Customs Agents: E-invoicing Contravenes Customs Excise Act, Will Hinder Trade Facilitation

Stories by Eromosele Abiodun
Licensed customs agents in the country have alleged that the Central Bank of Nigeria (CBN) guidelines on electronic invoicing (e-invoicing) and evaluator for exporters and importers contravened the law of Customs and Excise Management (Amendment) Act (CEMA) 20 of 2003 on valuation of goods and Customs and Excise Management Act C 45 of 2004 for the procedure of import regulation and export.

The agents in their petition to President Muhammadu Buhari said the valuation of goods in Nigerian is prescribed under the Customs and Excise Management (admendment) Act 20 0f 2003, which gave the power of treatment, process, procedures and determination of valuation of goods under the Act, based on Transaction value method, with six sequential application.

The National President of the National Council of Managing Director of Licensed Customs Agents (NCMDLCA), the umbrella body of customs agents in the country, Mr Lucky Amiwero said the power to give guidelines on import and export is domiciled with the Minister of Finance as prescribed in Section 36 and 57 of the Customs and Excise Management ACT C 45 of 2004.

The CBN had last month released guidelines for the newly introduced electronic invoicing (e-invoicing) and evaluator for exporters and importers. The Apex bank said the process would take immediate effect from February 1, 2022.

According to a circular signed by the Director, Trade and Exchange Department, Dr. O. S. Nnaji, the new regulation was aimed at determining the accurate value for goods leaving the country or otherwise.
Amiwero emphasised that there is no such thing as benchmark or global pricing verification in the world.

“The application of benchmark to importation or exportation contravenes the Customs and Excise Management (Amendment) Act 20 of 2003 operated under the General Agreement on Tariffs and Trade (GATT) valuation agreement Articles IIV of world trade organization (WTO).

“Benchmark is not acceptable. Its treatment is under the Brussel Definition of Value (BDV) which is outlawed globally and Nigerian based on global application of GATT valuation Agreement domesticated under Customs and Excise Management (Amendment) Act 20 of 2003, is the legal and proper application for the valuation of goods.

“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, which is not in line with import and export procedures in Nigeria,” he maintained.

He warned that, if the implementation of the CBN guideline is allowed, it would bring about duplication, lengthy and cumbersome procedures in the nation’s import and export system, especially for those who are not experts on valuation, import and export procedures.

He said the determination of valuation of imported goods, is as contained in the hierarchical principle of application on treatment of valuation of Imported goods, based on the domestication of the agreement with world Trade Organization (WTO).