www.finabiz.com/high-cost-of-clearing-forces-importers-to-abandon-goods-at-seaports/

Shippers in the country have attributed cost of clearing of consignments as the reason why importers abandon their goods at the nation’s seaports.

Often times, many importers abandon their cargoes at the nation’s seaports located in Lagos, Koko, Sapele, Calabar, Port Harcourt, Warri and Onne after such goods have accumulated demurrage running into several millions of naira.

Once the consignee, importer or agent fails to take the cargo out of the terminal at the stipulated time, the Nigeria Customs Service (NCS) may declare such cargo as abandoned cargo and eventually dispose it off as “overtime cargo”.

Giving reasons for this development, the Shippers Association of Lagos State (SALS) said importers had been abandoning their cargoes at Nigerian ports, due to high costs of clearing such cargoes.

The President of the association, Mr. Nicol Jonathan expressed dismay that the cost of cargo clearance has become “uncontrollable.”

As a way out, he called for a review of the nation’s import policy so that Nigerians can begin to reap the benefits in the maritime industry.

Jonathan said the sliding naira exchange rate had also slowed down business at the ports. According to him, clearing a 20 feet container is costing as much as N840, 000 while to clear a 40 feet container now cost N1.2 million. He said Customs, shipping and terminal charges, as well as local transportation charges had not changed in spite of the port reforms announced by the federal government.

While decrying the poor state of things in the shipping sector of the economy, he said: “Our tariff management has not changed. Rather it is getting more complicated with incessant queries on goods. Yes, we must comply with international best practices but importers do not have so much money to pay for un-receipted items.

“Diversion of cargo to other African ports has become the option for many importers. The purpose of doing business is to make some profit. The outlets of official and unofficial payments are unbearable. Very soon, car terminals will be empty”.

Meanwhile, it was learnt that congestion is beginning to gather momentum in the nation’s seaports as importers have abandoned their cargoes following the continuous slide of the naira against the United States dollar.

Customs Area Controller (CAC), Tin Can Island Port Command, Apapa, Lagos, Comptroller Zakari Jibrin said recently that the auto policy of the federal government and the 2015 general elections election have caused importers to abandon their cargoes at the port.

Vice Chairman of the Tin Can Chapter of the Association of Nigeria Licensed Customs Agents (ANLCA) Mrs. Ada Akpunonu said that the instability in the exchange rate had caused importers to stay away from importation and that imported cargoes have been abandoned at the port.

According to her, commercial banks have equally stopped lending money to potential businessmen.

Speaking on the imminent port congestion, Akpunonu said: “Many goods are trapped at the port. There is bound to be congestion. Most of the importers borrowed money from the banks and before they collect their Bill of Lading they must make the payment. But what is happening now is that with the exchange rate, they are finding it difficult to get the balance and pay back in order to collect the papers and clear their goods.

“Many importers with Bill of Lading are finding it difficult to pay duties. There is no cargo that does not go into demurrage in Nigeria and shipping companies start collecting money immediately the cargo lands at the port”, she said.

Akpononu confirmed that customs is currently implementing an official transaction rate of N199 to US$1 for transactions.

cost of clearing goods in Nigeria is very irrational. I sent a car to nigeria recently and paid 400k to clear a car I bought for less than 400k.

I sent some goods of less that 200usd to Lagos airport by airfreight and they were charging me 70,000 naira to clear a goods whose cost price is about 35,000 naira. Duty and cost of clearing should be a function of the cost of the goods, in Nigeria, they just come up with several fixed charges not related to the cost of the goods that swell up the cost of clearing.

As an example, why will the Nigeria Aviation handling company request for a 50,000 naira fixed charged for every goods that weighs between 1kg and 500kg taken through the cargo section of the Nigeria airport?

So if I seng a 1kg shoe by cargo to Nigeria, i have to pay 50,000 naira to the Nigeria aviation handling company, before paying customs duty on the goods and other terminal charges. It is crazy