Mazi Joseph Anabaraonye [Registrar, FFAN]
Mazi Joseph Anabaraonye [Registrar, FFAN]
A clear definition of who is a freight forwarder is that person that provides services of movement of cargo from point of origin to the point of destination which is also referred to as door- to- door services and customs agency services full in between its services especially at the port of origin or at the port of his destination. So it depends on what your services entail, whether you are running door- to- door service or perhaps port- to- door service which many of people are doing in this part of the world, that is, just from the port to the warehouse of the importer, and not from the port of the origin to port of destination. If your services transcend port to door services then you are a freight forwarder, but if it is jut port to door you are known as a customs broker which Nigerians referred to clearing agent. The issue is that a freight forwarder does more things than the movement of cargoes, they also carry out activities of packaging, packing, haulage, and warehousing even terminal operations and shipping are all consolidations thus part of freight forwarding. However every part of freight forwarding has areas of specialization. Somebody can specialize in customs brokerage while someone can specialize in warehouse management and someone else can specialize in cargo handling. To me, the various maritime association in the country practice freight forwarding because if you are customs broker automatically makes you a freight forwarder.
Dr. Babatunde Samuel [Registrar POTEMAN]
But when you are using the word’ clearing agent’, I think it is archaic, I think it is incorrect rather the word customs broker should have been more considered as against clearing agent because they are representing the department of the customs in carrying out their respective duty in the collection of appropriate duty and other classifications of goods and services as the case may be .So if you look at it from that perspective, a freight forwarder is more broaden, a customs agent or customs broker is an aspect of freight forwarding because as a freight forwarder it is not mandatory that you must have a license. Going by the CRFFN Act, a freight forwarder is any person that is engaged in the handling of cargo from origin to destination and in that regard, there are so many people involved in the handling of cargo, for instance the shipping company is a handler in the area of handling of the cargo, the banks, insurance companies, terminal operators and a host of others are handlers in the carriage of cargo from origin to destination.
Chief Achike Molokwu [Stakeholder]
Freight forwarding is an umbrella body and it is a complete term of its own with branches which clearing agent is a part of .Freight forwarding entails clearing, transporting, voyaging, shipping and other branches. And that is why we are saying that since things are moving from one level to another and as it now the level we are should be called a freight forwarders because of the global change which I will say we are moving along. To me clearing and forwarding is an old system and old nomenclature as well just like we are leaving the analog business to ASCYUDA. We should be addressed as freight forwarders and thank God for the introduction of CRFFN which most of us are member of, it has made it clear that we are now registered freight forwarders.
Mr. Cletus Akinbo [Lecturer]
The word ‘’clearing agent or clearing and forwarding ‘’is an improper word to qualify the business, rather it is customs broker. In this part of the world, Nigerians use the word clearing agent which is totally absurd and as a practitioner in the transport sector, customs broker would have been the appropriate term to use, because it is what most people practice in our country. Freight forwarding on the other hand, deals with a broader spectrum which customs broker is a fracture of it. But in Nigeria technically, what most people practice is called customs brokerage. For example, Duncan and Crisp International are some the companies that operate freight forwarding and not ‘Mr Obinna ventures’ who deals more of port- to- door service, because in freight forwarding, the individual or company is involved in most aspect of the cargo. So in the Nigeria context, it is better to name the business players customs broker and not clearing agent.
Tony Nwabunike (Pioneer Chairman CRFFN)
A freight forwarder is responsible for the collection of goods and preparing documentation for the export of those goods to the final destination while a custom broker from definitions simply provides just logistics and fill the customs documentations for the freight forwarder to operate, it is very important that we know this. When the CRFFN was established by the federal government of Nigeria in April 2007, it was very explicit and very simple, in section 30 of the CRFFN Act talks about who is a freight forwarder, section 19 (1a and b) mentioned that you must not operate in the ports, you must go through the sanitation or procedure and be certified that you are a freight forwarder before getting any licenses. The whole system is going global and all of us as freight forwarders must be able to stand up in front of our contemporary abroad to speak in the level they will understand us, I can’t go to anywhere in the world and say I am a clearing agent, it is not practicable in this global time.
Lucky Ehis Amiwero (President, NCMDLCA)
A licensed customs agent has the power under section 156 of CEMA, here, the power of authority to operate has been given to the licensed customs agent, we are not representatives, we are authorized by the government and not the customs, the licensed customs agent by the virtue of the various documents that are operating are authorized to operate in three key areas which includes; import, export and excise, this takes care of everything that has to do with this our job, if you don’t have a license as a forwarder you cannot practice in the port, any man who does not have a license cannot practice in the port, a transporter cannot practice in the port, if you are a transporter you cannot go into the port unless an agent takes you into the port, you cannot even practice as a warehouse operator if you don’t have a custom license agent. A custom agent is trained to classify a cargo but freight forwarders cannot do that because they are transporters, they are not trained in classification, rule of origin, and risk management, these are issues that are critical.
Prince Obums Anene (NAGAFF Deputy President, Seaport)
A freight forwarder is a logistics manager that involves in the movement of goods across international frontiers, it is a chain process, a clearing agent on the other hand is just a small segment in the transportation chain, they are called custom brokers, as a freight forwarder you don’t need custom license to operate, where you need it is where you go for examination, after this you still have the shipping company and terminal operator to deal with, it is all encompassing, freight forwarding is what is known in the world, clearing agent is an old nomenclature derived from CEMA.
Frank Aliakor (Licensed Custom Agent)
This is an issue that has created a lot of argument, but the fact is that they are both maritime operators, if you look at a licensed customs agent, is is a person or an organization or corporate body licensed by the Nigerian customs to operate at the p[ort as a clearing and forwarding exporting company, and here you must have officers and men working for you, but a freight forwarder could be likened to anybody that does haulage or participate in anything maritime without being licensed, for example, a vulcanizer who pumps the tire of a trailer or a driver that goes into the port to load will be likened to a freight forwarder because he facilitated trade, also the people that work in that area will be called freight forwarders. The distinction between the two is that a clearing agent that is licensed by customs has the quality as a licensed officer, he is trained to do the job, certified to be competent and that is why he has the authority card to operate at the port, a freight forwarder does not have this authority, that is why sister associations will always argue about it, but I believe they both assist in trade facilitation
Discussion about this post