Tension at Tin-Can ports as Customs introduces new duty regime

There is palpable tension at the Tin Can Island Port as the
Nigeria Customs Service (NCS), Tin Can Command, has introduced a
new valuation system called benchmark value on all general cargoes
coming into the country through the command. The new benchmark
seeks to impose N600,000 minimal duty on all twenty-foot containers
and N1.2m on all forty foot containers.

While expressing their apprehension at the Tin Can Port on
Wednesday, clearing agents who pleaded anonymity told Nigerian
Tribune that the Customs Area Controller, Mr. Musa Abdullahi Baba
is introducing the benchmark in contravention of the Customs
Valuation Act and the Transaction Value principles therein.

The clearing agents knocked the Customs for always coming up
with exploitative policies when the year is coming to an end in
order to meet its revenue target.

They also threatened to divert all cargoes from Tin Can Island
Port, even as they assured that other far-reaching steps would also
be taken to protest the introduction.

According to the agents, who were led by one Sylvanus Opara,
“The Benchmark Value means that all cargoes coming in would be made
to pay 600,000 on twenty-foot containers and N1.2m on forty foot
containers, not minding the port of origin, quality and
classification of the goods inside the container”

He alleged that already, the Customs Area Controller has
punished some Assistant Controllers under him, for failing to apply
the benchmark on some cargoes that have already exited the
terminal.

“The controller has said that the Assistant controllers are the
ones that would use their own money to pay the difference. What
this benchmark means is that officers can now begin to use their
discretion and jerk up value on imports,” the Clearing agents
added.

When contacted, Public Relations Officer of the Tin Can Island
Customs, Mr. Uche Ejesieme confirmed the development.

He, however, said that the introduction of the said fees is not
a ‘benchmark’ per say, but a Standard Operating Procedure (SOP)
which the CAC introduced in order to block all revenue leakages and
underpayments

In the words of Ejesieme, “The issue is actually a
misconception. What the Controller is saying and has repeatedly
said is that, depending on the kind of cargo, in order for us to
strike a balance and guide against unscrupulous undervaluation and
underpayment by stakeholders, the least minimal duty that you can
pay on a twenty-foot container is that amount. We don’t call it
benchmarking, it is not a benchmark but a standard.

“Some twenty foot containers can pay up to N20m depending on the
consignment, but what we are saying is that considering the
freight, CIF and other valuables, we pegged it that ideally, a
twenty-foot container is not supposed to pay less than that
amount.

“There are some twenty-foot containers that can even pay up to
forty million depending on the cargo.

“It’s actually an SOP, but people are misunderstanding it. There
is no way that a twenty-foot container would pay less than N600,000
with all the CIF payable multiplied by the exchange rate.”

Ejesieme assured that the command is planning to meet with
clearing agents and importers and re-sensitise them during an
enlarged meeting of stakeholders which will come up soon.

While reacting to allegations that the CAC punished some
Assistant Controllers for releasing cargoes without following the
laid down benchmark, he said that any cargo that has exited the
port can still be revisited and that the appropriate agency that
can do this is the post clearance audit.