The Senate suspended the passage of the Nigerian Customs Service (NCS) Management (Repeal and Re-enactment) Bill following the inability of Members to reach an agreement on a provision (Clause 17) regarding Import Duty Payment which seeks to increase Administrative Charge of 1% on FOB (Free on Board) value of import paid by importers to 2.5% during consideration of the report.
Presenting the report at its plenary session of Wednesday, May 24th 2017, Chairman of the Committee on Customs and Excise, Sen. Hope Uzodinma (PDP:Imo) stated that the Bill seeks to; Repeal the Customs and Excise Management Act (CEMA), 2004; Establish and Reform the Administration and Management of Customs and Excise in Nigeria; Consolidate in a single reference document, the NCS legal authority which is scattered in multiple legislations and to bring the CEMA in line with international best practices and modern day realities.
Sen. Uzodinma in his submissions, mentioned that the Bill contains provisions that would support the use of Information Technology (IT) platforms and systems such as the use of electronic documents, signatures and electronic payment including the application of risk management and IT tools applicable to modern customs administration as well as the introduction of a Tariff Handbook which shall be subject to legislative approval for the purpose of restricting arbitrary reviews of tariff.
In addition, he explained that the Bill if passed into law, would provide a legal basis for legislative domestication of trade agreements among nations and international organizations such as the World Custom Organization and World Trade Organization; substantially enhance revenue generation and facilitate trade through implementation of consistent and transparent procedures; and will strengthen the implementation of pre-shipment laws that prevents unfettered access of illicit goods, prohibited narcotics, proliferation of small arms and toxic cargoes into the country.
Lastly, he noted that the Committee had taken into consideration the submissions and recommendation of various Ministries, Department and Agencies (MDAs), Non-Governmental Organizations (NGOs) and Private Sectors prompting its resolve to:
- Change the “Board of Customs Service” to the “Customs Service Commission” in Clause 7 of the Bill;
- Introduce the “Use of mandatory Pre-shipment/Post- shipment Inspection” in Clause 42 of the Bill;
- Recommend the deletion of Clauses 100 (1) (a)(b), (2) (a)(b), 108, 109, 110, 111 and 112 with a view to protect the system from abuse.
- Repeal the CEMA 2004, and establish the NCS Commission which would necessitate the implementation of reforms in the administration and management of the Customs Service.
In accordance with the above mentioned resolution, the Committee recomended to the Senate for approval the following:
Amended Clauses: Sections 4, 7, 10(b), 13, 14(2), 15(2), 17, 18(b), 19(1), 23(1)(b), 29(3), 30(3) and (5), 42 (1), 45(1) and (5), 46(7)(c), 47 (7), 55 (3) (a, b, c and d), 60(1), 61(1), 62, 63 (1) and (2), 67 (1) (a)(i -iii) and (2), 68 (1)(a and b), 83(4), 98 (1) and (4), 99 (1) 100 (1) (c) and (2), 101, 103(4), 115(3), 116(6), 124(b), 127(7), 137(2) and (3), 140(a), 142(1), 144, 147(2), 148(1), 151(2) (8), 167(1), 222(3), 224 (3) and (4), 257(1), 263, 269(a), 275(c), 278(1) and (2), 280(2), 286 and the New Schedule 3
Deleted Sub-Clauses: Sections 67(1)(a)(iv), 67(2)(b), 98(1)(a, b and c) and (2), 98(3), 99(3), 100 (1)(a and b), 108, 109, 110, 111 and 112.
New Insertions: Sections 17 (4), 42(3, 4, 5 and 6), 106 (3)(d), 119(4), 137(4), 140(e), 286(2), New Schedule 1 and New Schedule 2.
However, deliberations on the report of the Bill have been suspended and referred back to the Committee on Customs and Excise for further legislative input.
