Recently, I conducted two key interviews with some of the best brains in the current management cadre of the Nigeria Customs Service(NCS). One, was with now ACG Timi Bomodi, as the then Customs Area Controller(CAC) of Seme-Border. In fact, that, I think was his last media interview as Comptroller Bomodi. The second person was, Comptroller Dera Nnadi, CAC, Tin Can Customs Command. But the worst happened. These were project interviews on some controversial clauses in the NCS Act of 2023. Their insights and operational realities as well as application of dispute resolution principle were engaging and practical oriented. However, suddenly, I lost my voice. I had a cyber-mishap and all these resource materials and many others wiped off, leaving me helpless. I mourned the “demise” of my interviews in pains and regrets. I felt like a non-professional, who would waste someone’s time and not publish the material. I personally consider this a journalistic crime and sin. But somehow, I found a part of Nnadi’s while in weeks of intensive search. It has broken legs but still made some useful sense. I hereby serve you this not as originally intended while I continue my search for Bomodi’s which was more elaborate with issues in smart border management and very painful because I had to travel to Seme-Border to conduct the interview. Imagine!
Here, Compt. Nnadi shares the importance of the Authorized Economic Operator(AEO) in trade facilitation and the corporate reputation of the beneficiary firms as well as the trade ranking of the customs process. Against the background of calls for the review or amendment of the new NCS Act by some learned silks at the recently concluded Maritime Seminar for Judges over what they considered as anti-trade facilitation clause as it concerns dispute resolution in event of cargo delivery crisis and whom to complain to and the final arbiter, Nnadi makes some elucidation. The new Act listed CAC and CGC as custodians of the complaint or appeal, which made the lawyers argue that they cannot be a judge in their own case and consequently called for an urgent review of the clause and others.
Compt. Nnadi says revolution is coming in Nigeria Customs, among other issues. Enjoy it!
The meeting with me focused on key initiatives to enhance Customs efficiency and modernize processes. Highlights included the discussion of the Authorized Economic Operator (AEO) program, which aims to facilitate trade by providing trusted entities, such as those in China-to-Nigeria trade, with automatic clearance and increased integrity similar to EU practices.
Progress towards paperless customs operations was reviewed, noting advancements in digital declarations and payments, while emphasizing that physical inspections and complaint communications still require traditional methods.
Future modernizations projects were outlined, including the introduction of an electronic tracking system, enhanced non-intrusive inspection techniques, and the use of drones for border protection, along with e-enforcement technologies employing body-worn cameras for real-time oversight.
The session also detailed customs dispute resolution pathways, allowing for efficient handling of issues through multiple platforms and the option for expedited goods release during disputes under proper indemnity conditions.
Action items were drafted to implement improvements such as paperless communication for complaints and full automation of customs processes.
Some companies that are already compliant qualified for that. Because that will also help all parts of the trade facilitation enhancement tool.
And it will encourage humanity. It’s both transportation tool and integrity too. Yes, because the idea of it is that you bought this thing from China. And China sends messages to us that this person paid for this thing. For instance, 42 inches TV. It is worth $100. When we check it and it is 100 percent what China told us, no cheating, what you will do automatically is when the goods arrives from China; we don’t even need to inspect it. You take delivery of your cargo. When this is done overtime you have built an integrity over the years and it is proven that you are not telling lies you can even take delivery of your cargo on indemnity and pay later.
They use it in the airline industry among EU nations. If you are travelling from Nigeria and they search you at Lagos, Abuja airport, when you get to Frankfurt, for instance, they charge you. The moment you are leaving Frankfurt for another European country within the EU, they don’t bother to search you anymore because it is assumed that the search that was conducted at Frankfurt is sent across to all European nations that this man is clean to enter the country.
That is just what AEO is all about. The moment one person certifies that you’ve done it right, Nigeria tries you once to confirm that that information is genuine, you are qualified for AEO status..
On Paperless Transactions
The thing is that payment has gone paperless. Our reporting mechanism has also gone paperless. Release has gone paperless. Declaration is paperless. But communication, when there are challenges, is not yet paperless. Reporting examination is paperless. You know, actual examination is still physical combined with inspections.
But any other communication channel where you now have paperwork is all these complaints somebody wants to apply for something. You know, I’m looking forward to the day when this man for instance, is requesting for appeal due to wrong terminal code. Now, I am looking forward to the day this man will be in his office and send this same appeal to me without necessarily writing it down. I think that’s where we are still having issues. Before people would have been sending you bank receipts. Now you don’t need all those things. You just pay in your bank. Custom will see the payment. You are not bringing receipts. Everything will soon be automated, very soon, with the modernization project coming up, which is going to touch every other thing, 100% including e- enforcement and examination. We’re going to have more intrusive inspection. We’re going to have drones for border protection and some others. So we are moving forward.
E- Enforcement
I was here when they came one day to try what the mobile enforcement called E- enforcement. The one that they wore something on their body. And I was communicating with people in Abuja. They were seeing all of us.
As you are examining a container, somebody somewhere is seeing what you are doing. They brought it here. While we were talking, the ACG ICT was seeing me.
So now if I go for examination, you wear it. In fact, I’ve whispered to a few agents. You carry this one. You declare this. I said, it will soon be a thing of the past, because if you do it, me that wants to assist you, I cannot anymore, because as I’m examining that container, somebody above me is watching, yes.. Unless if I’m going to examine that container and I switch off my camera, somebody will say, why did you switch off the camera? So there’s going to be a revolution very soon in the system.
There are so many platforms for redress like I mentioned.. If you bring in something and I say you’re supposed to pay $2,000 you say, No, it is N2000, no problem. All we need to do is give me an indemnity and carry your container. Many of us don’t want to do that. Many of us don’t even know that there’s such provision. That’s number one. Number two, where eventually there is a case, you can bring indemnity.. We have a dispute resolution committee. The members sit almost on daily basis. While it is going on, you have a right to take your goods. Just give us indemnity.
Once, if we win you, we vacate the indemnity in favor of customs. If you win us, we vacate indemnity in your favor. That way, you’re not paying the rent. If it’s raw materials, you’re using your raw materials. So that’s good just because people don’t know, or rather, they know they don’t take advantage of some of these things. So they make it look like these are big deals, but they’re not big deals. We do that on daily basis. This morning, I have signed a document that allowed somebody to take his cargo without paying duty that they are commissioning their facility tomorrow. Part of the equipment they are using for that commission is in court, and they came and met me this morning. I said, go and apply for pre-release. Very simple, they said they had applied. And I said, okay, go and take your cargo.
Come back later, when your documents are ready. You can pay that duty because you are a corporate entity. But if it is an individual that came, I will say Kingsley, approach your bank. The duty you will pay us is 10 million. Let your back send me a letter that if you don’t pay, they will pay. That’s indemnity. Then I will now allow you take delivery of the goods.
If it is like let’s say, Coscharis; Coscharis can’t disappear. They will not disappear. I can give you corporate indemnity on self-recognition. So, okay, apply for pre-release and carry your goods.. How long will it take you to pay me? Oh, just give me, like a week. They will come back after. Why not? People don’t know that these things exist, and that’s where this challenge comes.
Were you at CG conference? There was a case like that there and the matter is still there unresolved. But it doesn’t matter. The man still carried his goods. Anytime he comes, we say, carry your goods but remember, this is what we think you should pay. The man say, No, this is what I should pay. Pay the one you think you should pay. No problem. But any day, we win you, you will pay this money. We have seen your business. You are not ready to fold in the next 100 years. You are big, so you are not going away. You are part of this economy. You know, it happens like that.
