Modernisation and The Use of Technologies

4th WCO Technology and Innovation Forum

Argentina - Nov 2013

NIGERIA CUSTOMS SERVICE

DIKKO INDE ABDULLAHI CFR Comptroller General of Customs, Nigeria

Customs Service &

Vice Chairman WCO, West & Central Africa

Capacity building

ICT

Co-ordination

Integrity

Collaboration with stakeholders

Welfare

BACKGROUND

This has led to the successful collaborative efforts and functions of all government agencies towards achieving border security, effective revenue collection and trade facilitation.

As part of the the modernisation efforts of the Nigeria Customs Service, the NCS 6 Point Agenda was adopted. The agenda items include:

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THE GOLDEN 4PS

PEOPLE

PROCESSES

PLATFORM

POLICY

For the effective Use of Technologies, further emphasis was placed on the 4Ps to ensure a holistic and sustainable approach to our development efforts…

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Reduction of processes and documents required for import and

export

Simplification and harmonisation of procedures

Creation of trade data model aligned to WCO Data Model

Time and cost reduction through partnership approach with all

government agencies and private stakeholders

To ensure a solid foundation for automation, our process efforts in both government and private sectors have included:

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Ensuring the use of modern and scalable technology

Provision of adequate infrastructure and logistics

Ensuring operational and system training to all concerned -including Partner Government Agencies (PGAs) and private stakeholders

We have made provision for the implementation of a sustainable Technology Platform by:

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Automated customs clearance procedures

National Trade Information Portal - www.nigeriatradehub.gov.ng

Electronic Payment on all duties and taxes

Collaborative Risk and Intelligence sharing with all partner Government agencies.

Single clearing house of all trade processes through

the creation of Pre-Arrival Assessment Report (PAAR)

platform, post the Pre Shipment Inspection Era

Our goal is to create a National Single Window environment for trade, following the development of our Blue Print and Road Map. Some of our activities include:

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BACKGROUND: As part of Customs reforms, the Federal Government of Nigeria adopted the PSI regime, that was common amongst customs administrations in the 70’s. Cotecna, SGS, Global Scan and Webb-Fontaine were contracted 2006-20012 to provide support and services in Cross Border Trade management. The aims of the regime was to assist customs authorities in combating trade malpractices such as: Under-valuation of imported goods Evasion of correct duty payment

Concealment of dutiable, restricted or prohibited items

Under-declaration for the purpose of capital flight.

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The Pre-Shipment Inspection Regime

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The Scheme involves: - Risk management - Provision of Scanning equipment and maintenance - ICT (ASYCUDA, IT hardware) - Clearance procedures: Classification and valuation - Capacity building aimed at Customs personnel

The Outcomes: Based on the Cost Benefit Analysis, the “injuries” of the Pre Shipment Inspection Regime far outweighs the benefits.

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Recent comparative statistics of World Bank Report value for money review, indicates poor value for money provision contract in Nigeria.

Scanning cost over a 3 year period in USA = $360.4 Million Scanning cost over a 5 year period in Nigeria = $530.1 million 7

Inaccuracies and discrepancies in classification and assessment of

duties

Undervaluation/overvaluation of goods resulting in regular

queries by Customs

From 2010 -2012, 20,000 queries were raised by Customs which led

to the recovery of over N27 billion.

The prevalence of trade document falsification and concealment

Delays in inspection of goods and issuance of Clean Report of

Inspection (CRIs) leading to accumulation of demurrage

Erosion of technical capacity in Customs

Inadequate and ineffective scanners at major ports and borders

posts are not uncommon

THE EFFECTS

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Inability of contracting service providers to adhere to processing

time guidelines as stipulated in the Import Guidelines resulting in

additional costs to the trader

Lack of technical capacity by service providers to handle the trade

volumes of allocated ports adding to the existing numerous

challenges

Minimal corporate social responsibility with none of the Service

Providers engaging in activities to improve the host community

Slow implementation and selective capacity building programmes

creating a significant knowledge gap, requiring Human Resource

Development intervention by NCS to bridge the gaps 2010 – 2012: NCS provided training to over 12,000 officers

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The overall effect of these short comings has resulted in: Loss of accruable revenue to the Federal Government account.

Duplication of efforts through necessary additional checks by

Nigeria Customs Service at entry points

Most of the concealments during the PSI regime were discovered at the country of destination, making the whole exercise ineffective

Delay in the issuance of Inspection Reports leading to additional

cost burden on the trader and the attendant implication to consumers.

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A study conducted by the WCO in June, 2013 has shown that 21 out of the 23 member administrations in West and Central Africa Region are still tied to Service provision. 10

Further investment to develop the welfare and capacity

of staff and infrastructure of the service for long term

sustainability

Enhanced capacity building and deployment of officers

to efficiently handle the core functions of customs

Creation of a National Single Window for Trade

Creation and development of an Integrated Risk

Management Solution, building on PAAR to further

reduce process delays and ensure safety at the borders

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THE WAY FORWARD

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Increasing the services of the Trade Information Portal

to aid compliance and provision of real time access to

information

Operational and system training to Partner

Government Agencies and private stakeholders for

collaborative management of trade processes and

procedures

Robust investments in modern and scalable ICT

development and connectivity to all border posts for

integrated border management

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“If you want to go quickly, go alone but if you want to go far, go together”

(Popular African Saying )

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Thank You for your attention.

DIKKO INDE ABDULLAHI CFR

Comptroller-General of Customs,

Nigeria Customs Service

&

Vice Chairman WCO, West & Central Africa

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