The Nigeria Customs Service (NCS) has taken a decisive step towards effective and inclusive implementation of the AEO Programme by piloting the programme with seven economic operators from different industries and of different sizes, i.e. Importers, Exporters, Freight Forwarders and Customs Brokers. This milestone was reached through an AEO Validation Training for the Nigeria Customs Service (NCS) from 26 to 30 August 2024 in Lagos, Nigeria. The WCO's Accelerate Trade Facilitation Programme, funded by the United Kingdom, organized the training in partnership with the World Bank Group (WBG).
Facilitated by WCO experts from the Customs Administrations of Brazil and Uganda, the training allowed members of the NCS AEO Working Group to undertake practical AEO validation to support the AEO pilot project that commenced in April 2024. This inclusive approach is seen as a positive step to ensure maximum participation in the AEO Programme, thereby promoting security in the international supply chain and reducing risks of non-compliance.
The week-long training focused on developing skills that will enable the AEO validators and the pilot companies to identify potential security-related risks within the international supply chain, thereby producing mitigating factors against such risks and improving compliance with Customs requirements. This was to demonstrate the paradigm shift required to create a horizontal relationship between Customs and Business to bolster a compliance culture per the strategic objectives of the NCS. The NCS AEO Working Group will utilize the skills obtained to design sub-standards of the AEO Criteria as guided by the WCO’s SAFE Framework of Standards.
The selected AEO pilot companies displayed their commitment to the AEO Customs and Business Partnership and indicated that the trade facilitation benefits will positively impact Nigeria’s economy. During the opening meeting of the validation in one of the participating companies, During the validation of one of the companies, the respective CEO stated: “Due to the existing delays, I have to source funds to procure additional inventory as a buffer against the disruptions and delays that may occur at the clearance process. However, the AEO Programme will alleviate these delays and reduce trade costs, and thus, more taxes will be paid to the fiscus due to the higher profit margins. This will be a win-win for all.” Looking ahead, NCS has committed to establishing an AEO Consultative Working Group to ensure a co-creation platform with the Private Sector as part of its journey to implement an impactful AEO Programme in Nigeria. The scope of the pilot includes testing both the criteria and the benefits of the programme, which will result in the publication of legal regulations in the run-up to the launch of the AEO Programme.
The Customs Area Controller of Tincan Island Port, Mr. Dera Nnadi, indicated that NCS would utilise tools such as the Time Release Study to measure clearance times for AEOs in order to influence long-term strategic direction towards an AEO Programme that is recognised by Other Government Agencies through the National Trade Facilitation Committee of Nigeria.
The WCO Accelerate Trade Facilitation Programme looks forward to continuing its partnership with NCS to promote sustainable trade facilitation reforms and inclusive economic prosperity.
For more information on the Accelerate Trade Facilitation Programme, please see here.
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