LCCI Urges FG To Set Up Appeal Panel For Customs-Businessmen Disputes

The Lagos Chamber of Commerce and Industry (LCCI) on Sunday
urged the Federal Government to create an independent dispute
resolution framework to manage conflicts between the Nigeria
Customs Service (NCS) and the business community.

In a statement made available to newsmen in Lagos, the
Director-General of LCCI, Muda Yusuf, said a presidential
intervention had become inevitable, especially with the onset of
the African Continental Free Trade Area (AfCFTA).

Mr. Yusuf said the disputes were on matters of product valuation
and harmonised system of product classification as experienced and
reported by investors in the Nigerian economy.

He said that a major shortcoming in the nation’s international
trade process was the absence of an independent, credible and
prompt appeal mechanism.

According to him, the lack thereof presents a situation that is
hurting investment and weakening investors’ confidence.

The LCCI boss said the current realities left importers entirely
at the mercy of the Customs Service in the absence of a credible,
independent window for dispute settlement between the service and
the private sector.

He said that discretionary interpretations on product
classification and valuation posed enormous corruption risks in
Customs processes.

“The LCCI calls on President Muhammadu Buhari to intervene by
setting up an Independent Appeal Mechanism to deal with issues of
valuation and HS classification between the Nigeria Customs Service
and the business community.

“This could be done within the framework of an Executive Order
as this is necessary to restore the confidence of investors in the
international trade process.

“There is a need to ensure a balance between regulatory
controls, revenue generation and trade facilitation functions of
the Nigeria Customs Service,” Mr. Yusuf said.

According to him, under the present arrangement, the Customs
Service is the accuser and the judge and this mechanism is unfair
to investors and not consistent with the principles of natural
justice.

“Many companies have been compelled to pay outrageous additional
charges on imports, thus distorting their investment plans and
projections.

“Indeed, the biggest corruption risks in the interface between
the Customs and the business community are around these two
issues.

“This situation is hurting investors across all sectors –
manufacturing, agro-allied, ICT, construction, services etc.

“It is a disincentive to domestic and foreign investment. It
creates uncertainty and aggravates investment risk. It undermines
economic diversification prospects; depresses capacity utilisation
and limits the scope for job creation.

“It is also not consistent with the vision to make Nigeria a top
investment destination,” he said.

The Lagos Chamber of Commerce and Industry (LCCI) on Sunday
urged the Federal Government to create an independent dispute
resolution framework to manage conflicts between the Nigeria
Customs Service (NCS) and the business community.

In a statement made available to newsmen in Lagos, the
Director-General of LCCI, Muda Yusuf, said a presidential
intervention had become inevitable, especially with the onset of
the African Continental Free Trade Area (AfCFTA).

Mr. Yusuf said the disputes were on matters of product valuation
and harmonised system of product classification as experienced and
reported by investors in the Nigerian economy.

He said that a major shortcoming in the nation’s international
trade process was the absence of an independent, credible and
prompt appeal mechanism.

According to him, the lack thereof presents a situation that is
hurting investment and weakening investors’ confidence.

The LCCI boss said the current realities left importers entirely
at the mercy of the Customs Service in the absence of a credible,
independent window for dispute settlement between the service and
the private sector.

He said that discretionary interpretations on product
classification and valuation posed enormous corruption risks in
Customs processes.

“The LCCI calls on President Muhammadu Buhari to intervene by
setting up an Independent Appeal Mechanism to deal with issues of
valuation and HS classification between the Nigeria Customs Service
and the business community.

“This could be done within the framework of an Executive Order
as this is necessary to restore the confidence of investors in the
international trade process.

“There is a need to ensure a balance between regulatory
controls, revenue generation and trade facilitation functions of
the Nigeria Customs Service,” Mr. Yusuf said.

According to him, under the present arrangement, the Customs
Service is the accuser and the judge and this mechanism is unfair
to investors and not consistent with the principles of natural
justice.

“Many companies have been compelled to pay outrageous additional
charges on imports, thus distorting their investment plans and
projections.

“Indeed, the biggest corruption risks in the interface between
the Customs and the business community are around these two
issues.

“This situation is hurting investors across all sectors –
manufacturing, agro-allied, ICT, construction, services etc.

“It is a disincentive to domestic and foreign investment. It
creates uncertainty and aggravates investment risk. It undermines
economic diversification prospects; depresses capacity utilisation
and limits the scope for job creation.

“It is also not consistent with the vision to make Nigeria a top
investment destination,” he said.