Customs Brokers Oppose CBN Price Verification System.

Customs Brokers Oppose CBN Price Verification System.

Clearing agents operating in the country’s seaports have opposed the implementation of the Price Verification System (PVS) by the Central Bank of Nigeria (CBN), arguing 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, and the acting governor of the Central Bank of Nigeria (CBN), Folashodun Shonubi, among others,  the president of the National Council of Managing Director of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, stated that the Pre-shipment Verification of Conformity (PVS) not only violates the Nigeria Customs Service Act 2023 regarding import valuation but will also result in duplicated, lengthy, and burdensome procedures in the country’s import and export processes. 

Amiwero, nevertheless, expressed that customs brokers demanded the removal of the PVS as the directive is not supported by any legislation and should be retracted due to its impact on trade facilitation. 

“We, hereby, bring to the attention of the federal government of Nigeria, of the Central Bank circular TED/FEM/PUB/FPC/001/008 OF 17 OF AUGUST 2023 GO-LIVE of the Central Bank of Nigeria (CBN) Verification System Portal (PVS) contravenes the laws of valuation of imported goods. Valuation of goods in Nigeria is prescribed under the Customs and Excise Management (amendment) Act 20 0f 2003, Nigeria Customs Service Act  35 of 2023 which gave the power of treatment, process, procedures and determination of valuation of  imported goods under the Act, based on Transaction  and value method,” Amiwero stated. 

He also said, “the requirement for price verification on Form ’M’ from the CBN contravenes the Customs and Excise Management (Amendment) Act. On the valuation of goods on Import, there is no provision in the CBN Act 7  of 2007 that gives the power of verification of price on Import or Export or commodities. 

“CBN’s main function is on Monetary policy with regards to  the exchange rate and other matters. Such additional requirement of Price Verification on imported goods will duplicates the function of the Nigeria Customs Service (NCS), create bottleneck and conflict in the determination of value, which is clearly spelt out in valuation of imported goods that is backed by the enabling law of valuation of imported goods,” he said. 

Amiwero suggested that if the CBN intervention is not reversed, it could lead to replicated, protracted, and burdensome processes in the country’s import and export procedures. 

“We noticed that such implementation, if allowed, will bring about duplication, lengthy and cumbersome procedures, in our import and export system, especially  to those who are not experts on valuation, import and export procedures. 

“The application of verification of price generated from the portal contravenes the GATT valuation Agreement Articles IIV of the World Trade Organisation (WTO). Also, benchmark is not acceptable, its treatment is under the Brussel Definition of Value (BDV) that is outlawed globally and  Nigerian based on global application of GATT valuation Agreement domesticated the Customs and Excise Management(Amendment) Act 20 of 2003, as the only legal and proper application for the valuation of goods in the Country.”