G/VAL/W/322  
 
10 January 2019  
(19-0143) Page: 1/3 
Committee on Customs Valuation  Original: English  
 
NOTIFICATIONS UNDER ARTICLE 22 OF THE  
CUSTOMS VALUATION AG REEMENT  
NIGERIA  
Replies from Nigeria  to Questions from Canada   
contained in document G/VAL/W/ 176 
The following submission, dated 31 December 2018, is being circulated at the request of the 
delegation of Nigeria.  
 
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Canada would like to thank Nigeria for its legislation notification in document G/VAL/N/1/NGA/1 and 
for its responses to checklist questions in document G/VAL/N/2/NGA/1.  We would appreciate further 
clarification i n the following areas:  
1. G/VAL/N/1/NGA/1 – Checklist - Question 2  
The response provided makes reference to Paragraph 8 of Nigeria’s Customs and Excise 
Management (Amendment Act), 2003 as having met the requirements of Article 4 of the 
Customs Valuation Agreem ent which states that "at the request of the importer, the order 
of application of Articles 5 and 6 shall  be reversed."  Paragraphs 8(1), (2) and (3) of the 
First Schedule to the Customs and Excise Management (Amendment Act), 2003 as 
submitted by Nigeria p rovide for a process whereby the Board will consider such a request 
by the buyer of goods but has the authority to deny such a request, and "the decision of 
the Board on the issue shall be final". Without a waiver as provided for in paragraph 3 of 
Annex 3 to the Customs Valuation Agreement this provision is inconsistent with the 
Agreement, is not trade facilitative, is not transparent, and refutes the appeal provisions 
of Article 11.  Will Nigeria be applying for a waiver? If not, how will Nigeria bring the ir 
legislation into conformity with Articles 4 and 11 of the Customs Valuation Agreement?  
Answers : 
The a bove issues are formulated based on the two questions raised above. The two questions will 
therefore be determined based on answers to the  issues, which  relate  to the breach of Articles 4 and 
5 of the CVA by the provisions of Paragraph 8(1), (2) and (3) of Act.   
i. Yes, Paragraph 8 of Nigeria 's CEMA has met the requirement of Article 4 of the CVA which 
states that "at the request of the importer, the order of Articles 5 and 6 shall be reversed ". 
Paragraph 8(2) of CEMA provides as follows; "On receipt of a request in writing from the buyer 
under subparagraph (1) of this paragraph, the Board shall …change the sequential order of 
valuation, and communicate  its decision to the buyer …"    
ii. No, Nigeria does not require a waiver by the application of Paragraph 8(1), (2) and (3) where 
the Board denies a request by the buyer of the goods and "the decision of the Board on the 
issue is final. " The obligation of the Board under such a decision is stated in Article 16 of the 
CVA as follows; "Upon written request, the importer shall have the right to an explanation in 
writing from the customs administration of the country as to how the customs value of the G/VAL/W/322  
 
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  importer 's goods was determined. " Paragraph 8(3) of the Act requires the Board to 
"communicate its decision to the buyer " and Paragraph 8(4) protects the buyer 's right to fair 
hearing and transparency as follows; "Every buyer shall have the right, on a written requ est 
to the Board, to have a written explanation from the Board…as to how the Customs value of 
goods imported by him into Nigeria was determined. " Additionally, Paragraph 12(4) of the Act 
subjects the Board 's decision to writing for transparency to avoid "unfair conduct and 
vexatious proceedings " by Customs against the importer, as follows; "When a final decision is 
made, the Board shall communicate to the buyer in writing its decision and the grounds for 
the decision. "  
iii. No, Paragraph 8(3) does not refu te the appeal provisions of Article 11 as the provision ensures 
fairness, transparency and verifiable information that enables the buyer to challenge the 
Board 's decision through an appeal without penalty, including a judicial process – a neutral 
instituti on as provided in Paragraph 13 of the Act.     
Paragraph 13(1), (2), (3), (4) and (5) of the Act provides for "Appeals " where a buyer or his 
agent is not satisfied with the customs valuation of his imported goods, he may appeal to the 
Customs Area Comptrol ler where the valuation took place. The buyer may also appeal to the 
Comptroller -General of Customs, if necessary, including the right to institute an action in 
court, as follows : 
Paragraph  13(1): "If a buyer or his agent is not satisfied with the customs valuation of 
his imported goods, he may, within 7 days of becoming aware of the valuation, appeals 
to the Customs Area Comptroller in charge of the area where the valuation took place 
stating the re ason for the appeal. " 
Paragraph 13 (3): "Where the buyer or his agent is not satisfied with the decision of the 
Customs Area Comptroller, he may within 14 days of receipt of the decision, appeal to 
the Comptroller -General of Customs. " 
Paragraph 13(5): "If a buyer or his agent is not satisfied with the decision of the 
Comptroller -General, he may, within 14 days of his becoming aware of the decision, 
institute an action in court. " 
Based on the above provisions and analysis, which interpreted the provisions of  the Act and 
the CVA in whole than in isolation, a waiver is not required under Paragraph 8 of the CEMA. 
There is also a conformity of the Nigerian legislation with Articles 4 and 11 of the CVA.  
2. Reference G/VAL/N/2/NGA/1 - Question 8  
Article 10 of the Customs Valuation Agreement requires that "All information which is by 
nature confidential or which is provided on a confidential basis for the purposes of 
customs valuation shall be treated as strictly confidential by the authorities concerned … 
except to  the extent that it may be required to be disclosed in the context of judicial 
proceedings". Nigeria's response to question 8 provides reference to Paragraph 11 of the 
First Schedule of the Customs and Excise Management (Amendment Act), 2003, as 
meeting th is requirement. Paragraph 11(c) provides for disclosure of confidential 
information "to the extent required by the Board in satisfying itself as to the truth or 
accuracy of any statement, document, or declaration presented for customs valuation 
purposes." This allows for the Board to use and disclose information gathered from one 
importer against another. This does not respect the confidentiality requirements as 
stipulated in Article 10 of the Customs Valuation Agreement. Would Nigeria please provide 
furthe r clarification of how they plan to comply with Article 10?  
Answer:  
No, the provision of Paragraph 11(c) of the Act does not violate the requirement as stipulated in 
Article 10 of the CVA because Article 10 does not restrict the rights of customs administr ations to 
seek through lawful, fair and transparent process the truth or accuracy of any declaration presented 
for customs valuation purposes. This position is supported by Article 17 of the CVA.  G/VAL/W/322  
 
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  The provision of Article 17 states that; "Nothing in this ag reement shall be construed as restricting 
or calling into question the rights of customs administrations to satisfy themselves as to the truth 
or accuracy of any statement, document or declaration presented for customs valuation purposes. " 
In effect, Artic le 17 confirms that the customs authorities have the right to "satisfy themselves as 
to the truth or accuracy of any statement, document or declaration " in support of customs action 
under Paragraph 11(c) of CEMA.  
While Nigeria ensures conformity of her le gislation with the provisions of the WTO Agreements, it is 
important for Canada to note that any ambiguity that may be considered present in Paragraph 11(c) 
of the Act is mitigated in the revised legislation titled "Nigeria Customs Service Act, 2013. " 
Section 75(1) of the revised Act, yet to be applicable, under "Appeals on Valuation Dispute: 
Disclosure of Confidential Information " provides verbatim the provision of Article 10 of the CVA. The 
revised legislation is undergoing further debate and consultation s at the National Assembly in Nigeria 
to fulfil the provisions of Article 2 of the Trade Facilitation Agreement on "opportunity to comment, 
information before entry into force, and consultation. " When applicable, the revised provision will 
remove any ambig uity in the current legislation as it provides that; "All information which is by 
nature confidential or which is provided on a confidential basis for the purposes of Customs Valuation 
shall be treated as strictly confidential by the authorities concerned who shall not disclose it without 
the specific permission of the persons or government providing such information, except to the 
extent that it may be disclosed in the context of judicial proceedings. " 
3. G/VAL/N/1/NGA/1 - Notification Paragraphs 2(2)(b) and 3 (2)(b)  
In addressing the transaction value of identical and similar goods in paragraphs 2.(2)(b) 
and 3.(2)(b) the Nigerian legislation requires that where different values are possible the 
highest is to be used. This is contrary to the Customs Va luation Ag reement where 
Article  2.3 and 3.3 require that the lowest value be used. Can Nigeria please advise what 
plans they have to conform with the Customs Valuation Agreement?   
Answer:  
Yes, plans to conform to the relevant articles of the CVA are provided in th e revised Nigeria Customs 
Act 2013. Sections 69(3) of the revised Act provide as follows; "Where more than one transaction 
value of identical goods is found, the lowest of such value shall be used to determine the Customs 
value of the imported goods. " Section 70(3) provides that; "Where more than one transaction value 
of similar goods is found, the lowest of such value shall be used to determine the Custom value of 
the imported goods. " 
As earlier indicated above, the revised legislation is going through the  process required by Article 2 
of the TFA for fairness, transparency and acceptability by the relevant stakeholders that may be 
affected by the new legislation.  
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