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Only The Dubious Agents Now Find Things Easy- Shittu

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IF the Senate President, Bukola Saraki feels frustrated today, he should come to the nation’s port and witness what the average Customs broker is facing. And if Bukola Saraki thinks a unit of the Government has hijacked some aspects of institutional platform, from President Muhammadu Buhari today, he should take a visit to port industry and witness what the Customs agents think of cargo facilitation!

A man who needs no introduction, the National President, Association of Nigerian Licensed Customs Agents, Prince Shittu sat down for 80 minutes, took a hard look at what his members are currently undergoing in the course of cargo facilitation and declared that: ONLY THE DUBIOUS AGENTS NOW FIND THINGS EASY!

Excerpt please:-

 

If you take a hard look now at the industry now, how would you describe what is presently happening?

 

What is happening in the port now, is what I will call the perfection of the ‘blame game’.  That is what is going on in the ports. The headship of the Security agencies are always playing the Ostrich: See no evil; hear no evil and know no evil!

That is why I said, what is happening now is the blame game!

President Muhammadu Buhari

President Muhammadu Buhari

When an agent is intimidated, and frustrated to the level of parting away with something, in order to get out of the systemic web, and the headship turns round and say the agent is not ‘compliant’; and that the officer would not have been corrupted if not because of the ‘corrupter’ which is the agent…. You can only imagine the experience.

I should believe that ‘to whom much is given, is much expected of’. The Federal Government today employs all these people for the purpose of revenue protection, or prevention of leaks. That is why today in the Customs, the Customs have the enforcement arm and you have the revenue arm.

Col. Hameed AliBut, they are all the same now! They are all both ‘preventing’ and revenue ‘generating’ now. Sadly however, most of the people in the port are more interested in generating the revenue into their pockets, than generating the revenue outside of it! It has gone so bad … it is now worse to the extent that the Nigerian police has taken over the functions of the Nigeria Customs Service.

Even where the Customs cargoes are released, the police still turn round, taking the containers to their places; and in one way or the other, ‘uncustoms’ items are found inside. Me also think, that it is the responsibility of the Security agencies and by these I mean, the Customs, police, all of them in the ports, including even those who are presently clamouring to be here, and that includes the NESRA, so as to protect the nation’s ‘Environmental’ from the dumping of e-waste; the Quarantine, which wants to be in the ports, so as to prevent the smuggling of woods out of Nigeria; as well as because, the pallets by which you packaged your imported cargo was not treated abroad before being used to bring in your goods; etc, etc. everybody has ‘valid’, varying excuses for wanting to be in the ports, yet the infractions continue.

The truth is that nobody is genuinely thinking of stopping those infractions over there. It is in their best interest that the infractions are not prevented over there! Sometimes, it may even seem as if those infractions are even encouraged to occur over there.

However, the issue has always been: ‘it’s the agent that is corrupting!’ that was why I started by describing the situation presently on ground as the ‘blame game’.

But come to look at it the other way too: even if the agents want to ‘corrupt’; is it not the duty and responsibility of the officer, earning Government salaries and other allowances to say: ‘No?’

And when the agents are denied of straight forward service delivery; and those who are not ‘compliant’ are dealt with according to the law, provisions are there in the Customs and Excise Management Act (CEMA); then the tendency to corrupt will reduce.

 

But why would an agent want to be corrupt?

 

It is because, there is no amount of declaration you do in the port that would satisfy the expectation of the average officer!

We came up with the Pre-Arrival Assessment Report (PAAR), it was supposed to be the final document. Now, if I bought this, from abroad, and my declaration is that, in all honesty, it is $5. On the submission of that document, the Bank is supposed to do its verification; and from their side, let’s say an official says ‘Yes, it is $5’.

However, by the time they receive it in PAAR Office, they are also supposed to do their own due diligence; and they now confirm it is $5; they should issue a PAAR, as good facilitator of trade; the importer should thereafter, simply pay up his duty and carry his cargo and go. A beautiful scenario?

But is that what obtains today in the ports?

 

No! Because there are other units of Customs that are going to lay land mines ahead of you. So, some people would now start querying the file; beginning with the value. ‘No. No. this item was not $5’. And once you are stopped there, and you are able to succumb to the subtle extortion, the ‘news’ would go down the line; that ‘there is chop’ on this cargo! And thereafter, the new value could become $7; a DN would be raised; and before you know it, the agent is already being made to look like a mediocre!

Of course at the peak of frustration, and because the file has been referred back to the Valuation Officer, he re-values it to a new price, the importer would say, ‘okay, okay, what is the new value, let us pay, let me carry my load!’. The Valuation Officer may not be happy, but he knows he cannot afford to stand his ground and be accused of working against the overall goal of boosting revenue; and so he jacks it up to $7.

Now, after doing that, on your way with your cargo, the Customs Intelligence Unit (CIU) would now intercept you, saying: ‘you must have done something with the value, because this is supposed to be $9’. Now, while these are all going on, you are not moving anywhere! You are stuck! Your demurrages are mounting. And at the end of the day, even if you were the one begging the importer, please let us again pay the new demand; the importer by now would be hollering: ‘How can I buy an item for $5 and you are asking me to agree to a value of $9!

A frustrated importer would bring more money and ask you to pay; so you pay. Yet, for even daring to stand your ground against the officers, you have without knowing it, committed an abomination! You have frustrated some ‘gentlemen’; and you must pay for it. So, when you get to the gate; your penalty is to task you again, to ‘come and re-examine’ what they have earlier examined at the terminal!

Never mind the fact that the representatives of the gate were all fully there at the terminal, when the goods were earlier thoroughly examined!

Is the new process frustrating? Is the new regime frustrating? But that is exactly what the average agent today faces at the port!

TO BE CONTINUED TOMORROW….

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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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