• Why shipping line agencies are kicking against it
The Federal Government has declared that it would not succumb to what it called the antics of some groups in the Nigerian maritime industry to frustrate the implementation of the International Cargo Tracking Note (ICTN).
Speaking through the Executive Secretary of the ICTN-implementing agency; the Nigerian Shippers’ Council’; Mr Hassan Bello, the Government accused the Shipping Association of Nigeria (SAN); the umbrella body for almost all shipping lines operating in Nigeria of distorting facts regarding the ICTN, which is a global advanced cargo information system on all imports and exports. Mr Bello told our correspondent that, the shipping agencies are only creating disaffection among stakeholders, especially the organized private sector by promoting falsehood that ICTN will add to the cost of business.
He explained that before approving the ICTN, the Federal Government had seen the enormous revenue leakages that were going on, both in the importation of dry cargoes and the exportation of wet cargoes. Bello said that, apart from blocking revenue leakages, the ICTN is also needed for security reasons. He also punctured the argument of SAN, concerning who bears the administrative cost of ICTN. The Shippers’ Council boss disclosed that theI CTN cost does not come with additional cost to importers or exporters.
He however emphatically stated that the administrative cost of ICTN is to be paid by the shipping lines, whom he said had for long inputted the cost in the Bills they give to consignees in Nigeria.
“They have been billing Nigerians for it, and they don’t want to let go, they have been hiding such cost on the final Bills given to Nigeria importers to pay”, he added. The Shipping Association of Nigeria had last week issued a public notice in which it raised alarm that, the “implementation of International Cargo Tracking Note (ICTN) by the Nigerian Shippers Council will entail an additional cost for importers in Nigeria….”
But the Shippers’ Council reacted sharply by accusing SAN of deliberately deceiving Nigerians and mischievously pitching importers against the government. The ICTN, Bello said is already part of payments that are already being made by importers to the shipping lines or the carrier. According to the Council , “whether the Shippers’ Council introduces cargo tracking note or not, shipping companies will continue to collect this taxation, the $US25 per container and all the other listings are expected to come from the already existing freight taxation collected by the shipping lines on Nigerian freight".
The ICTN “comes out of payments that are already collected or payable per consignment, it is already included as part of the consignee’s payments”, Bello explained further. He accused the shipping lines of forming a cartel and taking advantage of many West and Central African nations. "They are trying to truncate the ICTN because they are the same shipping companies dealing with all the 18 countries in West and Central Africa implementing cargo tracking note”, he added.
According to the Shippers’ Council boss, the administrative cost of implementing the ICTN in Nigeria is very low compared to what is paid in other West and Central African countries. He disclosed that, in some West and Central African nation, they collect as much as 65Euro per TEU, while the lowest cost is 35Euros. "The CTN in Nigeria is different from those being implemented in West and Central Africa, ours is Advance Cargo Declaration that gives you a column where you must put the BAF (Bunker Adjustment Factor) CAF (Currency Adjustment Factor) you must tell us what the surcharge is -whether it is GRI (General Rate Increase) which shipping companies do from time to time and they hide it, when you go for a shipping invoice they will give you a lump sum, it doesn't tell you what the GRI or what the basic freight is".
“Here in Nigeria, we are charging $US25 per TEU, which is less than a quarter of the 65Euros charged by other countries, but they are not worried about that because they know that Nigeria controls 75% of the cargoes", he stated.
According to the Council, under the ICTN, containers attract a fee of $25 per unit, Roro vehicles, $10 per unit, break bulk cargoes attract $0.2 per unit, while conventional/groupage cargo attracts a fee of $1 per freight ton. Similarly, while crude oil export attracts $0.1 per ton, both empty containers and non-crude oil exports attract no fee. The Council maintained that, the shipping lines and agents are trying to kick against the implementation of ICTN because they are aware that it will address wastages in the system and create choices for the shipper.
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