Customs boss calls for overhaul in cross-border trade clearance system
04 September 2024 |
4:38 am
The Customs Area Controller of the Apapa Command, Babatunde Olomu, has expressed concerns over challenges hindering cross-border trade facilitation in the imports and exports of cargoes
The Customs Area Controller of the Apapa Command, Babatunde Olomu, has expressed concerns over challenges hindering cross-border trade facilitation in the imports and exports of cargoes.He pointed out that these challenges are impeding the mechanisms for the timely clearance and release of goods and their implications for international trade.
He said these critical mechanisms, which include Advance Ruling, the Automated Economic Operator (AEO) programmed and Time Release Studies (TRS) are facing challenges hindering cross-border trade facilitation, calling for better alignment of these standards to enhance global trade efficiency.
Olomu, in a paper presented at the yearly Maritime Finance Conference of the Association of Maritime Journalists of Nigeria (AMJON), titled: “Customs Role in Trade Facilitation: Issues and Challenges,” held in Lagos, said the lack of harmonisation in international standards for AEO programmes hinders cross-border trade facilitation.
Olomu recognised the high costs of compliance, particularly for small and medium-scale enterprises (SMEs), as a significant barrier to broader participation in the programme.
He said while the AEO programme offers significant benefits, the costs and efforts required to obtain certification can be prohibitive, especially for smaller businesses, just as he suggested simplifying the certification process and better aligning international standards to increase participation.
Olomu noted that while the TRS mechanism seeks to improve the efficiency of customs processes, identify bottlenecks in the international supply chain and establish performance benchmarks for trade facilitation, complex and redundant documentation requirements often delay the clearance of goods.
He further highlighted inefficient documentation, outdated technology and corruption within customs agencies as major impediments to the timely release of goods, stressing the need for modernisation and greater transparency within the system.
Olomu highlighted the significance of the Advance Ruling mechanism, a pre-shipment advisory system designed to provide importers and exporters with definitive determinations on customs duties, taxes, and other charges before goods are imported or exported.
He stressed that while this mechanism is pivotal in reducing uncertainty and expediting customs procedures, it faces several challenges as many stakeholders remain unaware of its existence and benefits.
Olomu also pointed out the complexity of the procedures and the limited expertise among customs brokers, which has led to underutilisation of this mechanism.
Olomu urged stakeholders, especially importers and exporters, to leverage Advance Ruling to enhance their business operations. He recommended strategies to address the identified challenges, which include conducting targeted awareness campaigns to educate stakeholders, simplifying application processes, investing in capacity building for customs officers, adopting modern technology and strengthening anti-corruption measures.
Others are, harmonising international standards for AEO programmes and addressing inefficiencies in the TRS mechanism through better technology. He also called for stronger public-private partnerships to foster collaboration between customs authorities and the private sector, which could play a crucial role in identifying and addressing trade facilitation challenges.
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