Congestion looms at ports as Customs scrap fast track scheme

The infraction has therefore pitted the organized Customs brokers against the Nigerian Customs service which was accused of causing distortions in the cargo clearing procedures.

The crisis was kick- started by the multiple hikes in Customs duties which is currently threatening to escalate into major disruption of port operations at Lagos ports as irate Customs brokers have vowed not to pay the new rate.

It would be recalled that the Nigeria Customs Service, within a spate of few weeks, announced two consecutive hikes in duties payable on all imports.

Before the Forex crisis, the customs duties were based on N197 to a Dollar.

But in quick succession last month and early this month, the duties were jerked up from the initial N197 to N282 and then, recently to N313 to a dollar.

The implication, according to irate customs agents,is that they will now pay more for the clearance of goods at the port in the midst of inflation, low imports and dearth of jobs to do.

However, the organized freight forwarders led by Association of Nigeria Licensed Customs Agents (ANLCA), have resolved to reject the new increment in customs duties, vowing to withdraw their services to protest the new increase.

According to Kayode Farinto, the Publicity Secretary of the association, customs brokers are united against what he called unjust increment.

“We woke up this morning (penultimate week) to see that Nigeria Customs Service has for the second time changed the exchange rate to 313 naira for all declarations.

“This is absurd, wrong and barbaric considering the fact that many importers have done their transactions and opened form M at 282. This will surely have its backlash effect because the government is actually taking people for a ride.

”Leaders in the maritime industry for once need to come together to fight this injustice. We all need to be part of this struggle since we are all stakeholders in the industry”, an angry Farinto retorted.

The association, in a statement, expressed disappointment on the increase.

It was further gathered that clearing agents at the Tin Can Island Port had vowed to resist the increase as many of them have withdrawn their documents from the Customs valuation unit.

It would be recalled that Clearing agents operating at the Port and Terminal Multiservice Limited (PTML) Command of the Nigeria Customs Service (NCS) in June shutdown economic activities at the command over implementation of new exchange rate policy of N282 from N197 by the Federal Government.

The agents also called on Customs to release imports whose form M were opened before June 30 when the new import duty rate was introduced.

The clearing agents, who carried various placards with different inscriptions, down tool and marched from the PTML command of the service to Tin-Can Island Port Complex, stopped at marble house to protest what they called the excessive behavior of Customs officers at the command.

They asked the management of the Nigeria Customs Service to revert to the old duty rate for those who opened form M before then introduction of the new tariff system.

They stated that the service was inhuman to their plight as they implemented the new exchange rate without properly notifying agents.

However, the Customs high command absorbed itself from the hike, saying that it was the decision of the Central Bank of Nigeria(CBN) to raised the foreign exchange.

The Customs therefore asked the protesting agents to forward their complaints to the CBN.

Ironically, while the Customs agents were agitating against the new increase which they said will affect their operations, the Customs authority expressed happiness over the development which it said will lead to the increase in their revenue collection.

Mr. Chris Osunkwo, the image maker of the Tin Can command of said that N313 rate will definitely lead to an increase in the revenue realised by customs.

He however corrected that the law was not made by Customs, but that it was adjusted on the system by the Federal Ministry of Finance through the Central Bank of Nigeria (CBN). He said that officers had resumed work and found the new rate on the system and this must be applied to all imports with immediate effect.

“We are not in control of the exchange rate, it is the Central Bank that determines the duty through the Federal Ministry of Finance, ours is just to enforce. But definitely, it will increase our revenue? The increase has not really caused any unrest at the port, agents are accessing their jobs, but many of them are lamenting that it would throw them out of jobs because their importers would not want to pay.

”I will advise them to put their acts together and channel their position to the appropriate quarters which is the government, it is not a customs policy?” Osunkwo  declared.

The hike in Customs duties has started to have a positive effect on the revenue profile of the Customs. This is despite the dearth of cargo imports.

Despite the fewer ships that called at the Lagos ports in July, the hike in tariff from N197 to N282 in the month of July made the customs to collect more revenue.

Currently the tariff has moved further up from N282 to N313 which is a clear indication that customs revenue collecting commands may collect more revenue in months to come.

Statistics made available to Business Hallmarks indicate that there was a sharp increase in the revenue collection of the Apapa Command of the Nigeria Customs Service as it recorded a whopping 27,405,005,184.83 in July 2016.