WHAT IS THE MEANING OF PAAR?
PAAR – is an acronym for
P- Pre
A- Arrival
A- Assessment
R- Report
The PAAR system is an online application designed and developed by the Nigeria Customs Service for the generation of the PAAR.
The PAAR is a document generated by the newly developed Nigeria Customs Service PAAR system to replace Risk Assessment Report (RAR) issued by the Service Providers at the end of Service providers’ contract by December 1st 2013.
PAAR KEY FEATURES
Digitalization of Import Documentation (based on UN-ADS)
Expert Tariff Classification Tool (HS Convention)
Assessment of Customs Value (WTO-ACV)
Import Export Commodity Database (IECD)
Detail Intelligent Risk Configuration encompassing (OGAs)
Issuance of Pre-Arrival Assessment Report (PAAR) WCO Revised Kyoto
SMS Alert integration service
Confirmation of Transaction value by the Supplier
Flagging up of High Risk Commodities (WCO-GHRI)
Fast Tracking of Trusted Traders (AEO)
3rd Party Pricing Data
DIFFERENCE BETWEEN THE PAAR AND THE RAR
1. PAAR is generated by the Nigeria Customs Service for Nigeria Customs Service use; whereas RAR was generated and issued by the service provider as an advisory report to NCS.
2. PAAR is to be generated within 6 hours for a compliant trader, which is in conformity with the Federal Government’s vision of achieving 24 hour clearance at the port; whereas with the RAR this was not possible.
3. The PAAR automatically recognizes an importer who is consistently compliant and categorizes such importer as an Authorized Economy Operator (AEO) i.e. trusted trader once he is consistently compliant thereby enabling such a trader speedy clearance at the ports; the RAR did not have such a tool.
4. The PAAR has a built-in intuitive classification tool which makes product classification easy and accurate; this feature is not present in the RAR.
5. The PAAR system notifies importer when their documents are approved or rejected.
6. PAAR is complimented by the Classification Tool in the Nigeria Trade Hub – www.nigeriatradehub.gov.ng an online tool available to all traders to ensure accurate classification at source.
WHY IS THE RAR BEEN REPLACED WITH THE PAAR?
After careful evaluation and analysis of the current RAR regime, gaps where identified. Management of NCS decided to replace RAR with PAAR due to the following reasons;
PAAR – is an acronym for
P- Pre
A- Arrival
A- Assessment
R- Report
The PAAR system is an online application designed and developed by the Nigeria Customs Service for the generation of the PAAR.
The PAAR is a document generated by the newly developed Nigeria Customs Service PAAR system to replace Risk Assessment Report (RAR) issued by the Service Providers at the end of Service providers’ contract by December 1st 2013.
PAAR KEY FEATURES
Digitalization of Import Documentation (based on UN-ADS)
Expert Tariff Classification Tool (HS Convention)
Assessment of Customs Value (WTO-ACV)
Import Export Commodity Database (IECD)
Detail Intelligent Risk Configuration encompassing (OGAs)
Issuance of Pre-Arrival Assessment Report (PAAR) WCO Revised Kyoto
SMS Alert integration service
Confirmation of Transaction value by the Supplier
Flagging up of High Risk Commodities (WCO-GHRI)
Fast Tracking of Trusted Traders (AEO)
3rd Party Pricing Data
DIFFERENCE BETWEEN THE PAAR AND THE RAR
1. PAAR is generated by the Nigeria Customs Service for Nigeria Customs Service use; whereas RAR was generated and issued by the service provider as an advisory report to NCS.
2. PAAR is to be generated within 6 hours for a compliant trader, which is in conformity with the Federal Government’s vision of achieving 24 hour clearance at the port; whereas with the RAR this was not possible.
3. The PAAR automatically recognizes an importer who is consistently compliant and categorizes such importer as an Authorized Economy Operator (AEO) i.e. trusted trader once he is consistently compliant thereby enabling such a trader speedy clearance at the ports; the RAR did not have such a tool.
4. The PAAR has a built-in intuitive classification tool which makes product classification easy and accurate; this feature is not present in the RAR.
5. The PAAR system notifies importer when their documents are approved or rejected.
6. PAAR is complimented by the Classification Tool in the Nigeria Trade Hub – www.nigeriatradehub.gov.ng an online tool available to all traders to ensure accurate classification at source.
WHY IS THE RAR BEEN REPLACED WITH THE PAAR?
After careful evaluation and analysis of the current RAR regime, gaps where identified. Management of NCS decided to replace RAR with PAAR due to the following reasons;
The Customs Challenge
The need to adopt global best practices as a core objective of NCS modernization agenda.
The need to eliminate/minimize all the identified gaps in the current RAR regime.
Advance electronic processing of information facilitates the use of risk management systems;
Reduced delays at border crossings/entry points;
Reduced release time – Fast or immediate release is of paramount importance to traders due to the time saved; and
Saving storage and insurance fees – Such fees will be reduced as a direct consequence of pre-arrival clearance.
Some Countries that have adopted and implemented similar applications includes;
USA- Pre-Arrival Processing System (PAPS)
Canada- (Pre-Arrival Review System (PARS)
HOW IS THE PAAR COMPLYING WITH INTERNATIONAL BEST PRACTICES AND STANDARD?
Nigeria, as a signatory to WCO international Convention on the Harmonized Commodity Description and Coding System, must have this underpinning the application of the Harmonized System.
The NCS PAAR provides a standard format for classifying goods. The Common External Tariff Concordance has been linked to the NCS PAAR for easy navigation and accurate classification
The Concordance contains a complete list of HS code and serves as an integrated search engine in order to facilitate accurate classification of goods
NCS PAAR provides the support-base for Valuation Risk Assessment in strict compliance with WTO Agreement on Customs Valuation
Commodities sensitive from valuation angle are identified and reviewed as a vital factor to:
Accurate assessment of duties
Prevention of capital flight
Capturing of correct trade data for national planning.
NCS PAAR possesses built-in intelligent components that can be useful for
Intelligence reporting is a critical aspect of the Clearance Procedure particularly with the current security challenges in the country
Intelligence supplied by Customs Intelligence Unit (CIU), System Audit, SSS, NIA, Shipping Companies, etc is utilised in identifying high risk shipments for relevant timely intervention.
The Intelligence Component of NCS PAAR will facilitate the management of Intelligence data across multiple agencies as part of Integrated Risk Management Approach
THE RULING CENTRE
The PAAR Application System is complimented by a Ruling Centre located at the NCS Headquarters, Abuja. The Ruling Centre is manned by competent NCS officers/operators assuming the following system based roles:
• Administrators of NCS-PAAR application
• Scrutiny Officers
• Final Document Verification Officers
• Valuation and Classification Officers
• Pre-Arrival Assessment Report Officers
• Risk Profiler Officers
The Commercial Banks also have system based roles listed below, located at their premises:
• Administrators of Commercial Banks
• Staff at Commercial Banks
The need to adopt global best practices as a core objective of NCS modernization agenda.
The need to eliminate/minimize all the identified gaps in the current RAR regime.
Advance electronic processing of information facilitates the use of risk management systems;
Reduced delays at border crossings/entry points;
Reduced release time – Fast or immediate release is of paramount importance to traders due to the time saved; and
Saving storage and insurance fees – Such fees will be reduced as a direct consequence of pre-arrival clearance.
Some Countries that have adopted and implemented similar applications includes;
USA- Pre-Arrival Processing System (PAPS)
Canada- (Pre-Arrival Review System (PARS)
HOW IS THE PAAR COMPLYING WITH INTERNATIONAL BEST PRACTICES AND STANDARD?
Nigeria, as a signatory to WCO international Convention on the Harmonized Commodity Description and Coding System, must have this underpinning the application of the Harmonized System.
The NCS PAAR provides a standard format for classifying goods. The Common External Tariff Concordance has been linked to the NCS PAAR for easy navigation and accurate classification
The Concordance contains a complete list of HS code and serves as an integrated search engine in order to facilitate accurate classification of goods
NCS PAAR provides the support-base for Valuation Risk Assessment in strict compliance with WTO Agreement on Customs Valuation
Commodities sensitive from valuation angle are identified and reviewed as a vital factor to:
Accurate assessment of duties
Prevention of capital flight
Capturing of correct trade data for national planning.
NCS PAAR possesses built-in intelligent components that can be useful for
Intelligence reporting is a critical aspect of the Clearance Procedure particularly with the current security challenges in the country
Intelligence supplied by Customs Intelligence Unit (CIU), System Audit, SSS, NIA, Shipping Companies, etc is utilised in identifying high risk shipments for relevant timely intervention.
The Intelligence Component of NCS PAAR will facilitate the management of Intelligence data across multiple agencies as part of Integrated Risk Management Approach
THE RULING CENTRE
The PAAR Application System is complimented by a Ruling Centre located at the NCS Headquarters, Abuja. The Ruling Centre is manned by competent NCS officers/operators assuming the following system based roles:
• Administrators of NCS-PAAR application
• Scrutiny Officers
• Final Document Verification Officers
• Valuation and Classification Officers
• Pre-Arrival Assessment Report Officers
• Risk Profiler Officers
The Commercial Banks also have system based roles listed below, located at their premises:
• Administrators of Commercial Banks
• Staff at Commercial Banks
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