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High Customs duties kill ground-handling business in Nigeria—–SAHCO boss —-begs government for waivers

Eyewitness reporter
The Managing Director, Skyway Aviation Handling Company (SAHCO), a subsidiary of SIFAX Group,Mr. Basil Agboarumi, has raised serious concerns over the debilitating effects which  the high customs duties on ground-handling equipment have on the business of ground Handling companies in the country.
Agboarumi, who spoke in Lagos at the weekend, believed that for the operators of ground-handling companies to break even in Nigeria, government should give them palliatives similar to the gesture offered to airline operators in terms of duty waivers on the importation of these equipment.
He noted that, just like aircraft and aircraft parts that enjoy duty waivers are sourced in international market, ground handling equipment are similarly expensive and equally procured outside the country.
The SAHCO boss disclosed that operators of ground handling business have come together to approach government on the need to get duty waivers if they were to remain in business.
Towards this end, he revealed that they  had sent documentation and representation to the Ministry of Aviation and Nigeria Civil Aviation Authority (NCAA) in the hope that the issue can be looked at and given speedy approval and implementation.

”We felt that no matter what government is doing for the airlines, ground handling should be included and benefit from it too.

‘It is just the same way aircraft are gotten from abroad that is our own are brought in because none of our equipment is manufactured in Nigeria.

“We also place orders so that the manufacturers do them. We pay quite a lot of money to get in our handling equipment. We believe that what should be done is that same kind of waivers that the airlines are enjoying should also be extended to us to make life easier for us.

“We are taking our case to the government, Ministry of Aviation and the NCAA as the representative of government in the aviation industry.

“The last point was NCAA requesting for some information from us and some of the things that we learnt has to do with the issues have been raised in some higher places and they needed to submit data and positions.

“So we submitted our position and I believe that they have taken it from us and we are expecting a feedback from government in that regard. We believe governments should look at us.”

Agboarimi disclosed that  SAHCO spend huge sum as customs duty on most of its equipment and this could be saved and ploughed back to improve the business if waivers are granted.

“At times,  we spent as much as N36 million to clear just one equipment”  he lamented.
“It is huge. Everything we bring in. We spent N36 million to clear one of our equipment recently.
“Sometimes, you have some of our equipment that goes as much as one million dollars. We have equipment like that.

“As I talk to you, there are equipment we placed orders for since early 2020. By the time pandemic started, we still wanted to go on but we couldn’t raise funds. There was one that finished manufacturing and we couldn’t have money to pay, so they have to give it to another ground handling company.

“Sometimes, it takes about six months to produce ground handling equipment. These are some of the challenges. We fabricate those ones we have the capacity to do”

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Aviation

Russia bans flights from Bulgaria, Poland, Czech Republic

Russian President, Vladimir Putin

In a retaliatory move, Russia said it was closing its airspace to flights from Bulgaria, Poland and the Czech Republic in tit-for-tat punitive measures following Moscow’s invasion of Ukraine.

“Air carriers of these states and/or registered in them are subject to restrictions on flights to destinations on the territory of the Russian Federation, including transit flights through the airspace of the Russian Federation,” the federal air transport agency Rosaviation said on Saturday.

The measure is set to go into effect from 3 pm local time.

Several countries, including Bulgaria, Poland and the Czech Republic, have closed their airspace to Russian carriers.

Meanwhile, Estonia, Latvia and Slovenia on Saturday also said they would ban Russian flights.

“We invite all EU countries to do the same,” Estonian Prime Minister Kaja Kallas tweeted, adding, “There is no place for planes of the aggressor state in democratic skies”.

Slovenian Prime Minister Janez Jansa quoted Kallas’s tweet saying, “Slovenia will do the same”.

Latvian Transport Minister Talis Linkaits also said on Twitter that “Latvia will close its airspace to Russian-registered airlines for commercial flights,” adding that the decision would be formally approved at the next cabinet meeting.

The United Kingdom has banned Russian flagship carrier Aeroflot from flying over the UK.

Russia on Thursday had announced the closure of its airspace for civilian flights on the western border with Ukraine and Belarus, while Ukraine closed its airspace to civilian flights and Europe’s aviation regulator also warned against the hazards of flying in areas bordering Russia and Belarus.

The moves came after Russian President Vladimir Putin launched a full-scale military invasion of Ukraine days after recognising two rebel-controlled areas of the eastern Donbas region as independent entities.

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Aviation

Anxiety mounts among international airlines as US deploys 5G network

Major international airlines have cancelled flights heading to the United States or changed the planes they’re using Wednesday, the latest complication in a dispute over concerns that 5G mobile phone service could interfere with aircraft technology.

Some airlines said they were warned that the Boeing 777, a plane used by carriers worldwide, was particularly affected by the new high-speed wireless service.

The aircraft is the workhorse for the Dubai-based Emirates, a key carrier for East-West travel, and its flight schedule took one of the biggest hits.

It was not clear how disruptive the cancellations would be. Several airlines said they would try to merely use different planes to maintain their service.

The cancellations and changes came a day after mobile phone carriers AT&T and Verizon said they would postpone new wireless service near some US airports planned for this week.

The US Federal Aviation Administration (FAA) has cleared a number of aircraft to fly into airports with 5G signals, but the Boeing 777 is not on the list.

Similar mobile networks have been deployed in dozens of other countries — sometimes with concessions such as reducing the power of the networks near airports, as France has done.

But in the US, the issue has pitted the FAA and the airlines against the Federal Communications Commission (FCC) and telecommunications companies.

The 5G service uses a segment of the radio spectrum that is close to that used by radio altimeters, which are devices that measure the height of aircraft above the ground and help pilots land in low visibility.

The FCC, which set a buffer between the 5G band and the spectrum that planes use, determined that it could be used safely in the vicinity of air traffic.

AT&T and Verizon have said their equipment will not interfere with aircraft electronics.

But FAA officials saw a potential problem, and the telecom companies agreed to a pause while it is addressed.

On Wednesday, Emirates announced it would halt flights to several US cities due to “operational concerns associated with the planned deployment of 5G mobile network services in the U.S. at certain airports”.

It said it would continue flights to Los Angeles, New York and Washington.

“We are working closely with aircraft manufacturers and the relevant authorities to alleviate operational concerns, and we hope to resume our US services as soon as possible,” the state-owned airline said.

Of particular concern appears to be the Boeing 777. Emirates only flies that model and the Airbus A380 jumbo jet.

Japan’s All Nippon Airways said that the FAA “has indicated that radio waves from the 5G wireless service may interfere with aircraft altimeters”.

“Boeing has announced flight restrictions on all airlines operating the Boeing 777 aircraft, and we have cancelled or changed the aircraft for some flights to/from the US-based on the announcement by Boeing,” ANA said.

It cancelled 20 flights over the issue to cities such as Chicago, Los Angeles and New York.

Japan Airlines similarly said that it had been informed that 5G signals “may interfere with the radio altimeter installed on the Boeing 777”.

It said it will stop using the model in the continental US for now.

Eight of its flights were affected Wednesday — three passenger trips and five for cargo.

Taiwan’s EVA Air also said the FAA specifically said 777s may be affected, but it did not spell out how it would adjust its schedule.

But Air France said it planned to continue flying its Boeing 777s into American airports. It did not explain why it didn’t change its aircraft as many other carriers have.

Chicago-based Boeing Co did not immediately respond to a request for comment.

Air India also announced on Twitter that it would cancel flights to Chicago, Newark, New York and San Francisco because of the 5G issue.

But it also said it would try to use other aircraft on US routes — a course several other airlines took.

Korean Air, Hong Kong’s Cathay Pacific and Austrian Airlines said they substituted different planes for flights that were scheduled to use 777s.

Korean Air spokeswoman Jill Chung said the airline was also avoiding operating some kinds of 747s at affected airports.

Germany’s Lufthansa also swapped out one kind of 747 for another on some US-bound flights.

British Airways cancelled several planned US-bound Boeing 777 flights and changed aircraft on others.

The FAA has said it will allow planes with accurate, reliable altimeters to operate around high-power 5G.

But planes with older altimeters will not be allowed to make landings under low-visibility conditions.

Contributing to the problem, according to the FAA, are the signal strength of the 5G towers and the orientation of their antennae.

“Base stations in rural areas of the United States are permitted to emit at higher levels in comparison to other countries which may affect radio altimeter equipment accuracy and reliability,” the FAA said in December.

FCC Chairwoman, Jessica Rosenworcel said in a statement that the 5G “deployment can safely co-exist with aviation technologies in the United States, just as it does in other countries around the world.”

However, Rosenworcel urged the FAA to conduct its safety checks with “both care and speed”.

AT&T and Verizon spent tens of billions of dollars for the 5G spectrum known as C-Band in a government auction last year.

Choi Jong-Yun, a spokeswoman for Asiana Airlines, said the company hasn’t been affected so far because it uses Airbus planes for passenger flights to the US.

However, Choi raised a new wrinkle, saying airlines have also been instructed by the FAA to avoid automatic landings at affected US airports during bad weather conditions, regardless of plane type.

Asiana will redirect its planes to nearby airports during those conditions, she said.

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Aviation

Customs grounds 62 private jets over tax evasion

86 private jets/ aircraft owners participated in Customs’ verification exercise 

Eyewitness reporter
 
The Nigeria Customs Service (NCS), has grounded about 62 aircraft that defaulted in the ongoing verification of import documents exercise.

Speaking at a press briefing, the National Public Relations Officer of the service, Joseph Attah said the grounding won’t be lifted until the jet owners present their import document duly certified by the Service.

He said, “The Federal Aviation Authority of Nigeria has been put on notice to ensure only privately owned aircraft duly verified, and cleared by Customs are authorized to operate within our airspace.”

“Within the stipulated period, 86 private jets/aircraft operators showed up for the exercise and presented the relevant documents for verification.

private jets

“Of this number, 57 were verified as commercial charter operators, and were duly cleared for operations, 29 other private jets/aircraft were found liable for payment of Customs duty. Their values were assessed, and the appropriate demand notices were issued to their owners for the payment of outstanding duties.

“However, 62 other private jet/aircraft whose registration numbers were duly obtained from the appropriate authority were not verified because their owners or designated representatives made no presentations to Customs that could help determine their status.

“To this effect, all 57 commercial charter jet/aircraft operators who presented their documents for verification are requested to come forward to the Tariff and Trade Department of the Nigeria Customs Service Headquarters, Abidjan Street, Wuse Zone 3 Abuja-FCT, Room 312 between 10:00 am and 5:00 pm to collect their Aircraft Clearance Certificates.

“All 29 Private Jet/Aircraft owners and or their representatives who have been issued with demand notices have been given (14) days from the 11th of October 2021 to collect and make payments to the designated Federal Government accounts after which they will be issued with Aircraft Clearance Certificates,” he stated.

He said the owners of the 62 private aircraft for which no presentations were made for their verification, and whose status remains uncertain are requested to immediately furnish the tariff and trade department of the Service with the necessary documents for verification and clearance.

Attah implored all concerned to avail themselves of the opportunity as the NCS it will not hesitate to activate enforcement procedures on identified defaulters.

In line with its statutory functions as provided for in PART III Sections 27, 35, 37, 45, 46, 47, 52, 56, 63 & 64; Part XI Sections 144, 145, 155, 160, 161&164 and Part XII Sections 167, 168, 169 173&174 of the Customs and Excise Management Act (CEMA), All owners of private aircraft in the country were invited to come forward with their relevant importation clearance documents for verification.

The exercise took place between the 7th of June and August 6th, 2021 at the Tariff and Trade Department of the Service.

The documents requested include Aircraft Certificate of Registration; NCAA’s Flight Operations Compliance Certificate (FOCC); NCAA’s Maintenance Compliance Certificate (MCC); NCAA’s Permit for Non-Commercial Flights (PNCF) and Temporary Import Permit (TIP) (where applicable).

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