Freight Monitor

Customs brokers adamant on VIN policy

Representatives of five freight forwarding associations with Shippers' council boss, Emmanuel Jime

—-resume clearance of general cargo

Eyewitness reporter

Agitating Customs brokers, who have engaged the Nigeria Customs Service in a standoff over the controversial Vehicle Identification Number (VIN) valuation policy, have vowed not to back down on their decision to shun clearance of vehicles at the Ports, specifically at the Port and Terminal Multi-Purpose Limited(PTML) and Tin Can Island port, until the implementation of what they described as fraudulent valuation system is reversed.

However, the clearing agents, whose membership cut across the five federating associations recognized by the Council for the Regulation of Freight Forwarding Practice in Nigeria (CRFFN), have agreed to resume clearance of general cargo after a week of strike action.

Their decision to shift ground a little was sequel to the intervention of the Executive Secretary of Nigerian Shippers’Council, Emmanuel Jime, who hosted the protesting customs brokers to a peace meeting last week in his office.

During the meeting with the representatives of the five accredited associations, Jime had called for a truce, asking the freight forwarders to resume work as he would personally engage the Customs top hierarchy in a discussion over the contentious VIN valuation policy.

He commended the clearing agents for their patriotism since their protest was not against the VIN policy but its implementation.

The Shippers’Council boss further assured to escalate the matter to the Ministry of Transportation and management of the NCS for understanding and amicable resolution by all relevant parties.

To help the NSC fast-track a resolution, Jime also constituted a committee comprising members of freight forwarding associations and members of the NSC, with the mandate to list the unions’ grouses against the VIN policy and their demands.

At the meeting, the associations, which also insisted on their preference for the automated system, had told the NSC management that the NCS’ outrageous duty on imported used vehicles based on the recently introduced VIN valuation policy rather than transaction value, was unacceptable and mischievous.

The National Secretary of the Association of Nigerian Licensed Customs Agents(ANLCA), Abdullazeez Babatunde expressed concern that contrary to the globally accepted and rational practice, the policy deliberately ignores the wear and tear and depreciation value of the vehicles in generating duties.

“Customs has refused to openly address the issue associated with the new policy after admitting to the fact that there is an error associated with the policy,” he said.For instance, he claimed that a 2012 car model with a market value of less than N4 million is now rated about N12 million. Therefore, they demanded a temporary return to manual valuation till the issues are resolved.

Similarly, the NAGAFF Deputy National President, Dr. Segun Musa, expressed dismay that rather than encourage trade facilitation, “vehicle smuggling will increase and the government will have to channel its limited resources to combating smuggling.

“If this isn’t nipped in the bud, there is also the tendency for customs to come up with similar approaches for other goods.

“This will push importers away, companies will shut down and jobs would be lost, while the government uses the limited resources to buy guns to fight smugglers.”

Babatunde disclosed that the NCS leadership had a week earlier assured the agents that it would suspend the VIN valuation system but reneged on that.

According to him, “we met the customs and conveyed these concerns. We also appealed to the Comptroller-General of Customs in subsequent letters.

“It is important to note that 70-90 percent of vehicles are imported through Tin Can and PTML. Customs agreed that the VIN valuation design neglected the extant laws on wear and tear as well as the 10 percent depression in the value of used cars.

“Less than 10 percent of the vehicles at the ports were able to access the customs portal for the duties. There are several issues that we observed and we asked them to revert to a manual process while these issues are resolved.

“We aren’t against automation because it is what we have always wanted, but the process must be transparent and realistic.” the ANLCA chief scribe declared.

He however told his members after the meeting that the agitations over the controversial VIN valuation policy continue until the Customs’ management reverses what he called the obnoxious system.

“Dear Professional Colleagues, five CRFFN federating Freights associations, arose from an intervention, fact-finding meeting called by Executive Secretary, Nigeria Shippers Council on 25/2/2022 to find lasting solutions to the lingering strike action, premised on poorly designed modernisation project of Nigeria Customs service E-VIN Valuation specific at Roro ports(Tincan and PTML) Customs Command.

“We listened to the appeal of the E.S to go back to work in the interest of the national economy, while he pledged personally to engage the C.G of Customs for review.

“It was unanimously agreed that E-VIN Valuation strike actions Continue on Vehicles clearance until Customs engage further to redesign the E-VIN Valuation with cognizance of the extant Legal Notice No:30 that dealt with wears and tears, Salvage certificated Vehicles and Mileage reading to amend the outrageous E-VIN Value,as inputed presently.

“That other goods be allowed exit out of ports, with waivers request while review lasted”

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Freight Monitor

ANLCA breathes again!—–as peace returns to crisis-ridden association

CRFFN emerges as hero of peace accord

The eyewitness reporter

After five years of bitterness, cut-throat rivalry, hatred and political warfare that have turned the Association of Nigerian Licensed Customs Agents ANLCA (ANLCA) into a walking ghost, peace has finally returned to the oldest freight forwarding group in Nigeria.

It wasn’t a peace that was gotten on a platter of gold.

The road to the peace accord was littered with uncertainty, suspicion and sabotage.

For five grueling years that the association has been in the wilderness of endless crisis, all efforts to achieve the elusive peace have always hit the rock mounted by recalcitrant gladiators that were factionalized into two rival groups.

But on Wednesday, March 15th, 2023, the Council for the Regulation of Freight forwarding Practice in Nigeria (CRFFN) pulled the chestnut out of the fire when it reconciled the two warring factions that held the association, hostage.

At the Annual General Meeting (AGM) held at the Eko Hotels and Suites, the CRFFN poured water on the five years of raging fire that fizzled out.

Like the biblical story of how Jesus Christ rebuked the raging storm into quietness, the Chairman of the CRFFN, Alhaji Tsanni Abubakar, rebuked the raging storm in the ANLCA into calmness.

The road to the final peace in ANLCA was long, winding and tortuous after the initial efforts of the police failed.

As the regulatory body of the freight forwarding industry, the CRFFN led by its Chairman mandated the warring parties to convene an AGM where the disputed issues were to be discussed and settled.

That effort too was nearly thwarted as there was opposition to the peace arrangement.

But it took the cast iron resolve and unbending vow of Alhaji Tsanni Abubakar to end the crisis that enable the AGM to hold amidst the threat of boycott from other warring party.

On the day of the AGM, it also took the guts, gritty determination, hardline posture, appeals, stick and carrot approach and subtle threat employed by the CRFFN to pull off this rare feat.

Alhaji Tsanni held a grueling five hours meeting with the leadership of the two factions prior to the AGM proper, an action which led to the late commencement of the AGM.

At the pre-AGM parley with the warring parties, concessions, sacrifices and commitments were made to achieve peace.

Among them were the voluntary stepping down of Prince Taiye Oyeniyi, as the Secretary of one of the factional BOT, and the merger of the two contending and factional BOT groups, Taiwo Afolabi- led group and Taiwo Mustapha -led group with each group donating four members to the new BOT.

Prince Taiye Oyeniyi was compensated with the position of Paron of the association.

Satisfied that the two sides have reached a truce that would usher in the much sought-after peace, the AGM was later convened four hours behind schedule.

However, the CRFFN chairman and the leadership of the two factional groups, who must have parted themselves on the back for a job well done, didn’t bargain for the resistance and antagonism that greeted the peace proposal when presented to the general meeting.

Hell was let loose over the proposed merger of the two warring BOTs.

Members kicked, yelled and resorted to a shouting match to show their displeasure over the merger.

Some even threatened to challenge the peace proposal in court while some proposed total scrapping of the two quarrelsome BOT factional groups to give peace a chance.

The angry members called the legality and constitutionality of the contrived BOT into question, saying such contrived arrangement is alien to the supreme constitution of ANLCA.

The CRFFN chairman and Kayode Farinto, the Acting National President of ANLCA, begged the angry members to give peace a chance by allowing the peace proposal but this seemed to incensed them into a more riotous mood.

Sensing that his efforts and sleepless night to achieve peace in ANLCA were about to be frustrated by the unruly attitude of the angry AGM participants who described him as an outsider who have no right to force the merger arrangement down their throat, Alhaji Tsanni Abubakar braced himself and confronted the situation with toughness and unbending posture of a military General.

With a tough mien, the CRFFN chairman mounted the chair he was seated on to talk to the rowdy and angry AGM participants.

“I am here as a regulator who is like a father to all the associations in the industry.

“If we have to die here, we die here to ensure there is peace.

“You are not doing me any favour if you agree to settle.

“If you don’t agree to settle, I don’t care.

“My concern is how the crisis is affecting me because anytime I go to the customs, they ask me what the problem is with ANLCA and why CRFFN cannot settle it.

“Let me tell you, you are the one assisting them.

“If you think you can operate without a CRFFN certificate, it is a lie.

“I am ready to die here.

“We have to tell ourselves the truth. Nobody can operate without registration with CRFFN.

“So it is better to settle the crisis now”

The chairman of the CRFFN, who was at that point livid with anger, threatened to withdraw the CRFFN certificate issued to ANLCA and shut down its national secretary if they fail to close ranks.

However, Farinto had to intervene for the umpteenth time, begging and appealing to the agitated members.

“Please, please, I beg you in the name of God, let us allow peace.

“The industry is suffering and members of ANLCA are suffering due to this lingering crisis. The government agencies, especially the Customs, are exploiting the crisis to extort and exploit us”

“So it is in our own interest to allow peace to reign “

Farinto said that the contending issue of BOT has become cancerous and a surgical operation is needed.

He admonished his members to allow the contrived BOT to be inaugurated.

“But what we should be concerned about is how to confine the members of the BOT to their supervisory role as enshrined in ANLCA supreme constitution”.

The subtle threat of the CRFFN Chairman and the appeal by the Acting President of ANLCA eventually calmed the frayed nerves of the members and thereafter, the eight-member BOT made up of equal numbers from each factional group, was inaugurated.

The new BOT members include Alhaji Taiwo Mustapha, Dayo Azeez, Sir Ernest Elochukwu, Sir Dennis Okafor, Prince Ozo Chukwura, Alhaji Shamsideen Awopeju, Kingsley Offor and Mr. Eniola Igbaruola.

In the same breath, a seven-member Association Electoral Committee (ASECO) headed by Mr Alloy Anukwuru, was also inaugurated.

The committee was charged to screen and conduct elections into the executive positions(NECOM) in the association at a date to be agreed on at the next follow-up peace meeting in the next two weeks.

Likewise, Prince Taiye Oyeniyi was inaugurated as the new Patron of the association.

These developments thus signaled a new era and the end of five years of an acrimonious atmosphere in ANLCA.

The peace deal, therefore, dealt a death knell to the controversial interim NECOM.

A new era of peace and tranquility that blows a fresh breath of life to an association that was hitherto held hostage and gasping for breath after five years of suffocation.

Freight Monitor

Prince Olayiwola Shittu congratulates Tinubu as President-elect ,makes case for freight forwarders

The eyewitness reporter

Prince Olayiwola Shittu, the erstwhile National President of the Association of Nigerian Licensed Customs Agents(ANLCA) has appealed to Asiwaju Bola Ahmed Tinubu, the President-elect of the Federal Republic of Nigeria, to pay special attention to the freight forwarding industry in order to revamp and rescue the otherwise thriving sector from decades of retrogressive policies.

In his congratulatory message to the President-elect, Prince Shittu who is also the Managing Director /Chief Executive officer(CEO) of Skelas Group, enjoined Tinubu to give the operators in the freight forwarding industry the needed encouragement and support to enable them to improve on the revenue collection for the Customs Service.

In the congratulatory letter, he personally signed and a copy of which was sighted by our reporter, the respected Customs broker pledged the loyalty of all the operators in the Customs brokerage industry in particular and the maritime sector in general, to the in-coming administration of the President-elect.

”On behalf of myself and my professional friends and progressive-minded Customs Brokers in the Maritime Industry, I wish to felicitate with you and your Vice President–elect, Kashim Shetimma Mustapha for your victory at the just concluded presidential election, under the umbrella of the All Progressive Congress party (APC).

”I consider it a privilege to join hundreds of millions of Nigerians home and abroad, as well as well–wishers in congratulating you on your victory in the 2023 presidential election.

”I am optimistic that at the end of the day, you will bring everybody on board for the huge rebuilding that awaits you.

”Your victory didn’t come on a platter of gold, the discerning knows that in your characteristic manner, you prepared and fought well for it, alongside like-minded progressives through painstaking strategy, commitment and years of political bridge building.

”With your antecedent as an uncommon economic builder combined with your fine leadership acumen, we are hopeful that you will pay more than a passing interest in the maritime economy, which represents a bulwark of the national economy; in view of the changing fortunes of our crude staying economic power.

”As a customs broker, I enjoin you most respectfully to consider giving the freight industry the right encouragement for operators to improve on revenue collection.

”Hitherto, revenue brokers have been left with the feeling that they don’t matter despite being the real revenue collectors in all customs trade.

”As progressive players, revenue collectors can achieve much more if your administration offers them the right encouragement through the remodeling of retrogressive policies and the retooling of the benefits dynamics plus purposeful and mutually responsible stakeholders‘ engagement that has sadly, assumed a master–servant status.

”I am confident that you hold the leadership application to driving our economy and democracy in the right direction, through unwavering commitment.

”The customs brokerage and freight industry look forward to working harmoniously with your administration to raise the bar in revenue generation through a purposeful, mutually beneficial relationship.

”Your Excellency, congratulations once again as we wish you safe and strong; and wish your Administration a resounding success on all fronts”

Freight Monitor

ANLCA sets for historic AGM amidst protest from Mustapha-led factional group

Kayode Farinto, Ag, Pre4sident, ANLCA

—–as Farinto vows no group will be allowed to hold the association down.

The eyewitness reporter

Amidst protest and a possible boycott by the aggrieved members of the Mustapha-led factional group, the Association of Nigerian Licensed Customs Agents (ANLCA) is upbeat over its historic Annual General Meeting (AGM).

The association has announced that the AGM, which has once suffered postponement, will now hold on March 15th, 2023 at the Eko Hotels and Suites, Victoria Island, Lagos.

Briefing the press Monday at the National Secretariat of the association, Kayode Farinto, the Acting National President of ANLCA, said the meeting was at the instance of the Council for the Regulation of Freight forwarding Practice in Nigeria (CRFFN) which decided to intervene in the malignant crisis which has engulfed the association for over four years.

Giving an update on the preparation for the AGM, Farinto declared that over 200 members have so far registered for the event in the ongoing registration exercise that will end on the 13th, March, 2023.

According to him, all intending attendees should submit their licenses for verification to the National Secretariat with the payment of a token sum of N10,000 being the 2023 annual dues.

He however warned that no documentation done outside the secretariat would be eligible for the meeting.

“To comply with the CRFFN letter addressed to me on 10th February 2023, the National Secretary of ANLCA as usual kick-started the process of organizing the AGM as contained in the ANLCA Supreme Constitution.

“But this time around, the NECOM in its magnanimity has to reduce the processes due to the current economic situation in the country and in a bid to carry everybody along.

“For you to attend the 2023 AGM and any ANLCA AGM you must have a License or be a Director of a company Licensed by the Nigeria Customs Service (NCS) and a Corporate member of ANLCA.

” And just pay a token of N10,000 being 2023 Annual Dues. While every other dues and conditions were waived.

“This was agreed to make sure nobody is left out.

“And as I speak with you , over 200 of our members have registered for the 2023 AGM going through the normal process of verification and authentication of any Licensed presented and the position of the company representatives, which must be a Director level in such Company and the process has been going smoothly and is ongoing.

“I want to state here emphatically and to be on record that, anybody that wants to attend the 2023 ANLCA AGM must pass through the normal process as contained in the ANLCA Constitution, no matter your position in ANLCA.

” I have done mine and I expect others to do theirs too.

“Again, for the records too, the database of ANLCA members is domiciled in the National Secretary’s office and anybody that wants to attend the AGM must clear his/ herself in that office.

“I want to state that, anybody that went somewhere to collate licenses without clearing from the National Secretary’s office to authenticate the genuineness or otherwise of such Licenses will not be accepted.

“ANLCA is a constituted association, and we all agreed to follow our constitution and that is sacrosanct”, Farinto declared.

He also said that all the collated licenses would be submitted to Customs for verification before the date of the event.

The ANLCA High chief, who promised that his NECOM will not exceed the April 2023 terminal date by one day, debunked the wild speculation making round that the CRFFN decisions in its ongoing peace efforts were influenced and in deference to the ANLCA members in the council, saying they were neither consulted nor carried along in its decision-making process over the matter.

“It was based on the inability of both the courts and Police to successfully resolve the ANLCA crises that the CRFFN was brought in.

” Mind you, it was not me, Dr. Kayode Farinto Collins nor the NECOM that brought in the Council.

” Rather as I learnt, it was the two BOT heads, Alhaji Taiwo Mustapha and Prince Ozo Chukwura, who approached the Council in 2022 to step in to resolve the ANLCA crises based on their Act which provides such intervention.

“I want to also state it clear here that even though some of us from ANLCA are members of the Governing Council of the CRFFN, we were never part of the Committee set up by the Council to resolve the ANLCA crises, nor did we influence their report at any time or induced the Council Chairman to turn the committee report in our favour as being speculated by some mischief makers in the social media.

“So their allegations of the Council turning the report in our favour is baseless, mischievous and cheap propaganda to once again truncate the peace process since it’s not in their favour.

“Again, we are even more at disadvantage, out of our 9 duly elected board members, only 4 will be taken, but for the purpose of peace and for ANLCA to move forward.

” We have appealed to the remaining 5 BOT members to abide by the Council’s decision for peace to reign.

“Let me briefly inform you of the latest CRFFN decision that has called for the slated AGM.

“I received a letter from the Council about three weeks ago, informing me that the CRFFN has decided to intervene and be part of our AGM, after the one we wanted to organize on 2nd February 2023, but was stepped down due to a request from the council.

“In the letter, CRFFN stated that both sides will provide 4 Board members each to attend the AGM, while the 9th member will be elected at the AGM, where both sides will provide a Candidate each.

“The Council in its magnanimity decided to sponsor the AGM.

The Council also fixed the date and venue of the AGM, which was later postponed to the 15th of March due to the 2023 Elections.

” Again, I want to state here, neither the Chairman nor any Council member intimated any of us or sought our opinions before taking their decisions.

” I learnt that it was the agreement of both BOT factions. It is also instructive to state here that, this was purely BOT affairs and neither me nor any member of NECOM could have intruded into their decisions as been speculated by those who are bent on destroying ANLCA” explained Farinto.

He however warned that no group or individuals can hold the entire ANLCA to ransom as the decisions reached at the forthcoming AGM will be binding on all members irrespective of their position and disposition.