Emma Ujah, Abuja Bureau Chief 

The Nigeria Customs Service (NCS), this afternoon, launched the Advance Ruling System (ARS) in its drive to decongest the nation’s ports.

The ARS is a critical mechanism that allows importers to obtain binding decisions from customs administrations on the classification, origin, and valuation of goods before importation. 

Speaking at the launch and stakeholders engagement, in Abuja, the Comptroller-General (C-G) of Customs, Mr. Adewale Adeniyi, described the initiative a significant achievement in MCS’ efforts to enhance trade facilitation and create a more transparent and predictable business environment for importers. 

According to him, “This tool is essential for promoting trade facilitation, reducing compliance costs, and fostering a conducive business environment. 

“Recognizing the importance of Advanced Ruling, both the World Customs Organization (WCO) and the World Trade Organization (WTO) have  emphasized its significance in facilitating international trade and promoting customs compliance.

 “According to the WCO and the WTO, Advanced Ruling enhances predictability and transparency in customs procedures, streamlining trade processes and minimizing delays, uncertainties, and costs associated with customs clearance.”

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The C-G noted that the path toward implementing Advanced Ruling in Nigeria has been fraught with challenges and setbacks, adding that Previous attempts to introduce the mechanism were unsuccessful, despite its recognized importance. 

“However, in 2020, we initiated a scoping mission to review our processes and align them with global best practices. This comprehensive review yielded valuable recommendations that have informed our efforts to relaunch the Advanced Ruling today.

“The launch of Advanced Ruling at this time aligns with the policy directive of the Bola Ahmed Tinubu administration to facilitate trade for legitimate traders. 

“This is reflected in the Policy Advisory Document of the government, which highlights recent achievements, such as the approval to decongest the ports and make them free and accessible for importers and operators. 

“Additionally, the recent inauguration of the Single Window steering committee by the President underscores high-level commitment to enhancing trade facilitation in Nigeria,” Mr. Adeniyi said.

According to him, “the implementation of Advance Ruling is timely, given the significant number of disputes the Service has had to handle between 2020 and 2023. 

“Out of the 34 disputes encountered, 31 have been resolved, while 3 cases remain pending. Additionally, despite the absence of a structured mechanism, a total of 296 requests for Tariff opinions were received, with 266 processed and 30 pending.

“It is crucial to note that the absence of this mechanism has implications beyond Trade Facilitation, as it also impacts our revenue.”

The NCS boss said that his team was conscious of the aware  of N 5.07 trillion revenue target given to the Organization in the fiscal year 2024 and would take every step necessary to realise the target.

He said, “In the coming weeks, we will conduct workshops and sensitization sessions at Customs Area Commands to ensure that all stakeholders are well-informed and prepared to utilize this new mechanism effectively.”

He thanked the German International Cooperation Agency (GIZ) for partnering with NCS for facilitating the ARS activities under the Nigeria Energy Support Programme.

Mr. Adeniyi said,  “We are committed to leveraging our internal capacity while exploring collaboration opportunities with external partners like GIZ. Together, we can  ensure the successful implementation of Advanced Ruling and contribute to the growth and prosperity of our nation.

“As part of the kick-off of Advanced Ruling, I have given approval for the development of a handbook to provide guidance to traders and customs officers. 

“This handbook will serve as a valuable resource, ensuring consistency and transparency in our rulings.”