk management unit.
3. Concluding Remarks: Positive impact of TF measures depends on
the following;
 Effective combination of various trade facilitation measures,
including automation.
 Efficient application of risk assessment in support of post
clearance audit, fast track procedure, pre-arrival processing and
others.
 Compliance level by operators.
 Fiscal and trade policies that support compliance.
THANK YOU ALL.