Nigeria

Nigerian Govt Summons 80 Private Jet Owners Over Licence Issues

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The Nigerian Customs Service (NCS), under the Federal Government, has launched a new initiative to tackle the issue of improperly imported private jets. 2. Approximately 80 private jet operators have been called to the NCS headquarters in Abuja to provide their aircraft import documentation for verification.

This verification exercise for private aircraft imports is scheduled to commence tomorrow and will last for a period of 30 days, as stated in a public notice issued by Customs.

The primary goal of this exercise is to identify private jets that have been improperly imported without the necessary documentation, ensuring compliance with import regulations and maximizing revenue collection.

Private jet owners and operators are mandated to present various documents during the verification process, including the Aircraft Certificate of Registration and certificates from the Nigerian Civil Aviation Authority (NCAA).

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The recent crackdown on private jet importation follows a previous suspension of similar actions by the Federal Government, with efforts being made to recover unpaid import duties from operators who have exploited regulatory loopholes.

Some operators have reportedly utilized Temporary Import Permits (TIPs) to avoid paying import duties, leading to previous enforcement actions by Customs due to non-compliance.

Approximately 80 private jet operators are anticipated to take part in the verification process, with 20 of them being operators of aircraft that have been imported since the last exercise. The main objective of the NCS is to ensure the payment of the required import duty, with the potential consequence of grounding jets that do not comply with the regulations.

The TIP loophole has faced criticism for being a deceptive method to avoid paying import duties. Private jet importers are expected to pay 5% of the aircraft’s value as import duty, but many opt for TIPs due to the high costs involved, citing Article 24 of the International Civil Aviation Organisation Convention.

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The new leadership at Customs is resolute in enforcing the payment of import duties, with speculations suggesting that the government could recover close to N100 billion in outstanding duties, especially with the current exchange rate. This amount might escalate if a 25% penalty fee for delayed payments is implemented alongside the 5% import duty.

The willingness of private aircraft operators to cooperate remains uncertain, as some have previously resorted to legal measures to avoid fulfilling their duty obligations. The NCS National Public Relations Officer has confirmed the commencement of the verification exercise on Wednesday.

It will be crucial to closely monitor the unfolding of this exercise to assess its impact on compliance levels and revenue generation for the Federal Government.

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