The Nigeria Customs Service (NCS) has launched an Advanced Ruling mechanism to facilitate trade for legitimate traders in the country.
The launch, which finally took place on Thursday, followed many failures, which led to many disputes that the Service has had to handle between 2020 and 2023.
Speaking at the event, the Comptroller General of Customs, Bashir Adeniyi said the Advanced Ruling is a critical mechanism that allows traders to obtain binding decisions from customs administrations on the classification, origin, and valuation of goods before importation.
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“This tool is essential for promoting trade facilitation, reducing compliance costs, and fostering a conducive business environment,” Adeniyi said.
The World Customs Organization (WCO) and the World Trade Organization (WTO) also view the Advance Ruling as a tool that enhances predictability and transparency in customs procedures, streamlining trade processes and minimising delays, uncertainties, and costs associated with customs clearance.
Speaking further on the challenges encountered in launching the tool, the Customs boss said previous attempts to introduce the tool were unsuccessful, despite their recognised importance.
He said, “The path toward implementing Advanced Ruling in Nigeria has been fraught with challenges and setbacks.
“However, in 2020, we initiated a scoping mission to review our processes and align them with global best practices.
“This comprehensive review yielded valuable recommendations that have informed our efforts to relaunch the Advanced Ruling today.
“The launch of Advanced Ruling at this time aligns with the policy directive of the Bola Ahmed Tinubu administration to facilitate trade for legitimate traders.
“This is reflected in the Policy Advisory Document of the government, which highlights recent achievements, such as the approval to decongest the ports and make them free and accessible for importers and operators.
“The implementation of Advance Ruling is timely, given the significant number of disputes the Service has had to handle between 2020 and 2023.
“Out of the 34 disputes encountered, 31 have been resolved, while 3 cases remain
pending.
“Additionally, despite the absence of a structured mechanism, a total of 296 requests for Tariff opinions were received, with 266 processed and 30 pending.
“It is crucial to note that the absence of this mechanism has implications beyond Trade Facilitation, as it also impacts our revenue.”
Noting the importance of the NCS to generate over N5trn in 2024, CG Adeniyi disclosed the Service’s plan to conduct workshops and sensitization sessions at Customs Area Commands to ensure that all stakeholders are well-informed and prepared to utilise the new
mechanism effectively.
“We are grateful for the support of the German International Cooperation Agency (GIZ), our steadfast partner in today’s event, and for their continued support of our trade facilitation activities under the Nigeria Energy Support Programme.
“We are committed to leveraging our internal capacity while exploring collaboration opportunities with external partners like GIZ.
“As part of the kick-off of Advanced Ruling, I have given approval for the development of a handbook to provide guidance to traders and customs officers.
“We urge you to continue providing the support and cooperation required as I am confident that Advanced Ruling will pave the way for smoother and more efficient trade processes in Nigeria,” he added.