The Lagos Chamber of Commerce and Industry (LCCI) has accused the Nigeria Customs Service of imposing arbitrary duties and taxes on their members.
The group, therefore, called for an independent arbiter in resolution of disputes arising from classification and valuation of imported goods and duties payable on them.
The Director-General of Chamber, Mr Muda Yusuf, who made the position of the organized private sector (OPS) group known during a media chat in Lagos, also canvassed comprehensive review of import duty and customs administration as part of the ongoing tax reform towards enhancing ease of doing business.
According to him, the import duty on many inputs for production and investments is high, making investment difficult across a broad spectrum of the nation’s economy.
The economic analyst noted that high import duty had consistently led to the escalation of smuggling activities and loss of customs revenue, leading to loss of thousands of maritime sector jobs to Nigeria’s neighbouring countries.
He expatiated further: “The outrageous import duty on vehicles is a major factor responsible for the current high transportation costs in the country, and this adversely impacts all sectors and it is a major driver of inflation.”
Similarly, the OPS’ leader pointed out that issues around valuation and classification of goods by the customs had become a major concern for investors in the economy, adding that “the administration of tariff at the various ports and border posts leaves much to be desired.
“There is a great deal of arbitrariness as the customs strives to meet revenue target, which is the principal performance indicator for the agency. It is thus necessary to incorporate import duty and Customs administration reforms into the ongoing tax review process”, the LCCI boss canvassed.
This is even as he pointed out that dispute resolution system on import duty and valuations should reflect the principles of fairness in all ramifications, alleging that “the situation now is that the Customs is the accuser and the judge; which is not in consonance with the basic principles of justice delivery.
“The customs should not be a judge in a case where there is dispute between the customs and an importer”, Yusuf stressed.
