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AN APPRISIAL OF THE ROLE OF SMUUGGLING ACTIVITIES IN THE TOTAL PURCHASE PRICE OF MATERIALS (A CASE STUDY OF NIGERIA IMGRATION ENUGU)

CHAPTER ONE

INTRODUCTION

When a  Project such as this to be understand, the first problem that the researcher face is the topic to be chosen that most appropriately fits into a given situation and the course concerned in this case however; it become necessary to chosen a topic that is purchasing oriented.

That is why we have chosen this topic CCAN appraised of the role smuggling activities in the total purchase price of materials.

 Smuggling is an act performed by a smuggler and it involves exporting good without paying custom duties, the goods or the items involves are cancelled taken security in out of the country to avoid being taxed by the government. The rate of smuggling activities inNigeriais so high and cry for the government through effect has been making to eradicate the problem is not unnoticed.

Government is loosing a lot on the collection of revenue and also the foreign exchange of this nation is being sapped through these activities one that will be wondering about the local industries in terms of how to purchase their goods. How the local industries enjoy the situation? Are they affected in any way? What difficulties do they face in terms of buying the goods ? this situation and question geared our interest to find out how much the government is loosing on smuggling what smuggling is and why people do it and how it affect purchasing.

So far it has not been easy to collect enough information but we are sure that few we have been able to collect through questionnaires. Interview and secondary data will enable as achieved the result of this project.

Smuggling is a them in the flesh of every country in united state andEurope, smuggling is done on high level and their organization is network sort of thing so it is net easy for the law to arrest them.

          InNigeria, it is carried out by the low breakers who want to get rich quick.  They are attracted by the high profit in vowed in it. It is believed that impact duties charged on some goods by the government as tariffs and embarg are very high.  It is one of the essential problem that head people into smuggling.

          Also, the desire to get rich quarter contributed as well.  The government and the purchasers have found this act of smuggling net beneficial.  So they have taken measure to eradicate smuggling.

          The government has introduced to stem to encourage buying from the black market.  This we hope will eradicate currency trafficking and discourage illegal way emery duties on goods has been reduced by the government to encourage industries to buy their material and still produce to sell at better price for common man the purchase most industries use raw materials that are imposed from other countries for production of locally manufactured goods.  The manufacturing is done locally and therefore,Nigeriabeing a developing nation, delivered that the quailing of goods produce here is inferior to those imported from abroad whether legally or illegally.  The goods that can be smuggled into the country include hot drinking, wine and cigarettes and hard drags. Cocoa, cotton, Aides and shin, petroleum products are the goods that can be smuggled act of the country.  They normally go which help to the society as a while. It is an illness in the society and fought to a point of total eradiation.  Although there is no country has succeeded in stopping smuggling activities completely, but it can be brought to minimal level.

 1.1.         BACKROUND OF THE STUDY

This study, “An Appraisal of the Role of smuggling activities in the total purchase price of materials is a research worn-smuggling is equally renew to be any act performed by a smuggler, which involves exportation and importation of goods into a country through illegal means.  The custom duties on illegally imported goods are not paid for.  InNigeriathe rate of smuggling activities has been so high and government has been making effort to eradicate this problem.  The researcher aim to know the problem and the effort on purchasing; to be able to achieve this purchase, the problem was identified and clear defined and objectives set to link hypothesis.

The general overview is given and the researchers interview is stated, also the seep of the research was determined.

            My interest is not to be a future smuggler but to study the situation to know the difficulties created by smuggling toward purchasing of goods inNigeria.

            I also want to know the extent which this problem has affected is affecting the growth of local industries and consequently hindering employment for many, the over all result being that the nation development is hindered.

          The deputy managing director of W.T.C, Imeukhede estimated that smuggled cigarettes that smuggled cigarette constitutes 35% of the cigarettes market inNigeria. Before 1978, importation of leathers based products was banned, only few factories were available in the whole industry. An opportunity was given to them to export the locally made leather material so that they will produce to survive and increase employment opportunities enhance improved.

           This will help conserve foreign exchange and made Nigeria self reliance, the leather produced locally was not enough, these was acute shortage of hides and shin partly because cutlets were imported instead of making good sales or what they product.

1.2 statement of the problem                               

it is observed that smuggling activities is an in the society and a menace to economic growth and a hindrance to establishment of industries for protection of various goods which will later for the need and wants of buyers and also creating employment to minimize crime  rating. The aim is to find out the actual effects smuggling has on these growing industries and ones yet to be established.

 1.3            OBJECTIVE OF THE STUDY

The objective of the study are as follows-:

  1. to ensure local production and sales
  2. b. to find out ways of encouraging growth of indigenous buying stepping smuggling.
  3. To identify ways of wiping out smuggling activities inNigeria.

 1.4 SCOPE AND LIMITATION OF THE STUDY

My result on this telic lowered areas like smuggling activities inNigeria.

The role government is playing that their part in the eradication of the problem, the problem facing industries, the opinion of people which one is cheaper to buy. Whether the imported goods are being performed to the locally made goods.

This particular question aim to be problem to this research because most people could not tell actually what they want or how they want it.

The area carried in this research to get the exact scope of the study are immigration office, Enugu, IMO State, ministry of tourism and commerce, Enugu chamber of commerce mines and agriculture (ECCIMA). A written questionnaire was distributed and an interview was conducted by the researcher to theNigeriaimmigration officeEnugu, Nigerian custom and Duty exciseEnuguand Enugu Chambers of  commerce and industries mines and agriculture (ECCIMA Enugu). As it applies in this research  are the circumstances, or actions that is any way military against research success. There are some that really worked against this research.

  1. A.   RESPONDENTS ATTITUDE

Out of 40 respondents expelled from immigration’s and custom’s office only 15 respondents returned theirs after many visits.

  1. B.               LACKOF MOBILITY

This restricted the researcher’s movement, so hand to limit the scope toEnugustate.

C.      FINANCIAL CONSTRANTS

The finance his print many copies of the researcher’s questionnaire and to one thing or other.

D.      PROBLEMS

Editing, tabulation and  analysis of research data which was all the way since consuming, rigours and demanding. Also, lack of enough primary data as may firms and consumers are skeptical of giving out information. All these contributed to my inability of presenting a comprehensive research project.

 1.4            DEFINITION OF TERMS

IMPORT DUTIES: is a form of tax placed on goods coming into one country from another country.

EXPORT DUTY: This is tax paid on goods learning the country.

SEAN: Second tier foreign exchange market a stop ahead of the first tier.

CONTRA BANN: Goods illegally forbidden to be brought into a country. E.g smuggled goods.

TARRIF: tax to be paid for importing goods into the country.

EMBORGO: Official prohibition on goods. eg. Kingship relationship.

 1.5            REFERENCE

Innocent Okoye (1986) custom and Excise :Lagos, Newswatch magazine publisher; pg. 12-21

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