• Terminal operators applaud ban, Seek reduction in Customs duty on vehicles 
• As Shippers, NPA plan to unveil single window at ports

The Federal Government has placed a blanket ban on Importation of vehicles into Nigeria, through the land Borders, with effect from January 1, 2017.

The Nigeria Customs Service image maker, Deputy Comptroller of Customs,  Wale Adeniyi who confirmed this also noted that the prohibition order which covers all vehicles, whether new or used ‘tokunboh’ vehicles was sequel to a Presidential Directive, restricting all vehicle imports to Nigeria Sea Ports only, just like an earlier one issued on rice.

DC Adeniyi Wale

“The restriction on importation of vehicles follows that of Rice, whose imports have been banned through the land Borders since April 2016.

“Importers of vehicles through the land borders are requested to utilize the grace period up till 31st December 2016 to clear their vehicle imports landed in neighbouring Ports”, DC Adeniyi stated further..

Meanwhile, the Seaport Terminal Operators of Nigeria (STOAN) has commended President Muhammadu Buhari for banning importation of vehicles into the country through the land borders.

STOAN Chairman, Princess Vicky Haastrup, while reacting to the ban announced by the Federal Government on Monday said the move, if well implemented by the Nigeria Customs Service, will reduce the smuggling of vehicles into Nigeria and revive the operations of Roll-On-Roll-Off (RORO) terminals in the country, a specialized terminal services that handle all types of vehicles.

Princess Haastrup also asked the government to take a step further by scrapping the high import duty regime imposed on vehicles by the administration of former President Goodluck Jonathan in 2013.

“We are confident of the ability of President Muhammadu Buhari to turn the economy around. The earlier ban on importation of rice, and now of vehicles, through the land borders is a welcome development.

“We are happy that the President has listened to our appeal to reverse incongruous policies inherited by his government from the former administration and which have deprived Nigerian ports of cargoes to the advantage of the ports of neighbouring countries.

“In addition to this ban through the land borders, we appeal to the President to return the import duties on vehicles to 20% from the prohibitive 70% tariff imposed by the former administration.

“The reversal to the old tariff will serve as an incentive for Nigerians to import legitimately through the seaports and make appropriate payments to government. This will boost revenue collection by the Nigeria Customs Service. It will also lead to the return of lost jobs at the affected ports.

“We also appeal to Customs officers at the border posts to support the Federal Government and the NCS leadership by ensuring that no smuggled vehicle finds its way into the country through the land borders from 1st January 2017 when the new policy is expected to come into effect,” Princess Haastrup said.

Princess Haastrup said since 2014 when the 70 percent hike in the tariff of imported vehicles came into effect, Nigeria had lost 80 percent of its vehicle cargo traffic to the ports of neighbouring countries.

“Since the high tariff was introduced, importers have resorted to landing their vehicles at the ports of neighbouring countries and smuggling them into Nigeria without paying appropriate duties to government. This amounted to huge revenue loss to Customs.

“The policy also led to loss of more 5,000 direct and indirect jobs at the affected port,” the STOAN Chairman concluded.

In the meantime, to promote trade, the Nigerian Shippers Council (NSC) and the Nigerian Ports Authority (NPA) will introduce the much-awaited Single Window (SW) platform at the ports to achieve 48-hour cargo clearance next year, it was learnt.

This is coming against the backdrop of a directive by the Transport Minister, Rotimi Amaechi, to have a single window platform that will integrate all government agencies at the ports.

“The adoption of the Single Window (SW) platform will strengthen the port industry by boosting efficiency and reducing cost and time which are the major objectives of port concession agreement signed by private terminal operators,” a senior official of the Federal Ministry of Finance (FMoF), who did not want to be named, said.

SW is used by many countries to facilitate trade at their ports.

The FMoF official said the adoption of SW would make Nigeria’s ports competitive in the international trade network.

He urged the Federal Executive Council (FEC) to compel the Nigeria Customs Service and other agencies at the ports to key into the SW platform to facilitate trade and generate more revenue.

He also urged the National Assembly to back SW with a law.

The Federal Government, The Nation learnt, will generate additional $800 million annually from the ports and borders, if NSC and NPA introduce the platform.

The amount that could be generated from the platform, the official said, made the NPA and the NSC to champion the introduction of the Single Window platform.

The official identified sharp practices and charges for services not rendered as factors militating against the single window and 48-hour clearance, urging the ministers of Transport and Finance to address the problem.

“We are aware that NPA and NSC are not happy over the past failure of 48-hour cargo clearance policy. Apart for the fact that the delays experienced in cargo clearance disrupted the production schedules of manufacturers as raw materials are not delivered in good time to their factories, they affected their revenue and were responsible for high level of corruption at the port as importers struggled to clear their cargoes under harsh conditions. This, again exacerbate inflation as goods were not quickly cleared from the port to meet relevant needs in the economy and that is why the need for the single window is imperative.

Speaking with The Nation in his office on Friday, Belo said the single window is a laudable initiative, which a country like Nigeria ought to embrace to transform the ports.

He said the platform would enhance trade competitiveness through improvement in import, export, transit procedures and information sharing system.

The facility, he said, would ensure that there is a paperless Customs declaration, compliance and online approval.

The current 100 per cent physical examination of goods, according to him, would be reduced and all government agencies at ports integrated.

Bello added: “The single window facility will also need to be supported by legislation from the National Assembly.”

“The National Single Window is the ultimate in port operation. But it must be multi-agencies integrated for it to be successful. The port is a transit point and our ports must be seen and used as such. That is why we have dry ports across the country to decongest the port and NPA as the landlord must have a say.”

NPA’s General Manager, Public Affairs, Chief Michael Ajayi, said the Federal Government needed to have the political will to introduce a single window platform to reduce costs and increase the compliance level of importers and exporters.

He said it was part of measures to be undertaken by the NPA to achieve the 48-hour cargo clearance early next year.

“The benefits are immense, because on a micro level, it will boost the competitive advantage of our ports and its traders on the international markets while increasing government’s revenue, boost foreign direct investment, introduce simpler, faster clearance, and release processes,” he said.

Government’s attention on the single window, Ajayi said, should be focused on the following:

reducing time and cost of doing business at ports;

simplification and automation of ports operations; and

reduction of the human interface and increased transparency among others.

Additional report from Nation