By Lucky Amiwero
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
