President National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Mr Lucky Amiwero, in a chat with Shipping Position Daily last week, talked about sundry issues in the Nigerian maritime industry. He opened up to Correspondent Roland Ekama about the ports, the controversial PAAR, the Common External Tariff, and many more.
What are your expectations of the maritime industry for the 2015?
President National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Mr Lucky Amiwero, in a chat with Shipping Position Daily last week, talked about sundry issues in the Nigerian maritime industry. He opened up to Correspondent Roland Ekama about the ports, the controversial PAAR, the Common External Tariff, and many more.
What are your expectations of the maritime industry for the 2015?
You will agree with me that everything about the maritime industry is not right. We do not have the right structures on ground and even the policies of our government is not what it is supposed to be. The economy of this country is used for political game because the industry is undergoing a very serious threat. Under section 1, 2 and 3 of CEMA, the minister of Finance has an authority over the Customs but it is not so in Nigeria. Our export is negative thus there is a collapse somewhere. We are not in line WTO and WCO conventions; above all no legal backing in port operation. It will only take the grace of God to see us through in 2015, because from the way it is going, the economy of the country has been battered; even the beginning of 2015 will be worst and the maritime industry is not an exception. It is only God that will save us this year. The sector has nothing to write home about. Also, you will recall that when the presidential management team came last year 2014 I gave 11 different problems we are undergoing in the maritime industry. When you look at the sector today, it has degenerated to a level whereby 75% of the agents lost their jobs thus they have left the ports of Lagos based on procedures at the ports. Procedures at the ports are imposed on the users because we don't respect procedures and there are no concrete laws in place. We don't have the backing of any legal instrument. In the maritime sector for 2015, we have started implementation of a common union in terms of common tariff for all West Africa sub region and about 90% of the people in the country are not even aware that we have started CET on the first day of January 2015 and what we are expected to do is to put structures on ground and also have a level playing field because it means that you must have customs unit in the whole sub region of applying the same tax policy and process. And all these features is that if you don't do it well in your area, many companies will leave your zone and move to another area and when you look at Nigeria for instance our work base is being shifted to other countries. We lost our transit to other countries within the sub region.
What is your perception about the maritime industry in the area of human capacity development?
When you look at the maritime sector of today, which is supposed to generate employment and create wealth is not living up to that expectation as it ought to because, as we speak it is even losing employment due to the fact that the way we operate in the sector is not just right. There is no process in the ports and the procedures are not there either. As proponent of that effect, our ports are the most expensive in the world; and that is why most of our businesses have relocated to neighbouring ports; therefore massive jobs are lost due to what is obtainable in Nigerian ports and as a result it is losing its focus of generating wealth and to also create employment for Nigerians. The process at the ports is killing the economy.
What is your take on Customs activities at the ports?
I am happy that the Lagos Chamber of Commerce and Industry (LCCI) has also said something about the Nigeria customs operations at the ports. Before now it was Lucky Amiwero alone, but LCCI that controls a large chunk of clearing processes from the ports in the country are also feeling the pains on customs activities and we told them back in 2013 that there are normal procedures to follow backed by laws and as a matter of fact, there was no input from them. They are reacting now, they are calling on the President to intervene because there is an upliftment of 50 to 100% in value and it is even affecting our foreign exchange, but the customs does not care. The customs don't understand that they are two value principles; one has to do with valuation; which now has negative effect because it is not properly applied and if LC's are overloaded it becomes a problem for the government again, when it is under loaded because of foreign exchange it becomes another problem. For now customs don't care whether it is LC or not and what they will tell you is that your value is low. The Customs has driven a lot of people out of import trade; when you look at the last Christmas season you will find out that it was the lowest and dullest in terms of activities in Nigeria as a country. We lost our transit cargoes, because as at today the reform of customs has no impact. They came up with the Pre Arrival Assessment Report (PAAR) which has two components, it means that before the goods arrive, you must have examined and must have finished all that is needed before giving assessment of the goods and you don't need to do any other job here in the ports, so there is need to change that name for the reason that you have allocated duty to that name . I think it is better for them to change that name because it is better to drop assessment and arrival then call it another name entirely.
What is your perception about PAAR?
PAAR is useless and PAAR was a wrong dummy sold to the government by customs and the government is buying it , whereas customs still double check, impose , uplift , issue DN in contravention of all the laws in the world. The essence of the Kyoto convention is to harmonise, minimise , reduce cost and simplify procedures in trade. The concept of IMO convention is also the same items I have listed and the two conventions are very clear which the customs are not complying with. The customs impose value because of revenue which contravenes Act 2003. Why must the customs query, uplift and issue DN on their own concept called PAAR and in all of these, there is nobody to run to and lay complaint. When you go to the ministry of finance it will take you three years and three months to handle. This again has made people to divert the business out of Nigeria to neighbouring ports; many people have also stopped importing because the minister is not ready to answer anybody. I think the economy of this country is used for political game because the industry is undergoing a very serious threat. By laws under section 39,57,26 of CEMA the minister of finance has the right to regulate customs . Section 3 sub- section 1 and 2, the minister of finance has the authority to control and the management of the customs laws thus customs have a burden o implement. The three agencies or people that have power in the CEMA are the president, minister of finance and the board of customs, the customs management is just to implement. But what customs is doing today is that they are imposing after they make decision and they also implement. In the whole of the world there is no place such is done and there is nowhere the importers can run to because people have written, I have also written but no response. People’s goods are being auctioned at the ports but the law says customs don't have the right to sell and it is only the minister that has the right to allocate.
The terminal operators and shipping lines agencies have again filed an appeal case against the Nigeria Shippers’ Council, what is your take on that?
Just of late, the Shippers’ Council tried to intervene, nothing positive has come out yet even though they are still trying to checkmate the terminal operators and shipping companies on the rising and unwholesome cost of doing business in our ports. Much has not been achieved in that regard. We still thank God they won the case at the High Court and even if they (STOAN and shipping lines agencies) say they want an appeal, that does not stop the council from implementing the procedure and they are supposed to start it by now and I know its in process. The case is very clear because the Federal High Court said you must comply with the council knowing full well that they have the power to regulate the shipping line agencies and the terminal operators with a verdict that all the money you have collected for a certain period must be paid to the Shippers’ Council account which is a law and also a decision. Taking an appeal does not stop the council to do what they are supposed to do. I will advise the council to meet with the Attorney General of the Federation for the implementation to commence because filing for an appeal does not stop the council from doing what it has been empowered to do.
Are you satisfied with FG’s decision to suspend the implementation of the auto policy until April 2015?
The policy must be reviewed by the government; our transportation system must be subsidised because we are supposed to create employment with the policy, but we are not. As regard the benefit of the auto policy, most of the people we are talking about go into mass importation and such things will continue to affect our children. The 35% duty on vehicles is wrong, because we cannot manufacture cars,yet we are talking about assembling whereby the government is creating smaller billionaires because most of such things are not acceptable in world.
Discussion about this post