Being paper presentation to Borderless Alliance Launch.

Topic: Trade Facilitation in the Nigerian Context.

Venue: Eko Hotel & Suites, Victoria Island, Lagos.

Delivered By

Deputy Comptroller of Customs (Nigerian National Facilitation Committee)

Taju, Olanrewaju

13th APRIL, 2012

Definition

Promoting Simplified procedures at the borders towards timely clearance of import, export and transit goods

Issues

Competing demands of trade facilitation and controls in the international supply chain to detect Customs fraud and offences;

Promote timely release of legitimate transactions.

Security to suppress fraud and terrorism including bombs and explosives.

Requirements

Need to strike a balance between trade facilitation and control.

Measures/Tools in use in Nigeria to strike a balance

Automation of procedures: ASYCUDA++ – automated control

of cargo at the borders within a framework of laws, regulations and processing of Customs clearance including; e-declaration through self assessment, e-payment and remittance, e-manifest, scanner, risk management, post-clearance audit.

Fast Track [Authorized Economic Operator – AEO]: Procedure for qualified traders on application.

Challenges

• Low compliance: false declaration, concealment of imports.

• Non – tariff barriers including multiple checks.

Steps to enhance service delivery

Coordinated border management and Single Window facility.

Enhanced intelligence.

Improved Customs-Business relations, including access to required official information.

Enhanced capacity of officials and Customs agents.

NIGERIA CUSTOMS SERVICE

Simplified Clearance

Guide to Trade and Customs AgentsProcedure for self-assessment and upfront e-payment

FLOWCHART

STEP 1: PREPARATION OF ASYCUDA SGDDeclarants prepare the ASYCUDA SGD with information derived from relevant documents e.g.: Invoice CCVO, Bill of Lading /Air way Bill /Road waybill, Packing List, Permit (where necessary), Insurance, Form ‘M’, RAR, etc. (These documents are obtained by the importer from the bank at which the Form M was opened).

Where is an ASYCUDA SGD prepared?

There are two locations:(1) Private DTI in the office of Importer or Agent (2) Public DTI Café

STEP 1: PREPARATION OF ASYCUDA SGD(2) Public DTI Café

CAPTURING AN ASYCUDA SGD THROUGH A DTI CAFÉ

NCS has licensed several Public DTI Cafés Fill out an SGD based on relevant documents, as indicated aboveGo to a Public DTI Café where you will:• Capture SGD information• Assess your SGD• Print SGD and Assessment Note• Sign SGD and insert in a folder together with Invoice CCVO, Bill of lading

/Air way Bill /Road waybill, Packing List, Permit where necessary, Insurance, Form ‘M’, RAR, etc…

STEP 1: PREPARATION OF ASYCUDA SGD(1) Private DTI

PREPARING AN ASYCUDA SGD THROUGH YOUR OWN PRIVATE DTI CONNECTION

A private DTI is connected to NCS Server via a PC and a telecom channel (internet, VSAT, radio, VPN).

• Using your private DTI prepare an SGD based on the approved Form ‘M’, CCVO, Bill of Lading, Packing List, RAR, etc:

• Capture SGD information• Assess your SGD• Print SGD and Assessment Notice• Sign SGD and insert into a folder together with Invoice CCVO, Bill of

lading /Air way Bill /Road waybill, Packing List, Permit where necessary, Insurance, Form ‘M’, RAR, etc.

STEP 1: PREPARATION OF ASYCUDA SGDNotes:

While capturing the SGD, specify the bank at which Customs duty will be paid. It must be the bank indicated as the designated duty collection bank on the Form ‘M’.

If Form ‘M’ is not required importer/Agent can pay at any preferred bank.

Take extreme care that the correct designated bank code as indicated on the Form ‘M’ is captured to enable the system to send the Assessment to the appropriate bank.

After capturing the SGD correctly select the Assessment option in the NCS system, an electronic message will be sent to the designated bank with details of what should be paid as customs duty and other charges.

STEP 2: PAY AT THE BANK

At this stage you will proceed to your designated bank with your system generated assessment notice.

The Bank officer will match your printed assessment notice with the electronically received assessment notice for your SGD. If the information tallies the Bank will receive your payments and issue you a signed bank receipt.

The Bank System will then send an e-confirmation message to NCS to acknowledge that duties and taxes have been paid for your SGD.

STEP 3: REQUEST RELEASE

After Payment of Duties at the Bank you go back to your office or DTI café and request the release of your consignment from the NCS system. NCS will release the goods after either scan or physical examination. The NCS system will not permit the release of goods if outstanding duty has not been fully paid.

STEP 4: CUSTOMS CONTROL

When you request the release of your consignment through the NCS system, NCS risk management information will determine the level of scrutiny that NCS will give your consignment.

FOUR POSSIBLE RISK OUTCOMESGREEN: BLUE: YELLOW: RED:

Go to Terminal Operator Go to Terminal Operator Go to CPC Go to Examination AreaYour SGD is “Customs Cleared” and released from customs control. Proceed to Terminal Operator T/O for issuance of Exit Note.The NCS system will have electronically notified T/O that your shipment is ready for release and T/O staff is now able to issue Exit Note on NCS system after finalizing their own formalities. The T/O will collect your SGD Folder and dispatch it to NCS 

Your SGD is “Customs Cleared” and released from customs control.NCS may do a post release audit check on your SGD in the future. Proceed to Terminal Operator T/O for issuance of Exit Note.The NCS system will have electronically notified T/O that your shipment is ready for release and T/O staff is now able to issue Exit Note on NCS system after finalizing their own formalities. The T/O will collect your SGD Folder and dispatch it to NCS Customs Post Clearance audit and may request a follow up of your clearance at your premises

Your SGD requires documentary check at CPC. The Documentary Check Officer at CPC will review your SGD documents and when satisfied will indicate on the system that your shipment is now “Customs Cleared” and released from customs control.The CPC staff will collect your SGD Folder

Your shipment should be examined physically orthrough X‐Ray. The system determines which examination method is required. Proceed to Examination Supervisor who will assign an Examiner to your shipment. The Examiner will review your SGD documents examine your shipment physically or through X‐Ray and when satisfied will indicate on the system that your shipment is now “Customs Cleared” and released from customs controlThe Examiner will collect your SGD Folder

FOUR POSSIBLE RISK OUTCOMES

and SGDs are “Customs Cleared” i.e. released from customs control and do not require any Customs intervention. You should go straight to the Terminal operator to claim your shipment.

and are for SGDs requiring Document Checking and Scanning/Examination respectively.

FOUR POSSIBLE RISK OUTCOMESYellow SGDs Red SGDs

Your SGD will be assigned to a Documentary Check Officer at the CPC.This Officer might query your SGD for clarification, missing documents, discrepancy between documents, etc.Based on this; the Officer can amend your declaration.Finally The Officer will re‐route your SGD to Green indicating that it is “Customs Cleared” and released from customs clearance. At that stage you will go to Terminal Operator for release of shipment.

Your SGD is routed to either:(1) X‐Ray Examination at Scanning Site OR(2) Physical Examination at Terminal

(1) In case of X‐Ray Examination you should go to scanning site. Your shipment will be scanned and images will be checked by the assigned image analyst customs officer. Based on scanned image of your shipment the assigned customs officer can amend your declaration. Finally the image analyst customs officer will re‐route your SGD to Green indicating that it is “Customs Cleared” and released from customs control.

FOUR POSSIBLE RISK OUTCOMESYellow SGDs Red SGDs

Note:In some cases the Documentary Check officer might re‐route your SGD to Red for Physical or X‐ray examination. In that case the Officer has to provide you and his superiors with justification for his actions in the NCS system.

Note:In some cases the Image Analyst officer might conduct physical examination at X‐Ray scanning site.

(2) In case of Physical Examination: the assigned officer will examine your shipment, and report his findings in the system. If amendment is required, the SGD will be re‐routed to the Query and Amendment seat in the CPCFinally the officer will re‐route your SGD to Green indicating that it is “Customs Cleared” and released from customs control. 

STEPS 5: RELEASE OF CONSIGNMENT BY TERMINAL OPERATOR

Your SGD is now “Customs Cleared” and released from customs control.

Proceed to Terminal operator for issuance of Exit Note.

The NCS system will have electronically notified the Terminal operator that your consignment is ready for release and Terminal operator staff are now able to issue an Exit Note on NCS system after finalizing their own formalities.

The Terminal operator will collect your SGD Folder and dispatch it to NCS.

STEPS 6: EXIT OF CONSIGNMENT AT GATE

At the gate a Customs officer will acknowledge exit on the NCS system and a confirmation will be received that your consignment has been released and has exited the Port.

NIGERIA CUSTOMS SERVICE

E-PAYMENTE-REMITTANCE

E-RECONCILIATIONFOREX MONITORING

e-PAYMENT CONCEPT

NCS e‐PAY

Flow of Revenue

Trade

CommunityBanksNCS e‐PAY

e-PAYMENT OPERATIONS – HQ REPORTS

1 BANK SUMMARY  Consolidated Summary by Bank for collected Revenue.Breakdown for Cash and NDCC 

2 AREA COMMAND SUMMARY  Consolidated Summary by Area Command for collected Revenue.Breakdown for Cash and NDCC

3 LIST BY TRANSACTION Detailed List of transactions sorted chronologically.Breakdown for Cash and NDCC

4 LIST BY BANK Detailed List of transactions sorted / subtotaled by Bank.Breakdown for Cash and NDCC

5 LIST BY AREA COMMAND Detailed List of transactions sorted / subtotaled by Area Command.Breakdown for Cash and NDCC

6  LIST BY TAX Detailed List of transactions sorted / subtotaled by Tax.Breakdown for Cash and NDCC

7 LIST OF MANUAL PAYMENTS Detailed List of Manual Payments

e-REMITTANCE CONCEPT

Trade

CommunityBanks CBNNCS e‐PAY NCS e‐REM

Flow of Revenue

• E-REM completely transforms the current manual regional remittance process into a national centralized automated process

• E-REM facilitates speedy (Next Day) remittance from Commercial Banks to CBN Pool accounts.

• E-REM provides NCS, Banks and CBN with reconciliation tools based on source payment transactions data from e-PAY.

e-REMITTANCE

TRANSACTIONALSGDs’ E‐PAYMENT

DAILY CONSOLIDATED REMITTANCE

AccntAccntAccntAccntD&T

D&T

D&T

NCS CBN

NIBBS

Bank

Bank

Bank

x xx

RECONCILIATIONPer Bank

NON REMITTEDAMOUNT

e-RECONCILIATION CONCEPT

FOREX MONITORING CONCEPT

•100% of Form M are centralized on the Nigeria E-Trade System

•100% of RAR are centralized on the Nigeria E-Trade System

•100% of SGD are centralized on the Nigeria E-Trade System

The Nigeria E-Trade System automatically correlates Form M and SGDs to determines FOB balance in real-time.

FOB

SGD

SGD 1

FOB

FORMM

FORM M

FOB SGD 2

SGD 3FOB

POTENTIAL CAPITAL FLIGHT

Duties & Taxes

SGD 1D&T

SGD 2D&T

SGD 3D&T

REMITTANCEon CBN Accounts

AccntAccntAccntAccnt

NON REMITTEDAMOUNT

FOREX MONITORING TRADE CHAIN

THANK YOU