The Nation Newspaper

Category: Maritime

  • Customs trains officers on use of AK47

    The Nigeria Customs Service (NCS) is training its personnel at the Western Marine Command in Apapa, Lagos, on how to handle Ak47 rifles.

    It is all in the spirit of the renewed anti-smuggling war.

    Officers of the Federal Operations Unit (FOU) Zone ‘A in Ikeja, it was learnt, are in charge of the exercise.

    The Marine Command Controller, Umar Yusuf, said the training would be in batches.

    He said the service has changed from using G3 to AK47, adding that it is to make the officers more effective when dealing with smugglers.

    “At a follow up meeting held in Abuja two weeks ago with Deputy Comptroller General in charge of enforcement, inspection and investigation, we deliberated at length and I talked on the need to get my officers trained on AK47”

    “As we await the arrival of the sea going vessels, we also need to equip our officers on some equipment to checkmate illicit acts on waters; like bunkering and other anti-economic activities.

    “There is need for officers to be well equipped with sophisticated weapons because the dare-devil sea robbers are also using modern weapons and that is why we need it,” he said.

    A total of 37 officers of the command, he said, would be the first set to undergo the training.

    He said the training by men of the Federal Operations Unit is in line with the synergy that exist within the service.

    Its Public Relations Officer (PRO) Ngozi Okwarra, said with the training, officers and men of the command wouldl be able to deal with smugglers at sea.

    She said the G3 rifles are manually operated and assured that with the AK47 training for officers, the command will make more arrest of the smugglers. “The presence of our officers on waters will be more effective than before,” she said.

    The Deputy Comptroller-General, Enforcement, Investigation and Inspection, Mr Musa Tahir, also said the service has increased its anti-smuggling campaigns to arrest and prosecute smugglers

    “For  us in the NCS, we prefer to make seizure with the defendants, because we sincerely believe when you convict people, it serves more as a deterrent than when you confiscate the goods and dispose them off.

    “When you do that, they don’t feel the pain because many smugglers are rich people, they don’t feel the pain. So, we prefer to convict you, send you to court of justice, so that when you come out tomorrow and you want to be a senator in your village, you will not be allowed because you are a convict.

    “When officials of the service intercepted any good, the first thing we do is to check whether that item, cargo or whatever it is, is absolute prohibition,” he said.

    Thair said absolute prohibition include commodities not allowed into the country, even if it was a piece like firearm, used clothing and hard drugs.

    According to him, goods in such category are always seized immediately, while unaccustomed goods are often detained for a maximum period of 30 days to allow the owner defend it.

    He explained that “unaccustomed goods’’ are goods that do not fall into prohibited category, but are brought in without payment of necessary duties.

    “Whatever you bring in, even if it is something that is legal, you cannot import into the country, provided you have not paid the duties, it is uncustomed and it is an act of smuggling. So, the customs is supposed to seize it and apply the appropriate law.

    “But in  this kind of situation, you need to check whether it has been declared; whether there is documentation on it; whether duty has been paid on it. So, you need sometimes to check.

    “These days, it does not take long for us to find out whether there is documentation on it and whether duties have been paid on it or not because our systems are completely automated,” he said.

    The Customs chief added that where it proved difficult to verify the goods immediately, the law provided that the NCS could detain up to 30 days for investigation to be carried out.

    He said if after 30 days the defendant did not show up, the goods would be converted into seizure and taken to the Federal High Court where a competent judge would condemn it.

    “And when it is condemned, the cargo, the vehicle, the goods or whatever it is, becomes a government property and it is disposed by the service,” he said.

    On why Customs still impounded goods bought within the country, he said smugglers are clever people, who could hide their goods anywhere before selling them to unsuspecting traders.

    He said if there were credible information that a particular vehicle was carrying smuggled goods, customs officers would stop such vehicle and check.

    “If there is credible information that a particular cargo has not paid duty, we crosscheck and if we find out that you have paid duty, we release you with an apology.

    “But if we crosscheck and you have not paid any duty, we will keep you in the same offence like somebody who brought it from the border and you will face the music,” Thair said

  • NIWA to build more jetties in Lagos

    The National Inland Waterways Authority (NIWA) is constructing more jetties to boost water transportation in Lagos.

    The Lagos Area Manager of NIWA, Mu’azu Sambo, said the jetties would be built on Public Private Partnership (PPP) initiative.

    He said the jetties will help in providing infrastructure for water transportation.

    “NIWA has close to seven jetties in Lagos, owned by NIWA, built by NIWA, managed by NIWA, for the purpose of aiding our water transportation.

    “Remember that jetties are like airports. Jetties are to water transport what airports are to air transport; and therefore, they are the most critical in terms of infrastructure.

    “There is a large volume of passengers moving between Maroko and Ikorodu; people who come from Ikorodu to Lagos to work.

    “There is also movement between Ikorodu and CMS. So, these jetties are helping in providing the infrastructure for water transportation in Lagos.

    “That is not to say, however, that we do not require more jetties, we do.

    “Now, because of the limited resources of government, what we have adopted is the policy of PPP, for infrastructure development and enhancement,” he said.

    Sambo said that the agency presently had about 126 jetties, and described them as massive, even in terms of costs of maintenance.

    He said greater priority would be given to areas like Liverpool and Coconut in Lagos, among others, in the construction of the new jetties, while the CMS jetty would be given a face-lift.

  • Customs loses over N48b to waivers

    • ‘Policy should be reviewed to reflect economic reality’

    The Nigeria Customs Service (NCS) lost over N48 billion to waivers between January and December, last year, The Nation has learnt.

    An official of the Ministry of Finance, who asked not to be named, said over N25.8 billion was lost between January and May.

    Justifying the waivers, the official said they were incentives used to support the private sector because of some of the regulatory challenges in the domestic business environment.

    According to him, sectors that benefited from waivers are hospitality, power, aviation and agriculture. There are also, solid minerals, steel and manufacturing.

    “There are also additional programmes, such as the Export Expansion Grant Scheme, designed to promote non-oil exports. These sectors are seen as strategic areas, which can stimulate growth, support diversification of the economy, and create jobs.

    “In the past, waivers were granted to individual businesses in an approach that resulted in rent-seeking behaviours and an uneven playing field for other businesses. It was precisely the need to stop such a discretionary approach that led to reforms by the Economic Management Team.

    “A sector-wide waiver policy was introduced to provide specific incentives for some strategic, job-creating sectors. Under this regime, all businesses in a sector have access to the same incentives.

    “In addition, some waivers and exemptions make up for gaps in our economy; for example, waivers to bring in vehicles for sporting events and conferences,” the official said.

    On the implication of the waivers to remittances into the Federation Account and seven per cent revenue accruals to Customs, he said: “We have to weigh the balance between putting money into the Federation Account, collecting Customs revenues and providing jobs for the teeming unemployed youths to providing the necessary incentives for private sector operators to stimulate growth and development. The government felt it has responsibility to perform in terms of job creation and see to the local production of some of the goods we consume.”

    But some Customs officers are worried by the loss because of dwindling resources from falling oil price and naira devaluation.

    About N55.96 billion, N55.34 billion and N59.42 billion were lost to waivers in 2011, 2012 and 2013.

    A senior official, who pleaded not to be named, advocated a periodic review of concessions and waivers to determine if they are necessary.

    The official said the concessions should be reviewed in tune with present economic reality.

    “The government needs to encourage local industries to grow but the concession and waivers agreements must be sealed with the interest of majority of Nigerians at heart,” he said.

    The official observed that the waivers were being exploited by beneficiaries, noting that the government had been granting waivers and concessions to companies and individuals without consideration for its economic implications.

    He urged the government to review its tax incentive policies and stop arbitrary granting of concessions and waivers that undermine use of the tax as a means of revenue generation from the ports.

  • Osinbajo: APC govt will reduce duty on imported vehicles

    The All Progressives Congress (APC) has promised   to cut tariff and duty on imported vehicles, if it wins the March 28 presidential election.

    Its vice-presidential candidate, Prof Yemi Osinbajo, at a town hall meeting with political stakeholders in Ondo, Ondo State, said: “We do not agree that there should be high tariff on imported cars whether new or old because Nigeria is not producing cars for now.

    “What we will do first is to fix power and encourage local production of cars. But before then, we will reduce the high tariff that Nigerians are paying to import vehicles into the country.”

    Osinbajo said Nigerians should not find it difficult to buy cars, promising that the APC government would ensure that tariff were reduced to make cars affordable.

    The Goodluck Jonathan administration  began implementation of the new tariff on imported vehicles last year.

    The policy pegs the age limit for private vehicles at 10 years and commercial, 15.

    Under the new regime, importers, who hitherto paid 20 per cent duty on used vehicles, now pay 35 per cent duty and additional 35 per cent levy on new vehicles. The tariff is an offshoot of the automotive policy.

    Under the policy, Customs will collect additional 35 per cent levy, totalling 70 per cent tariff from April.

    Vehicle dealers and importers in Lagos are lamenting that the policy is hurting their businesses and have hiked prices by about 300 per cent.

    The policy, they argued, could propel jobs’ cut. Chief Osita Chukwu, National Coordinator of Save Nigeria Freight Forwarders Importers and Exporters Coalition (SNIFFIEC), said the policy is anti-masses and should be resisted.

    “We cannot accept the 70 per cent tariff hike. It’s going to kill the masses. How many people will be able to buy used vehicles? How many people can afford new ones as well? We reject this. We are going to shut the ports if the government doesn’t rescind its decision on this matter. By the time over three million importers, exporters and other stakeholders withdraw their services from the ports, you can imagine the implication.”

    Osinbajo fingered lack of gas supply for the power problem.

    He promised that plants would be sited in neighbourhoods where power is needed and gas supplied to them using trucks and related means besides pipelines.

    According to him, the model is in use in Lagos State where such plants supply power to designated neighborhoods.

  • Osinbajo: APC govt will reduce duty on imported vehicles

    The All Progressives Congress (APC) has promised to cut tariff and duty on imported vehicles, if it wins the March 28 presidential election.

    Its vice-presidential candidate, Prof Yemi Osinbajo, at a town hall meeting with political stakeholders in Ondo, Ondo State, said: “We do not agree that there should be high tariff on imported cars whether new or old because Nigeria is not producing cars for now.

    “What we will do first is to fix power and encourage local production of cars. But before then, we will reduce the high tariff that Nigerians are paying to import vehicles into the country.”

    Osinbajo said Nigerians should not find it difficult to buy cars, promising that the APC government would ensure that tariff were reduced to make cars affordable.

    The Goodluck Jonathan administration  began implementation of the new tariff on imported vehicles last year.

    The policy pegs the age limit for private vehicles at 10 years and commercial, 15.

    Under the new regime, importers, who hitherto paid 20 per cent duty on used vehicles, now pay 35 per cent duty and additional 35 per cent levy on new vehicles. The tariff is an offshoot of the automotive policy.

    Under the policy, Customs will collect additional 35 per cent levy, totalling 70 per cent tariff from April.

    Vehicle dealers and importers in Lagos are lamenting that the policy is hurting their businesses and have hiked prices by about 300 per cent.

    The policy, they argued, could propel jobs’ cut. Chief Osita Chukwu, National Coordinator of Save Nigeria Freight Forwarders Importers and Exporters Coalition (SNIFFIEC), said the policy is anti-masses and should be resisted.

    “We cannot accept the 70 per cent tariff hike. It’s going to kill the masses. How many people will be able to buy used vehicles? How many people can afford new ones as well? We reject this. We are going to shut the ports if the government doesn’t rescind its decision on this matter. By the time over three million importers, exporters and other stakeholders withdraw their services from the ports, you can imagine the implication.”

    Osinbajo fingered lack of gas supply for the power problem.

    He promised that plants would be sited in neighbourhoods where power is needed and gas supplied to them using trucks and related means besides pipelines.

    According to him, the model is in use in Lagos State where such plants supply power to designated neighborhoods.

  • Customs urged to reduce cost

    A maritimelawyer,Osuala Emmanuel Nwagbara, has urged the Nigeria Customs Service (NCS) to implement Article 20 of its Act to reduce the cost of doing business at the ports.

    Delivering a paper titled: “Towards A New Port Order: The Journey So Far- A Lawyer’s Perspective”, at a forum organised by the Shippers’ Association of Lagos State (SALS) , Nwagbara said there was need for Nigeria to implement the provisions of Act No. 20 in the spirit of trade facilitation among the World Trade Organisation (WTO) member countries

    He urged the NCS to repeal the benchmark method of valuation as well as all arbitrary value method of arriving at the duty payable on imports to attract more business.

    Nwagbara said  the idea of using arbitrary, or fictitious valuation methods run contrary to the provisions of Article VII of the General Agreement on Tariffs and Trade (GATT) to which Nigeria is a signatory.

    He said the Customs and Excise Management (Amendment) Act No. 20 of 2003, provided that Customs duty should be determined sequentially by reference to six methods, which include; transaction method, identical method, similar value method, computed method, deductive method and fall back method, wondering why the Service would not conform itself to these six as stipulated.

    “The simple explanation of the provisions of Act No. 20 of 2003 is that duty on imported goods shall be based on value stated by the seller on the seller’s invoice and such invoice is usually authenticated by the exporting countries’ Chamber of Commerce. This is the meaning of method one,” he said.

    He said where there is good reason to doubt the veracity of the value stated on the invoice of the seller, then recourse should be made to the value of identical goods from same country of import, of same quantity, within a maximum time lag of three months,  all in a bid to determine value so as to have the appropriate customs duty charged on the imports.

    This sequential method, he said, should continue where applicable until the last method is attained. He wondered why  the Nigeria Customs Service at the moment uses what may be described as “Benchmark method of valuation” of import or arbitrary method in order to arrive at the duty payable on such import.

    He explained that “ all that was done in many cases was to allot particular type of import of particular packing unit without reference to the invoice value of the seller from the country of import.  “So, every container is assessed  at the same value or the Nigerian Customs Service man may just apply his discretion as to what he feels the value of a particular import should be and then base the duty assessment on that discretion value,” he said.

    This valuation method, he argued, is arbitrary or fictitious and runs contrary to the provisions of Article VII of GATT, saying it “adds to the high cost of doing business in our ports”. He stated that there is need for Nigeria to implement the provisions of Act No. 20 in the spirit of trade facilitation among WTO member countries.

    Nwagbara decried the practice by Customs officials to employ every  instrument to frustrate genuine complaint of over-assessment by the NCS in matters of valuation, describing it as a denial of port users’ access to justice.

    He said Paragraph 13 of the 1st Schedule to the Act No. 20, 2003 , which  made the Comptroller-General of Customs a semi-final authority to adjudicate on all disagreements on  valuation before a dissatisfied party would approach the court, envisaged that disagreement over assessment to Duty was a civil disagreement. According to him, it should be settled. He, however, regretted that  the  Service frustrates the procedure. “Once an assessment is done, it is take it or leave,” he said.

    He continued: “All forms of chicanery would be employed to frustrate genuine complaints of over assessment to duty, beginning from delay in attending to the complaint, to subtle threat of declaring the affected overtime cargo, with the unpleasant consequence of being lost to the Federal Government of Nigeria.”

    This, he said, encourages corruption in the system apart from restricting the affected port user’s  access to Justice. “Nigeria is a member of the World Customs Organisation (WCO), which is the technical arm of WTO on trade facilitation,” he said.

  • CRFFN set to sanitise freight business

    The time seemed up for all illegal freight forwarders operating at the nation’s sea ports as the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) is set to implement the Act establishing the council, The Nation has learnt.

    Many unregistered freight forwarders, findings revealed, are operating illegally at the seaports.

    The council, it was also learnt, has resolved to train about 300 freight forwarders at Certificate, Diploma and Higher Diploma in Freight Forwarding and Supply Chain Management levels this year, to facilitate  trade and boost quick cargo clearance.

    The Council, it was gathered, would soon carry out its oversight function on all associations, corporate and individual freight forwarders to ensure that only registered freight forwarders are allowed to do the clearing jobs at the ports.

    The CRFFN, it was discovered, registered only 1,274 individual freight forwarders and 610 corporate organisations as at the end of December, last year and not 6,000 as was erroneously claimed by the leadership of Nigerian Licensed Customs Agents (ANLCA)

    The Head, Corporate Affairs, CRFFN, Uromta Chinyere, in a letter, quoted the CRFFN Registrar, Sir Mike Jukwe, as debunking the 6,000 figure put forward by ANLCA, saying the Council would ensure that all the associations pay their dues to the Council or face the appropriate sanctions.

    Jukwe  also refuted the claim by the ANLCA chief that no fewer than eight freight forwarding associations were waiting to be registered and accredited by the CRFFN.  He said the council has not received such applications, adding that all defaulters  would not go un-punished. He said payment of subscription fees by freight forwarding associations to the Council is not negotiable.

    On the mode of registration of practitioners by the Council, Jukwe said the accreditation of freight forwarding associations and freight forwarders by the Council was done strictly in compliance with the laid down regulations, insisting that the council has not in any way lowered the set standards.

    He explained that the existence of the Council is not dependent upon an individual, corporate body or association, since CRFFN is a statutory organ of the Federal Government established by an Act. He added  that the achievement of the Council, despite its lean resources since its take–off in 2009, speaks volumes for it.

  • 18 suspects, 36 vehicles held in Imo

    The Nigeria Customs Service (NCS), Federal Operations Unit (FOU),  Zone ‘C’ Owerri, Imo State has impounded 36 vehicles and arrested 18 suspects in its anti- smuggling campaign.

    The seized vehicles included 13 cars, 14 Sport Utility Van (SUV),  five trucks and four buses .They were impounded at various locations within the zone.

    Its Area Controller,  Victor Dimka, told The Nation that 37 seizures with Duty Paid Value (DPV) of N179.5million were recorded last month, adding that the seizures were higher than those recorded in January last year. He put last year’s DPV  seizures at about N93 million.

    Apart from the vehicles, other  items that were intercepted by the  officers and men of the command included 636 cartons of imported frozen poultry products; 800 bags of cement; 800 pieces of used types; 2,155 cartons of foreign soap and creams; 274 bales of second hand clothing and stockings and 17 pieces of Tarpaulin.

    Others are 12 pieces of PVC rubber carpet and 51 bags of 50 kg parboiled rice.

    The Area Controller attributed the feat by the unit to innovations put in place by the management of the Service headed by Alhaji Dikko.

    This, according to him, has  reduced smuggling to the barest minimum in the area.

    Dimka also commended other security agencies such as the Nigeria Police Force, the State Security Services (SSS), the National Drugs Law Enforcement Agencies (NDLEA) and the media for cooperating in the fight against smuggling.

    “We have been trained, oriented and conscientised under the management of the CGC to meet our challenges and it is left for those still entrapped in smuggling to desist forthwith or be prepared to face the consequences of their act if arrested,” he said.

    Dimka advised the public, who wish to purchase vehicles, to ensure that they go through the official channels and clear with the customs before investing their money, warning that all illegal imported goods must be impounded as ignorance of the law is no excuse.

    He also warned that the NCS will not succumb to senseless and irrational pleadings for leniency by individuals caught in the act of smuggling.

    “So, many unthinkable and unimaginable things are happening in our country today, because of the persistent activities of smugglers and enough is enough because by this, they are trying to circumvent the laws of the land and that of such organisations as the Automobile industry,” he said.

  • Govt policy sends auto business booming in Cotonou

    The volume of vehicles being imported through the nation’s seaports has reduced drastically due to the implementation of the automotive policy by the Federal Government.

    Findings have also revealed that over 70 per cent of  fairly-used vehicles, popularly known as Tokunbo, being imported into the  market come through the neighbouring Port of Cotonou, Benin Republic.

    Also, the volume of imported vehicles into the country has reduced by half since the introduction of the auto policy.

    The Managing Director, Port and Terminal Multi-service Limited (PTML),  Asconio Russo, confirmed the  development when the President, National Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, visited the terminal in Lagos, last week.

    He claimed that the policy is already affecting operators at the ports, urging stakeholders to address the issues to bring succour to the sector.

    Russo said: “I may not want to comment on government policy because it is not my prerogative, but I can give you the figures. The number of vehicles being discharged all over Nigeria – I am not talking about our terminal – but in Nigeria, has dropped by 50 per cent.

    “So, the calculation is if the whole of Lagos was discharging 20,000 or 25,000 vehicles every month, it is like we are now doing 10,000 vehicles and these are the ones coming into RORO. There are also some coming in containers which have also disappeared.

    “We have noticed that the number of vehicles coming into Cotonou has increased dramatically, so we are losing business while Cotonou is gaining business. Everyone can understand what this  means and we know that Cotonou’s population has not increased from the 10 million people they were.

    “This policy is dramatically affecting the port industry and this is affecting the overall population because the prices of vehicles are going up in the market and this is something we see every day,” Russo said.

    Responding, Shittu said ANLCA has always being critical of the auto policy because the implementation would affect the businesses of its members.

    “We have  always being critical of this automotive policy and we have not changed our position. By the time April comes and the 35 percent levy is added, it will be a problem because there will be no cargo through here, our people will lose jobs and we will lose the whole revenue,” Shittu said, wondering  how those who have made huge investments in the sector would be able to recover their inputs.

    He continued: “It is a very serious matter. How many Nigerians can afford to buy a brand new vehicle in this country?  So, when duty on fairly use vehicle is 70 per cent and by December, it will be 100 per cent according to what the Minister, Olusegun  Aganga, mentioned to me, should we shut down the whole port in protest? Will it receive popular acceptance? Will the government not see us as saboteurs because this is pre-election and post-election?”

  • Firm spends N75m on pollution, waste management

    African Circle Pollution Management Limited (ACPML) has spent about N75million ($400,000) on the clearing and management of maritime pollution and waste.

    The cash was used to procure special flowting hose reels for the loading and evacuation of sladge from ships, and six specialised trucks to reduce waster on the waters.

    The Federal Government hired ACPML to provide waste facilities at the seaports in line with the guidelines of global maritime watchdog, the International Maritime Organisation (IMO), (MARPOL) 72, 73, and 78, particularly marine pollution.

    The prodcurement of the trucks, experts said, would enable the firm to fulfil its mandate in the 25-year agreement it signed with the government.

    ACPML Regional manager, West, Mrs Nike Shobowale, told The Nation that the firm uses the specialised vessels to take liquid waste, including sludge and bilge, from ships calling in the seaports to protect the waters.

    She said more trucks specially built and customised in Germany for ACPML would soon be delivered to the country.

    NPA Executive Director, Marine and Operations, Mr. David Omonibeke, expressed delight over the acquisition of the new vehicles, saying this was in line with the Transformation Agenda of the Federal Government.

    He said NPA is supporting ACPML to ensure that Nigeria under President Goodluck Jonathan fulfills her obligations as a key member of IMO, assuring that NPA will not relent in ensuring that ACPML fulfills the provisions of the agreement.

    ACPM, it was gathered, has also installed two high-burn incinerators to handle solid waste. The incinerators are equipped with scrubbers to minimise air pollution.A drum crushing machine with a special cleaning system is also in place to treat hazardous waste. There are 10 specially adapted garbage trucks , three others in Port Harcourt, Rivers State; Calabar, Cross River State; and Warri, Delta State.

    A 1,000 tonne-capacity tank farm at the company’s waste management facility at Snake Island holds hazardous waste for processing.

    Already, the firm has spent over five million Euros to procure four new vessels, namely MV Maizube 1, MV Maizube II, MV Bics and MV Etypou.