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Home » Importers Incur N2bn Demurrage Loss Over Customs Portal Closure

Importers Incur N2bn Demurrage Loss Over Customs Portal Closure

by Joshua
July 23, 2022
in News

Oluyinka Onigbinde

Stakeholders in the nation’s maritime industry have estimated the demurrage losses for Nigerian importers to exceed N2billion, two weeks after the sudden deactivation of Five Star Logistics Terminal on the Nigeria Customs Service (NCS).

Nigeria-Custom-logo

Meanwhile, congestion is also brewing at the facility with two vessels successfully discharging vehicles and containerized cargoes despite the terminal’s inability to access Customs portal.

Although projected losses for the seaport terminal is pegged around N1billion, the company has expressed willingness to waive storage charges for the period.

Meanwhile, a source at the facility has confirmed that the company’s top management is still in Abuja to engage with Customs leadership at the headquarters.

Speaking on the development, the President of African Association of Professional Freight Forwarders and Logistics (APFFLON), Mr. Frank Ogunojemite has asked Customs to explain what platform they will utilize in collecting unpaid duties from a terminal operator.

He argued that there is no platform for a terminal operator to pay Customs duties that should have been paid by consignees.

Read Also:  Ondo Maritime Media Forum Hails Adegoroye’s Appointment As Minister Of State For Transportation

According to the APFFLON boss, NCS is being inconsiderate by persisting with the terminal’s portal closure as Nigerian shippers are set to suffer colossal charges that would transmute into inflation in the country.

His words: “At this point, the only beneficiary of this situation is the shipping lines who are foreign organizations. The terminal operator will have to waive the storage charges because they are responsible for this; but shipping lines will not waive demurrage. This means shippers will pay the demurrage and pass the additional cost to Nigerians by increasing the prices of the imported goods.”

Ogunojemite also expressed worry that fast track goods and reefer cargoes are still made to suffer from Customs decision, describing the move as a huge setback for the nation.

He opined that Customs doesn’t seem to care because it would recoup its revenue whenever the portal is opened, but warned that the congestion at the ports and economic impact of the decision should make the Service reconsider its stance.

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