NCS: Enhancing Trade Facilitation with AEO Programme

EROMOSELE ABIODUN posits that the move by the Comptroller-General of the Nigeria Customs Service, Mr. Adewale Adeniyi, for the deployment of Authorised Economic Operators will enhance the efficiency and predictability of trade facilitation efforts, which will in turn foster a vibrant economy for the country

Globally, the role of the Authorised Economic Operator (AEO) as a secure and safe business partner in trade facilitation cannot be over-emphasized. To ensure that cargoes are released seamlessly based on the level of trust built from one level to another demands unambiguous procedures and professionalism. Among others, they help to improve relations with the Customs and other government authorities; reduce theft and losses; ensure minimal delay in shipments; improve planning, customer service and loyalty; lower inspection costs of suppliers; and enhance co-operation among collaborating bodies and agencies, etc.

In addition, AEO Programs create customs-to-business partnerships aimed at securing the supply chain and facilitating legitimate low-risk trade.

According to experts, the AEO certification process allows governments to evaluate and then control customs and security processes by allowing them to assess risk points, improvements and opportunities to secure and optimise your customs function.

In the performance of its functions, the Authorized Economic Operator shall ensure global best practice by referring all players in the maritime and transport value chain to guidelines and pacts for promoting trade.

Essentially, the AEO status is an internationally recognised standard indicating that the business role in the international supply chain is secure and has customs control procedures that meet Authorised Economic Operator standards and criteria.

It is in recognition of this that the Nigeria Customs Service (NCS), under the leadership of Mr. Adewale Adeniyi, is pushing to the operationalise AEO concept to ease business at the country’s ports.

Ease of Doing Business

Speaking at a recent stakeholders’ engagement to promote the concept, Adeniyi said the programme would foster collaboration involving the Service, other government agencies, and experts.

The CGC underscored the determination needed to work together and ensure that the negative narrative about the ease of doing business in and around Nigerian ports was reversed for the better.

According to him, “And if you have observed, you will also see that AEO cuts across virtually every player in the sector, the exporter, the importer, the government agencies, regulatory agency, the customs, and everybody in one way or the other.

“This allows us to address some of those issues so that when next operators talk about compiling how much it takes them, we will see data that are a little bit more friendly.”

Time Release Study

According to him, the NCS in February 2024 launched a Time Release Study (TRS) as another measure to optimise the trading experience within the country.

Adeniyi further assured the stakeholders of the customs’ preparedness to run the AEO pilot programme, which would hopefully start on April 15, 2024.

He also explained that the objectives of the pilot were to evaluate the visibility and effectiveness of implementing the AEO initiative within the Service and to solicit feedback from all key stakeholders in orer to decipher where changes are required.

Specifically, he stated, “All these pilots that we want to run, we aim to identify potential challenges, fine-tune our processes, and lay the groundwork for a full-scale rollout of the AEO programme.”

The CGC expressed optimism that the service will be committed to fostering transparency, inclusivity and collaboration, while ensuring that the program’s designs and execution align seamlessly with international standards.

“Why we want to do this is that we want to remain attuned to the unique realities of our local context. Seven key stakeholders that are legal entities whose operations span across the international supply chain have been carefully selected by the pilot programmes.”

He further expressed his readiness to partner with business stakeholders to enhance trade in the country, urging participants to expedite their commitment to ensuring the potential of the programme, which would foster a culture of efficient customs processes compliance, integrity, and collaboration that will propel the country.

He said, “This is a collective and transformative journey we must come together with renewed determination. Knowing that together we can shape a future that knows no boundaries, and prosperity with no limits.”

The CGC underscored the determination needed to work together and ensure that the narrative is changed about the ease of doing business in and around Nigerian ports.

“And if you have observed, you will also see that AEO cuts across virtually every player in the sector, the exporter, the importer, the government agencies, regulatory agency, the customs and everybody in one way or the other. So this allows us to address some of those issues. So that when next operators talk about compiling how much it takes them, we will see data that are a little bit more friendly,” he said.

AEO Pilot Programme

Adeniyi expressed optimism that the Service will be committed to fostering transparency, inclusivity and collaboration while ensuring that the program’s designs and execution align seamlessly with international standards.

He said, “Why we do this is we want to remain attuned to the unique realities of our local context. Seven key stakeholders that are legal entities whose operations span across the international supply chain have been carefully selected by the pilot programs.”

He revealed that selected Importers, Exporters, Small and Medium Enterprises, Customs Licenced Agents, Logistics Operators, and Government Agencies are pilot stakeholders to run the pilot scheme of the AEO program in Nigeria.

He also urged the participants to expedite their commitment to ensuring the potential of the AEO program, which would foster a culture of efficient customs processes compliance, integrity, and collaboration that will propel Nigeria.

Also speaking, Chief Superintendent of Custom and Project Manager of the Authorised Economy Operator, Awa Nnenna, said the pilot phase of the program is designed to streamline Customs clearance processes while ensuring transparency and inclusivity in line with international standards.

Awa noted that the key benefits of the AEO program include expedited Customs clearance procedures and the establishment of mutual trust between Customs authorities and accredited operators.

He added, “By facilitating smoother trade operations, the programme aims to stimulate economic growth.”

On his part, Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Charles Odii, commended the Nigeria Customs Service for its proactive approach to engaging small-scale business owners through the Authorised Economic Operator program.

Odii, while reiterating his commitment towards supporting the AEO programme, said the initiative will contribute to the growth of Nigeria’s GDP and foreign exchange reserves.

He emphasised the importance of creating avenues for domestic business owners, particularly SMEs, to participate and benefit from such initiatives.

He stated, “I believe that this program will enable SMEs to enhance their investments and leverage the opportunities presented by the AEO window.”

He added that the program will not only streamline trade processes but also change the narrative surrounding trade in the country, ultimately fostering a more conducive environment for business growth and development.

“As we are launching this scheme, I am looking forward to the many more testimonials within the next six months. What we want to do is get all the testimonials to help ease the operations at the port and see how these will trickle down to job creation and just helping to increase livelihoods of small business owners in Nigeria,” he added.

In the same vein, the CEO of the Nigeria Shippers Council (NSC), Mr Pius Akutah, commended the NCS for the initiative and reiterated the Council’s commitment towards supporting and ensuring the success of the AEO programme.

Partnership with Joint Tax Board

Meanwhile, to strengthen and enrich strategic collaboration towards fostering a vibrant economy for the country, the Nigeria Customs Service and Joint Task Board, recently signed a memorandum of understanding (MOU) in Abuja.

The MOU was signed on Monday, 18 March 2024, during a courtesy visit by the Secretary of the Joint Tax Board, Olusegun Adesokan, to the Nigeria Customs Service, aiming to foster collaboration and enhance effective tax management in Nigeria.

The CGC emphasised the collective efforts invested in finalising the MOU.

Apart from fostering a vibrant economy for the country, it aims to lay a foundation for future endeavours and integrate fiscal policies to enhance data facilitation.

The Executive Secretary of the Joint Tax Board, Olusegun Adesokan, extended his deepest appreciation to the Comptroller-General of Customs and the service.

He noted, “As a result of this, the meeting on the 16th of January has indeed reached a milestone. I commend the team for their foresight that led to the successful signing of the MOU.”

QUOTES

“And if you have observed, you will also see that AEO cuts across virtually every player in the sector, the exporter, the importer, the government agencies, regulatory agency, the customs and everybody in one way or the other. So, this allows us to address some of those issues. So that when next operators talk about compiling how much it takes them, we will see data that are a little bit more friendly.”