Customs

NPA is responsible for transfer of overtime cargo to Ikorodu warehouse—-Customs

—–says it will cost N3 billion to evacuate 5000 overtime cargo at N600,000 each

Eyewitness reporter

Amidst mounting overtime cargo that dots the landscape of the Nigerian ports, the Nigeria Customs Service has declared that it was the responsibility of the Nigerian Ports Authority (NPA) to evacuate them to the Government warehouse at Ikorodu.

Making the assertion against the widespread belief that it was the duty of Customs to assume this role, the Apapa Area Command of the Customs, Comptroller Ibrahim Malanta Yusuf, said this was an erroneous impression as there are procedures to follow even before such evacuation could be done.

Comptroller Yusuf, who made this clarification on Friday in his office when he granted an audience to a group of journalists who paid him a courtesy visit, also disclosed that evacuation of overtime cargo is pretty expensive as the process requires a lot in terms of logistics and financial commitment.

Recall that the Managing Director of NPA, Muhammed Bello- Koko, recently said there are over 5,000 overtime containers across the nation’s ports which are taking up space for new imports at the seaport terminals.

Bello- Koko, who spoke then during an interactive session organized by the House of Representatives Committee on Customs, had asked the Service to auction the overtime containers to decongest the nation’s seaports.

Cargoes are classified as overtime when they have stayed in the port for 28 days without the importer or clearing agent coming up to clear them and take delivery.

However, the Apapa customs boss declared that there are currently about 500 overtime containers including import and export at the Apapa port and it will cost an average of N600, 000 to move each of the containers from the port to Ikorodu – a cost which he said the command is not ready to bear.

By implications, therefore, it will cost a whopping sum of N3 billion to evacuate the estimated number of 5000 overtime cargo said to be at the ports, at N600, 000 each.

overtime cargo

Comptroller Malanta explained that there are also laid down procedures for disposal of overtime cargoes that must be followed before they are auctioned to avoid litigation.

“Moving containers to Ikorodu terminal entails a lot of logistics and financial commitment.

“To take one container from here to Ikorodu will cost at least N600, 000 and above. Now if we are moving 500 containers to Ikorodu, how much will that translate into?

“However, we have a series of procedures before it comes to moving containers, and even moving containers to Ikorodu is the responsibility of the NPA, not Customs.

“Customs will make sure that they receive unclaimed cargo lists from the shipping companies and the terminal operators, then they will now examine those unclaimed cargo lists after the free storage period.

“After examination, they will leave it for a certain number of days for importers to come and claim their cargo. After the date expires, they will send it for gazetting by the court because of litigation, when the court gazettes it, it will now go for auction.

“After the auction, people will now go online to bid for the items. In most cases, those consignments that will find out that they are going to be outrightly seized and they are consumables, we give them to the Internally Displaced Persons (IDPs) through a presidential committee, not even Customs.

“So, these are the procedures, it is not that Customs will just come and start carrying overtime cargo and start dropping it at Ikorodu for auction.

“When they (NPA) concessioned the port, they forgot that there is Customs and therefore the government warehouse that used to exist where we keep cargoes is no longer there,” he said.

Meanwhile, Controller Malanta said the command generated over N87billion in the month of September adding that the command hopes to collect up to N100billion by year-end.

He attributed the revenue increase to measures instituted by the command when he assumed office nine months ago and increased the level of compliance by importers and their agents.

Part of the measures, according to him, is the deployment of officers with a high level of integrity to strategic units of the command and blocking of revenue loopholes.

He said, “When we come on board, we look at the structures on the ground, the type of officers we should post, and where you will post them. I know 80 percent of the officers either through interaction or through fora so I make sure that the officer I put in a place is an officer that has a high level of integrity. So, with that high level of integrity, I am sure, he would perform his work diligently. Then I tried to strategize based on that and look at the gap to identify loopholes and areas we need to amend.

“We started with the forensic manifest management system where we trail declaration through the manifest and we make sure that illicit importations are sieved out and those who want to circumvent through under-declaration of quantity, under declaration in terms of rate of duty through HS Code are also being tracked and revenue is recovered back with the penalty to serve as a deterrent.

“When they (importers/agents) saw that there was no hidden place, that is when I started getting compliance. So, with the compliance level I get, which has increased by over 40 percent, the more the revenue is also increasing.

“We also transform the challenges of the gridlock into opportunities through the use of barges to move containers and the use of the standard gauge line that is coming up has relieved the system of about 30 percent of containers going out of the port and that means the supply chain is moving.

” You hardly come to the gate and see any queue. Once we are releasing, cargo is going out and revenue is coming. These are some of the basic things we are doing,” he said.

Comptroller Malanta added that export through the Apapa port has also increased by over 25 percent within the review period.

Related Topics:featured overtime cargo transfer to Ikorodu

Up Next

Price of 12.5kg cooking gas soars to N8,500

Don't Miss

Bloodbath at Ogun as Customs, smugglers engage in gun duel

Click to comment

Customs

Freight Forwarders applaud Customs over new VIN valuation

—- as reworked policy comes on stream Friday

Eyewitness reporter

In a rare show of satisfaction and mutual agreement, the highly critical freight forwarders have applauded the Nigeria Customs Service over the new Vehicles Identification Number (VIN) valuation policy.

The new vehicle valuation, which was first introduced about two months ago, was greeted with uproar from the freight forwarders who described the policy as inhuman and unrealistic due to the high values it placed on vehicles.

This led to the suspension of the system by the customs authority which thereafter reworked and improved the policy by accommodating the observations and grievances of freight forwarders.

At the second stage of the demonstration and sensitization of stakeholders on the new VIN valuation held at the Apapa Customs command Thursday, the freight Forwarders were full of praises for the customs over the improved valuation system which they all agreed has addressed and accommodated their views.

“This is very good. The new VIN valuation system has accommodated all our observations, even though there is room for improvement.

“It has taken care of the savage vehicles and accidented vehicles, which the first VIN didn’t consider”, Kayode Farinto, the Acting President of the Association of Nigerian Licensed Customs Agents (ANLCA) and one of the most critical voices of the system, said.

Earlier, the Customs Area Controller of Apapa Command, Comptroller Malanta Yusuf, who is the host, enjoined the stakeholders to take full advantage of the automated system which he said would make goods clearance procedure seamless and faster.

While welcoming the stakeholders to the sensitization meeting, Comptroller Yusuf urged them to be compliant with the extant guidelines to enable them to enjoy the benefits of the new system.

He assured them help desk would be created in each of the commands to help resolve the teething problems that are bound to crop up, adding that there would be continuous engagement and improvement on the new valuation policy.

He told the appreciative stakeholders that the VIN valuation policy is irreversible and will be deployed this Friday, May 20th, 2022.

Comptroller Festus Okun, the Customs Area Controller of Ports Terminal Multiservices Limited (PTML) Command said the Customs, through the VIN valuation, has imbibed basic principles of taxation which include predictability, neutrality, simplicity, and efficiency.

Comptroller Kunle Oloyede of Tin Can Island Port, described VIN as a platform for robust gathering of statistical analysis and data for national economic purposes relying on the template of accuracy that will further integrate NCS with other ministries, departments and agencies.

Comptroller Hammi Swomen of Kirikiri Lighter Terminal Command, who sought more cooperation from all stakeholders, stated that sincere declarations without tampering with relevant information contained in Single Goods Declaration or mismatching information will aid in quicker clearance and seamlessness of the VIN system.

Comptroller Anthony Udenze of the Tariff and Trade Department at Customs headquarters urged vehicle importers and their agents to avoid acts that would delay the process of clearing.

He explained that the process of identifying salvage and accident vehicles under the VIN regime would be very transparent as the declarant would be expected to attach photos showing the accidented vehicles.

He further explained that for vehicles to be treated as accidented, the chassis must be affected by the accident not just by removing fenders, bumpers and headlamps.

However, Farinto called for true declaration and compliance on the part of freight forwarders. w2hivh he said will facilitate their clearance of goods and also made the Customs to introduce more changes such as auto release for used vehicles.

Comptroller Yusuf promised that the issue of auto release of used vehicles, which is not yet accommodated in the new system, will be looked into by the Customs High Command.

The new improved VIN valuation policy has therefore addressed most of the major concerns of stakeholders who said they couldn’t wait to start using the system.

The new system has been given a human face as the assessed values are adjudged as fair and the process transparent by the freight forwarders.

It has also considered the two options of salvage vehicles and accidented vehicles.

It is harmonisation and unification of all the hitherto isolated different values at the commands.

According to Comptroller Udenze, the new VIN valuation considers all the variants and series of all vehicles.

The technological system, which is expected to promote trade facilitation, has also been amended to reflect the reduction in the value of vehicles..

Customs

Freight Forwarders accuse Customs of killing Nigerians over multiple charges.

CGC, Ali

Eyewitness reporter

A section of freight forwarders has accused the Nigeria Customs Service of inflicting pains on Nigerians over the astronomical increase in its duties and tariffs.

The freight forwarders, who spoke against the high cost of products in the market, blamed the consummate passion of the customs to generate maximum revenue on the indiscriminate hike in duties and tariffs.

They claimed that this development has pushed freight charges to as high as 67 percent, resulting in increases in the prices of vehicle spare parts.

In separate interactions with journalists in Lagos, freight forwarders said they used to pay about N600, 000 to clear a 40-foot container loaded with used vehicles’ spare parts, but this had risen to over N1m for the same consignment.

A member of the National Association of Government Approved Freight Forwarders, Ugochukwu Nnadi, alleged that the Nigeria Customs Service (NCS), instead of generating revenue, was inflicting untold hardship on Nigerians with the high cost of clearing the consignment.

“If you had a 40-foot container loaded with used motor parts before now, the surface duty was N600, 000.

“Now, they have given it a benchmark of N1m at surface duty level.

“It is about 60 percent higher than what it used to be on the same goods.

” This is why engine parts are very expensive.

“Before now, you could get a used engine for around N30, 000, but you can’t get any engine now, no matter how small it is, for anything less than N100, 000.

And they are doing these things thinking they are generating revenue, but they don’t know that they are making the people poorer”, he said.

Also speaking, a member of the Association of Nigerian Licensed Customs Agents, Akintoye Ojo, said, “The prices of clearing imported car spare parts have gone up.

“The commodities in your container and the value are what determine the duty you pay.

“As a matter of fact, the Customs is increasing their values but they hide under the umbrella of freight charges and also insurance.

“For old spare parts, you can clear for less than N600, 000 before, but there is no spare parts container you can clear for less than N1.5m now”, he said.

Meanwhile, the TinCan Island chapter Chairman of the African Association of Professional Freight Forwarders and Logistics of Nigeria, Geoffrey Nwaosu, explained that importers now loaded vehicles before putting used spare parts just to reduce the cost of clearing their consignments.

“Before now, it is used to be between N600, 000 for surface duty, but it is no longer like that for spare parts.

“Now, you must pay a surface duty of between N3 million and above for a 40-foot container.

“You can still pay this and still be battling with alerts since it is coming with Pre-Arrival Assessment Report (PAAR).

“But it is in two ways. You can load a car or two in the same container.

” They do this to avoid going to access foreign exchange for PAAR.

” So, they will add one or two vehicles and clear the cars and the spare parts,” he added.

Charles Nwarienne, a clearing agent, said: “You see, before now, it depended on different items.

“There were ones you would pay a surface duty N600, 000. Later, they adjusted the surface duty to N800, 000.

“We noticed the increment after the protest. The general cargo has started and it is part of the reason why we protested.”

In the same vein, the introduction of the vehicles identification number (VIN) valuation policy and the controversial 15 percent NAC levy, have combined to push the duties on clearance of vehicles to an all-time high.

This has resulted in an astronomical increase in the prices of vehicles in the market.

Customs

Exclusive! Mass retirement hits Customs as 549 officers bow out of service in 2023

CGC, Ali

Break down; DCG( I), ACG (6),Comptrollers(30), DC(68) AC (110),CSC(133),SC (52),DSC(79) ,ASC1(58) ,ASC11(11),CA1(1)

Eyewitness reporter

A whirlwind of retirement has hit the Nigeria Customs Service as 549 officers of different cadres have been penciled down for statutory retirement in 2023,

In a circular no HRD/2022/13 sighted by our reporter, the breakdown of the affected officers shows that 1 DCG, 6 ACG, 30 Comptrollers, 68 Deputy Comptrollers, 110 Assistant Comptrollers, 133 Chief Superintendent of Customs, 52 Superintendent of Customs, 79 Deputy Superintendents, 58 Assistant Superintendent of Customs1, 11 Assistant Superintendent of CustomsII and 1 Customs AssistantI, were due for retirement in 2023.

According to the circular dated May 10th, 2022 with reference number NCS/ADM/EST/098/S.1 and signed by OM Agbara, Comptroller of Establishment for AG. Deputy Comptroller-General (HDR), the affected officers, who are being shipped out of the service on account of age or number of years in the service, are advised to proceed on three months pre-retirement leave, three months to the effective date of their retirement.

The circular titled list of Officers/men for statutory retirement in the year 2023” reads

”I am directed to forward the attached list on the above subject matter as pre-retirement notice to all affected officers.

” ln accordance with the Public service Rule (PSR) No. 100238 and Federal Government circular No.63216/S.i/X/T; CR 1,/2OO1/5 of 2O/O3/2OOl, all affected officers due for retirement in 2023 are to disengage from the active service and proceed on three (3)months pre-retirement leave, three months to the effective date of retirement.

” AII affected officers are to ensure compliance and forward their three months pre-retirement notice to the Comptroller-General

accordingly.

” Any observed error, omission, or legitimate complaints should be forwarded to the office of the Comptroller General of Customs through the Ag. Deputy Comptroller-General (HRD) on or before 30th June 2022.

” Zonal Coordinators, Area Controllers, and Unit Heads are requested to make the list available for circulation to all the affected officers in their respective Zones, Areas, and Units