Nigeria has made significant strides in improving customs clearance and trade facilitation processes. With a shift to destination inspections, reduced clearance times have been achieved. However, challenges like corruption persist. The Nigeria Trade Hub and initiatives like the Fast Track Window aim to streamline procedures and enhance efficiency.
Nigeria’s Customs Clearance and Trade Facilitation Initiatives
Nigeria has implemented significant measures to enhance customs clearance and trade facilitation processes. The country transitioned from a pre-shipment inspection policy to a destination inspection policy for imports, resulting in inspections conducted upon arrival in Nigeria. This shift has considerably reduced clearance times. Although the government invested millions of dollars in procuring scanners, their utilization has been limited and often neglected, leading to maintenance issues.
Challenges of Corruption and Inefficiency
Corruption and inefficiency remain significant challenges in customs operations. The Nigeria Customs Service (NCS), a revenue-generating government agency, contributes approximately $12.1 million (5 billion naira) annually to the government’s coffers.
The Nigeria Trade Hub: A Valuable Resource
To assist traders, the Nigeria Trade Hub serves as an essential information portal. Traders can classify their goods based on the applicable Harmonized Tariff Schedule (HTS) codes, estimate freight charges, determine applicable duties, and access information on clearing processes.
Import Clearance Requirements
Importers seeking clearance for goods imported into Nigeria must typically provide specific documents, including a bill of lading, commercial invoice, exit note, completed Form ‘M’ entry declaration, packing list, single goods declaration, and a product certificate. Previously, importers were also required to submit a combined certificate value & origin (CCVO). However, in line with international trading procedures and stakeholder recommendations, the Central Bank of Nigeria (CBN) simplified the process by replacing the CCVO with the certificate of origin in April 2017. The revision also introduced a maximum processing time of 48 hours from the receipt of the application.
Single Window Portals: Enhancing Trade Facilitation
Nigeria has implemented the Single Window Portal, a trade facilitation project involving 12 government agencies responsible for customs clearance. This portal enables traders to access customs regulations online, submit customs documents electronically, track transaction status, and make electronic payments. The Nigeria Ports Authority (NPA) is also developing a Single Window Platform to further streamline port-related and cargo clearance activities, aiming for a seamless and paperless operation.
Pre-Arrival Assessment and Fast Track Programs
The Nigeria Customs Service (NCS) employs the Pre-Arrival Assessment Report (PAAR) system, allowing importers to submit import documents online for assessment and clearance before the arrival of the cargo. This system replaced the Risk Assessment Report System in 2013, facilitating trade and revenue collection. The NCS is also collaborating with the World Customs Organization to grant Authorized Economic Operator status to importers and clearing agents who demonstrate a satisfactory level of trade compliance.
Additionally, the NCS operates a Fast Track Window, enabling select importers to directly forward their cargoes to their warehouses for customs procedures such as examination and payment. This bypasses time-consuming port inspection processes, reduces costs associated with port storage and demurrage, and is available to importers who meet specific criteria, including a minimum of three years in business.
Fast Track 2.0: Digitized Customs Clearance
In February 2022, the NCS launched Fast Track 2.0, an upgraded and fully automated process designed to expedite goods clearance at ports and borders. This digitized system aims to introduce a larger number of container scanners across the country, further expediting and facilitating customs operations.
By implementing these initiatives, Nigeria strives to streamline customs clearance, enhance trade facilitation, and promote efficient and transparent processes for importers and traders.
