Nigeria Losing Huge Revenue to Under-declaration of Cargoes - Shippers Council

ABIOLA Seun |

The Nigerian Shippers’ Council (NSC) has expressed worry over high rate of under-declaration of cargoes at the nation’s seaports by Importers.

Speaking at the just concluded workshop organized by the Union of African Shippers Council (UASC) in collaboration with the United Nations Conference for Trade and Development (UNCTAD) and hosted by the Nigerian Shippers’ Council (NSC), the executive secretary of the council, Barr. Hassan Bello said about 70 per cent of the cargoes imported into the Nigerian Seaports are under- declared.

Bello further stated that the adoption of technology and electronic platform in the Nigerian seaports will check the challenge of sharp practices at the ports.

According to him, plans are underway in Nigeria to introduce the National Single Window Project which is an electronic platform to which all stakeholders in the port system will be connected and which is bound to check all forms of unwholesome practices like under-declaration of goods by importers and customs agents .

While he advised that shippers and freight forwarders must learn to be more sincere in their transactions in the import trade and at the seaports, he said the introduction of mobile scanners in the examination of goods by the Customs will also assist to detect and check such under declaration and concealment among others.

However, Bello tasked the Nigerian Customs Service (NCS) to de-emphasized revenue generation and emphasize trade facilitation in its operations.

The Shippers Council boss said that the observance of the virtue will not only increase the patronage of Nigerian seaports by shippers , customs agents and shipping companies but will enhance development at the ports and make their operations to be at par with obtains in ports in advanced countries.

Bello was of the view that while the issue of insincerity on the part of some shippers may have made customs to be putting more emphasis on 100 per cent cargo examination with a view to detecting sharp practices as well as ensuring that the federal government is not robbed of its revenue on cargoes, he however emphasized that the Customs will need to improve its acquisition of electronic way of running its operations.

The Shippers’ Council Executive Secretary disclosed that the fact that the seaports is a community with different stakeholders, there is a dire need for the Customs to have a good collaboration with the Council which is an economic Regulator of the Ports to enhance the synergy that will enhance the development of the Customs operations and that of the seaports and the maritime sector.

While a Customs representative at the Workshop was of the view that the Service has been promoting trade facilitation and not just laying premium on revenue target, Bello opined that there is a need for the Customs to still improve on its level of advancement of trade facilitation even as it should cooperate more with the Shippers Council.

Traditionally, the Federal Government had always given the Customs a revenue target to meet and possibly surpass on a yearly basis due to its need for funds to fund various national projects, a development that has made the Service to be tagged, the second highest source of revenue for government after the oil sector.

It was reliably gathered that apart from the billions of naira required to acquire mobile scanners which will facilitate examination of containers, the Customs has been reluctant to do this but prefer the ongoing 100 per cent examination of goods to detect and frustrate loopholes which fraudulent importers may want to use to underpay or circumvent import duty payment.

The emphasis which the Customs has placed on the fulfilment and surpassing of its revenue target has also made the various customs commands to be reluctant to key into the Ease of Doing Business scheme introduced into the seaports and other segments of the economy by the government recently to facilitate operations.

The Customs was given N1.3 trillion as revenue target this year by government while it has adopted various measures to ensure it meets and exceed it just as it surpassed its N770.57 billion 2017 revenue target by N241.68 billion.