Some call it practicing fees, others refer to it as Transaction fees, and some prefer to term it cargo collection dues. But, one thing is common to all the nomenclatures; they are all avenues to raise funds from importers and freight forwarders by some players in the logistic chain.
Some call it practicing fees, others refer to it as Transaction fees, and some prefer to term it cargo collection dues. But, one thing is common to all the nomenclatures; they are all avenues to raise funds from importers and freight forwarders by some players in the logistic chain.
The idea of collecting monies from clearing agents is as old as the port system itself. There was a time when the leadership of the Association of Nigerian Licensed Customs Agents (as the only association at that time) at both the chapters and national levels relied on such collections. It usually runs into multi- millions of Naira. They call it ‘association fees’.
As other associations started springing up, the quest to share the’ booty’ became an issue, and apart from the frequent refusal by some individual clearing agents who often refuse to be coerced into paying the fees, it became a common source of funding for the associations, especially at the chapter levels.
With the coming of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), the issue of collection of practicing fees took a new dimension. Armed with a ministerial directive, the Council took on the associations to wrestle the purse from the associations; it was a bitter battle that eventually made the CRFFN comatose. There was no agreement over how proceeds of the transaction fees would be shared.
But, while CRFFN was battling to solicit the support of freight forwarding associations, another group; the Joint Action Committee of Freight Forwarders (JACOFF), was created to contend with the CRFFN.
While CRFFN wanted transaction fees, JACOFF wanted freight forwarders to pay cargo clearance dues (CCD) to it. The JACOFF is an amalgamation of freight forwarding associations. They are: Association of Nigerian Licensed Customs Agents (ANLCA), National Association of Government Approved Freight Forwarders (NAGAFF), National Council of Managing Directors of Licensed Customs Agents (NCMDLA), Association of Registered Freight Forwarders of Nigeria (AREFF) and National Association of Air Freight Forwarders and Consolidators (NAFFAC).
We are very much aware that, the Minister of Transport, Senator Idris Umar, has since outlawed collection of practicing fees by the Joint Task Force of the Association of Nigerian Licensed Customs Agents (ANLCA) and the National Association of Government Approved Freight Forwarders (NAGAFF).
We are also aware that these fees are still being collected at SAHCOL, NAHCO at the Murtala Mohammed International airport, and the Federal Ocean Terminal (FOT) and the West African Container Terminal (WACT) both in Onne port in Rivers state.
The Registrar of CRFFN; Mike Jukwe has often affirmed the illegality of such collections. “The (CRFFN) Act is very clear, it has stated what the associations are supposed to collect, so whatever they were collecting in the past, with the enactment of the Act and coming to force of the Act, are now illegal,” registrar of CRFFN,
“Anything outside that is illegal and we have to stop it. Police has been informed. The associations know what to collect. Council is working out something, once we get the approval from the minister, they will be directed on what to collect and how to collect it. That will come out soon, but we have to be sure that we have stopped all the mess that is going on then we start doing things as it is done internationally.”
This statement was made about one year ago, yet such collections still go on at the ports unabated.
On its part, the Nigeria Shippers’ Council, even with its new role as the economic regulator of the port system has not been able to stop the collection.
It made a feeble effort in, Onne port, but didn’t succeed. The Executive Secretary of the Council; Mr Hassan Bello who was represented (at one of those meetings to stop the collection), by Mr. Moses Fadipe had told the stakeholders that he was at the Port Harcourt meeting to reiterate that there those collections were illegal .But that was how far it went, the illegal collections still thrive.
The one at the Lagos airport is most shocking and embarrassing, whereby a federal institution, such as NAHCO will input such collections into its billing system.
The various collections are an embarrassment to both the CRFFN and the Nigerian Shippers’ Council. It falls more within the purview of the latter than the former to put a stop to the practice.
While we acknowledge the need for associations to raise funds for their needs, we are strongly opposed to the gangster-like manner with which they go about it. There are instances when freight forwarders who do not belong to their bodies are forced to pay the levy or face delay in the release of their consignments.
We are also strongly of the opinion that the ministry will have to also do more than its doing at the moment. The on-going attempts to once again empower the CRFFN to start collecting ‘transaction fees’ is commendable. But beyond this, efforts should be made to ensure equitable allocation to all stakeholders; by this the freight forwarding associations will have no choice, than to drop the illegal collections.
Certainly, paucity of funds have hampered the CRFFN for its mandate to set standards of practice, register the practitioners and also regulate the various freight forwarding associations to make them conform to international best practices.
Under the failed attempt, CRFFN was expected to collect N1.50 per kilo of every air cargo, N1, 000 per 20-foot container, N2,000 per each 40-foot container, N500 per car or Jeep imported into the country sand N1,000 per every truck or 20-foot equivalent. Others include N2, 000 per truck or 40-foot equivalent, N3.50 per every ton of general cargo imported into the country and N1.00 per ton of every dry bulk cargo handled in any of the nation’s seaports
This would have made a lot of difference to its finances.It is the CRFFN that should collect fees and not freight forwarding associations
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