Port Congestion Surfaces At Tin Can Port Over Abandoned Vehicles

…Demands Removal of 35 % Duty
As a result of the Nigeria Customs Service's recent demand for 35% duty collection on all vehicles imported through Nigerian ports, port stakeholders have raised alarm over the emerging congestion in the port system.
Some of the stakeholders who spoke with Shipping Position Daily at the popular Car Park 'C' at the Tin Can Port confirmed that majorly of vehicles imported two months ago since the implementation of the 35% duty collection began, have been abandoned inside the car park.
Even though Shipping Position Daily had reported exclusively on Monday that the Federal Government has extended implementation date of the collection of 35% levy to January, 2015, the stakeholders demanded that customs should be directed to stop the collection of the 35% duty.

Speaking, National Electoral Commission (NECOM) Chairman of the National Association of Government Approved Freight Forwarders (NAGAFF) Mr. Okey Nerus said that the congestion has already affected the traffic of vessels into the country.

According to him, consignments were abandoned at the port because importers were waiting to see if the government would come down on the policy, but that the more they waited the more demurrage the cargo incurred.

"Some of the cargoes you see here are consignments that came by May 1st to mid-June, people felt the policy will not commence until July so they rushed to make imports, and when they were caught up by 35% duty, they decided to wait and see if government will revert it"

"There is bound to be congestion, and that congestion is what we are witnessing now, another thing is that it has affected the traffic of vessels into the country. Before now, at Five Star Terminal, there is no day that you will not see two to three vessels anchored and discharging vehicles and trucks" he said.

Also speaking with Shipping Position Daily, Deputy President of NAGAFF, Mr. Ugochukwu Nnadi, said that government is not being sincere with its pronouncement of extension of the date of implementation of the policy.

Government according to him, might decide to sneak in the 35% levy on the imported vehicles just as it sneaked in 35% duty collection even before the July 1st date of implementation earlier scheduled.

"Why should we trust them when they failed us on the first promise? We are just waiting and watching, nobody should import, let's just watch and see", he said.

"Many people are currently abandoning their vehicles at the port because the 35% duty is too much, there need to be a reversal", he added.

According to him, freight forwarders had no choice but to pay the duty because failure to pay the money, customs will auction the cars and keep the money.

However, when our correspondent visited the Car Park 'C', Customs Officer in charge of the park; Abdulmumuni Njobdi denied that there is congestion in the park.

According to him, importers have been complying perfectly