Freight Monitor

Farinto urges Customs brokers to mobilise 5m votes for presidential candidate who is freight forwarders- friendly

Kayode Farinto, Ag, Pre4sident, ANLCA

Eyewitness reporter

Kayode Farinto, the Acting President of the Association of Nigerian Licensed Customs Agents (ANLCA) has enjoined freight forwarders to use their votes to bring in a government that has a passion for the welfare of freight forwarders in Nigeria.

The ANLCA chieftain made this call Monday in his May Day/ Sallah message to the freight forwarders confraternity.

Farinto, who bemoaned the harassment and intimidation the freight forwarders are being subjected to under the outgoing government in terms of multiple charges, levies and extortions, urged the oppressed customs brokers to use their PVCs to bring in a presidential candidate who will end the misery and sufferings of freight forwarders.

Consequently, he asked that the freight forwarders should mobilise at least five million votes in the maritime industry for a presidential candidate among the legion of contenders who will work for the welfare of customs brokers.

“The inconsistency in government policies is an eye-opener and we will enjoin our members to give the over five million votes in the industry to a presidential candidate that will be explicit on how to assist the Freight forwarding profession viz a viz implementation of people’s welfare policies their support and endorsements come 2023.

Farinto said the present government has shown a lack of empathy for the suffering and harassed freight forwarders who are even overburdened with all manner of charges in the face of an economic crunch.

“We won’t allow anyone to fool us like this outgoing government is doing.

“We are gradually losing our profession to foreign domination courtesy of lack of law that will protect indigenous practitioners”, he lamented.

While urging the freight forwarders to brace up for the reintroduction of the revised Vehicles Identification Number (VIN) valuation policy this month, the ANLCA Chief warned them to be on their guard against people who may wish to compromise the process to the detriment of freight forwarders.

“Let me commence by saying that, it is obvious that the NCS will be implementing the VIN VALUATION this month, going by the news filtering around us in the industry and we need to monitor this because people will not want the process to be successful may introduce things outside our agreement into the procedures”

“I have released the agreed procedures on clearance of Standard Chassis vehicles that fall within VIN valuation and Non-Standard chassis vehicles,salvage, and accidented vehicles a few days ago.

“We need to allow these new changes going by all we go through in the hands of customs various units to clear vehicles in the ports”

He recounted the horrific process of a clearance procedure, especially of vehicles, which he said is laced with extortions by the Customs

“Even when you take your valuation, many alerts are put on our declarations and it takes the grace of God and difficult conditions to get them out of the ports.

“As if that is not enough, you need to know the numbers of calls we receive from our members delivering these vehicles within and outside the Lagos environment.

“Many customs units will say, your values are compromised, it must be jacked up and many of us are at their mercies pleading that DN should not be issued on already exited vehicles.

“This and many more things are what we believe The VIN valuation will eliminate.

“Many agents have been given forged and mutilated valuation papers by the third parties and are left to suffer the consequences of whatever happens.

“We do not need all this to get our vehicles released and we promise to challenge any command that may want to use the office of monitoring to extort money from our members when this new process commences.

The ANLCA Acting President also promised that the controversial issue of the National Automotive Council (NAC) 15 percent level will be pursued to its logical conclusion through the involvement of the national assembly and the instrumentality of the soon to be inaugurated Council for the Regulation of Freight Forwarding Practice in Nigeria (CRFFN).

“The issue of 15 percent NAC turn levy will be pursued vigorously immediately after the Sallah break

because we will engage the National Assembly on the need for them to know that, this government is not sensitive to the plight of the masses to have introduced a levy at this period when the economy is in comatose.

” And we will also ensure that the Federal Ministry of Finance is dragged before the people’s representatives on this matter.

“Since the CRFFN governing council may also be inaugurated this week, it will be our first issue to be raised at the plenary which needs urgent national attention.

“All our efforts to eliminate NAC turn levy is being done in collaboration with the motor dealers association”

Farinto however said that before these lofty objectives of the leadership of the freight forwarders could be achieved, the members of the confraternity must be united to achieve their common goal.

“We must however come together to achieve greatness. An injury to one should be an injury to all” he declared.

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Freight Monitor

My comments on anti-trade practices of some freight forwarders misconstrued—-Tanko

Tanko Ibrahim

—–condemns Oforbike, Ezeh reactions as unprofessional, uninformed

Eyewitness reporter

The National Coordinator, 100 percent Compliance Team of the National Association of Government Approved Freight Forwarders (NAGAFF), Alhaji Ibrahim Tanko has described as unfortunate the reactions of John Oforbike, a Chieftain of Association of Nigerian Licensed Customs Agents (ANLCA) and Princess Chi Ezeh, a member of the governing council of Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), to his complaint against the false declaration that is making honest freight forwarders to lose money and customers.

The frontline maritime player is not finding it funny that his complaint against the false declaration of goods is generating controversies when it was meant to protect the businesses of those doing the right thing through genuine declarations.

Tanko, who denied ever saying that freight forwarders are corrupt, said that he only lodged a complaint with the Area Controller of Apapa Customs Command, Compt. Yusuf MI, that the recent jack-up of PARR is making freight forwarders to cut corners by declaring different things entirely.

According to him, the discrepancy is making Importers/ agents pay varying duties on the same goods where one pays N3 million and another pays N6 million.

He said that the variance in the duty of the same goods for different people is making honest practitioners like him who could not cut corners to be losing money and customers.

The Compliance Team coordinator said he complained to the Area Controller to look into it as those of them who like to stay on the side of the law are losing customers.

Specifically, Alhaji Tanko disclosed that he cleared four containers of wine for a customer which attracted a debit note of N32 million.

He stated that the debit note was issued by the Officer in Charge, Query and Amendment which the Importer told him to pay on his behalf because he didn’t have money.

He stated further that the importer gave him documents for another four containers but later asked him to come to his office.

The NAGAFF chieftain narrated that on getting to his importer’s office, he threw some documents at him, calling him names and saying that he would not pay the N32 million because others are clearing the same goods for a lesser amount.

Alhaji Tanko said that when he checked the documents, he saw that wines were declared as used vehicles in order to pay less duty.

This he complained to the controller to save honest freight forwarders who are doing genuine declarations from losing their customers and closing shop.

Alhaji Tanko said he was disappointed with the comments of Oforbike, for calling for his arrest and prosecution because he was fighting to protect the businesses of honest freight forwarders and shippers.

He described the attacks on him by Oforbike and Princess Chi Ezeh over the issue as unexpected of professionals like them.

He stated that the two freight forwarders who are occupying high positions in the freight forwarding industry ought to be on the side of the law as advocates of genuine declarations, adding that they have failed to show examples of good leaders.

Freight Monitor

CRFFN member tackles Tanko over claims that freight forwarders are corrupt

Princess Chi Ezeh, NAGAFF Chieftain

—- says claims are false, blackmail, self-serving

Eyewitness reporter

Two frontline members of the National Association of Government Approved Freight Forwarders (NAGAFF) and incidentally members of the fourth governing board of the Council for the Regulation of Freight Forwarding Practice in Nigeria (CRFFN), Princess Chi Ezeh and Alhaji Ibrahim Tanko, have disagreed over the conduct and professional integrity of freight Nigerian forwarders.

While Alhaji Ibrahim Tanko believed that freight forwarders, of which he is one of their stocks, are corrupt and wilfully connive with Customs officers to circumvent the new Vehicles Identification Number (VIN) valuation policy in order to cheat the federal government of its revenue, Princess Chi Ezeh holds contrary views, saying freight forwarding is an ethical profession which is an integral part of value chains in the transport industry.

Recall that Alhaji Ibrahim Tanko had declared that freight forwarders evade customs duties with the collaboration of corrupt customs officers through the manipulation of the Pre-Arrival Assessment Report (PAAR), stating that “most freight forwarders have started cutting corners by conniving with valuation officers and releasing officers to get the ex-factory price as value payable on used vehicles.”

Princess Ezeh, the only female member on the fourth governing board of the CRFFN, however, took a swipe at Alhaji Tanko, the National Coordinator of NAGAFF’s Compliance team, over his comments, saying they were self-serving, meant to gain cheap publicity and blackmail government agencies.

She said that the fourth CRFFN board, of which the two contending NAGAFF members are part, is concerned about effectively regulating freight forwarding in a bid to stop the practice of using false statements to gain popularity or blackmail government agencies.

“In my professional opinion, condemning freight forwarders because of PAAR is wrong because PAAR isn’t the final document for clearing cargoes.

“It is advisory as the cargoes and the accompanying declarations are further subjected to either physical or documentary checks at the ports.

“CRFFN is concerned about correcting this wrong perception about freight forwarders,” she said.

According to Chi Ezeh, PAAR as it is, is a function of valuation principles based on general agreement on Trade and Tariffs, quality and quantity of the items, and even the application of rules of origin.

She condemned what she described as the de-marketing efforts of Alhaji Tanko which she believed negatively affect the image of the freight forwarding profession in particular and the maritime industry in general in the eye of the international community.

She also condemned the act that she described as unpatriotic and capable of undermining Nigeria’s Foreign Direct Investments (FDIs).

Chi Ezeh further disclosed that the industry practitioners are professionals for whom such a blanket label of unethical conduct is not only false but unpatriotic.

She said the cargo clearing system is a chain involving many agencies, all of whom ensure that best practices are applied in cargo handling towards Customs revenue generation and national security.

Chi Ezeh who is also the Vice President in-charge of seaports at the National Association of Government Approved Freight Forwarders (NAGAFF), stressed that every ex-factory price given in valuation is always approved by the Customs Area Controller while the physical examination is conducted for vehicle declarations by Customs and all other approved government agencies in the ports.

She posited that it is not possible for all the agencies involved in cargo clearance to standby and allow the false allegations raised in the publication.

“Freight forwarding is an ethical profession where the practitioners have high-level integrity.

“Like the profession of doctors, accountants, lawyers, among others; there are ethics, principles, and standards.

“I totally disagree with the insinuation that all freight forwarders are corrupt.

“We are an integral part of the national economy who contribute greatly to the economic and physical security of the nation through the huge revenue profile announced by customs annually.”

“The truth is that these cargoes are being examined. So, does this mean that everyone in the entire supply chain is corrupt?

“If Customs is being accused of corruption in connivance with freight forwarders, how about the Standards Organization of Nigeria (SON), National Drug Law Enforcement Agency (NDLEA) and other agencies because examination of cargoes isn’t done by Customs alone.

“So, this accusation is wrong and demarkets freight forwarding as well as the entire players in the industry,” Chi Ezeh said.
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Freight Monitor

Stakeholder calls out Amaechi to account for millions of Naira in remittances made by freight forwarders under CRFFN.

Segun Musa

Eyewitness reporter

As Rotimi Amaechi, the Minister of Transportation is intensifying his campaign to be the next President of Nigeria, an aggrieved stakeholder in the maritime industry, Segun Musa, has called the APC presidential aspirant out to account for millions of naira remitted by Freight Forwarders under the Council for the Regulation of Freight Forwarding practice in Nigeria(CRFFN) which is under the supervision of his ministry.

Musa, a frontline freight forwarder and former Chairman of the Airport chapter of the National Association of Government Approved Freight Forwarders (NAGAFF), claimed that freight forwarders, since the inception of the Council for the Regulation of Freight Forwarding Practice in Nigeria (CRFFN) in 2007 and as stipulated by the Council Act, have been making annual remittances to the Federal Government through the ministry of Transportation in terms of annual dues and membership subscriptions of the CRFFN,

The concerned stakeholder further alleged that these monies, which have run into several millions of naira, are yet to be accounted for.

Musa further alleged that the amount accrued from the remittances made by freight forwarding companies and individual freight forwarders, may have been mismanaged, hence his call for accountability.

“We are soliciting the support of all well-meaning Nigerians and other stakeholders to call on the Ministry of Transportation to respect the FOI Act and give details of total collections from individual and corporate annual dues from the inception of the CRFFN Act and explain how it has been utilised as well as the law that backed up the usage.

“The critical stakeholders in the transport subsector are suspicious of possible mismanagement of the public funds tagged (annual dues) contributed by freight forwarders into the coffers of the Federal Government under the supervision of the Ministry of Transportation.

“The reports in circulation indicate that the Ministry of Transportation has mismanaged hundreds of millions in naira so far contributed by freight forwarders as the stipulated dues in line with the Act that established the CRFFN from their income aside from statutory taxes deductibles.

“The law compelled every freight forwarding company to pay a stipulated amount as dues annually as well as every individual staff of the companies to remain in practice.

“Despite the inconvenience due to the global economic meltdown and slowdowns in business as well as the biting inflation impacts, members of the freight forwarding industry complied with the directives as enshrined in the law” he noted.

Musa expressed regret that despite the statutory obligations of the CRFFN board to use this amount accrued from the annual dues and subscription to train freight forwarders, all the training so far organised by the Council were fully paid for by freight forwarders themselves except very few that were free.

“It is sad to note that the essence of compliance is due to the fact that the revenues pool would be deployed to build members’ capacity to meet global standards and position them to participate in the oil and gas sector in Nigeria.

“It is most unfortunate that all the training organised so far were paid for in full by stakeholders aside from few that came as free” he declared.

Musa, therefore, expressed reservation over the collection of the controversial Practitioner Operating Fee(POF) made compulsory to be paid by freight forwarders and sanctioned by the Ministry of Transportation despite several millions of annual remittances that are yet to be accounted for.

“The alleged mismanagement of public funds contributed by freight forwarders came as a result of the same Ministry of Transportation that has not accounted for the hundreds of millions in naira contributed so far aside government allocations and subvention, now demanding for revenues from every imported shipment into the country tagged Practitioner Operating Fee (POF).

“This simply means regardless of membership annual subscriptions or dues paid, aside the Customs license renewed with lots of money, aside customs duties, shipping companies charges and terminal charges, you will still have to pay something similar to customs duty to the Ministry of Transport before imported goods will be allowed to exit the ports”

The NAGAFF chieftain, while lamenting the plethora of charges imposed on freight forwarders in a stifling economy, said this has made Nigerian ports non- user friendly .

“This is the kind of policy that has made our ports not to be business-friendly and has been encouraging manufacturers to exit our country as well forcing importers to patronise the neighboring ports.

“This policy is not only strange to International best practices but also strange to any economic ideology targeted at adding any kind of values to any sector of the economy.

“We hereby implore our strategic partners to help in calling out the Honorable Minister for Transportation to come and account for what we have contributed to the pool under his supervision, how it has been utilised and as a matter of responsibility, jettison the idea of POF because it is an intellectual fraud targeted to further impoverish the innocent Nigerians” Musa further alleged,