Category: Maritime

Stakeholders have continued to support operations at the seaports since the beginning of the Covid-19 pandemic. In this report, MUYIWA LUCAS  looks at the imperativeness of  leaving the ports open during the lock down

 

For stakeholders in the maritime sector, the last fortnight has been hellish.

From the fear of incurring huge demurrage, to lost man hours and vessel delays, drop in vessel calling at the ports, goods clearing, among others, uncertainties pervade the air.

Last week, the crowd at the Lagos port complex was unparalled as freight forwarders pressed to get their consignment cleared.

Owing to the strategic position of the sector to the  economy, the Federal Government exempted dock workers and those related to the sector from the lockdown. Yet, there have been challenges of inefficiency and non-attainment of the objectives of the government for removing the sector from the lockdown.

 

NSC initiatives

Port activities, especially cargo clearance, were still abysmally low at the ports despite the efforts of port regulatory agencies, which offered palliatives to enable freight forwarders surmount the challenges of pandemic.

As part of these palliatives, the Nigerian Shippers’ Council (NSC) has offered free transportation for freight forwarders to and from the ports amid the lockdown. Banks were asked to open to facilitate payment of Customs duties.

To address the challenges of Customs Duty payment, which has remained difficult for freight forwarders, the NSC is partnering some commercial banks. The initiative was to ameliorate the problems faced by brokers last week while trying to pay Customs Duties during the period.

NSC Executive Secretary/CEO, Hassan Bello said the council reached an agreement with the banks for the smooth freighting. He confirmed the arrangement for free buses to convey freight forwarders to Lagos ports during the period.

Bello added that the NSC is working with the Council for Regulation of Freight Forwarding in Nigeria (CFFRN) to ensure that only accredited freight forwarders use the buses.

 

 NIMASA collaborates for shipping

To further sustain shipping, the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh, said the guidelines for vessels at the ports were to ensure shipping continued to thrive.

Jamoh, receiving Bello and some stakeholders, including shipping firms to the NIMASA head office, said while the Federal Government was concerned about Nigerians, the economy must be sustained, hence the need for collaboration with relevant agencies, like the Shippers’ Council.

Also, acknowledging that the pandemic has slowed activities in the sector, he appealed for more understanding as the global economy is going through a trying time.

“We are in trying times and all hands must be on deck to sustain the economy. Let me assure stakeholders and the shipping community that on our part as a regulatory agency we will continue to embrace collaboration. This is a phase and it will soon be over, because today’s pains are necessary for tomorrow’s gains.

“The world was not prepared for the pandemic and that is why we are trying to ease the pressure on our industry, while taking necessary precautions to safeguard lives. We will continue to review these guidelines where necessary to ensure that shipping does not suffer, especially when it comes to movement of medical facilities through the sea,” the DG said.

Bello corroborated the stance of the NIMASA DG and appealed for more cooperation and collaboration from the shipping firms and stakeholders.

He stated: “At this period, we must sustain our economy through shipping. Though it is a delicate balance, considering the havoc the pandemic has caused the globe; that is why we are working hand in hand to ensure ports activities continue, while not being detrimental to human lives.”

 

ANLCA wants force majeure

Though the end of the coronavirus crisis is not in sight, experts warned that it would further throw the industry into more problems.

The President, Association of Nigerian Licensed Customs Agents (ANLCA), Tony Nwabunike, warned that for normal businesses at the seaports, airports and border stations to take its full swing, imported and export items might have been trapped in the ports.

“As such, demurrages and rent payable to shipping companies, concessionaires/terminal operators would have attained an unbearable proportion due to the lockdown. As you already know, it is difficult, if not totally impossible, to process customs documentation and take delivery of cargoes in our ports during this period.

Even when attempts are made, it becomes difficult because state governments have closed interstate borders, markets are locked and movement of certain vehicles restricted,” Nwabunike wrote in a letter to Vice President Yemi Osinbajo. He therefore called on the VP to order a Force Majeure in line with international best practices.

Nwabunike appealed to the Federal Government to prevail on shipping companies, terminal operators and other agencies at the ports to waive charges, taxes and fees.

“Consequently, we seek for   demurrage, rents, penalties etc emanating from inability to clear cargoes as at when due from the ports at this period to be  waived effective from the first week of March 2020 when the first case of the deadly virus was detected in Nigeria through an Italian,” he said.

 

NPA reacts

The Nigerian Port Authority (NPA) has announced rent-free days and suspended payment of demurrage to ease cargo clearance procedures.

The NPA assured stakeholders that arrangements have been made for operations at the ports to continue without hindrance, assuring that the well-being and security of stakeholders and staff have been taken into consideration.

The Authority enjoined  other agencies  at the ports to  open for business in line with the presidential directive on the Lagos ports.

 

STOAN’s support

The Chairman, Seaport Terminal Operators Association of Nigeria (STOAN), Princess Vicky Haastrup, emphasised the need for the seaports to remain open at all times while the Federal and state governments battle to contain the spread of the pandemic.

“As we face the global public health crisis birthed by the Coronavirus disease, we advise the government to ensure that the supply chain is not disrupted and the seaports keep running.

Even if other sectors  are shut to guard against the spread of the virus, the seaports should remain open to ensure that there is no shortage of food, drugs and other essential supply to Nigerians,” the STOAN Chairman said.

The shipping sector, Haastrup emphasised, is key in contributing to secure the continuity of economic activities, ensuring supply chains to industries; transport of essential goods, including energy and food supplies, and transport of vital medical and protective equipment, and supplies.

 

 

By Muyiwa Lucas

 

The Bahamas Maritime Authority (BMA) took its two decade contribution to the Public Treasury to near-$96 million following its last financial year in which total comprehensive income rose by 8.7 per cent.

Its annual report which were tabled in the House of Assembly, confirmed that it continues to be a steady if unspectacular revenue earner for Bahamian taxpayers at an average of just under $5 million per year since its creation in 1995.

The shipping registry, which is the authority’s most prominent function, added 1.458 million in gross tons during its latest financial year even though the total number of ships registered fell by seven.

“As at June 30, 2019, the register consisted of some 1,552 ships totaling over 65.17 million gross tonnes, with an average age of 15.82 years,” the authority’s annual report said.

“The Bahamas flag continues to attract the eminent and most respected shipping companies in the maritime industry who are not only leaders but also pioneers in the industry…..

“For the fiscal period The Bahamas remains the largest flag for passenger ships, with other 160 passenger ships registered, and where new registrations included new buildings that ranged from a small expedition ship to one of the world’s largest passenger ship. There are ongoing preparations for additions by new entrants to the sector.”

The annual report added that The Bahamas continued to be a “leading flag” for liquefied natural gas (LNG) carriers, featuring 121 ships weighing a combined 10.9 million gross tonnes on its registry at end-June 2019.

The total tonnage of registered offshore vessels grew during the year to more than 8 million, with this class accounting for 15 per cent of all ships on the registry.

Read Also: Maritime security: Nigeria acquires Special Mission vessels

 

“The authority’s value proposition of quality customer service delivery has enabled a continued growth of the fleet size through market retention and acquisition of new business,” the authority’s annual report said.

“This increase of the fleet has resulted in the operating profit for the Authority exceeding $16m for the last four years.

“The balance sheet remains strong with operating revenue before taxes of $5.06 million compared to $4.67 million in 2018. This level of return has contributed to the Authority remitting $95.7 million to The Bahamas’ consolidated fund from inception in 1995.”

The Authority described strengthening its “financial sustainability” as one of its “core strategic objectives” during the current 2020 financial year.

It is attempting to achieve this from an already-solid platform, with operating revenues jumping to $16.89 million in 2019 as compared to $16.252 million the year-before.

“For the 2019 fiscal year, the net operating cost of the Authority was $10.028 million, an increase of $272,378 or 2.8 per cent compared with the 2018 costs of $9.755 million.

The increase is mainly due to the increase in operational cost attributed to the opening of a dedicated office in Japan, and an increase in staffing levels.

“The authority is making a conscious effort to reduce operational costs while balancing the need to maintain the level of customer service to attain and retain customers.”

The authority’s annual report said The Bahamas had maintained its “low risk” status as a shipping flag, retaining its status on the Paris and Tokyo inspection regimes’ “white lists”.

Only 26 Bahamian-flagged ships were detained following in-port inspections during 2019, a decline from the prior year’s 28 detentions.

Source: The Tribune

 

By Muyiwa Lucas

 

Amid the growing problem of importation of sub-standard products, the Director-General (DG), Standards Organisation of Nigeria (SON), Osita Aboloma, has warned importers against the use of its logo to deceive the public to sell their goods.

He gave the warning at the workshop for members of the International Market Association Electronics (IMAE) in Lagos, which had as its theme, ‘Promoting self-regulation to eradicate substandard electronics from Nigerian markets.’

Aboloma, who was represented by the SON’s Director in charge of its Lagos Office, Kabir Mohammed, decried the act, saying it is unacceptable and fraudulent, assuring that culprits would be prosecuted.

Mohammed promised that SON will continue to ensure that substandard goods were reduced to the barest minimum. He urged dealers in electronics products to align with bringing in goods as Completely Knock Downs (CKDs) and Semi-Knock Downs (SKDs) for assemblage  and branding.

“You are belabouring yourselves for promoting and selling another man’s products for over four decades. It is about time you owned your brand and we have the standard to support you.

Holding this meeting with you is to bring standards to the door step of the trader and importer, because this market has customers from even outside the shores of the country.

So, when you apply standards, it will boost your trade,  and impact on the nation’s economy through wealth creation and employment opportunities,” he explained, adding that the association should engage in self-regulation so as to mitigate the influx of substandard goods in the country.

Aboloma said the level of compliance to standards by importers had improved significantly, and reiterated that the body would intensify efforts at increasing its level of engagement with the public on the negative impact of substandard goods in the country.

Similarly, the Director, Inspectorate, Compliance and Directorate, SON, Obiora Manafa, advised the dealers to register their brands with SON, saying that as far as their product were successful at the safety parameters and market requirements, their goods would be patronised.

“We are also telling them that it is good for them to create their own brands instead of faking successful brands,” he said. He said from available records, SON has observed that most of importers and traders bring in substandard products which has failed to meet the prescribed standards.

Read Also: Aboloma, Lalung others bag ICMC fellowship

 

The Head, Ports and Borders, SON, Yahya Bukar, explained that in spite of the organisation’s connection to the Nigerian Integrated Customs Information System (NICIS), SON could only view documents on the platform, but could not examine containers easily except invited by the customs.

“We sometimes view a document, but the information of the document is different from what we have in the container, most of the times it is difficult to judge whether these goods meet our requirements since we do not have access to these containers and we cannot be able to verify the declaration,” he said, adding that some clearing agents try to connive with the importers to circumvent the laws.

He stated that the SON was  prepared for the African Continental Free Trade Agreement (AfCFTA), but stressed the need for the SON to be positioned at the ports for Nigeria to be competitive when the trade deal commenced.

“We will have a lot of advantages to monitor the products that are coming in if we are strategically positioned, but if we cannot monitor, all other African countries will subdue Nigeria with their own products, but if we can monitor these products coming in, we will be able to curtail the influx of substandard goods,” he said.

In his response, the Executive Chairman, Alaba Electronics, Paulinus Ugochukwu, commended SON for the workshop, saying that his members had started selling their brands.

He, however, called on the Federal Government to provide basic infrastructure to help drive the manufacturing sector of the economy.

“We already have a Joint Task Force comprising members of SON management and our members to ensure that substandard goods do not thrive in the nation’s market, “ he submitted.

 

By Muyiwa Lucas

 

The Chairman, Seaport Terminal Operators Association of Nigeria (STOAN), Princess Vicky Haastrup, has urged the Federal Government to relocate petroleum depots, also called tank farms, from Apapa.

Reacting to the March 15 explosion at Abule Ado, Lagos State, which claimed 23 lives and displaced more than 500 people from their homes, Haastrup asked the Federal Government to take urgent steps to avoid a repeat of the problem by moving tank farms from residential and crowded areas. Tank farms, she maintained, should be located from the city and the ports.

She said: “We are concerned about the preponderance of tank farms in Apapa, a port area and a high density town. With more than 60 tank farms in the area, the ports, the workers and residents of Apapa are sitting on a keg of gunpowder.

We pray it does not explode, so we appeal to the Federal Government to urgently see to the relocation of these tank farms to avert a future carnage.”

She also said in addition to bad roads and the absence of truck parks in Apapa; the large number of tank farms and oil depots has contributed to traffic congestion in the area.

Haastrup also called for more efficient traffic management system in Apapa to enhance the movement of vehicles while ongoing construction work lasts.

She advised the Federal Ministry of Works and the Lagos State Government to open up inner roads to allow for free flow of traffic.

Read Also: Firms sign MoU for Anambra Bonded Terminal

 

The STOAN chair also advised the Nigeria Customs Service (NCS) to concentrate more on trade facilitation, rather than revenue generation to clear congestion at the ports.

She called for the streamlining of government agencies at the port and the reduction of congestion at the port gates as a result of multiple checks by various government agencies.

“We observed that the volumes of containers handled at the ports have continued to witness geometric growth, while the supporting port infrastructure, especially the port access and Customs clearing processes, have continued to be a drag on the efficiency of the ports.

Since the first quarter of 2019, volumes have been growing by 20 per cent as a result of the closure of Nigeria’s land borders. The unanticipated growth has posed a major challenge to container terminal operators.

“As a result, we advise that the Nigeria Customs Service automates its clearing and cargo release system to clear the backlog of cargoes at the port.

The scanners at the port are not working, while almost all the cargoes landed at our ports are subjected to 100 per cent physical examination.

In Lagos ports, up to 70 percent of the containers are subjected to physical examination. These have to change to allow for free flow of trade,” she added.

 

Last week, the Managing Director, Nigerian Ports Authority (NPA), Ms Hadiza Bala-Usman, read the riot act to terminal operators over the huge number of overtime cargoes and empty containers in the ports. In this report, OLUWAKEMI DAUDA looks at the reasons the Federal Government needed to decongest the ports

The Managing Director, Nigerian Ports Authority (NPA), Ms Hadiza Bala- Usman did not hide her feelings last week, at the Lagos seaports over the huge number of overtime cargoes and empty containers littering the ports.

Speaking after the inspection of the terminals to contain the spread of Coronavirus pandemic, she said the number of overtime cargoes and empty containers in most of the terminals had became worrisome to the Federal Government and the agency because of its ripple effects on port operations and the economy.

Cargoes are classified as overtime when they have stayed at the ports for more than 30 days without clearance and delivery. Investigation conducted by The Nation revealed that overtime cargoes and empty containers now occupy over 40 per cent of the terminals in Lagos.

The Managing Director said the issue of overtime cargo, improvement and provision of cargo handling equipment must be addressed by the terminal operators to bring efficiency to the port. “That is why we have stated it clearly in our revised concession agreement that where the terminals don’t improve on their equipment, there will be sanctions. I think sanctioning is what works cross the world because people must be sectioned, if they are not doing their work and we are ready to sanction any terminal that fails to follow our rules and regulations,” she said.

The MD said the agency has directed terminal operators to give 14 rent-free days to importers, to enable them clear their cargo during the lockdown. Also, to address the port congestion, she said the Nigeria Customs Service (NCS) has agreed to fast-track the clearance of over 1,800 overtime cargoes.

She said the NCS had inspected 400 of them and that they were being moved to the Federal Government’swarehouse at Ikorodu. “We have discussed with the Nigerian Customs Service (NCS) and they have given approval for 400 containers to be cleared and moved out of the port to the federal government overtime cargo warehouse at Ikorodu. That is the same across the board for all terminals.

Why we are calling on all consignees to come out and collect their cargo, they should also be mindful that some of these cargo that are considered overtime are been moved to Ikorodu bwhere they will be auctioned in line with the guidelines stipulated by the NCS.

“The issue of overtime cargo, the issue of improvement and efficiency and cargo handling equipment is across the board. That is why we have deployed clearly within our revised concession agreement metric where for every time terminals don’t improve on their equipment there will be sanctions. I think sanctioning and penalties is what works cross the world because people must be sectioned if they are not doing their work, “she said.

Stakeholders call for sales of overtime goods

Stakeholders have called on President Muhammadu Buhari and the Federal Executive Council (FEC) to order the Comptroller-General, Nigeria Customs Service (NCS), Col Hameed Ali (rtd) to auction the goods and free up the Lagos ports. Findings revealed that there are over 1,800 overtime cargoes and more than 2,000 containers at APM Terminal in Apapa that must be moved out of the port to free up the space. The situation is almost the same in most of the terminals visited by the paper. Stakeholders, who spoke with The Nation at the weekend, appealed to President Muhammadu Buhari and FEC to join hands with the NPA in directing the NSC to auction the overtime cargoes as provided in the Customs and Excise Management Act (CEMA) and the terminal shipping firms to return the empty containers to their base.

An exporter Mr Gbolahan Ajetunmobi, said: “The Customs Service is empowered by law to auction overtime cargoes to free up the space in the port and recover government revenue. Not auctioning those cargoes that have been in the port for more than a year does not serve the best interest of the people, government and of the operator. ‘’I appeal to President Buhari to direct the Nigeria Customs Service to free up the space in the port by auctioning those overtime cargoes to bring efficiency to our port. Over N30 billion goods are rotting away at the port and the Federal Government is not doing anything about it.”

The National Vice President, Association of Nigerian Licensed Overtime Agents (ANLCA), Dr Kayode Farinto, confirmed that over 2000 cargo-laden containers worth billions of naira have been abandoned by some importers. Findings revealed that overtime cargoes occupy over 30 per cent of the terminals in Lagos.

“Containers with very valuable items are not claimed for almost two years. This, to say the least, is very disappointing. This, to some extent, is irresponsibility on the part of those who are supposed to do the needful. “The Federal Executive Council (FEC) must ensure that the Act that established the Nigeria Customs Service (NCS), which has also prescribed a procedure for disposal of overtime goods and seized cargoes, is complied with. The only way to dispose the overtime cargoes is captured in the Act.

“Whatever that is defined in the Act is what should be done. It is the responsibility of the government to ensure that our ports are free of overtime cargoes and empty containers. We are talking of how to boost the economy and multi-billion naira goods are rotting.’’

Overtime cargoes

Before the ports were concessioned about 15 years ago, the issue of overtime cargo was rife. The NCS has the power to auction any cargo, which spends over 90 days at the ports without being cleared.

Before the concession, such cargoes could be found at any port and they stayed until the owners were ready to clear them. The demurrage was small then, and the owners could afford to play with time. Some importers falsified the date the goods arrived at the ports to reduce the demurrage.

But this changed when the terminal operators took over the ports. Any importer who delays in clearing his goods pays heavy demurrage. In some cases, some terminals have been accused bof causing delays to create more room for the cargoes to stay at the ports and attract demurrage. But agencies- owned containers could be granted waiver on the intervention of the government.

A senior Customs officer, who craved anonymity, said the failure to clear them after a year might be as a result of bureaucratic bottlenecks in government departments. ‘’Some importers may have lost interest in clearing them because of the cost involved.

‘’Sometimes, an importer may decide to forget some goods if the clearance will lead to more losses. This is when some trade goods enter overtime and accumulate more demurrage that clearing them will be expensive. The worth of overtime cargoes in the ports within and outside the Lagos ports is over N30billion.

“There is no doubt that the importers, particularly those who own the goods that are under prohibition list, may no longer be interested in the goods apparently because there is no way they can move them out of the port because of the eagle eyes of security officials at the ports.

“Also, there are some goods that have lost their value as a result of time. Although it is the duty of Customs to auction goods, the experience has been that only items that are valuable were sold off as quickly as possible to some highly placed Nigerians in the past.

“This does not appear to have been the same trend since the tenure of Col. Hameed Ali (rtd) as a Customs boss. And the reasons are obvious. A highly placed source said Ali cannot carry out auction sales because he would need the approval of the Minister of Finance and that is why the president and the FEC must give an instruction to the ministers of Transport and Finance to ensure that the overtime cargoes are auction in no time.’

Why importers abandoned cargoes

Investigation shows that many importers abandon their containers for various reasons. An importer, for example, may run out of funds to clear his goods. This often leads to more demurrage. Some cheat the government on any consignment.

In the process, they lose the goods as they are not able to settle the issue within the time allowed to clear the goods. Paying the amount on the Debit Note and the demurrage on the goods could be difficult. Some importers resort to bribing to buy the same goods at auction from the Customs.

It does not appear that such arrangement exists under the change mantra of the leadership of the Customs. Some importers even bring in prohibited goods, which are seized and left to rot at the ports.

NPA sources said there is hardly any port where there is no overtime cargo because of the unwholesome attitudes of importers.

Way out

Worried by the huge overtime cargoes, stakeholders said it was time for the Ministry of Finance to act.

A clearing agent, Mr Segun Ogunsanu, said the government should take stock of such items and empower the Service to auction them. Ogunsanu said this would help decongest the areas where the goods were kept.

Another freight forwarder, Mr Sunday Albert, advised importers to shun any fraudulent practice that is responsible for seizure of goods at the ports. He added that importers should be on top of any situation when their goods arrive to ensure that they are cleared on time before entering demurrage and overtime status.

The Chairman, Seaport Terminal Operators Association of Nigeria, (STOAN), Princess Vicky Haastrup, called on the government to intervene on the matter, saying if the issue was not tackled on time, terminal operators would be running their business at a loss.

Haastrup said because there were many laden containers at the terminals, the space for empty containers had be taken over. He explained that terminal operators make more money when they have more space for containers.

She stated: “Let the Nigeria Customs Service auction these overtime cargoes because they occupy commercial spaces at our terminals. ‘’If that is taken care of, we can dedicate a large space for empty containers. Right now, because our members have so many laden containers, there is a limit to the number of empty containers they can take.”

Also the President, National Council of Managing Director of Licenced Customs Agents (NCMDLCA), Lucky Amiwero, said there was the need to ensure that overtime cargoes were transferred from the ports to government warehouses to decongest the terminals and bring efficiency to the port.

Provision of scanners

An importer, Mr Yekinni Ibraheem said scanners should be deployed to the ports because it takes between five and six minutes to examine containers using scanners but physical examination takes over five hours at our port.

“When you enter the port, you will see that there is a slow process. These are what we want the Federal Government and its agencies to look at. What happens at the terminals has effect on the congestion we see at the ports and the gridlock on the roads leading to the port,” he said.

The Federal Government is losing billions monthly to importers and customs agents who are using fake documents to clear their goods, OLUWAKEMI DAUDA reports.

 

Despite the establishment of Pre-Arrival Assessment Report (PAAR) and Automated System for Customs Data plus, plus (ASYCUDA++) designed to facilitate trade and block revenue loss at the ports and borders, one of the biggest challenges facing Nigeria Customs Service (NCS) is lack of compliance by some importers and agents, investigation has revealed.

Non-compliance, according to Customs Comptroller-General, Col. Hameed Ali (rtd), has become a major problem as fraudulent Customs officers are collaborating with clearing agents in exploiting   the ASYCUDA++ platforms to defraud the Federal Government.

For instance, few days ago, the Port and Terminal Multiservices Limited (PTML) Command of the Nigeria Customs Service at the Tin-Can Island port raised the alarm about increase in activities of a syndicate, popularly known as “port rats”, who falsify Customs documents and release vehicles without paying approved duties to the government.

Spokesman of the command, Mr. Yakubu Muhammed, said 90 per cent of the valuation papers being presented by freight forwarders are fake.

Investigation by The Nation revealed that PAAR, a cargo clearance platform established by NCS to enhance effective clearance procedure of imported goods within the shortest time at the ports, had been deterring the smooth flow of trade, which, according to stakeholders, it ought to promote.

According to a report by Lagos Chambers of Commerce and Industry (LCCI) on PAAR, the delays in cargo clearance at the Lagos ports had become a major source of concern for the business community.

An importer, Mr Funso Solomon said PAAR had been burdened with capacity challenges, hence the unnecessary delays in cargo clearance.

“The PAAR, which was originally programmed to be issued within six hours, now takes over a week in most cases before it is released.

Without the issuance of PAAR, other cargo clearance procedures cannot progress and that is why some people are looking for ways to defrud the government.

If you calculate the amount the government is losing at the port through the fake documents is over N5 billion every month and that has a huge implication on the economy and infrastructural development,” Solomon said.

The importer expressed displeasure over the slow pace of the government in addressing the problem of faulty scanners at the seaports.

Solomon noted that lack of scanners had compelled men of the Nigerian Customs Service (NCS) to resort to 100 per cent physical examination of cargo at port terminals.

He explained that the situation  could compromise the national security.

He called on the government to expedite action on the provision of scanners at various seaports to end illegal importation of arms.

He said: “There is little that the Customs can do to prevent this when they are not well equipped.

“I am worried that the Federal Government has not shown the kind of swift response and decisiveness that this illegal importation demands. The way to go is to urgently provide scanners at the port.”

He said lack of facilities would hinder the economic direction of the government on the Ease of Doing Business

He explained that cargo clearing process had remained cumbersome and made the port unattractive and without any competitive edge.

Solomon, therefore, suggested that the Nigerian Ports Authority (NPA) should provide the scanners if the Customs and the terminal operators were not willing to do so and institute the necessary charges as the landlord of the port.

 

Counterfeiting

Muhammed said the command had arrested some persons and that freight forwarders were protesting against Customs officers for not allowing them to clear vehicles with fake documents.

He however said most of the culprits were touts, and that they were not the real freight forwarders or clearing agents.

On the antics of these syndicates, he said: ”Some of the valuation papers they present to us have ridiculous values.For example, if you have a 2017 vehicle, maybe it is supposed to pay N1.3 million, you will find out that some people are paying N500,000. Definitely, the cargo has to be alerted.

“As long as you try to do the right thing, they are always against it and they don’t want to comply. All these protest is because we charged them to follow due procedure.

“We have a lot of fake valuation, instead of them to come to the Customs to get valuation on their vehicles, they would go outside and forge the papers; so, what do you expect? Of course the cargo has to be alerted.

“All what we are telling them is to come forward to Customs and get their valuation, this is reason for all the noise. I can testify to you that 90 per cent of the valuation papers presented to us within this short period are fake.

Read Also: COVID-19: Importers, agents besiege Lagos ports

 

“What we normally do is that, if we give you valuation, we have a valuation assessment manifest. There is a stamp we use on your papers to show that it is original. We would document the chassis number of the valuation. By the time you send it for verification, they would detected the fake from original.’’

“Once we find out it is fake, we place an alert and refer you to the valuation unit for them to give you the appropriate value.

“Even if the cargo has exited, we would refer you to the Post-Clearance Audit (PCA) unit. If you think you are smart, some people are smarter than you. The agents and freight forwarders are always proving smart.

“Sometimes, the headquarters also send an alert. There is nothing in it. It is just a guide that you should do the right thing and ensures that appropriate duties are paid.

“Why we are having all these noise is because these are vehicles. You would find out that up to five or six freight forwarders are following one vehicle to clear it.

“These guys are so dubious. There was a time we were changing the colours of the valuation papers. If we use green today, we use red the following week without them knowing. This actually minimised their activities at that time, but now it is getting rampant,” he said.

Earlier, the CG said the high rate of falsified documents at the ports, under-invoicing and false declaration, adding that clearing agents were culprits of these illicit acts.

Ali had revealed that less than five per cent of importers processed their clearing documents genuinely. He said: “Out of 100 containers imported, there is hardly 10 with genuine declaration. For any one Indian that is there, 10 Nigerians must support him because we do not love our country.

“You cannot go to their country and do this, but in Nigeria, anybody can come and cheat us.”

 

Fast-track abuse

Ali said many of the goods cleared through the fast-tracking arrangement were security risks. Ali said more than 36 containerised cargoes were missing through the abuse of the scheme.

Speaking at the 45th Annual General Meeting of the Manufacturers Association of Nigeria (MAN) in Lagos, he said NCS had created a platform to ensure that impediments to businesses were removed.

“I can tell you categorically that less than five per cent of our importers processed their documents genuinely at the ports. We discovered this through our investigations,” Ali said.

The spokesman of the service, Joseph Attah, said NCS had been using its PAAR for speedy clearance of goods. He said the CG recently inaugurated the renovated and re-equipped PAAR ruling centre.

Attah said: “This allows importers with proven integrity to take their cargo straight to their premises where examination will be conducted with a view to collecting duty.

“We have adopted it and have been using it; meaning those importers and their agents make appropriate declaration, documentation and finalise all processes before the arrival of the cargo.”

The image maker said the service would partner with the Presidential Enabling Business Environment Council, the office that is driving the Ease of Doing Business projects, to ensure that every impediment to businesses in ports was removed.

 

Recommendations

There is need for Customs to publish the actual amount to be paid by an importer on each vehicle to stem.

Also, the NCS should rid the ports of touts.

 

 

Muyiwa Lucas

 

THE Chairman, Seaport Terminal Operators Association of Nigeria (STOAN), Princess Vicky Haastrup, has emphasised the need for the seaports to remain open while the Federal and state governments contain the spread of the Coronavirus (COVID-19) pandemic.

In a statement, the STOAN Chairman said, “As we face the global public health crisis birthed by the Coronavirus disease, otherwise knows as COVID-19, we advise government to ensure that the supply chain is not disrupted and the seaports keep running. Even if other sectors of the economy are shut down to guard against the spread of the virus, the seaports should remain open to ensure that there is no shortage of food, drugs and other essential supply to Nigerians.’’

The shipping sector, Haastrup emphasised, is key to the continuity of economic activities, ensuring supply chains to industries; transport of essential goods, including energy and food supplies, and transport of vital medical and protective equipment, and supplies,

She said: “It is imperative for the fight against COVID-19, the supply of essentials, as well as for increasing the chance of the economic recovery on the other side of the outbreak, that maritime and connected transport is allowed to continue, and that government works actively to support the sector throughout the period of the crisis.

“The continued functionality of the ports and port ecosystems is imperative for securing movement of goods at scale, for prevention of shortages and thus for maintenance of public order.

“Observations from China during the COVID-19 outbreak show how a top priority given by national leaders to ensure business continuity in ports can help minimise the impact of precautionary measures on the fluidity of trade and port operations.’’

She continued: “Central actions were supplemented by local initiative from local logistics and shipping industry. While much of Chinese society was in lockdown during the height of the COVID-19 outbreak, Chinese ports continued operations with minimum disruptions. This was not least due to the top-down instruction by the Chinese government to stay open and prioritise business continuity in all provinces across the country.

“The Chinese experience is reflected in the European Union’s response to COVID-19. The EU guidelines for border management measures to protect health and ensure the availability of goods and essential services issued on March 16, 2020, advised countries to ensure that their control measures did not undermine the continuity of economic activity and should preserve the operation of supply chains.”

Haastrup said continued supply of essential goods was important to enable the country get through the COVID-19 crisis as well as ensure “economic continuity.

“The examples from China and the EU show that the functionality of ports and transport systems must be a priority in the effort to manage COVID-19 outbreak,” she added.

The STOAN chairperson assured that to guard against the virus’ transmission through the ports, terminal operators were working with the Nigerian Ports Authority (NPA) to ensure that ships arriving the country report crew list and their health status before being allowed to berth.

She said port workers and users were being enlightened on their roles and safety measures,  adding that adequate protective equipment had been provided for workers.