Why Customs will reintroduce 4 per cent Free on Board (FOB) levy, CG Adeniyi

…Stakeholders describe B’Odogwu as masterstroke

Comptroller General of the Nigeria Customs Service (NCS), Mr. Bashir Adewale Adeniyi on Monday hinted on the reintroduction of the suspended four percent Free On Board (FOB) as he affirmed that it returns will save business owners the payment of the one percent Comprehensive Import Supervision Scheme (CISS) and the 7 percent of the Cost of Collection hitherto imposed on cargoes.

The Customs Boss, who spoke at a town hall meeting with stakeholders on B’Odogwu clearance with the theme “Enhancing Trade Compliance and System Optimisation Through Stakeholders Engagement” affirmed that the NCS will no longer impose further charges on importers adding that funds generated from the FOB level will be geared towards enhancing the service’s technology advancement and operational efficiency.

Responding to inquiries on the FOB, Mr. Adewale said “I am talking to you seriously our esteemed stakeholders across the different value chain, in terms of the 4 percent FOB that I spoke about, I tell you that with the implementation of 4 percent FOB, the 1 percent CISS and the 7 percent cost of collection, which is also being charged, will be completely removed.”

Across to him, “Talking about the 7 percent cost of collection, it is taken from the federation account to administer Customs operations. What this represents is that the three tiers of government, the federal government, the state government, and the other sub-nationals, will comprise 70 percent of what is brought to the federation account.

“That’s what we have practised in the last 10 years. However, under the new Act, 4 percent FOB is to be paid up front, and that’s it. Once that is done, it is 100 percent of the revenue generated by Customs that will go to the federation account. So, it’s going to be a win-win situation for all of us.”

Meanwhile a cross section of the stakeholders described the B’Odogwu Clerance System as a masterstroke by the Customs as they enumerated its gains ranging from improved trade compliance, cargo clearance efficiency, improved cargo visibility and tracking, speedy clearance, transparent billing system and revenue generation.

They added that the system has so far brought about transparency in cargo businesses, improved digital tracking of transactions, as well as the eradication all downtime associated with the now rested NICIS II.

The CG explained that the gathering has allayed his fears about the system stating that “We have organised this Town Hall meeting because we want to hear from our stakeholders their experiences with the B’Odogwu system. Over the last two weeks, I have had concerns about logging in, migration from NICIS II to B’Odogwu, payment problems, and things like that.

“We had discussions with the authorised bank ten days ago. We got feedback and commitment from them that they are going to address some of the issues that have been raised.

“I am also happy that the feedback that we have got is not all about complaints. Indeed, we have had a number of positive feedback from some of our stakeholders.

“What we have seen during the panel discussion shows that, for every change processed, there could be sacrifices that will be made.

“We also appreciate the fact that every change process brings up some level of satisfaction. If the commitment is there, we will both benefit from the desired change that we want to bring about.

“So, we just want to encourage everybody involved to continue to collaborate and open up this kind of platform, so that we take direct feedback on how to improve.

“The fact that B’Odogwu is bringing cost reduction, cost of doing business, ease of doing business, while also tackling security threats, means it has come to stay.

“So, as we deploy technology, we will be getting better at the balancing act, such that none of these mandates will have to suffer because we are deploying a free competition system.

“I am indeed proud to say that this is a positive level of stakeholder engagement. We have got so much positive feedback from users, from terminal operators, and we are indeed grateful for that.”

Speaking of measures to improve the Customs stakeholders engagement further, the CGC said “The Customs ICT has developed a set of frequently asked questions, and I have asked them they update this list with some new feedback that we have received today. And they will make this document available to us. We will circulate it to all of you.

“First, we will put it on our website. We will let all the officers in the various commands have copies of them. We will also attempt to translate them into Pidgin English so that those who can have access to Pidgin can see and relate with it.

“The Public Relations unit will also be giving this document, so that they can develop an audio and video version, which we can share across all platforms.

“Then, we will be taking this stakeholders engagement outside Lagos. I am very sure most of our colleagues in the Eastern ports will be very glad to have something similar to this. This engagement will be taken to stakeholders in the North and the East.”

Stakeholders who attended the event include the Standards Organization of Nigeria (SON), and the National Agency for Food and Drug Administration and Control (NAFDAC). NDLEA, importers, freight forwarders, shipping lines, terminal operators, financial institutions among others.