OPINION: CBN Price Verification System Contravenes The Law 

We hereby bring to the attention of the Federal Government of Nigeria,   of the Central Bank circular TED/FEM/PUB/FPC/001/008 OF 17 OF AUGUST 2023 GO-LIVE OF THE CENTRAL BANK OF NIGERIA VERIFICATION SYEMTEM PORTAL, PVS,  contravenes the following laws of valuation of imported goods:

CUSTOMS AND EXCISE MANAGEMENT(AMENDMENT) ACT 20 OF 2003/ ON VALUATION OF GOODS

NIGERIA SERVICE ACT 2023

VALUATION OF IMPORTED GOODS

The valuation of goods in Nigerian is prescribed under the Customs and Excise Management (amendment) Act 20 0f 2003, Nigeria Customs Service Act  35 of 2023 which gave the power of treatment, process, procedures and determination of valuation of  imported goods under the Act, based on Transaction  value method, with  six sequential application of 16 paragraphs: which states as follows:

Transaction value of good general ( paragraph 1)

Transaction value of identical goods (paragraph 2)

Transaction value of Similar goods (paragraph 3)

Deductive/ Sale value of goods (paragraph 4)

Computed value of goods    (paragraph 5)

Reasonable means/ Fall back Method of Value (Paragraph 6)

The determination of  valuation of imported goods,  as contained in the hierarchical  principle  of application on treatment of valuation of Imported goods, based on  the domestication of the agreement on  world Trade Organization (WTO) under GATT Articles  IIV as an Act under  Section 12 of  Nigerian constitution as  Customs and Excise Management (amendment) Act 20 of 2003/ Nigeria Customs Service Act 35of 2023.

The act is  the only legal instrument for the Treatment, Procedure and Application of imported good in Nigeria, no other law or agency have the power to introduce strange principle not backed by any law.

This law provides the primary basis for determination of the valuation of good which is based on transaction value,  for price actually paid and payable, which is the global  application for treatment of valuation of  imported goods

Copy of the Customs and Excise Management (amendment) act is attached and marked appendix 1

The requirement   FOR PRICE VERIFICATION  on  Form’M from Central Bank, contravenes    the Customs and Excise Management(Amendment) Act 20 and the Nigeria Customs Service Act  35 of 2023    on the valuation of goods on Import  ,there   is no provision in the   Central Bank of Nigeria Act 7  of 2007 that gave the power   of verification of price on Import or Export or commodities , Central Bank  main function is on Monetary policy with regards to  specifically exchange rate and other matters.

Such additional requirement of Price Verification by Central bank of Nigeria on imported goods ,will duplicates the function  of Nigeria  Customs Service (NCS) , create bottleneck  and conflict in the determination of value, which is clearly spelt out in valuation of Imported Goods that is backed by the enabling law of Valuation of imported goods

Copy of the Central Bank Circular is attached and marked appendix 2

THERE IS NO SUCH THING AS PRICE VERIFICATION REPORT GENERATED FROM PORTAL

The application  of verification of Price generated from portal , contravenes, the Customs and Excise Management(Amendment) Act 20 of 2003, operated under GATT valuation Agreement Articles IIV of world trade organization, WTO,  benchmark is not acceptable, its treatment is under the Brussel definition of value, BDV, that is outlawed globally and  Nigerian based on global application of GATT valuation Agreement domesticated the Customs and Excise Management(Amendment) Act 20 of 2003, is the only legal and proper application for the valuation of goods in the Country.

As member of Central Bank committee on Destination inspection in 1999, presidential committee on Destination Inspection in 2006,  Member Presidential Task Force for the Reform of Nigeria Customs Service, member Committee on Import Clearance Procedures and implementation of Fiscal policy Measures 2013, we request that the law should be obeyed by withdrawing the circular, that is not backed by any law, which is not inline with Import and export procedures in Nigerian

Copies of the appointment by Federal Government to various committee is attached and marked appendix4.

While we noticed that such implementation  if  allowed, will bring about duplication, lengthy and cumbersome procedures, in our import and export system, especially  to those who are not experts on valuation  , import and export procedures ,

we await an urgent reply to redress the situation in the economy.

Amiwero, a Customs Agent and former member Presidential Committee On Destination Inspection writes from Lagos