Business
The Galvanized Iron and Steel Manufacturers Association, GISMA, has raised the alarm that the Federal Government was losing about N1bn revenue weekly as a result of smuggling of substandard steel products into the country.
Speaking during a media briefing, the spokesperson for the association, Abdullateef Bello, said the loss was occasioned by the neglect of pre-inspection of any container coming into the country.
He said it was worrisome to GISMA in Nigeria that smuggled substandard steel products are freely traded in all Nigerian markets.
He added that smuggling was killing the industry and the manufacturers.
According to him, smuggled substandard steel products compete unhealthily with locally produced qualitative steel products in Nigeria.
He stated that GISMA, as a body under the Manufacturers Association of Nigeria, has been battling for some time with what he called the “dismal economic sabotage” which may lead to the collapse of up to 60 per cent of manufacturers in the production of Galvanized Iron and Steel Manufacturing Companies in Nigeria.
He added that it may also result to mass lay-off of more than 50,000 direct employees and crystallization of numerous associated systemic risks in the Nigerian Steel Industry in a country where unemployment is already high.
He pleaded with the Presidency to rescue the Nigerian steel industry from “imminent collapse” as a result of smuggling.
He said, “There is a cartel of economic saboteurs who import huge volumes of containers every week valued at about $5m, which were never captured under the correct HS Code 7210.30.00.00 – 7210.50.00.00 of the Nigerian Customs Service portal, making the Federal Government of Nigeria to lose an estimated revenue of about N1bn on a weekly basis on these smuggled items due to the neglect of pre-inspection of any container coming into the country which was hither-to the practice in Nigeria.
“The Galvanized Iron and Steel Manufacturing Companies have demonstrated absolute confidence in the Nigerian economy, as evidenced by the establishment of verifiable mega steel mills in Nigeria.
“We have also demonstrated our trust in the Federal Government’s policy of Economic Growth and Recovery Plan via investments in various projects to enable import substitution for products.”
He added, “Despite all these efforts of GISMA to ensure full achievement of the Federal Government’s strategic objectives of Economic Growth and Recovery Plan with key focus on global competitive economy, employment generation, youth empowerment and improved human capital development, the market is continually recording free flow of smuggled substandard steel products and other allied products.
“It is apt to note that the thickness and coating quality of all the smuggled roofing sheets are very much below the standard specified by Standards Organisation of Nigeria for the Nigerian manufacturers, thereby short-changing the Nigerian users as the imported products are less durable and of less quality.
“It has been verified that major routes of smuggling steel products, and especially galvanized and coloured corrugated roofing sheet into Nigeria, are Port Harcourt, Onne and Calabar ports; and all efforts to stop these economic sabotage have proved abortive over the years. ”
Bello stated that GISMA conducted a comprehensive study into the menace of smuggling and its economic implications for Nigeria.
He said it found out that importers open the Form M with wrong classification HS CODE and product description.
He added that mostly, the description is stated as “used machinery” and “shoe parts” which, he said, attracts zero duty and valid for foreign exchange.
According to him, the smugglers, by this act, successfully sabotage the economy, with non-payment of the prescribed 45 per cent import duty on items of steel products being smuggled into Nigeria. – Punch
– Oct. 10, 2018 @ 17:09 GMT |
Tags: FG loses N1bn weekly to smuggling of substandard steel products – GISMA
