The Chairman 100 Percent Compliance Team of the National Association of Government Approved Freight Forwarders (NAGAFF), Tanko Ibrahim, has alleged that officers of the Nigeria Customs Service (NCS) were conniving with freight forwarders and vehicle importers to shortchange Federal Government of needed revenue through the manipulation of the Pre-Arrival Assessment Report (PAAR).
Tanko, who spoke to journalists, alleged that due to the constant jack-up of PAAR from customs headquarters in Abuja, most freight forwarders have started cutting corners by conniving with valuation and releasing officers to get an ex-factory price as value payable on used vehicles.
He alleged that with the connivance of customs officials, freight forwarders would describe imported batteries or wine as used vehicles because they want to evade duty payment.
In a letter of complaints earlier addressed to the Customs Area Controller of Apapa, dated March 30, 2022, Tanko, lamented that as a result of these sharp practices, compliant freight forwarders are now at the losing end including government, to the tune of millions of Naira in revenue.
“We know you as a man of reputable standards, integrity and clean records in terms of revenue collection. We beseech you, therefore, to use your good office to intervene in this crucial matter. You can request to re-examine every cargo whose value is based on ex-factory price,” he stated in the letter.
In a subsequent chat, Tanko reiterated that the problem freight forwarders are having today is caused by the Comptroller in charge of PAAR at Customs Headquarters in Abuja.
“We are having issues with PAAR, a container carrying bottled water could be given N10 million while another is given N3 million. With this, customs are forcing people to falsify and manipulate.
“You would see agents declaring high duty vehicles as used vehicles, why? Even contraband, they just go to the valuation department and obtain an ex-factory price.
“We that are going through the normal channel of obtaining PAAR are the ones suffering. If you say that the maximum cost, insurance and freight (CIF) value on imported goods should be N3million, let it be so, not that you would give one person N5million, another one N8 million and even N2 million. Immediately it is issued, there is nothing you can do.
“This is why agents are running away from PAAR and collecting ex-factory prices, but we cannot run away from PAAR because nothing can make us cut corners,” he lamented.