Transcript Guidelines and Practical Implementation issues

by S.O.Ogundeji
Deputy Comptroller General (Tariff & Trade)
Nigeria Customs Service
Presented At MAN Workshop on the Implementation Status of Destination
Inspection Scheme on 9th August, 2006
ASYCUDA ++
UNCTAD
AREAS TO BE COVERED
Primary role of customs
Pre-shipment Inspection (PSI) regime
Introduction of Destination Inspection (DI)
Objectives of DI
Component of DI
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AREAS TO BE COVERED
Customs Clearance Procedures
List of Exemptions
Challenges
Future Outlook
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PRIMARY ROLE OF CUSTOMS
Revenue collection
Suppression of smuggling
Implementation of Government fiscal policy measures
Agency functions
Generation of Statistical data for planning purposes
Trade facilitation
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PRE-SHIPMENT INSPECTION REGIME
The scheme was introduced to address the following:
Over or Under invoicing of goods imported
Check on quantity and quality of imported goods
Determination of duty payable
Prevention of importation of prohibited, dangerous,
hazardous goods
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PRE-SHIPMENT INSPECTION REGIME
Rather than solving the problems for which it was
introduced, the scheme created new ones:
Inaccuracies and discrepancies in classification and
assessment of duties
Delays in inspection of goods and issuance of the CRIs
leading to accumulation of demurrage
Concealment and false declarations
Diversion of goods to neighbouring countries
 This led to loss of revenue, importation of prohibited
goods and elongated clearance processs
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Destination Inspection Components
Risk
Integration
Management
ASYCUDA
Scanning
Machines
Training
Import & Clearance
Procedure
IT Hardware
Telecom
Hw & Sw
Servers, PCs,
Printers, UPS etc
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DESTINATION INSPECTION SCHEME IN NIGERIA
COMPONENTS OF DI
RISK MANAGEMENT OF DI:
All Scanning Companies issue a risk Assessment Report
(RAR) for all shipment imported to Nigeria.
The RAR will contain:
The level of risk
An opinion on the value and classification
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DESTINATION INSPECTION SCHEME IN NIGERIA
COMPONENTS OF DI…
SCANNING COMPONENT OF DI:
Good selected by the Risk Management Component will be
scanned. This should reduce the time traditionally taken by
physical examination.
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DESTINATION INSPECTION SCHEME IN NIGERIA
COMPONENTS OF DI…
MIGRATING FROM ASYCUDA version 2 to ASYCUDA++:
The migration started in Apapa on 1 February 2006, as a
pilot site
High imports
Likely to present all the problems the project may
encounter
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DESTINATION INSPECTION SCHEME IN NIGERIA
The destination Inspection Scheme is geared toward
achieving the following:
Elimination of the long wait for the CRI
Reduction of the cost of clearance of goods
Speedy clearance of goods arising from simplified
procedures
Increase of revenue
Saving government, the colossal amount of foreign
currency being spent in payment of inadequate service of the
PSI
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IMPORT GUIDELINES
After receiving complaints from the Trading
Community and from Foreign Chambers of
Commerce, the Import Guidelines have been
modified.
The requirement of Attesting/Certifying final
documents through Chambers of Commerce or
Notary Publics have been withdrawn.
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CUSTOMS CLEARANCE PROCEDURES
At the CPC
Declarants
Complete the SGD, attach all the
necessary supporting documents,
and present to the designated face
vet officers.
Customs
Face Vet
SGDs May be returned
back for correction, and/or
completion of missing data
and/or documenets
Data
Capture
If the modification is accepted, then
the declaration is signed and
stamped by the declarant.
Otherwise, the dispute settlement
mechanism is followed.
Declarants can make the payments
at the designated banks based on
the total amount of duties and taxes
shown in the Assessment notices.
Declarants receive their copies of
the declarations through the Paging/
Importer Copy Seat.. The following
processing steps are carried out at
the terminals
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Check basic details of SGD, and
that the required documents are
attached. Then, the documents
are referred to the TS.
Input manifest and SGDs details
into ASYCUDA++ respective
modules, register and print the
ASYCUDA declaration.
Verif. &
Query
In case of discrepancy, the
modified declaration is
returned to the declarant.
Assessment
Notice
Declarant
Copy of SGD
Verif. &
Query
Sorting
R
Check details against
RAR messages,
Lane?
trigger selectivity,
mark the declaration
with selected lane and
inspector name, and
Y
G modify declarations
(in case of
discrepancy).
Dispatch
Sort the eight copies
of the SGD. Record
the numbers of SGDs
that are to be
dispatched.
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PAYMENT PROCEDURES
Banks
Declarants
Receive
Payments
3
Payment of
duties and
taxes
Customs
Assessment Notices are printed at
the Verification & Query Seat, and
handed to declarants. Other
Assessment notices of any
additional taxes, fees and charges
to be paid will be printed at the
terminals and the scanning site.
Assessment
Notice
1
2
Declarants make the payments at
the designated banks based on the
amount of duties and taxes shown
on the Assessment Notices
Issue
Receipts
4
Issue
Schedules of
Payments
Receive
Receipts
Verify
Payments
6
7
5
For yellow-lane declarations, if the physical examination
results in a discrepancy, then the container will have to be
returned back to the terminal. Consequently, red-lane
procedures will apply to these cases afterwards, i.e. a
message will have to be sent by the Accounts Seat at CPC
to the terminal to start release procedures.
ASYCUDA ++
Input of
Payments into
ASYCUDA++
8
Message
for
Release
9
Payment receipts and schedules of
payments are received by the
Accounts Seat and input into
PRIMS.
After the assessment of
declarations, the Accounts Seat
officers/ CPC (or at the scanning
site for yellow-lane declarations)
can input the payments details into
the respective ASYCUDA++
module after verifying that
payments were made.
Upon completion of the payment
procedures for red-lane
declarations, a message is sent by
the Accounts officers/ CPC to the
terminals to start release
procedures.
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CUSTOMS CLEARANCE PROCEDURES
At the Terminals
If Red
Lane?
If Green
Lane?
If Yellow
Lane?
Declaration
Assessed
Declaration
Assessed
Physical
Examination
Wait
Payment
Procedures
Yes
Discrepancy
?
No
Assessment
Notice
Printed
Importer
accepts?
Yes
Declaration
Assessed
Payment
Procedures
ASYCUDA ++
Extra Payment
Made by the
Declarant
RO
Printed
Payment
confirmed?
No
RO
Printed
Scanning
Assessment
Notice
Printed
Release
Procedures
No
Yes
No
Dispute Settlement
Procedures are followed
Release
Procedures
ALS
Printed
Yes
Importer
accepts?
Yes
No
Discrepancy
?
Yes
Physical
Examination
Extra Payment
Made by the
Declarant
RO
Printed
Discrepancy
?
No
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LIST OF EXEMPTIONS
Explosives and pyrotechnic products
Arms
Ammunitions
Weapons and implements of war
Personal effects
Supplies of Diplomatic consulate missions and
International organisations for their own needs
And such other goods as may be prescribed by the Federal
Government of Nigeria from time to time
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THE CHALLENGES
Public Awareness
Sustainability of the scheme
Cooperation of all stakeholders
Resistance to change
Compliance
Capacity Building
Reform must be total
Availability of equipment and machines at the ports
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THE SERVICE PROVIDERS
• X-RAY Scanners and Risk Management
– COTECNA Inspection Limited – LOT I
(Apapa & TinCan seaport, Kano & Abuja Airports, Jibiya and Banki
Border Posts)
– SGS – LOT II
(Onne & Port-Harcourt seaports, Port-Harcourt airport, Idiroko Border
Post)
– Global Scan – LOT III
(Warri & Calabar seaports, Ikeja airport and Seme border post)
• ASYCUDA
– UNCTAD
(UNCTAD Component of ASYCUDA)
– WEBB FONTAINE
(non-UNCTAD Component of ASYCUDA)
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Practical Implementation Issues
OPERATIONS AT APAPA PORT
•
•
APAPA /TINCAN CPCs ASYCUDA Zonal Office and
the Training College at Ikeja has been renovated and fully
equipped
Telecommunication installed
•
Operational staff have been trained (ASYCUDA++ and
Scanning machines)
•
Training is on-going
•
Awareness and Training is being delivered to Custom
Agents
• ++Scanning Operations are being undertakenUNCTAD
ASYCUDA
Practical Implementation Issues
OPERATIONS AT APAPA PORT
CONCERNS
The reorganisation of the port through the Port
Reform will considerably modify the way NCS
works at the port. (NCS terminals will be reduced )
Port Congestion
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Practical Implementation Issues
OPERATIONS AT APAPA PORT
Piloting Direct Trader Input (DTI): Training for
DENCA (Private Clearing Agent) and other
operators has been completed.
Piloting Electronic-Manifest: We have started
receiving manifest electronically
Awareness and Training of Custom Agents: On
going.
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Practical Implementation Issues
BUILDING A NATIONAL DATABASE
A central server has been set up in order to Centralize all
NCS data transactions.
All SGDs coming from the ASYCUDA version 2 and
version ++ automated offices are in a unique database.
This is a basis to provide in a near future timely and accurate
statistics.
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Practical Implementation Issues
The final import guidelines has been approved and released
by the Honourable minister of Finance
Stakeholders/Media awareness and training
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Practical Implementation Issues
Implementation of Direct Trader Input (DTI)
Implementation of Electronic-Manifest/Direct Carrier Input
(DCI)
The continuation of Training activities (refurbishment and
equipment of NCS Training College in Kano)
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ASYCUDA++
and
DESTINATION
INSPECTION
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Thank you
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