The Chairman, Senate Committee on Customs and Excise Management Act (CEMA), Sen. Hope Uzodinma has said that the controversial auto policy would be reviewed.
Uzodinma stated this during the Committee’s oversight visit to the command on Thursday in Lagos.
“On the auto policy that is making Nigerian-bound cargoes to go to neighbouring ports, we are going to review it.
“We know it is because of the 35 percent levy that is forcing many importers to go to neighbouring ports like Cotonou and Lome.
“That 35 percent levy is the problem that is causing smuggling and it is not in favour of Nigeria but foreigners.
“So we will prevail on government to remove it,’’ the News Agency of Nigeria (NAN) quotes the lawmaker as saying.
On revenue, he directed the Customs Area Controller, Apapa Command, Comptroller Willy Egbudin, to give details of revenue generated by the command in the last three years.
He said that the record would assist the committee on the Federal Government’s plan to review the auto policy, which would put a stop to car dealers bringing fairly-used cars through the neighbouring ports.
The committee chairman also demanded for Duty Paid Value of seizures recorded, including the list of overtime cargoes.
He also said that the Committee wanted to know how the cargoes were disposed between 2013 and 2015.
Uzodinma said the move was part of the committee’s investigative oversight of Customs activities at the ports due to its dwindling revenue generation.
At the stakeholders’ meeting, the committee chairman told port operators that the Federal Government would review some of its trade policies, including the automotive policy to encourage imports and improve Customs revenue generation.
Uzodinma said that most of the country’s policies were anti-trade and were only favouring neighbouring countries.
The lawmaker said that 85 percent of cargoes sent to Benin Republic still find their way into the country.
“We have seen that some of the trade policies are favouring more foreigners than Nigerians.
“We want the opposite to be the case and in doing that, we will change some of the policies that have not helped local empowerment.
“It is so sad to note that 85 to 90 percent of cargoes going to the Republic of Benin still find their way into Nigerian markets.
“If care is not taken, the Cotonou economy could be better than our economy but we will not allow that to happen,” NAN quotes Uzodinma as saying.
He said that you experience high cost while bringing new cars into the country than used cars.
Uzodinma said his committee would look into all the issues, including the review of auto policy that was making many agents to bring cars from Cotonou.
He said that the 35 per cent levy on car imports was encouraging smuggling, adding that the committee would take a bold step to cancel it.
Uzodinma said in the face of the dwindling price of oil in the global market, the government had shifted attention to non-oil revenue agencies including Customs and the Federal Inland Revenue Service among others to help finance the budget.
He said Customs would be able to maximise its revenue generation if the enabling environment is created including full automation of its processes which would improve the turnaround time at the ports.
The legislator said that with an enabling environment, trade would be facilitated and smuggling would be reduced to the barest minimum.
He urged the stakeholders, most of whom are clearing agents and freight forwarders, to support Customs to improve on their revenue collection.
Uzodinma urged Customs officers to educate importers, most of whom he said were ignorant.
He assured clearing agents that the committee would work to create the right regulatory environment for them to operate.
Uzodinma said the committee planned to enact new laws for Customs that would assist in blocking revenue leakages in the service.
He wondered why the maritime concessionaires were waiting for Customs to buy scanners at the ports, saying that it was their responsibility to get standard scanners for customs operations.
According to him, talking about faulty scanners at the ports, the Customs has no business under the law to either replace or buy scanners.
He said that it was stated in the Customs & Excise Management Act, Section 31, that “it is the responsibility of the terminal operators to provide facilities at the ports’’.
“Why are the terminal operators not asking Customs to buy cranes at the ports?
“Why are they not asking Customs to buy forklift at the ports?
“Unfortunately, the Federal Government concessioned out our seaport terminals to some private operators.
“Therefore, it is time for the government to do a review of the ports concession that was made in 2006.
“We are going to look at the performance of all the terminal operators and those found not to have performed, will have their concession agreements terminated.
“This will lead to the emergence of more serious minded private operators.
“At the airports, the Federal Airport Authority of Nigeria (FAAN) provides scanners for Customs operations. FAAN is the operator of the airport.
“The same position the terminal operators occupy now at the seaports since the NPA has handed over the operation of the seaports during the ports concession of 2006.
`The terminal operators should provide scanners if they want to remain in charge of the seaports,’’ the News Agency of Nigeria (NAN) quotes Uzodinma as saying.
He said that members of the committee were in Singapore and saw how the terminal operators were competing to hit one million container-handling per month.
“The terminal operators in Singapore provide enabling environment for their Customs.
“Why can’t we do the same in Nigeria?
“We must say No to all these anomalies so that the country can move forward,’’ Uzodinma said.
The Senate recently started a comprehensive probe into the activities of the Customs Service with a view to blocking all revenue leakages and enhancing revenue generation.
He, however, urged the terminal operators to present their Terms of Agreement that made them the concessionaires.
Uzodinma said that the committee would review it and resolve the issue of high tariffs in the Nigerian Port system.
Earlier, the Zonal Coordinator of Customs, Zone `A’ Assistant Comptroller-General Eporwei Edike, said that in spite of the decline in the volume of imports into the country, Apapa Command had maintained its position as the flagship command with an improved revenue collection.
Edike said that Customs’ mandates at the Ports were meant to restructure, reform and collect revenue for government, adding that the task had been pursued vigorously by officers in various commands.
NAN reports that all the concessionaires were present at the meeting and promised to present the documents by Friday to save them from going to Abuja.
A representative of Ports and Terminal Multi-Services Ltd., Mr Tunde Keshinro, said all the concessionaires just came back from Abuja last week for presentation of their documents before the Senate, saying that they would comply.
Keshinro said that the terminal operators had transformed the Nigerian ports environment with a lot of modern facilities with international standards.
The National Publicity Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA), Mr Kayode Farinto, highlighted some of the challenges faced by the agents to include; licensing of foreigners by Customs, incessant alert and police interference and other problems.
He appealed to the committee to help indigenise the practice of Customs brokerage to help prevent foreigners from taking over the job of indigenous freight agents.
Farinto said agents were losing their jobs to foreigners because the foreigners had been licensed by Customs to operate at the ports. (NAN)