Clearing agents, who operate in the seaports of Nigeria, have expressed their opposition to the implementation of the Central Bank of Nigeria’s (CBN) Price Verification System (PVS), stating that it hinders trade facilitation and the Ease of Doing Business (EoDB).
In a letter addressed to President Bola Tinubu, the Secretary to the Government of the Federation, George Akume, the Acting Governor of the CBN, Folashodun Shonubi, and others, and a copy of which was obtained by LEADERSHIP, the President of the National Council of Managing Director of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, expressed the view that the PVS violates the Nigeria Customs Service Act 2023 with regard to import valuation and would result in redundant, lengthy, and burdensome procedures for imports and exports in the country.
Amiwero further stated that the clearing agents have requested the withdrawal of the PVS, as the circular is not supported by any law and its impact on trade facilitation is concerning.
“We hereby draw the attention of the Federal Government of Nigeria to the Central Bank circular TED/FEM/PUB/FPC/001/008 OF 17th AUGUST 2023 GO-LIVE, which establishes the Central Bank of Nigeria (CBN) Verification System Portal (PVS). This circular contravenes the laws governing the valuation of imported goods. Valuation of goods in Nigeria is determined by the Customs and Excise Management (Amendment) Act of 2003 and the Nigeria Customs Service Act of 2023. These laws grant the power to treat, process, and determine the valuation of imported goods based on the Transaction and Value Method,” Amiwero stated.
He continued, “The requirement for price verification on Form ’M’ from the CBN violates the Customs and Excise Management (Amendment) Act. The CBN Act of 2007 does not have any provision empowering the verification of price for imports, exports, or commodities.
“The primary function of the CBN is monetary policy in relation to exchange rates and other matters. The additional requirement of price verification for imported goods duplicates the functions of the Nigeria Customs Service (NCS), leading to bottlenecks and conflicts in the determination of value, which is clearly specified in the valuation of imported goods backed by the appropriate legislation,” he added.
Amiwero argued that if not reversed, the CBN’s intervention would result in redundant, lengthy, and burdensome procedures for imports and exports in the country.
“We have observed that if this implementation is allowed, it will result in redundant, lengthy, and burdensome procedures in our import and export systems, especially for those who are not experts in valuation, import, and export procedures.
“The application of price verification generated from the portal violates the GATT Valuation Agreement Articles IIV of the World Trade Organization (WTO). Moreover, benchmarking is not acceptable as it is governed by the Brussels Definition of Value (BDV), which is globally outlawed. Nigeria, following the global application of the GATT Valuation Agreement, domesticated it through the enactment of the Customs and Excise Management (Amendment) Act of 2003, which is the only legal and proper application for the valuation of goods in the country.”