THE Federal Government may have extended the seven- year
contract it signed with inspection service providers: Cotecnna, SGS and
Global Scan system Ltd by another six months begining from this
January.
They were contracted in 2006 to carry out inspection on imported items to determine duty payable and to prevent unwholesome and prohibited goods from coming into the country.
The contract ought to have been terminated by the end of December 2012 and the Nigeria Customs Service (NCS) was expected to have commenced the provision of the much needed service for the teaming Nigerian Shippers.
Although the customs had assured the country of its ability and readiness to handle inspection activities at the nation’s ports, stakeholders have expressed skeptism, saying the service lacks technical and managerial skills needed for the provision of the vital service.
The Federal Government was not left in the doubt about the Nigeria Customs Service as it once considered the extension of the seven-year-old contract for the service providers in order to give the service more time to take over the inspection scheme.
A statement said to have emanated from the Federal Ministry of Finance conveyed the extension to all service providers Monday, saying it had been approved by Predient Goodluck Jonathan. The statement dated 30th December, 2012, was claimed to have been signed by the Permanent Secretary, Joseph Danladi Kisasi.
Government sources was quoted recently that the extension was inevitable as the NCS seemed unprepared to render the service by taking over all the inspection infrastructure put in place by the contractors.
The contractors had all installed scanning machines for automated inspection of imported items at their respective locations, under a Built, Operate and Transfer (BOT) arrangement.
Government’s extension plan was in line with national interest as the Minister of Finance, who initiated the idea was concerned about the maintenance of those scanners.
“The Minister of Finance is particularly concerned about the maintenance of those scanners and I think an arrangement is being worked out that will see to the retention of one or two of the service providers,” said a source close to the Ministry of Finance recently.
The Managing Director and Chief Executive Officer of Global Scan System, Mr. Fred Udechukwu had called for the extension of contract for the service providers, saying the Nigeria Customs Service was yet to be fully equipped to operate and maintain the complex scanners, which required a lot of expertise and discipline. He therefore expressed reservation on the call for the NCS to take over the Destination Inspection scheme beginning from yesterday.
But the Nigeria Customs has alleyed the fears concerning its competency and expertise to steer the wheel of the scheme as we entered into the New Year.
It has, therefore, abolished the Risk Assessment Report (RAR) associated with Destination Inspection under the contractors, for Pre-Arrival Assessment Report (PAAR).
Under the new assessment method, the Nigeria Customs Service is expected to set up Nigerian Trade Data Bank (NTDB) for reliable trade statistics to be readily available for international investors, even as the contractors are expected to be at the sidelines and to supervise activities within the six-month transition period.
The PAAR, which is a new introduction by the Nigeria Customs Service, is not different from RAR that was used by the contractors, which used it to prevent unwholesome and dangerous products from making their ways into the country. Under RAR goods from some areas in the world were subjected to thorough screening to be sure they are not dangerous to the well being of the country as its citizens.
But the new method just introduced by the customs high command required that information and documentations on consignments be deposited with the customs before their arrival.
A customs official, who spoke with The Guardian at the weekend defended the new inspection method saying “Documents relating to consignment being expected are now expected to be deposited electronically with the Customs Service prior the arrival of the consignment for assessment,” he said.
Defending the Pre-Arrival Assessment Report (PAAR), which now replaces RAR that was used by contractor to determine risky shipment, he said.
“We know the level of risk already because they are the same shippers, the goods are from the same points of shipment and they will make their declaration and since we already know where the dangerous goods are coming from, there is no difference between RAR and PAAR at all, because all the information in this regards are already with the customs,” he said with the assurance that the new inspection method will be more effective and efficient.
But whether the Nigeria Customs Service will be able to render the inspection service effectively or not, after the extension period, only time will tell. Many of its officials have been trained by the contractors to handle the scanning machines and we only hope that there will be no clamour for the retention of the contractors in the New Year.
In Nigeria, like many other countries where the scheme is in place, it sought among other things to eliminate the importation of unwholesome, improperly labeled and substandard products, besides eliminating the delay in the shipping and clearance of goods from the ports.
It also enhances the collection of government revenue through proper application of World Trade Organisation (WTO) agreement on Customs Valuation Code and to prevent the importation of prohibited items.
Destination Inspection (DI) regime for imported items commenced at all the nation’s gateways – seaports, airports and border posts in January 2006.
The scheme required that goods are inspected for valuation and determination of duties payable on them at the point of arrival into the country. It replaces the much-battered pre-shipment regime, which emphasised that goods be inspected at their country of origin before shipment into Nigeria.
The regime was battered by stakeholders, who believed that pre-shipment agents were out to rip-off the country by collecting several millions of dollars annually for ineffective services.
The clamour for a change of the inspection regime became necessary when Clean Report of Inspection (CRI), the major import document needed for goods clearance at sea ports would not arrive Nigeria months after the arrival of the goods.
This and other factors were attributed to the perennial congestion at ports as goods were stockpiled and could not be cleared by the owners because of the late arrival of the CRIs.
Besides, there were incessant cases of concealment, under-declaration and wrong valuation that suggested that the four companies contracted by the Federal Government to inspect the items at the point of shipment were not doing their job well. Concealment, a situation where other items were found in containers other than those contained in the import document and other noticeable discrepancies, continued to a point when the Federal Government gave the Nigeria Customs Service (NCS) permission to carry out 100 per cent examination on goods, which further complicated the situation at the sea ports.
Even as all stakeholders demonstrated their readiness to make it a success, many port users were then skeptical of the genuineness of government’s interest in the regime.
Their skepticism was borne out of the fact that the Destination Inspection was not new to the port system. It was first introduced in 1999, but it could hardly be sustained for more than six months, when it was abrogated by President Olusegun Obasanjo.
Following the abolition of Destination Inspection in 1999 and the adoption of pre-shipment, the Federal Ministry of Finance appointed four inspection agents to inspect all goods before shipment to Nigeria.
They were contracted in 2006 to carry out inspection on imported items to determine duty payable and to prevent unwholesome and prohibited goods from coming into the country.
The contract ought to have been terminated by the end of December 2012 and the Nigeria Customs Service (NCS) was expected to have commenced the provision of the much needed service for the teaming Nigerian Shippers.
Although the customs had assured the country of its ability and readiness to handle inspection activities at the nation’s ports, stakeholders have expressed skeptism, saying the service lacks technical and managerial skills needed for the provision of the vital service.
The Federal Government was not left in the doubt about the Nigeria Customs Service as it once considered the extension of the seven-year-old contract for the service providers in order to give the service more time to take over the inspection scheme.
A statement said to have emanated from the Federal Ministry of Finance conveyed the extension to all service providers Monday, saying it had been approved by Predient Goodluck Jonathan. The statement dated 30th December, 2012, was claimed to have been signed by the Permanent Secretary, Joseph Danladi Kisasi.
Government sources was quoted recently that the extension was inevitable as the NCS seemed unprepared to render the service by taking over all the inspection infrastructure put in place by the contractors.
The contractors had all installed scanning machines for automated inspection of imported items at their respective locations, under a Built, Operate and Transfer (BOT) arrangement.
Government’s extension plan was in line with national interest as the Minister of Finance, who initiated the idea was concerned about the maintenance of those scanners.
“The Minister of Finance is particularly concerned about the maintenance of those scanners and I think an arrangement is being worked out that will see to the retention of one or two of the service providers,” said a source close to the Ministry of Finance recently.
The Managing Director and Chief Executive Officer of Global Scan System, Mr. Fred Udechukwu had called for the extension of contract for the service providers, saying the Nigeria Customs Service was yet to be fully equipped to operate and maintain the complex scanners, which required a lot of expertise and discipline. He therefore expressed reservation on the call for the NCS to take over the Destination Inspection scheme beginning from yesterday.
But the Nigeria Customs has alleyed the fears concerning its competency and expertise to steer the wheel of the scheme as we entered into the New Year.
It has, therefore, abolished the Risk Assessment Report (RAR) associated with Destination Inspection under the contractors, for Pre-Arrival Assessment Report (PAAR).
Under the new assessment method, the Nigeria Customs Service is expected to set up Nigerian Trade Data Bank (NTDB) for reliable trade statistics to be readily available for international investors, even as the contractors are expected to be at the sidelines and to supervise activities within the six-month transition period.
The PAAR, which is a new introduction by the Nigeria Customs Service, is not different from RAR that was used by the contractors, which used it to prevent unwholesome and dangerous products from making their ways into the country. Under RAR goods from some areas in the world were subjected to thorough screening to be sure they are not dangerous to the well being of the country as its citizens.
But the new method just introduced by the customs high command required that information and documentations on consignments be deposited with the customs before their arrival.
A customs official, who spoke with The Guardian at the weekend defended the new inspection method saying “Documents relating to consignment being expected are now expected to be deposited electronically with the Customs Service prior the arrival of the consignment for assessment,” he said.
Defending the Pre-Arrival Assessment Report (PAAR), which now replaces RAR that was used by contractor to determine risky shipment, he said.
“We know the level of risk already because they are the same shippers, the goods are from the same points of shipment and they will make their declaration and since we already know where the dangerous goods are coming from, there is no difference between RAR and PAAR at all, because all the information in this regards are already with the customs,” he said with the assurance that the new inspection method will be more effective and efficient.
But whether the Nigeria Customs Service will be able to render the inspection service effectively or not, after the extension period, only time will tell. Many of its officials have been trained by the contractors to handle the scanning machines and we only hope that there will be no clamour for the retention of the contractors in the New Year.
In Nigeria, like many other countries where the scheme is in place, it sought among other things to eliminate the importation of unwholesome, improperly labeled and substandard products, besides eliminating the delay in the shipping and clearance of goods from the ports.
It also enhances the collection of government revenue through proper application of World Trade Organisation (WTO) agreement on Customs Valuation Code and to prevent the importation of prohibited items.
Destination Inspection (DI) regime for imported items commenced at all the nation’s gateways – seaports, airports and border posts in January 2006.
The scheme required that goods are inspected for valuation and determination of duties payable on them at the point of arrival into the country. It replaces the much-battered pre-shipment regime, which emphasised that goods be inspected at their country of origin before shipment into Nigeria.
The regime was battered by stakeholders, who believed that pre-shipment agents were out to rip-off the country by collecting several millions of dollars annually for ineffective services.
The clamour for a change of the inspection regime became necessary when Clean Report of Inspection (CRI), the major import document needed for goods clearance at sea ports would not arrive Nigeria months after the arrival of the goods.
This and other factors were attributed to the perennial congestion at ports as goods were stockpiled and could not be cleared by the owners because of the late arrival of the CRIs.
Besides, there were incessant cases of concealment, under-declaration and wrong valuation that suggested that the four companies contracted by the Federal Government to inspect the items at the point of shipment were not doing their job well. Concealment, a situation where other items were found in containers other than those contained in the import document and other noticeable discrepancies, continued to a point when the Federal Government gave the Nigeria Customs Service (NCS) permission to carry out 100 per cent examination on goods, which further complicated the situation at the sea ports.
Even as all stakeholders demonstrated their readiness to make it a success, many port users were then skeptical of the genuineness of government’s interest in the regime.
Their skepticism was borne out of the fact that the Destination Inspection was not new to the port system. It was first introduced in 1999, but it could hardly be sustained for more than six months, when it was abrogated by President Olusegun Obasanjo.
Following the abolition of Destination Inspection in 1999 and the adoption of pre-shipment, the Federal Ministry of Finance appointed four inspection agents to inspect all goods before shipment to Nigeria.
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