Business

Customs launches advance ruling system to improve trade, revenue collection

Published

2 weeks ago

May 2, 2024

The Nigeria Customs Service (NCS), on Thursday in Abuja, launched its Advance Ruling System to improve trade facilitation.

Additionally, the NCS held a stakeholder engagement event to promote a mutual understanding of its programs and support the implementation of the system.

The Comptroller General of NCS, Adewale Adeniyi, speaking at the event, said the initiative is intended to foster a more transparent and predictable business climate for stakeholders.

Adeniyi highlighted that advanced ruling is an essential tool that enables traders to receive binding decisions from customs administrations regarding the classification, origin, and valuation of goods prior to importation.

He said, “This tool is essential for promoting trade facilitation, reducing compliance costs, and fostering a conducive business environment,”
“It is crucial to note that the absence of this mechanism has implications beyond Trade Facilitation, as it also impacts our revenue.”

New system aligns with President Tinubu single window policy.

The Comptroller General characterized the system’s launch as timely, aligning with President Bola Tinubu’s administration’s policy directive to enhance trade facilitation for legitimate traders.

According to him, “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.
“Additionally, the recent inauguration of the Single Window steering committee by the President underscores high-level commitment to enhancing trade facilitation in Nigeria,”

Dispute resolution

He noted that the implementation was particularly timely given the substantial number of disputes the service managed between 2020 and 2023.

He mentioned that of the 34 disputes during this period, 31 have been resolved, with three cases still outstanding.

The advance ruling system is sponsored jointly by the Global Alliance for Trade Facilitation and the European Union-World Customs Organizations (EU-WCO) Rules of Origin (RoO) Africa Programme.

This initiative includes training for NCS personnel that took place in January, focusing on advance ruling skills concerning rules of origin.