Concession over the e-valuation and e-invoice policy for import and export came to a dead end on Thursday, 3rd March when the Nigeria Customs Services pointed out its reservation over the Central Bank of Nigeria (CBN) initiative.
The Apex Bank and Customs Services, as well as other stakeholders, had appeared before the House of Representatives Committees on Customs and Excise as well as Banking and Currency to address disparities arising from the introduction of the new system by the CBN.
The CBN noted that this policy is important to curb leakages and enable the government to recover more funds. However, the Customs reported that it was in violation of the law as the policy did not follow due process and would restrict trade and trading activities.
Stakeholders like the Manufacturers Association of Nigeria (MAN) stated that the policy by CBN was too hasty and was done without inputs from relevant stakeholders.
Investors King recalled that the apex bank had issued a circular that addresses a new system to kick off on February 1, 2022. However, the House had on January 27, 2022, placed it on hold as it directed the CBN to adopt a 90-day timeline for the implementation of fiscal measures to avoid destabilising effects on the economy.
According to the CBN, the prices of goods in trade transactions are sometimes manipulated by some stakeholders wishing to launder proceeds through the current financial system. The CBN has proposed that a simple way to identify such activities is by banks implementing a price check on all trade transactions, hence the need for the e-valuation and e-invoice policy.
However, while this sounds like a progressive idea from the CBN, the new policy may be in violation of the World Organization Trade Facilitation Agreement of which Nigeria is a signatory.
According to Assistant Controller General of Customs, Galadima Saidu, “Nigeria is a signatory to the WTO trade facilitation agreement. The agreements are legally binding with punitive measures that would adversely affect the Nigerian economy. The introduction of the CBN initiative is against Article 7 of the General Agreement on tariff and trade 1994 and Article 1, 2 and 6 of the WTO TFA. The agreement aims for a fair, uniform and neutral system for valuation of goods for Customs purpose and it conforms to commercial realities and which outlaws the use of arbitrary or fictitious customs values. The use of bench-marking in valuation would negate the aim of our agreement on Customs valuation and would result in delays and uncertainties. The use of benchmarking in valuation was abolished due to the dynamic nature of pricing, especially in this current time when technology is rapidly evolving,”
The House of Representative Committees has also directed the CBN and Customs to harmonize their differences on the new policy and report back on March 17, 2022, for further action.
