“It Brings Trouble": Clearing Agents Write Open Letter to Tinubu Over New CBN's Policy, Rejects It
- Clearing agents have called on President Bola Tinubu to intervene regarding a newly introduced CBN policy
- The policy called the Price Verification System, the clearing agents argue is negatively impact their operations
- CBN kicked off the Price Verification System on August 31, 2023, with the aim of checkmating dollar inflow, and outflows through importers
PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed!
The National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) has called upon President Bola Tinubu to intervene and halt the Price Verification System (PVS) recently introduced by the Central Bank of Nigeria (CBN).
According to them, the new policy goes against trade facilitation and the Ease of Doing Business (EoDB
Source: Facebook
The clearing agents made their feelings known in a letter addressed to President Bola Tinubu, the Secretary to the Government of the Federation, George Akume; and the CBN acting governor, Folashodun Shonubi, among others, Leadership reports.
The letter signed by Lucky Amiwero the President of NCMDLCA, stressed that that the PVS not only contravened the Nigeria Customs Service Act 2023, on the valuation of import but would bring about duplicated, lengthy, and cumbersome procedures in the nation’s import-export procedures.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
The letter reads:
“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"
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 price verification 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 duplicate the function of the Nigeria Customs Service (NCS), brings trouble, bottleneck and conflict in the determination of value, which is spelled out in valuation of imported goods that is backed by the enabling law of valuation of imported goods."
The union therefore urged CBN to withdraw the PVS, while arguing that the new PVC is not backed by law.
“The application of verification of price generated from the portal contravenes the GATT valuation Agreement Articles IIV of the World Trade Organisation (WTO).
"Also, the benchmark is not acceptable, its treatment is under the Brussel Definition of Value (BDV) that is outlawed globally and Nigerian based on the global application of GATT valuation Agreement domesticated by 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.”
CBN faces another headache as Nigeria’s foreign reserves fall to 2-year low
Meanwhile, in another report, Legit.ng revealed that Nigeria's foreign reserve has hit a two-year low.
The data obtained from the CBN showed that Nigeria's reserves at $33 billion were the lowest since 2017.
The foreign reserves are a key firepower for the CBN in its fight to ensure the naira stays strong against other currencies at the foreign exchange market.
Source: Legit.ng
