By Uche Usim
The Nigeria Customs Service (NCS) and the Manufacturers Association of Nigeria (MAN) have thrown their weight behind the ongoing investigations over the abuse of the Export Expansion Grant (EEG) with a view to unraveling the beneficiaries who have turned it into a major racket for selfish gains.
The EEG is a very vital incentive required for the stimulation of export oriented activities that will lead to significant growth of the non-oil export sector.
The Comptroller General of the NCS, Hameed Ali, disclosed this in Lagos at the weekend at a stakeholders’ forum with local manufacturers. The Customs boss said the EEG was suspended “due to incessant abuse by some beneficiaries who indulged in racketeering and other vices.”
Ali, however, noted that few companies played according to the rules, even as he expressed hopes that there would be better incentives for exporters after the investigations.
On the impact of the Central Bank of Nigeria’s policy, which banned some imported items from accessing forex, the Customs boss noted that the policy created a revenue shortfall of N230 billion in the last quarter of 2015.
He informed the forum that the request for a review has been tabled before the Vice President, Yemi Osinbajo who is the head of President Muhammadu Buhari’s economic team.
The Customs boss and MAN members have also agreed to set up a join team with the mandate of harmonising areas of conflict between them.
The forum recommended continuous engagement, honest declaration, training of importers and regular advocacy to address the issue of value upliftments and queries.
Customs was enjoined to monitor its new Dispute Resolution Mechanism and review it for modification and implementation.
While showing understanding for the current economic downturn, which places pressure on Customs to safeguard revenue on contentious declarations, the forum encouraged Customs to balance that out by availing importers the opportunity to use the bond option to avoid heavy demurrage pending final resolution of such disputes.
To address various trade malpractices like the growing violation of Intellectual Property Rights of Nigerian manufacturers, which has resulted in the faking of their products by foreign companies, the forum called for regular exchange of information, tracking of suspect cargo and strong collaboration.