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Country Information > West Africa > Nigeria PSI
Intertek resumes operations - December 2003 Page | 1 | 2 | 3 | 4 | 5 | 6 | Intertek resumes operations - 23/12/03 We are pleased to advise that Intertek have just been informed by the Office of the Permanent Secretary in letter Ref. F.10361/S.65/C.1/1.T/385 dated December 23rd 2003, that the previous temporary suspension of our operations has been lifted. This is effective from 23rd December. This means, with effect, all Authorised Dealing Banks should begin to deliver to the Intertek office in Lagos, those Forms "M" for goods being supplied from countries within Interteks previous zone of operation. Intertek state that a smooth transition process for all work in progress will be worked out and advised in due course. Nigeria to Harmonise Customs Tariff With ECOWAS - 12/12/03 Nigeria plans to harmonise customs tariffs with those of ECOWAS countries. According to a statement from the finance ministry issued in Abuja, the finance minister unveiled the plans while speaking at the year 2003 Annual Comptroller-General of Customs Conference. The measures are aimed at protecting the nation's industries from being annihilated by those not following world and regional trade rules. She also announced President Obasanjo's approval of the reintroduction of the destination inspection scheme and that a committee has been set up for its implementation. The minister of transport chairs the committee. Other members include the special assistant to the president on due process, the private secretary to the president and the comptroller-general of customs. The minister also announced that the customs service would carry out the "new" destination inspection procedure in conjunction with COTECNA. She challenged the officials to work in conjunction with the pre-shipment inspection company to achieve positive results whilst achieving transparency and accountability. Destination Inspection (November 2003) It has been confirmed that 2004 will see the implementation of the government Destination Inspection Scheme under the terms of a 10-year contract with Cotechna International. The Scheme envisages that all imports will be subject to close scrutiny by X-ray machines on arrival at Nigeria's ports and aims to reduce the level of prohibited items, which in some instances remain freely available in Nigeria, and also to enhance customs revenues. Swede Control/Intertek pre-shipment inspection services have been suspended on 21st October 2003 by the Nigerian Government. Countries of supply covered by Swede Control/Intertek have now been re-assigned to the remaining pre-shipment inspection agents as outlined below. There is a 30 day transition period ending on 21st November 2003. Any Form M approved after 21st October 2003 is automatically transferred to the new inspection agents, while Forms M approved before that date will continue to be treated by Swede Control Intertek during the transition period. COTECNA SGS To view the official letter of notice from the Central Bank of Nigeria, please click here. Used Vehicles: Government Opens Land Borders (October 2003) After years of revenue loss, and pressure from Nigerians, the Federal Government finally threw its border posts open for the easy passage of imported used vehicles. The government four years ago banned the importation of vehicles through land routes thereby making it compulsory for all vehicles to come in through the ports. The Comptroller General of Nigeria Custom, Alhaji Ahmed Mustapha,
disclosed in Abuja on Tuesday, September 16, 2003 that the government has heard
the yearning of Nigerians and therefore opened the borders for imported vehicles
to come into the country. New Import/ Export permit for animals and their by-products The National Veterinary Quarantine Service of the Federal Ministry of Agriculture and Natural Resources has introduced a mandatory import / export permit for all animals and animal by-products such as hides and skin, tallow, horns and hoof, meat, eggs and milk. The regulations also cover vaccines, sera, veterinary drugs, semen, fungicides and rodenticides. Permits may be obtained from The Director, Federal Department of Livestock and Pest Control Services, Area 11, Garki, Abuja. For more information contact Dr (Mrs) M.A. Habib on telephone 08033435919 or Mrs C.I. Nwachukwo at Adekunli 1 Terminal on 08035520354 or Mrs M.A. Nwadike at Bull Nose Terminal on 08033348706. Cancellation of Vat exemption on bicycles Nigeria Customs circular 38/2003 notified the cancellation of VAT exemptions on the import of bicycles and spare parts, which had already been removed from the VAT exemption list in 1999. Nigeria Customs circular 33/2003 announced an increase of import duty on sugar (HS codes 1701 and 1702) from 30% to 40% with effect from 1 July. At the same time the sugar levy was set at 10%, and duty on machinery and equipment for sugarcane and sugar production was set at 2.5% Destination Inspection delay affected some importers Advertisements placed by the Federal Government announcing the start of Destination Inspection earlier this year are blamed by the Association of Nigerian Licensed Customs Agents (ANCLA) for demurrage costs incurred by some importers, whose failure to obtain Clean Reports of Inspection has resulted in their containers being held at the ports. ANCLA said the government did not give sufficient notice that the scheme was to be deferred, and requested the Minister of Finance to direct the Nigeria Customs Service to assess the goods for duty and allow the owners to take delivery. The ANCLA president said the government should recognise the place of freight forwarders in the ports industry, and seek their advice on economic matters affecting them. Cotecna’s Chief Executive Officer, Mr Robert Massey, and its Chief Liiaison Officer in Nigeria, Mr Neil Tovey, are reported to have spoken to the Nigerian press about their contract for the installation of scanning equipment at Nigerian ports. They said the company was making an investment of $70 million entirely on its own, and without any financial commitment by the Nigerian government, and that at the end of the ten year contract, all the equipment will be handed over to the Nigerian government. The contract, which they said will commence with the introduction of destination inspection in January 2004, includes a computerised risk management system which will enable the authorities to concentrate physical inspection efforts on high risk imports. The contract includes the training of Nigerian personnel in readiness for the eventual hand-over of the system. Mr Massey is reported to have admitted his surprise that Cotecna had been awarded the entire contract after being placed third in the initial bidding, but said his company was well placed to ensure successful completion. The International Atomic Energy Authority is reported to have expressed concern over trafficking of nuclear materials in Africa, including Nigeria. Members are reminded that all imports and exports of nuclear materials require the prior approval of the Nigerian Nuclear Regulatory Authority. Payment of import duty through form M issuing Bank Central Bank of Nigeria (CBN) circular 66/2003 of 3 July 2003 drew attention to its instruction that duties must be paid through the Form M issuing bank. Only where the Form M issuing bank is not a bank designated for duty collection, may duty payment be made through any other designated banks. The import duty waiver for polyester yarn, insecticide and mosquito nets has been replaced by duty rates of 40% for finished mosquito nets and 35% for polyester filament. (Ref NCS/T&T/I&E/ 030/S.4 30th July, 2003) Nigerian Destination Inspection: N8.8b scanner contract Please note the following text which has been taken from an article which appeared in the Nigerian Guardian - 23/07/03 The N8.8 billion (US$68.8 million) contract awarded by the Federal Government for the procurement of scanning machines to Cotecna, one of the pre-shipping agents, may render the Nigerian Customs Service irrelevant in the goods clearing process when destination inspection regime commences next year. Authoritative government sources said on Monday that Cotecna got the contract to install the scanners at all the nations entry points. According to the terms of the contract, they would operate them solely for 10 years before transferring them to the government. The company would, however, within the period of the 10 years, carry out goods classification, valuation and examination, thus rendering the Customs useless in its jurisidictionary role. Besides, the company, going by the agreement, would share the several millions generated on the free-on-board fees with the Customs Service. "Within the contract 10-year stipulation period, Cotecna will solely operate the scanners themselves as well as perform the examination role in the clearance of goods and at the expiration of the time limit, Cotecna shall hand over a fully functional system to the government. Besides, the payment for the equipment will be made to them from the one percent free on board fees on goods, which will still be retained during the destination inspection regime. The proceeds from the FOB fees will be divided into two with Cotecna having 50 percent while the remaining 50 percent will be used for funding the training and equipping of the Nigerian Customs Service", a source said. Many agencies have since raised fears over the success in the use of the scanners when the Automated System of Customs Data Completion (ASYCUDA) was yet to be upgraded for efficiency in the ports system. Some even argue that the award of the machines to only one company might still result in lots of discrepancies in clearance process in the ports as well as revenue leakages. For instances, the United Nations Conference on Trade and Development (UNCTAD) in a letter to Federal Ministry of Finance recently said the scanner would not work without first upgrading the ASYCUDA system in the country. According to the regional co-ordinator of the agency, Mr. Nicolae Popa, the Cotecna offer of the scanners would have to be re-designed to meet the upgrading the agency intended to give the ASYCUDA project in Nigeria. Popa explained that the Cotecna offer did not take into account the overall philosophy of the UNCTAD/ASYCUDA approach based on the fact that Cotecna had submitted its proposal before the UNCTAD feasibility study was conducted. The letter entitled "ASYCUDA and Scanning Project", and dated June 27 2003, reads in part, "Please be informed that further to our letter dated May 23, 2003, two meetings have been organised between UNCTAD and Cotecna in which possible overlaps and synergies between the implementation of ASYCUDA in Nigeria and the Cotecna offer for the installation and operation of scanners have been reviewed in depth. It is obvious that the Cotecna offer was made long before the UNCTAD feasibility study, and therefore, does not take into account the overall philosophy of the UNCTAD/ASYCUDA approach. In order to be compatible with the ASYCUDA approach, the Cotecna offer would have to be re-designed and we do not stand ready to participate in the exercise", Popa said. He noted that the Cotecna offer, as it was, stood against the establishment of an efficient, modern and responsible Customs Service in Nigeria. "We do not believe that the proposed approach by Cotecna would lead to a significant increase in revenue. Further, we believe, and this is true in the 100 countries in which UNCTAD operates, that the sharing of responsibilities between the Customs Administration and another party will end up in a situation where nobody is fully responsible and therefore, fully accountable", Popa added. Dwelling on the various constraints, the ASYCUDA process might have with the Cotecna scanner project, Popa said in the current version of the Cotecna offer, several activities were overlapping the activities of the ASYCUDA project.
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