The Nation Newspaper

Tag: Freight Forwarders

  • Freight forwarders pledge support for Fed Govt’s reforms

    Freight forwarders pledge support for Fed Govt’s reforms

    Freight forwarders have hailed the economic reform agenda of President Bola Tinubu as captured in the Renewed Hope Agenda.

    They also commended ongoing transformation in the aviation sector led by the Minister of Aviation and Aerospace Development, Barr Festus Keyamo (SAN) and Managing Director and Chief Executive Officer, Federal Airports Authority of Nigeria (FAAN), Mrs Olubunmi Kuku.

    The freight forwarders, acting under the aegis of Association of Nigeria Licensed Customs Agents (ANLCA), Murtala Muhmmad International Airport chapter, spoke against the background of the recent issues they have with charges at the airport.

    Chairman of the chapter, Temitope Akindele, in a note, said the agents commend the giant strides of the economic reforms of Mr President that have elicited the attention of the international community and had become a reference point for other countries.

    READ ALSO: The dynamics of Kano governor’s defection

    He said while the association has been supporting the government’s reforms, it shall continue to do so because the reforms are yielding tangible results. He however said there is need for synergy and understanding among the stakeholders in the sector for maximum result.

    Giving a background to the issue of multiple charges which the group is kicking against, he said: “It all started in year 2005, when Federal Airport Authority of Nigeria (FAAN) suddenly came and demolish our secretariat, our monument of peace, a structure we built with about N150 million. FAAN demolished our secretariat that took us six years to raise money to build without prior notice.  After the demolition, we roamed round for about five years without a shelter under which we could do business and contribute to the economy.”

    He said before the demolition, agents were paying N2 per kilo, adding that in 2010, FAAN came up again that they want to make an increment to N7 per kilo but we did not agree to that because the secretariat that was pushed down, nothing had been done to it.

    “We told FAAN that if there will be an increment, it must give us a site where we can build another structure. In that very 2010, we had 17 meetings we had with all the stakeholders, and FAAN agreed to give us a site on which we built our secretariat now and we have been paying the N7 per kilo since then.

    “Ordinarily, the money we are paying, to us, we see it as illegal because FAAN has sold its statutory rights to the cargo handlers, and the cargo handlers are SAHCOL and NAHCO, the two cargo handlers that are at the airport. NAHCO collects money on behalf of FAAN and so does SAHCOL. They collect N25 per kilo, each, and remit it to FAAN. Number two, airlines also collect N5 per kilo, and remit to FAAN.

    “Now, FAAN will come to us again to collect money. We see this as multiple charges, but even at that, we didn’t care. Now, FAAN came up again this year and increased the charges from N7 to N20, almost 200 per cent. FAAN didn’t tell us before the increment. We wrote a series of letters to FAAN seeking audience but FAAN ignored us,” he said.

    Akindele said the FAAN Act 2022, which has about nine parts made provisions for the involvement of stakeholders in the management of the facility.

    He said the Act did not make provision for multiple charges, adding that it made provision for FAAN to provide operational base for stakeholders.

    While acknowledging the power of FAAN to impose charges, he said such an action should involve stakeholders.

    He said: “What we are saying is that, FAAN should call us for a meeting. Ordinarily, inside the Act 2022, it was specifically mentioned there that if anything should happen, they should engage the stakeholders.

    “And who are the stakeholders? We are three. Number one is the freight forwarders. Number two is the cargo handler. And number three is the airlines because they are the ones collecting money on behalf FAAN.

    “We are now appealing to Honourable Minister of Aviation, Festus Keyamo (SAN) to intervene because he built his reputation as a human rights lawyer fighting for equity and justice. Let him give us an opportunity to state our case. We have been supporting the New Hope Agenda of Mr. President and we shall continue to support to support him because we are seeing the dividends of the president’s reforms.”

  • Freight forwarders kick against stemming cargoes to Kirikiri

    The Kirikiri Lighter Terminal (KLT) chapter of the National Association of Government Approved Freight Forwarders (NAGAFF) has expressed worry over alleged stoppage of transpire by officials of Tin Can Island Command of the Nigeria Customs Service (NCS).

    It said such action would militate against trade facilitation.

    A transpire is a Customs instrument for designating cargoes from one port to another.

    NAGAFF Chairman Emmanuel Umadi, an engineer, in a chat with newsmen in Lagos, accused the Tin Can Island Customs Area Comptroller, Mba Musa, of being selective in containers’ stemming to Kirikiri facilities.

    Umadi alleged that the practice by the Tin Can Island Customs’ boss has frustrated shippers from patronising neighbouring ports, adding that the act of not approving stemming of some consignments was unprofessional and negates World Trade Organisation (WTO) Conventions.

    According to him, the immediate past Area Controller, Bashir Yusuf, was instrumental to ensuring a seamless process of containers’ stemming to Kirikiri facilities. He alleged that the reverse has been the case with the current area controller, adding that revenue drive and trade facilitation cannot be sustained effectively.

    The NAGAFF boss reiterated that the alleged practice by the Customs is unacceptable because of transpires not being signed by the controller, noting that personal decision or interest by him (controller) poses serious danger to the nation’s economy.

    Umadi called on  the Area Controller to create an enabling environment for business at the port to thrive, noting that importers cannot be compelled to patronise his command in order to meet up with revenue collection.

    “Customs is Customs everywhere. So, I don’t understand how the process of transpire would affect revenue leakages. Duty payment is guaranteed if the containers are stemmed to KLT and even the KLT Command has little or nothing to do, so why frustrate importers and freight forwarders, who wish to do business at KLT.

    “It is totally unacceptable by freight forwarders. It is totally unacceptable by the constitution of Nigeria because as a remittal collector, you are supposed to sign the necessary transpire documents on boxes, which do not stop the customs from checkmating the containers wherever they are transferred to.

    “The Area Controller refused to give reasons why he chose not to sign transpire of some containers for reasons best known to him. There have been several meetings with him on these issues, but we cannot pinpoint why he declined to sign most of these containers and we are not comfortable with it. If transpire is being held by a customs Controller then the country will be affected with hardship and high cost of doing business in the ports as well as Nigerian economy,” he lamented.

    Reacting to the allegation, the NCS Public Relations Officer, Tin Can Island Command, Uche Ejesieme, agreed that shippers and agents have the right to determine where they want their consignments designated. He maintained that the command is yet to confirm applications on transfer of cargoes to other facilities, adding that there are procedures on consignments’ stemming.

    He further recalled that management had issued a circular on issues of transpires in 2018, stressing that the circular is extant and does not think the impressions that are given are actual facts.

    “Controller cannot take laws into his hands, he is somebody that understands the nitty-gritty of the job and he is somebody that would not want to do something contrary to the extent that it will become counter-productive,” Ejesieme explained, adding that the shipping companies cannot be isolated in the process of containers’ stemming to Kirikiri Lighter Terminal. He further explained that the gap might have emanated from documentations and not necessarily the command’s boss as being speculated.

  • Freight forwarders hail call for auto duty reduction

    THE All Ports Unified Freight Forwarders Practitioners Association has commended the Comptroller-General of Nigeria Customs Service (NCS), Col Hameed Ali (rtd) for calling for the reduction of duty and levy on imported used vehicles.

    It urged the government to put in place equal duty on all vehicles to discourage fairly used vehicles import.

    The Federal Government had put  35 per cent duty and levy on brand new cars, making importers to pay a total of 70 percent of the cost of a new car.

    The association’s President, Prince Mike Okorie, noted that equal duty and levy would discourage shippers from importing vehicles under the guise of importing tokunbo or fairly used ones.

    He said with this policy in place, importation of used vehicles would stop and Nigerians  be forced to buy new cars.

    Okorie added that Nigeria had become a dumping ground for used vehicles and that the government could only control this when it put in place policies that would discourage their importation.

    “Importers have devised a means of importing accidental vehicles into Nigeria and after that, put them in place and sell. It is a bad practice that must be discouraged.

    “I must commend the CG of Customs on this development, but we don’t have car-manufacturing companies in Nigeria.

    “Innoson Vehicles Manufacturing Company is the only firm that assembles cars, but how many cars can the company produce in a day?” he queried.

    He therefore called on the government to address the problem of vehicle manufacturing to stop the importation of fairly used ones.

    Okorie urged the Customs boss to address the issue of multiple check- points by officers and men of the NSC, saying the practice militates against trade facilitation.

  • Freight forwarders council to sanitise sector

    The Council on Regulation of Freight Forwarding in Nigeria (CRFFN), a newly inaugurated council, has promised to overhaul the Freight Forwarding sub-sector. The council said it will do everything to sanitise the sector.

    The president, Alhaji Abubakar Tsanni, who addressed reporters in Lagos, said CRFFN will ensure proper regulation and controlling in the practice of freight forwarding in Nigeria, saying the idea is to promote competence.

    He said: “The vision of the council is to become Nigeria’s leading transport player committed to the development of a global modern transportation system that is competitive in freight forwarding business in Nigeria and the word in general.

    “We are aware of the need to strengthen and increase government revenue, so the council will carefully peruse through existing domestic laws to ensure a better deal to both the government and major key players in the industry to move to the next level of globally-recognised competitive governance. This we shall do with every sense of responsibility.

    “As members of the freight forwarders, we know our challenges and we will address them. One of our challenges is the training of our freight forwarders, which is the first thing we will address. The second is the registration of freight forwarders. The Minister of Transportation has instructed that only registered forwarder will be allowed to clear items in the ports. This means the registration and training of Freight Forwarders are vital.”

  • Freight forwarders decry extortions at terminals

    Freight forwarders decry extortions at terminals

    Some freight forwarders on Thursday expressed concern about the sharp practices perpetrated by terminal officials in the course of loading cargoes.

    The freight forwarders told the News Agency of Nigeria (NAN) in separate interviews in Lagos that the attitude of some officials of the terminals was causing delays in cargo delivery chain.

    Mr. Collins Ibe, who has two containers at the SDV Kirikiri Terminal, said that positioning containers for customs examination alone had taken him seven days.

    He said that the containers were stacked in such a way that one would need to beg the crane operators with money to dig out the containers.

    A female clearing agent with the Sea Height Services, Miss Gladys Amadi, a said that sharp practices in the terminals had become rampant.

    “From the issuance of Terminal Delivery Order to clearance of trucks for loading, some terminal officials feast on agents without recourse,’’ Amadi said.

    Mr Inuwa Itodo, another freight forwarder at Brawal Towers Terminal, said that most delays in cargo clearance arose from the use of faulty cranes.

    “Some bonded terminals use cranes that are too old, “It is the habit of many of the terminal operators to cut cost at the detriment of the freight forwarders.

    “Because of the undue delays, we pay demurrage to shipping companies and rucks owners,’’ Itodo said.

    A port user, Mr Aina Azeez, told NAN that the National Association of Government Approved Freight Forwarders (NAGAFF) and the Association of Nigerian Licensed Customs Agents (ANLCA) should form an alliance to check the extortions.

  • Pay your yearly due, Freight Forwarders, others told

    Association of Nigeria Licensed Customs Agents (ANLCA), President Prince Olayiwola Shittu has urged the National Association of Government Approved Freight Forwarders (NAGAFF) and other freight forwarding associations to pay their yearly subscription fees to the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) to boost the council’s work.

    Shittu urged the associations to join hands to resuscitate the Council and make it effective instead of sending petitions to the Minister of Transport, Senator Idris Umar.

    He wondered why the freight forwarding associations were more interested in the sharing formula for the transaction fees collected at the port instead of finding ways to make the Council effective.

    “Let me tell you, the CRFFN cannot survive without the annual subscription fees. As an association, we have an amount we are supposed to pay per annum. ANLCA paid for the first and second year, and there are groups which did not pay at all and they are given more recognition than ANLCA, so we stopped payment.

    “Other associations refused to pay, yet they said we are all equal; we paid the first one, we paid for the renewal, we were to pay the third one when we asked for evidence of payment by other associations and we discovered there was none. If we see evidence of others paying that money, I will use my money to pay for ANLCA, Shittu said

    He continued: “CRFFN has a source of funding; everybody practising must pay membership fee and licensing fee, which is renewable every year, how come the CRFFN is not collecting them? This is a veritable source of revenue, because in the last data base of CRFFN, what we have was 6,000 members, imagine if you are paying N17,000 times 6000, they need to do more than what they are doing.

    “It is only ANLCA that still makes the CRFFN relevant, we have refused to join the band wagon of associations that want the CRFFN disbanded, people have written petitions, but ANLCA refused to write, the Minister has called, but we told him that CRFFN is still relevant and that he should allow them do their job,” Shittu said.

    The ANLCA chief said no fewer than eight freight forwarding associations were waiting to be registered and accredited by the CRFFN. This, he said, would bring the total  number of registered associations under the Council’s supervision to 13.

    Shittu said the problems confronting the CRFFN were self-inflicted because it had earlier registered associations and individuals who were not qualified and did not have offices. According to him, by doing this, “a precedence has been set already; the mistake the CRFFN made was lowering the standards for registering associations.”

    He however charged the leadership of the Council to look inwards and focus on its main objective of regulating freight forwarding, rather than bothering itself with collection of transaction fees and setting up a enforcement unit and employing  officers to man it.

  • Agents: Customs underfunded

    Agents: Customs underfunded

    The National Association of Government Approved  Freight Forwarders (NAGAFF) has petitioned President Goodluck Jonathan over the underfunding of the Nigeria Customs Service (NCS).

    The association said inadequate funding was affecting the performance of the NCS and the Transformation Agenda of the  administration.

    In a letter titled: Re: Transformation Programme and Port Reforms of the President, Federal Republic of Nigeria, dated August 5, and sent to Jonathan by the founder of the group, Dr. Boniface Aniebonam, the group claimed that the service was being incapacitated by the Federal Ministry of Finance and that this is affecting freight forwarding.

    It said: “We have observed from our strategic point as critical stakeholders that at the moment, it is apparent that the Nigeria Customs Service is being underfunded, which may be affecting its operations and the freight forwarding business.”

    Aniebonam urged Jonathan to free the Customs from the lack-lustre performing Webb Fontaine, alleging that the frequent breakdown of its equipment was taking severe toll on service delivery to the port users.

    He said: “The constant down time of the ASYCUDA System being handled and managed by Webb Fontaine most times, slows down automation. We suggest that the Nigeria Customs Service be allowed to build a robust system that can accommodate and resolve the problem of down time syndrome. This is a capital project, which cannot be satisfactorily handled with the  underfunding of the Nigeria Customs administration and management.

    “It is in the public domain that between 2010 and 2014 (up to July), the approved budget for the Service may be N378.97 billion. Our checks revealed that Nigeria Customs Service may have just received N279.42 billion, leaving a balance of N99.55 billion. We have observed that the morale of officers is very low because their entitlements are not being paid on time and most times, they are not attended to.

    “It is a fact that the Nigeria Customs Service is a very critical agency of the government saddled with huge responsibilities which include, but not limited to revenue collection, anti-smuggling functions, inter-agency support service, business development and trade information services, post audit function, provision of trade statistics and trade facilitation among others.”

    Aniebonam said under the Destination Inspection Policy, the NCS has been given additional duty to manage and maintain scanners, training of officers and building superstructures and other capital projects that would enhance and sustain its operations.

    He said the low funding does not give the NCS sufficient leverage to add value to businesses at the ports. “As Nigerians, we are equally worried because the Nigeria is facing some security challenges. We wish to remind your Excellency, that the anti-smuggling function of the Service is strategic on matters of border security,” he said.

    He proferred solution, saying: “The way forward should include the much-expected new Customs law pending at the National Assembly seeking to grant the Service partial autonomy.”

  • Amosun to support freight forwarders

    Ogun State Governor, Senator Ibikunle Amosun has praised the National Association of Government Approved Freight Forwarders (NAGAFF), for developing the maritime industry.

    Speaking when a delegation of NAGAFF visited him at the state secretariat in Oke-Mosan, Abeokuta, the state capital, Amosun said he was delighted at the presentation by the delegation on the benefits of the Olokola Free Trade Zone, adding that he would support the body.

    He said the presentation showed the depth of NAGAFF’s knowledge about the industry and the seriousness of its members in the moving the industry forward. He assured investors that his government would encourage the development of all mode of transportation to boost the business of supply chain, and thanked NAGAFF for opening new frontiers in the discourse about the Olokola FTZ, which opens to deep sea water.

    In his presentation, the National President of NAGAFF, Chief Eugene Nweke told the governor that NAGAFF chose Ogun State as the host of its Annual General Meeting to shift the world’s attention to the economic benefits of the Olokola FTZ, which is complemented by specialised Ogun Rail Industrial FTZ and the Ogun Guandong FTZ.

    To harness the potential of the FTZ, Chief Nweke advised the Ogun State Government to pursue the acquisition of a certificate of status and recognition as an Authorised Economic Operator (AEO) from the Nigeria Customs Service by incorporating and using a subsidiary of the Olokola FTZ to pursue large scale importation using the FTZ to warehouse such import.

    Governor Amosun delivered the keynote address, while Prof Iyiola Oni of the University of Lagos was the guest lecturer.

  • How to decongest ports, by freight forwarders

    How to decongest ports, by freight forwarders

    How can the ports be decongested? It is by directing, regulating and advisory agencies to scale up the implementation of sanctions against erring port users, say freight forwarders.

    According to the National Association of Freight Forwarders (NAGAFF), the congestion at the ports is artificial and caused by human errors. The congestion, it said, was “largely due” to non-compliance with import guidelines and regulations.

    The founder, Boniface Aniebonam, said the group supported the discretionary measures taken by operators, including the Customs, which has resorted to physical examination of cargoes in the event of equipment failure. He added that whatever can reduce ports congestion in the interim was acceptable pending when the industry gets the scanning and examination equipment right.

    “It is a fact that one of the major problems in our ports’operations is the non-compliant attitude of port users. Nigerian shippers and freight forwarders may be continuously in default of import regulations of Nigeria. In the same vein, government agencies may appear not to have developed the professional and political will to enforce regulations with regard to import guidelines and regulations,” he said, adding that there were clear signs of human element as the cause of problems in our port system, which, in most cases, has resulted in port congestion.

    Aniebonam said corruption was another issue that needed to be tackled, as it appeared that every function was being derailed. He urged relevant government organisations and private sector operators to be discrete in the discharge of their duties in the interest of the nation.

    He said the ports were witnessing artificial congestion because operators could not apply due discretion in their functions, urging that Customs should continue to exercise and apply discretionary powers in risk management technique with regard to inadequate capacity of the installed hydro-scanners. It is obvious that cargo throughput is more than what the scanners could handle and, as such, it shall be a good initiative to re-route cargo to physical examination to facilitate trade, he said.

    Insisting that the measures would reduce congestion at the Apapa and Tin Can ports, he urged the various regulatory agencies to imbibe the concept of corrective measures rather than outright seizure of imported items.

    On low installed capacity, he urged terminal operators to enter into trade agreement with one another to decongest the ports.

    “NAGAFF is of the view that the solution to the various problems in our ports is in people being made to obey and respect our import/export guidelines and regulations, adding that government should be willing to enforce regulations and make the service providers and terminal operators to observe their terms of contract,” Aniebonam said.

  • Freight Forwarders okay new Customs Act

    Freight Forwarders okay new Customs Act

    The National Association of Government Approved Freight Forwarders (NAGAFF) has expressed support for the amended Customs &Excise Management Act (CEMA) by the senate.

    It however rejeted calls to dump CEMA.

    NAGAFF said such calls for the rejection of the CEMA by some interest group in the maritime sector is only self-serving.

    National President of NAGAFF, Eugene Nweke, described the submission attributed to some interests in maritime sector adainst as not only mischievous but self-serving. He said the passage of the bill by the House of Representatives followed an extensive public hearing conducted and all the stakeholders in maritime sector were given unfettered opportunity to air their views both in oral submission and in written , thus wondering while sudden volt face by so-called stakeholders.

    He counseled the interest group to allow the Act to pass and be put to use in maritime sector for at least for five years to observe it potency after which they can call for its review.

    According to him, “in Nigeria today, anybody and everybody can chose to come under any guise or group to make pronouncements because the freedom of expression guarantees that. The CEMA clearly sets out how to democratize the board of customs. I think it should be put to test for five years after which if there are issues it can be taken care of.”

    On granting six month extension to four contracted firms engaged to undertake destinations inspection of imports to Nigeria; he said government need not extend the contract because men of the Nigeria Customs Service have been adequately trained to perform the task.

    In his words, “the Nigeria Customs Service (NSC) has undergone tremendous improvement lately that bringing these expatriates to take over the job of Customs is as good as rendering over 10,000 young Nigerians currently recruited by the Service in preparation for this type of service delivery amount to idleness.