Introduction

On 31st May 2023, the Nigerian Customs Service (NCS) unveiled an online-based trade facilitation tool known as Fast Track 2.0 (FT 2.0), marking a transition from the existing Fast Track Scheme which was implemented by the Service in 2013. The new platform is reported to have been developed by the NCS in collaboration with the World Bank under the Accelerating Revenue Mobilisation Reforms Program (ARMOR). The aim of the program is to streamline trade processes by simplifying the process of cargo clearance for compliant importers. This brings Nigeria closer to implementing an Authorized Economic Operator (AEO) Program in line with global standard practices. Implementation of an AEO Program is strongly recommended for Customs Administrations under international instruments such as the International Convention on the Simplification and Harmonization of Customs Procedures, 2008 (as amended) (Revised Kyoto Convention), the World Trade Organisation (WTO) Agreement on Trade Facilitation (TFA) as well as the World Customs Organization (WCO) Safe Framework of Standards.

This article aims to provide an overview of the NCS Fast Track 2.0 initiative and its potential benefits to importers.

Distinguishing Features of Fast Track 2.0

Unlike its predecessor scheme which was open to only a few participants, FT 2.0 is expanded to accommodate all importers, subject to compliance and fulfillment of eligibility requirements as prescribed by the NCS. As an online-based platform, FT 2.0 offers a transparent and auditable mechanism for trade facilitation which is centered on a risk-based evaluation, reduced physical inspection and enhanced compliance. The overall objective is to improve the ease of doing business and to create a rewarding environment for compliant traders.

Benefits of the Program

Based on the information available on FT 2.0 portal , the new initiative by the NCS will offer the following benefits:
1. Reduced Customs Inspection and Faster Clearance

Under FT 2.0, enlisted firms will enjoy reduced inspection of their cargo resulting in faster clearance of goods, timely collection of duties, and better risk management.

2. Advanced Rulings on Harmonised Systems Code (HS Code) and Applicable Duties

HS Code is a standardized numerical method of classifying traded products. It is used by customs authorities to identify products when assessing duties and taxes. The FT 2.0 program will enable importers to obtain advanced ruling on the applicable HS Codes and duties payable on their goods from the Tariff and Trade Division (T&T) of the NCS. As a result, traders will be aware of the fees they will have to pay and the rules they will be subject to, allowing them to make informed business decisions.

3. Prepayment of Duties:

FT 2.0 will support prepayment of duties, VAT and other levies on imported goods as against payment on arrival. This will speed up the customs clearance process and help to reduce cargo dwell time and demurrage cost.

4. Dedicated Pre-arrival Assessment Report (PAAR) Desk

In addition to other benefits, FT 2.0 will provide enlisted firms with a dedicated desk for PAAR processing, issuance and resolution of disputes arising therefrom. The PAAR report is a mandatory requirement for goods imported into Nigeria. It is used for duty assessment and indicates conformity of the imported goods with set criteria and import guidelines issued by the NCS.

5. Special Risk Lane for Clearing of Goods with Minimal Customs Intervention

The NCS’ risk management system has four (4) possible risk outcomes widely categorized as Green, Blue, Yellow and Red. The Green Lane signifies that the consignment is cleared and released from customs control. Thus, an importer only needs to approach the terminal operator to claim the shipment. FT 2.0 will provide importers with a clear Green channel known as the special FT2.0 channel through which importers will be able to clear their goods with minimal or no customs intervention from port to the warehouse.

Requirements for Enrollment in FT 2.0 Program

As noted above, FT 2.0 Program is open to all importers, subject to the fulfillment of certain conditions precedent, one of which is that the enlisting firm must have a good record of compliance with the NCS guidelines. A detailed list of requirements for admission into the program is still being worked out by the NCS. Nevertheless, importers who are interested in taking advantage of the program can access the program portal here to sign up.

Remarks and Conclusion

According to WCO, trade facilitation is one of the key factors for economic development of nations. The introduction of FT 2.0 by NCS is a laudable initiative that will promote Nigeria’s economic competitiveness by ensuring efficiency and effectiveness in customs clearance procedures for compliant traders. Eligible importers would likely benefit from taking advantage of the program.

1. An AEO program serves to enhance international supply chain security and facilitate legitimate trade by providing fast track procedures for authorized persons with good compliance records. Countries which have successfully implemented an AEO Program can establish Mutual Recognition Arrangements/Agreements (MRA) with partner countries to provide additional benefits to their members through international recognition of their AEO programs.
2. FT 2.0 Portal
3. Harmonized system codes
4. ibid
5. Nigeria custom service
6. What is Paar-How to Process Paar in Nigeria
7. Enhanced Customs Clearance Procedures
8. Customs Procedures and Facilitations