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NCS to enforce fiscal measure to achieve net-zero emissions

In line with the global best practice, Nigeria Customs Service (NCS) is set to enforce fiscal measures that would promote a shift away from fossil fuel dependency in order for Nigeria to achieve net-zero emissions by 2060.

Also, the service noted that it would continue to champion President Bola Ahmed Tinubu policies that foster investment, ensure sustainability and promote responsible industrial practices, as outlined in Nigeria’s Energy Transition Plan (ETP).

As a signatory to the Paris Agreement, the Customs Comptroller  General, Adewale Adeniyi explained on Monday in Lagos at the NCS’ Trade Facilitation Consultative Forum with the theme: “Trade Facilitation Measures for Renewable Energy  and Energy Efficiency Technology that Nigeria was committed to transitioning towards cleaner and more efficient energy systems, noting that NCS plays a pivotal role in supporting these national goals by facilitating the importation of renewable energy technologies.

The comptroller general stressed that the key pillar of the Paris Agreement (PA) was the promotion of a sustainable, low-carbon future, driven by investment in renewable energy and energy-efficient technologies.

He explained NCS proudly supported the WCO Green Customs Initiative, which aims to facilitate the trade of environmentally sustainable goods, saying that Green Customs Initiative responds to the growing number of legally binding Multilateral Environmental Agreements (MEAs) and recognises the critical role customs play in enforcing them.

However, Adeniyi said that the challenges of commercial fraud, revenue leakage and the enforcement of policy measures to protect domestic industries, environment as well as public safety were complicating customs procedures.

Adeniyi, who was represented at the forum by Deputy Comptroller General, Tariff and Trade, Caroline Niagwan explained that with the increasing volume of global trade, expanding global value chains and the rise of e-commerce and Just-In-Time services,  it had become imperative for Customs administrations to adopt mechanisms that support the seamless flow of legitimate trade.

Such mechanisms, he added, were  essential not only for sustaining international commerce but also for empowering small and medium-sized enterprises (SMEs) to benefit from cross-border trade.

He said: “In recent times, trade facilitation has become integral to the operations of customs administrations globally, aligning with our core mandate of implementing international trade laws. These include the WTO Agreement on the Implementation of Article VII of GATT 1994 (Customs Valuation Agreement), the WCO Harmonised System Convention of 1988 and its Annexes, and the WTO Agreement on Rules of Origin.

“The implementation of these agreements by Customs stems from our traditional role of collecting duties on internationally traded goods, which is essential for national economic development.

“However, determining customs duties through tariff classification, valuation, and origin assessment is a technically complex process. These complexities can result in disputes, delays, and additional costs.

“In the context of customs operations, trade facilitation refers to systems and procedures that streamline the import, export, and transit of goods. This includes simplifying customs valuation, tariff classification, and origin determination, as well as facilitating declaration submission, payment, review, intervention, and release processes. For traders, trade facilitation ensures uniform standards, predictability and transparency critical for efficient and timely clearance.”

According to him,  the enactment of the Nigeria Customs Service Act 2023, which provides a legal framework for trade facilitation in line with international standards had made NCS to  introduce several initiatives aimed at simplifying customs processes, saying notable among these were the Border Odogwu (B’Odogwu),  a Unified Customs Management System (UCMS) that integrates cargo declaration, payments, risk management, document verification, and cargo release into one seamless platform.

He explained that the Advance Ruling System (ARS) launched in early 2024 provides binding pre-arrival decisions on classification and valuation.

Adeniyi said that  by shifting decision-making to the pre-arrival stage, the system ensures greater predictability and reduces disputes and clearance delays.

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