TheCable

The Nigeria Customs Service (NCS) has launched an “advance ruling” system aimed at enhancing trade facilitation and creating a more transparent business environment.

Advance ruling is a tool that allows traders to obtain binding decisions from customs administrations on the classification, origin, and valuation of goods before importation.

Speaking at the launch on Thursday, Adewale Adeniyi, comptroller-general of customs, said the innovation was launched in partnership with the Nigerian Energy Support Programme (NESP).

Adeniyi said the project will serve as a tool for reducing compliance costs and fostering a conducive business environment for traders.

“Today, we shall be taking the first step towards launching the Nigeria Customs Service Advance Ruling, starting with stakeholder engagement,” he said.

“As we are all aware, NCS is projected to collect a total revenue of N5.07 trillion for the fiscal year 2024.

“While this goal is ambitious, it is attainable with the right measures and mechanisms in place. That’s why we are implementing several strategies to enhance our capacity to achieve this feat.”

Adeniyi said the project aligns with the World Customs Organization (WCO) and the World Trade Organization (WTO).

“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.” he said.

“The early results have been positive, and we expect to build on these initiatives, including ensuring stakeholder engagement and involvement every step of the way.

“The launch of Advanced Ruling at this time aligns with the policy directive of the Bola Ahmed Tinubu administration to facilitate trade for legitimate traders.

“This is reflected in the policy advisory document of the government, which signifies recent achievements, such as the approval to decongest the ports and make them free and accessible for importers and operators.

“It is crucial to note that the absence of this mechanism has implications beyond Trade Facilitation, as it also impacts our revenue.”

Adeniyi added that the customs has made all arrangements to conduct workshops and sensitisation sessions at customs area commands to ensure that all stakeholders are well-informed and prepared to utilise this new mechanism effectively.

He applauded the German International Cooperation Agency (GIZ) and other partners for their unwavering partnership and continued support in achieving a significant milestone in trade facilitation activities under the NESP.

The NCS comptroller-general said it is essential to acknowledge that initiatives like advanced ruling necessitate investments in capacity building for both officers and stakeholders.

He said the NCS is committed to leveraging its internal capacity while exploring opportunities for collaboration with external partners like GIZ.