Trade Facilitation: Nigeria Customs Launches Advance Ruling System

ZAINAB JUNAID

As part of it’s determination to remove all encumbrances and bottlenecks against trade facilitation in the Country, the Nigeria Customs Service in conjunction with the Nigeria Energy Support Programme(NESP) on Thursday, May 2, 2024 initiated the launching of Advance Ruling System and Stakeholders Consultation.

The event held at Embassy of Envoy Suite, Abuja, was co-funded by European Union, German International Co-operation Agency (GIZ).

Speaking at the venue of launching the Project, Comptroller General of Customs, Bashir Adewale Adeniyi MFR, said the launching of Advance Ruling mechanism aligns with the policy directive of President Bola Ahmed Tinubu GCFR, to facilitate trade for legitimate traders.

“This is reflected in the policy advisory document of the government which highlighted several achievements such as approval to decongest the Ports and made them free for importers and operators.

The implementation of the Advance Ruling according to the Customs Chief is timing given the significance ruling of dispute the Service has had to handle between 2020 and 2023.

“Out of 34 dispute recorded during this period, 31 has been resolved with three pending. Despite absence of structure mechanism, the total of 296 request for tariff opinions were received with 266 processed and 30 pending. It will be significant to note that absence of this mechanism has implications beyond trade Facilitation because it also impact the revenue,” he said.

Speaking further, the CGC who recognised the significance of the project, as it aligns with the World Customs Organization (WCO) and the World Trade Organization (WTO), also emphasised its relevance in facilitating both domestic and international trade while also promoting Customs compliance.

“According to the WCO and the WTO, Advanced Ruling enhances predictability and transparency in customs procedures, streamlining trade processes and minimising delays, uncertainties, and costs associated with Customs clearance.” CGC Adeniyi added.

CGC Adewale further revealed that the Service will be conducting workshops and sensitization sessions at various Customs Area Commands in the coming weeks to ensure all Stakeholders are well prepared to utilize the new mechanism effectively.

“I have also given approval for the development of a handbook to provide guidance to traders and Customs Officers. This handbook will serve as valuable resources ensuring consistency and transparency in our rule. It will pave way for smoother and more efficiency of trade process in Nigeria,” he stated.

He, however, applauded the German International Cooperation Agency (GIZ) and other partners for their unwavering partnership and continued support of achieving a significant milestone in trade facilitation activities under the Nigeria Energy Support Programme.

“It is essential to acknowledge that initiatives like Advanced Ruling necessitate investments in capacity building for both officers and stakeholders. We are committed to leveraging our internal capacity while exploring collaboration opportunities with external partners like GIZ.” He said.

Advance Ruling mechanism creates room for more transparency and predictable environment for traders in Nigeria. It helps foster conducive business environment, reduce compliance cost and promote trade facilitation in the Country.

It is a critical mechanism that allows traders to obtain binding decisions from Customs administrations on the classification, origin, and valuation of goods before importation.