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NAGAFF begins campaign against double registration of freight forwarders

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The National Association of Government Approved Freight Forwarders (NAGAFF) may be intensifying its bid to see the Nigeria Customs Service (NCS) and Council for Regulations of Freight Forwarders of Nigeria (CRFFN) resolve  the thorny issue of who gives final approval or license to those going into freight forwarding business.

DAVID MARK

DAVID MARK

The NAGAFF from every indication, believes that practitioners,  once licensed by the CRFFN as freight forwarders should be able to practice, whereas the Customs and Excise Management Act (CEMA), prescribed otherwise, until one becomes a licensed Customs agent, he may not ‘clear’ others cargo.

Dr Ngozi Okonjo Iweala

Dr Ngozi Okonjo Iweala

Already, the association has dispatched some letters to both the Ministers of Finance and Transport, Dr. Ngozi Okonjo Iweala and Senator Idris Umar, stressing the need for relevant stakeholders meeting to resolve it.

The meeting which the group insists should include the Customs, CRFFN, Nigeria Shippers Council, (NSC), Nigerian Ports Authority (NPA), NAGAFF, Council of Managing Directors   (NCMDLCA) AREFF, NAFFAC and the. Association of Nigerian Licensed Customs Agents (ANLCA), should come together and harmonise the grey areas.

Pointing out that the CRFFN may forever a remain lame duck until the issue is resolved, the body also argued that non-removal of the bottleneck, would imply that operators in Nigeria would be forced to undergo double registrations; once with the Customs and the second, with the CRFFN.

“The Honourable Ministers of Transport and Finance are hereby encourage to set up a joint technical committee to harmonize the application of Customs law with freight forwarding Act 2007.  

“The licensing regulation of the Nigeria Customs Service under Section 153, 154, 155, 156 and its code needs to be harmonized with the application of Section 19(a & b) of CRFFN
Act.”, the Secretary General, ( FWDR), Increase Uche wrote, in the letters, stressing that the two legislative instruments appeared to be in conflict because of CEMA.

“Whereas the Customs law recognizes corporate bodies licensed by Customs,
primarily the CRFFN laid emphasis on individuals whose name appear in the
register of freight forwarding.

“These two legislative instruments appeared to be in conflict because CEMA may not have recognized the nomenclature of freight forwarding practice but licensed customs agents and importers/exporters.

“The point herein canvassed is to state the obvious that freight forwarding as a profession may not materialize in reality and practice if CEMA and CRFFN operators do not seat down to harmonise positions.

“There is no doubt that the difficulties CRFFN may be having to take off
effectively for the past four years may be associated to licensing regulation of the Customs.  Whereas the freight forwarders as professionals do not require Custom license to practice, the Nigeria Customs may not be prepared to accept any declaration made to it by a freight forwarder whose name appeared in the register of freight forwarding in Nigeria.  This is the dark spot and conflict zone” the NAGAFF scribe concluded.

An industry analyst who spoke on the issue however said that whereas the view being campaigned for by NAGAFF was laudable, it may not be easily attainable, because the two Ministers expected to resolve it have separate visions and goals to pursue.

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WAIVER CESSATION: Igbokwe urges NIMASA to evolve stronger collaboration with Ships owners

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…Stresses the need for timely disbursement of N44.6billion CVFF***

Highly revered Nigerian Maritime Lawyer, and Senior Advocate of Nigeria (SAN), Mike Igbokwe has urged the Nigeria Maritime Administration and safety Agency (NIMASA) to partner with ship owners and relevant association in the industry to evolving a more vibrant merchant shipping and cabotage trade regime.

Igbokwe gave the counsel during his paper presentation at the just concluded two-day stakeholders’ meeting on Cabotage waiver restrictions, organized by NIMASA.

“NIMASA and shipowners should develop merchant shipping including cabotage trade. A good start is to partner with the relevant associations in this field, such as the Nigeria Indigenous Shipowners Association (NISA), Shipowners Association of Nigeria (SOAN), Oil Trade Group & Maritime Trade Group of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

“A cursory look at their vision, mission and objectives, show that they are willing to improve the maritime sector, not just for their members but for stakeholders in the maritime economy and the country”.

Adding that it is of utmost importance for NIMASA to have a through briefing and regular consultation with ships owners, in other to have insight on the challenges facing the ship owners.

“It is of utmost importance for NIMASA to have a thorough briefing and regular consultations with shipowners, to receive insight on the challenges they face, and how the Agency can assist in solving them and encouraging them to invest and participate in the maritime sector, for its development. 

“NIMASA should see them as partners in progress because, if they do not invest in buying ships and registering them in Nigeria, there would be no Nigerian-owned ships in its Register and NIMASA would be unable to discharge its main objective.

The Maritime lawyer also urged NIMASA  to disburse the Cabotage Vessel Financing Fund (CVFF)that currently stands at about N44.6 billion.

“Lest it be forgotten, what is on the lips of almost every shipowner, is the need to disburse the Cabotage Vessel Financing Fund (the CVFF’), which was established by the Coastal and Inland Shipping Act, 2003. It was established to promote the development of indigenous ship acquisition capacity, by providing financial assistance to Nigerian citizens and shipping companies wholly owned by Nigerian operating in the domestic coastal shipping, to purchase and maintain vessels and build shipping capacity. 

“Research shows that this fund has grown to about N44.6billion; and that due to its non-disbursement, financial institutions have repossessed some vessels, resulting in a 43% reduction of the number of operational indigenous shipping companies in Nigeria, in the past few years. 

“Without beating around the bush, to promote indigenous maritime development, prompt action must be taken by NIMASA to commence the disbursement of this Fund to qualified shipowners pursuant to the extant Cabotage Vessel Financing Fund (“CVFF”) Regulations.

Mike Igbokwe (SAN)

“Indeed, as part of its statutory functions, NIMASA is to enforce and administer the provisions of the Cabotage Act 2003 and develop and implement policies and programmes which will facilitate the growth of local capacity in ownership, manning and construction of ships and other maritime infrastructure. Disbursing the CVFF is one of the ways NIMASA can fulfill this mandate.

“To assist in this task, there must be collaboration between NIMASA, financial institutions, the Minister of Transportation, as contained in the CVFF Regulations that are yet to be implemented”, the legal guru highlighted further. 

He urged the agency to create the right environment for its stakeholders to build on and engender the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders.

“Lastly, which is the main reason why we are all here, cessation of ministerial waivers on some cabotage requirements, which I believe is worth applause in favour of NIMASA. 

“This is because it appears that the readiness to obtain/grant waivers had made some of the vessels and their owners engaged in cabotage trade, to become complacent and indifferent in quickly ensuring that they updated their capacities, so as not to require the waivers. 

“The cessation of waivers is a way of forcing the relevant stakeholders of the maritime sector, to find workable solutions within, for maritime development and fill the gaps in the local capacities in 100% Nigerian crewing, ship ownership, and ship building, that had necessitated the existence of the waivers since about 15 years ago, when the Cabotage Act came into being. 

“However, NIMASA must ensure that the right environment is provided for its stakeholders to build and possess the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders. Or better still, that they are solved within the next 5 years of its intention to stop granting waivers”, he further explained. 

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Breaking News: The Funeral Rites of Matriarch C. Ogbeifun is Live

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The Burial Ceremony of Engr. Greg Ogbeifun’s mother is live. Watch on the website: www.maritimefirstnewspaper.com and on Youtube: Maritimefirst Newspaper.

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Wind Farm Vessel Collision Leaves 15 Injured

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…As Valles Steamship Orders 112,000 dwt Tanker from South Korea***

A wind farm supply vessel and a cargo ship collided in the Baltic Sea on Tuesday leaving 15 injured.

The Cyprus-flagged 80-meter general cargo ship Raba collided with Denmark-flagged 31-meter wind farm supply vessel World Bora near Rügen Island, about three nautical miles off the coast of Hamburg. 

Many of those injured were service engineers on the wind farm vessel, and 10 were seriously hurt. 

They were headed to Iberdrola’s 350MW Wikinger wind farm. Nine of the people on board the World Bora were employees of Siemens Gamesa, two were employees of Iberdrola and four were crew.

The cause of the incident is not yet known, and no pollution has been reported.

After the collision, the two ships were able to proceed to Rügen under their own power, and the injured were then taken to hospital. 

Lifeboat crews from the German Maritime Search and Rescue Service tended to them prior to their transport to hospital via ambulance and helicopter.

“Iberdrola wishes to thank the rescue services for their diligence and professionalism,” the company said in a statement.

In the meantime, the Hong Kong-based shipowner Valles Steamship has ordered a new 112,000 dwt crude oil tanker from South Korea’s Sumitomo Heavy Industries Marine & Engineering.

Sumitomo is to deliver the Aframax to Valles Steamship by the end of 2020, according to data provided by Asiasis.

The newbuild Aframax will join seven other Aframaxes in Valles Steamship’s fleet. Other ships operated by the company include Panamax bulkers and medium and long range product tankers.

The company’s most-recently delivered unit is the 114,426 dwt Aframax tanker Seagalaxy. The naming and delivery of the tanker took place in February 2019, at Namura Shipbuilding’s yard in Japan.

Maritime Executive with additional report from World Maritime News

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