The Nation Newspaper

Tag: CEMA

  • Nigeria loses billions yearly in ship supplies

    Nigeria loses billions yearly in ship supplies

    Customs Clearing Agents have urged the Nigerian Maritime Administration and Safety Agency (NIMASA) to tap into chandling. The agents described the business as the most lucrative in maritime sector.

    Ship chandling, a business established in Nigeria through an Act in 1958, is made up of retail dealers, who specialise in supplies of equipment and goods for ships, known as ship’s stores.

    For traditional sailing ships, items that could be found in a chandlery may include: rosin, turpentine, tar, pitch (resin), linseed oil, whale oil, tallow, lard, varnish, twine, rope and cordage, hemp, oakum and tools (hatchet, axe, hammer, chisel, planes, lantern, nail, spike, boat hook, caulking iron, hand pump, marlinspike).

    Others are brooms, mops, galley supplies, leather goods, and paper.

    Items that could be supplied by the modern day chandlers, range from foodstuff, drinks, oil, engine oil, water,  spares, materials and other items the captain of the ship may require.

    The President, Nigeria Licensed Customs Clearing Agents (ANLCA), Prince Olayiwola Shittu, who made the call, said although the Local Content Act is meant to address issues of this nature, the National Content Monitoring Board is yet to understand the dynamics of the local content ship chandelling operations.

    He said the country loses several billions of naira annually due to the low level of activities in the ship chandelling sub sector of the economy. He, therefore, urged the Director-General of NIMASA, Patrick Akpobolokemi and his management team to do a thorough co-ordination of the statues guiding ship chandelling so as to harness it to create jobs for the youth and boost the nation’s economy.

    He pointed out that ship chandelling needs a lot of funds to meet the demands of the crews engaged by ships.

    For instance, he said a ship of 5,000 Gross Registered Tonnage (GRT), would require about $50,000 monthly to take foods, pharmaceuticals, oil, lubricants and other things for it to go to sea and come back to the port.

    The ANLCA boss said the association was worried that the legislation guiding ship chandelling profession has been in comatose, a situation that has allowed the profession to stagnate, adding that the Customs and Excise Management Act (CEMA), Section 24, which regulates ship chandelling, has not been reviewed since 1968 to reflect the new trend in the business.

    Shittu said the Nigeria Customs Service (NCS), has the power to enforce, as well as the requisite training to understand the dynamics of how this aspect of the maritime business is run.

    He said ship chandelling is one of the oldest maritime professions the country needs to harness to protect local chandlers and end foreign domination.

    The ANLAC chief said the continuous refusal of foreign ship operators to make use of indigenous chandlers contravenes the Local Content Act promulgated by the Federal Government to grow indigenous companies and create jobs.

    “NIMASA and the Federal Government must do something about the business. The country must use all the resources we have to provide jobs for our people. Other countries are using ship chandelling to empower their youths and there is nothing wrong if we also tap into it,” Shittu said.

    But a senior official of Customs, who does not want his name in print, said the terminal operators also were taxing indigenous chandlers heavily, collecting about 20 per cent of the total cost of the goods to be supplied. “They collect the money before they allow them to pass through their terminals to supply the crew inside ships,” he said.

    Ship chandelling business is regulated by an international body known as the International Ship Suppliers Association, (ISSA) which was formed in 1955 and it is a business that is central to the existence and the social dynamics of ports and waterfront areas.

  • Group seeks harmonisation of laws

    The National Association of Government Approved Freight Forwarders (NAGAFF) is seeking the harmonisation of the Customs and Excise Management Act (CEMA) and the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) guidelines.

    In a letter to the Minister of Transport Senator Idris Umar and his Finance counterpart, Dr. Ngozi Okonjo-Iweala, the body urged them to set up a committee to address the issue.

    The letter, signed by its Secretary,  Increase Uche,  said the two legislations appear to be contradictory.

    He said: “Whereas the Customs law recognises corporate bodies licensed by Customs, primarily the CRFFN lays emphasis on individuals whose names appear in the register of freight forwarding firms.

    “These two legislative instruments appear to be in conflict because CEMA may not have recognised the nomenclature of freight forwarding practice, but licensed customs agents and importers, and exporters.”

    The group urged the senior government officials to set up a joint technical committee to harmonise the application of Customs law with freight forwarding Act 2007.  The licensing regulation of the Nigeria Customs Service under Section 153, 154, 155, 156 and its code, needs to be harmonised with the application of Section 19(a & b) of the CRFFN Act.

    “The point herein canvassed is to state the obvious that freight forwarding as a profession, may not materialise in reality and practice if CEMA and CRFFN operators do not sit down to harmonise positions,” Uche added.

  • CEMA Bill passage excites Customs

    The passage of the new Customs and Excise Management Re-enactment Bill into law by the Senate Committee on Finance will enable officers and men of the service to play a leading role in international trade.

    Speaking with reporters in Lagos, Custom’s Public Relations, Mr Wale Adeniyi, said there were many inhibitions on the path of the Nigeria Customs Service as a result of its obsolete CEMA laws, which it was using to operate.

    But with the passage of the law by the upper legislative chamber, Adeniyi expressed the hope that once the law receives the blessing of the House of Representatives from where it is expected to get the assent of the President, the Nigeria Customs Service will play a lead role in Nigeria’s international trade.

    The Customs image maker explained that one of the areas the service has experienced challenges is ICT, most especially on the Single Window Project which, according to him,  until now, Customs cannot boast of being the sole owner of the concept.

    He said: “You will recall that the Bill that used to be the extant law of the Customs was enacted in 1958, between that time and now a lot of changes have taken place in international trade, procedures have changed, processes have changed, the volume and complexities of international trade have gone beyond what the old law could provide for.

    “So, we are excited that the new law will bring in some of these changes and put Customs in a proactive manner and be backed by law.

    “There are number of issues we would have loved to solve, but each time we try to take the step we remember that we are not backed by law to do it and we have to take a step backwards, especially in the areas of ICT and the Single Window Project.”

     

  • Senate may pass CEMA Bill before June

    The Chairman, Senate Committee on Customs, Senator Ahmed Makarfi, has said the Customs and Excise Management Act (CEMA) Amendment Bill would be passed before June.

    Speaking during his committee’s visit to Customs Headquarters in Abuja, Makarfi said the Senate would ensure that the CEMA Bill was passed before the expiration of the contract to service providers on Destination Inspection (DI) in June.

    The bill, he said, would address the problem of inadequate funding and ensure “autonomy’’ for the service.

    He said senators see the passage of the bill as crucial to the economy.

    Makarfi said in terms of priority, the CEMA Bill was second to the Petroleum Industry Bill (PIB), which has scaled second reading at the Senate.

    He assured that the bill would receive presidential assent because some of the contentious sections in the Bill had been resolved.

    The committee, he added, received 38 objections out of 48 submissions on the bill.

    “Through discussions most of them (the objections) were settled and only about eight remained for discussion.

    “The bill is not for one individual or institution, it is for the country, and, therefore, we believe that the bill as it is when passed will be a good bill for Nigeria,” he said.

    Asked whether Customs would remain under the Ministry of Finance when bill is passed, he said: “Every agency must remain somewhere.

    “But the issue is that they will have the autonomy required.”

    On the ability of Customs to take over from service providers, Makarfi said the service has the requisite facility and manpower.

    “What is important is that with the facilities we have seen by June they (Customs) should be capable to continue to do their (service providers) job.’’

  • Customs denies attempt to bribe lawmakers

    The Customs Service has denied buying 200 cars for members of the National Assembly to pass the amended Customs and Excise Management Act (CEMA).

    Its Customs National Public Relations Officer, Deputy Comptroller Wale Adeniyi, said the claims by the Managing Director of Maritime Media Limited, Elder Asu Beks, that Customs acquired the cars to influence the lawmakers to free the Service from the control of the Presidency and the Federal Ministry of Finance were not true.

    “It is good and easy for us to address the issue raised by Mr Asu Beks. First, he raised the allegation that Customs bribed the distinguished Senators with 200 cars to pass the CEMA Bill. Well, we find this allegation curious and unfounded and these are allegations that Mr Asu Beks cannot back up with any evidence. This is not a substantive issue, but, for me as a concerned Nigerian and as a Customs officer, the onus of proof lies with MrAsu Beks to tell Nigerians how Customs actually bribed the distinguished Senators with 200 vehicles. “Beks needs to come out with more facts. What type of vehicles are they? What model? Where were the vehicles bought? Were they imported into Nigeria? He needs to let Nigerians know that this is the evidence he has. He cannot just come and make this type of allegation and we allow him to go like that. It is also in the interest of distinguished members of the House, because it is a credibility issue, and throwing this kind of allegation wildly at them like this is not good for our democracy.”

    The Customs image-maker said the attempt to pass the new Customs bill is noble, because the existing CEMA is old and obsolete.

    “The exercise is to bring the law in tandem with the challenges of modern Customs administration. It is obvious that people like Beks, who are condemning this bill, have not read it. It is so obvious. What this bill sought to repeal is the old 1958 Act. There is a new Act, which was enacted in 2004, which is the Customs Excise Consolidated Act 2004 CAP C49. All the powers of Mr President in terms of granting waivers and concession are intact in Section 12 of this particular Act. Section 12 talks, particularly, about the powers to impose, to vary or remove any import duty and to amend the schedule of the tariff.

    “These are powers that are vested in Mr President and these powers are intact. So, Mr Beks and the like have not read the bill. CAP 49 of 2004 is not among the provisions that the new bill seeks to repeal. All the other powers of the Minister; the power to appoint the Board and members of the Board; to chair the Board of the Nigeria Customs Service and all the powers of the Board are all enshrined in the new bill. They are there and the new bill is not taking away any power that was vested in the under the former Act,” Adeniyi stated.

    He told The Nation that Customs might take legal action against Beks to compel him to proof his unfounded allegation.

  • Customs denies attempt to bribe lawmakers

    The Customs Service has denied buying 200 cars for members of the National Assembly to pass the amended Customs and Excise Management Act (CEMA).

    Its Customs National Public Relations Officer, Deputy Comptroller Wale Adeniyi, said the claims by the Managing Director of Maritime Media Limited, Elder Asu Beks, that Customs acquired the cars to influence the lawmakers to free the Service from the control of the Presidency and the Federal Ministry of Finance were not true.

    “It is good and easy for us to address the issue raised by Mr Asu Beks. First, he raised the allegation that Customs bribed the distinguished Senators with 200 cars to pass the CEMA Bill. Well, we find this allegation curious and unfounded and these are allegations that Mr Asu Beks cannot back up with any evidence. This is not a substantive issue, but, for me as a concerned Nigerian and as a Customs officer, the onus of proof lies with MrAsu Beks to tell Nigerians how Customs actually bribed the distinguished Senators with 200 vehicles. “Beks needs to come out with more facts. What type of vehicles are they? What model? Where were the vehicles bought? Were they imported into Nigeria? He needs to let Nigerians know that this is the evidence he has. He cannot just come and make this type of allegation and we allow him to go like that. It is also in the interest of distinguished members of the House, because it is a credibility issue, and throwing this kind of allegation wildly at them like this is not good for our democracy.”

    The Customs image-maker said the attempt to pass the new Customs bill is noble, because the existing CEMA is old and obsolete.

    “The exercise is to bring the law in tandem with the challenges of modern Customs administration. It is obvious that people like Beks, who are condemning this bill, have not read it. It is so obvious. What this bill sought to repeal is the old 1958 Act. There is a new Act, which was enacted in 2004, which is the Customs Excise Consolidated Act 2004 CAP C49. All the powers of Mr President in terms of granting waivers and concession are intact in Section 12 of this particular Act. Section 12 talks, particularly, about the powers to impose, to vary or remove any import duty and to amend the schedule of the tariff.

    “These are powers that are vested in Mr President and these powers are intact. So, Mr Beks and the like have not read the bill. CAP 49 of 2004 is not among the provisions that the new bill seeks to repeal. All the other powers of the Minister; the power to appoint the Board and members of the Board; to chair the Board of the Nigeria Customs Service and all the powers of the Board are all enshrined in the new bill. They are there and the new bill is not taking away any power that was vested in the under the former Act,” Adeniyi stated.

    He told The Nation that Customs might take legal action against Beks to compel him to proof his unfounded allegation.