Compt Olomu harps on utilizing customs trade facilitation tools to enhance confidence, predictability in business

…Assures of customs readiness to give support importers, exporters

By Ezurike ugochukwu

The Apapa Port Command Controller, Nigeria Customs Service (NCS), Comptroller Babatunde Olomu, has called on businessmen, importers and exporters to explore the tools put in place to streamline trade namely: Advance Ruling (AR), Automated Economic Operator (AEO) and Time Release Study (TRS) to make trade accessible, sustainable and inclusive for all.

Stating that proper application of these tools would go a long way in addressing the constraints limiting the country’s potential to participate effectively in international trade.

Olomu however expressed confidence in the ability of these tools to reduce delays, cut down on corruption and help businesses operate more efficiently thereby paving way for government to collect more accurate and timely revenues from trade activities.

Speaking at the 2024 edition of the Association of Maritime Journalists of Nigeria (AMJON) annual Maritime Finance Conference held at the Sheraton Hotel and Towers, Ikeja, Lagos, lamented that many stakeholders in Nigeria underutilize these tool owing to their not being aware of their existence and their benefits.

Advance Ruling (AR) in the words of the controller is a decision provided by the customs authority in advance of trade transactions which offers clarity on the classification, valuation and origin of goods, valuation and provides businesses with predictability in customs processes.

AR tool has been floundered by such challenges as lack of awareness of its existence and benefits by importers and exporters, even as its application processes appear cumbersome and time consuming but with worthwhile result.

The comptroller said, “another challenge is Limited expertise: to this, some Customs brokers may lack the necessary expertise to provide accurate and timely rulings on complex trade scenarios, they should not worry, our men and officers are on ground to assist the importers and exporters navigate the processes of Advance Ruling for proper implementation.”

Speaking on Automated Economic Operator (AEO), he said it’s a voluntary certification scheme that recognizes and rewards compliant importers, exporters and expedites customs clearance.
He said, “In some cases, the benefits accrued by AEOs may not justify the additional costs and efforts involved in obtaining certification.”

On one other tool, “Time Release Study” he said it expedites timely release of goods from customs custody as one of the requirements of the WCO – World Trade Organization for Trade Facilitation Agreement. Revealed that it affords members of the WTO countries opportunity to measure and publish their average release time of goods periodically.

TRS he stated operates under such objectives as identifying constraints affecting customs release of goods, accessing technologies and infrastructures or administrative changes among others.

These tools are coming as catalysts to bringing the opportunities and challenges that come with globalization in trade home leveraging in such trade windows as the Africa Continental Free Trade Agreement (AfCfTA), and others.

The three phases of TRS he said are Preparation of the study, Collection and recording of Data and Analysis of Data and conclusions. Expresses reservation that some African countries have not keyed into this tool as time release for goods still drags into so many days using such countries as Kenya and Uganda.
Challenges facing trade facilitation on the sideline of TRS Olomu outlined, “Inefficient Documentations: delays the release of goods as most customs brokers e.g. agents and their representative do not turn up on time in submitting and filing their documents.

Other challenges fingered are Lack of technology, revealed that out dated technology infrastructure can hinder the automation of customs clearance processes, corruption within customs agencies/ stakeholders identified as factor that could hinder timely release of cargos and add costs to traders.

Compt. Adeniyi and Olomu

The outstanding customs officer stated that to address the challenges as well as optimize the effectiveness of Advance Ruling, AEO and Time Release tools, recommendations as conducting targeted awareness campaign to educate stakeholders about the benefits of those initiatives, Simplified procedures; reducing administrative burdens, implements modern technology solutions to automate customs clearance processes.

Fostering collaboration between customs authorities and the private sector to identify and address trade facilitation challenges among others was identified.

Olomu maintained that addressing the challenges and issues associated with these laudable trade facilitation tools are essential toward optimizing their benefits and promoting sustainable economic growth, aligning trade policies with international standards which could attract more global partners and increase Nigeria’s share of global trade.

NCS it will be recalled in 2022 embarked on a journey to reposition and ease trade operations in the country through trade modernization project (TMP).