Firm unveils solution to tackle import, export trade challenges, faults $3.2bn e-Customs project

As part of efforts to tackle the myriads of challenges in import/export trade and reduce conflicts resulting from non-compliance to trade laws by importers and exporters, an indigenous firm, International Trade Advisory Limited (ITASL) has flagged off its services at the nation’s ports.

The initiative, the company said, is to provide world class advisory services for importers, exporters, manufacturers and multinationals on Customs processes and procedures with a view to reduce delays in cargo clearance at the ports.

Speaking at a press briefing to announce the initiative in Lagos on Wednesday, Principal Consultant and Chief Executive Officer of the company, Mr. Okey Ibeke, said importers often incur avoidable expense due to inadequate knowledge on trade laws and sometimes ignorance with the losses transferred to consumers through high prices of goods at the end of the day.

Accordingly, he said one of the primary goals of the firm is to provide assistance in interpretation of laws/regulations, product descriptions, harmonized tariff codes, valuation, rules of origin, post clearance audit among others, for the resolution of all import/export compliance and regulatory issues.

Noting that compliance level is still very low at the nation’s ports, Ibeke urged importers to avoid trade malpractices such as under declaration, under valuation, wrong classification and other related infractions, which he said are responsible for delay in cargo clearance at the ports.

“Sometimes some importers willfully refuse to comply with the laid down rules and regulations while others do it out of ignorance. So, what we do is to advise multinationals and corporate organizations on Customs processes and procedures.

“We advise them on how to classify the goods they are importing so that when the goods land they won’t have problems with the Customs. When they have issues, the Customs will detain their goods pending the resolution of the matter and they will incur demurrages resulting in additional cost which the consumers bear the brunt. So, what we do is to provide advisory services.

“We develop procedures, training modules and assessment programs to identify compliance defects, develop solutions and coordinate improvement implementation.

“We provide professional resources and broad skill sets for clients such as technical specialists, licensed customs brokers, logistics experts, project managers, accountants, lawyers, freight forwarders, and auditors.

“We employ appropriate procedures to determine the proper harmonized tariff classification on imports or exports, control classification on exports and provide a complete audit trail to support our client’s classification claim. In addition, our experts can research rulings or assist in obtaining a ruling.

“Customs authorities are increasing their focus on compliance verification audits, and valuation is a key area they usually look at. Given the various methodologies, determining the value for duty of goods can be incredibly complex. Commissions, assists, royalties or related party transactions need to be considered, and getting it wrong can result in repayment of higher duties and financial penalties.

“International Trade Advisory Services Limited, therefore, helps a client to ensure the correct valuation method, the right pricing relationship with related and non-related vendors, and correct payment of duties,” he said.

Ibeke added that the company also provides assistance to clients with export requirements to enable an exporter have a solid understanding of export controls and documented export compliance programs.

Other services provided by the firm according to him include post clearance audit and audit assistance; compliance assessment, process and internal control design; training and support services; duty recoveries and rules of origin among others.

The trade expert said the company also guides manufacturers on how to exploit opportunities that abound in the Ecowas Trade Liberalization Scheme (ETLS) and African Continental Free Trade Area (AfCFTA).

He urged the Nigerian trading public to avail themselves of the services of ITASL, especially with free trade as he noted that the consequences of non-compliance with the requirements of the free trade agreement can be significant and costly.

“In addition to the benefits of reduced duty rates, free trade agreements (FTAs) can expose importers or exporters to a great deal of risk.

“To minimize their risk, large importers who rely heavily on duty savings need to ensure compliance with the legal requirements of international trade agreements. Free trade compliance is also important to manufacturers and exporters who want to ensure that their customer relationships aren’t harmed by causing compliance issues for their consignees,” he said.

Meanwhile, Ibeke has faulted the $3.2billion e-Customs project, describing it as a fraud.

He said Customs has fully automated its operation at its various commands and also acquired scanners at the port wondering what any consultant was going to offer that Customs officers who have been trained could not do.

Ibeke also described the traditional annual revenue target set for Customs by the federal government as an aberration peculiar only to Nigeria.

He said, “There is no country that gives its Customs Service revenue target to meet anywhere in the world. Other countries don’t depend on import duty to carry out their expenditure. It is only Nigeria that depends on import duty to finance their budget, which is very wrong.”