By Steve Agbota, [email protected] 08033302331
Last month, precisely January 21, 2022, the Central Bank of Nigeria (CBN) 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.
The apex bank added that the electronic process would replace the hard copy and the invoice authenticated by the authorised dealer banks.
The circular reads in part “Effective February 1, 2022, all import and export operations will require the submission of an electronic invoice authenticated by the authorised dealer banks on the Nigeria single-window portal – Trade Monitoring System.
“This new regulation is primarily aimed at achieving accurate value from import and export items in and out of Nigeria. No importer/exporter may effect payment to the credit of any foreign supplier unless the electronic invoice has been authenticated by authorised dealer banks presented together with the relevant document for payments,” the circular said.
CBN disclosed that a yearly subscription fee of $350 shall be “charged per authentication of suppliers on the system.”
The guideline assured that the system would operate on a global price verification mechanism, which is determined by benchmark price – a spot market price obtainable in the market where the goods are traded during the invoicing.
The circular listed the obligations of both exporters and importers in the new scheme as well as possible sanctions for violating the rules.
Being the major trending issue in the nation’s maritime space, the new guidelines for import and export has sparked fire works among the maritime stakeholders, exporters, importers and manufacturers as they described the policy as anti-people and capable of eroding the past gains in the maritime industry.
Following the pronouncement of the policy, Daily Sun learnt that several petitions have been received by the National Assembly as the guidelines have created controversy.
The development has caaused the National President of the National Council of Managing Director of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, to petition President Muhammadu Buhari, that the CBN guidelines 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.
He argued that 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.
He 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.
For his part, National Coordinator of the Save Nigeria Freight Forwarders Importers Exporters Coalition (SNFFIEC), Chief Osita Chukwu Patrick, kicked against CBN e-invoicing policy, saying that the policy would militate against trade facilitation and delay in cargo clearance from the seaports.
According to him, the Single Windows platform is enough to monitor transaction of trade from the shipping industry, adding that the implementation of the policy would further compound cargo clearance from the ports.
He warned that if the policy is implemented by the CBN, cargo throughput would reduce and goods might be diverted to neighbouring ports in the sub region.
He also accused the CBN Governor, Godwin Emefiele, for the ill-advised policy of e-invoicing, noting that the directive from the apex bank is a mirage.
Osita lamented that the sector revenue generating agencies remit to the Treasury Single Account (TSA), adding that the decision from the Ministry of Finance supercedes what the CBN Governor is clamouring for.He added that if implemented, stakeholders should expect bottleneck and cumbersome cargo clearance process and procedure.
Also commenting, a former National President, National Association of Government Approved Freight Forwarders (NAGAFF), Dr. Eugene Nweke, said that the idea should be jettisoned forthwith as the informal sector viewed the policy as a designed conspiracy against the Nigeria Customs Service (NCS).
According to him, the move was meant to lend credence to the earlier public threat to take over the customs functions by the Federal Ministry of Finance.
He maintained that the policy if allowed to succeed will push monetary policy in conflict with fiscal policy, adding that “the move is a redesigned and reversal order aimed to take Nigeria back to Pre-shipment Inspection ( PSI) regime.
He said, “Conflict of interest is so glaring as same supervisory Minister vetoed the e-customs modernization and consented to the e-evaluator and e-invoicing.
“The move amounts to double handling and taxation both at the port of origin and port of destination. The operational pedigree, performance and capacity of the contractor or consultant is not known by the Nigerian lawmakers and the bidding process for official engagement is not in public knowledge.
“The initiative will increase the cost of importation into the country with its contributory effect to the economic hardship in the land and the worsening inflation weakening the citizens purchasing power.