Why Importers Spend Excessive Time At Ports

Chris Osunkwo, Public Relations Officer, Nigeria Customs Service, Tin Can Island Command, speaks with Naij on Customs operation in Tin Can command and why some importers experience delay during cargo clearance

In December, 2013, the Nigeria Customs Service took over Destination Inspection Scheme and issued the first Pre Arrival Assessment Report (PAAR) to ease cargo clearance at the seaport. Has it made any impact since then?

The records speak. Since PAAR was introduced, the revenue has increased; hitting billions of Naira. That goes a long way to prove the point that was made by our Comptroller-General when he insisted the work of service providers should be given to Nigeria Customs. He promised to double the revenue and it has come to pass. You don’t need a mirror to check time on your wristwatch because the records are there on black and white. The increase is on record; from 21 billion to even up to 26 and climax at 27 billion.

But some agents reportedly complained that the introduction of PAAR slows down the process especially when there are technical hitches?

The objective of PAAR is to facilitate speedy clearance of cargoes out of the port, encourages the traders to be compliant as it preaches. Once you are able to abide by the rules of the game, you have nothing to fear by taking your goods out of the port less than one day. It is only when you try to cut corners, then you start having hurdles here and there. The essence of PAAR is to tidy up your document; do everything and await the arrival of your goods. As your cargo arrives, in less than 24 hours you are moving it out of the port .But when you ship I-Pad and you tell us you have Nokia mobile phone. If we realize it is not so after thorough examination, definitely you spend more time due to unfair declaration of goods.

On the part of the port users; importers, clearing agents, What is the level of compliance with PAAR?

Well, I wouldn’t say we have achieved 100 per cent compliance, but at least it is better than what is used to be. PAAR was designed for integrity-driven business. If it is not selected for physical examination, you are not supposed to see any Customs officer eye to eye until you get to the exit gate. So let our people embrace honesty instead of castigating Customs officers and giving us names. Just like when uninformed people criticise a situation that is the way it seems.

The federal government usually set N1 trillion revenue target for the Nigeria Customs Service, were you able to meet the target last year?

When the federal government gives us a target, for instance let’s say N800 billion this year, we call for a meeting of the management staff to deliberate on the task. If we aim at generating this N800 billion for government, we may or not meet up to target. What we do is that we target N1 trillion. As we focus on N1 trillion, we are getting above N800 billion. That is what we do. Last year government gave us N850 billion then on our own, we put it at N1.2 trillion. You can imagine we have exceeded one trillion so that is a good result, it is an “A”. If you write an examination and you scored 70 per cent, it is commendable which makes it an “A” for customs. As at November, 2014, we had hit about a trillion, so which means whatever we are added in December was just a bonus.

How would you assess Customs operations and the internally revenue generated in your command?
It will sound as if am trying to be a judge in my own case but honestly I’m very comfortable with our performance so far. Statistically, if you look at the records and do a comparative analysis of the revenue generated from 2008 till date, the records speak. It is in black and white that the revenue has been shooting up since operation commenced in 1978 and there was no Customs administration here that has performed well like this present administration. So I think it has been very worthwhile.

Some port users still complain of spending longer hours to clear their consignments despite the much-talked about 24 hours cargo clearance scheme?

Issue of long hours of clearing goods out of ports is not Customs making. We are aware when officers exhibit some arrogance or some impunity .There are measures put there by the management to checkmate all cargos. For instance, if a paper gets to you at 1 o clock, you are expected to move this paper to the next level within five minutes. So if its stays longer, you will explain the reason for holding the paper longer than stated. But not when your declaration never tallies with the content, this takes longer time; taking inventory and charging accordingly maximum duty.

Ideally, Customs officers should be trade facilitators but some port users see them as portending barrier to trade especially with the supposed extortion from the officers?

There was this seminar we had with the major stakeholders and the complains coming from the stakeholders centered majorly on Nigeria Customs Service laying more emphasis on revenue generation than trade facilitation unlike the developed economy of the world . We now told them that the so called developed economy thrives on revenue. They are talking of developed economy that has diversified sources of revenue. The sole source of revenue for government today is oil. Government needs Customs now due to the fall in the global oil prices. Thank God we are able to meet our target. Customs generates the second highest revenue for government and the attention is now on the service. Even in trade facilitation, you must comply with the law. There is a clause that we facilitate a “Compliance Trade”. Nigerian Customs facilitates Compliance Trade and not Non-compliance Trade. I think that explains better the role of the Nigeria Customs.