Multiple checkpoints by Customs, agencies stifle ease of business at ports

The long list of checkpoints import documents are expected to pass through before importers’ goods are allowed to leave the ports has further made it near impossible for importers to enjoy a friendly business environment at the ports.

This totally negates the Federal Government’s Ease of Doing Business policy, creating cargo clearing delays, compounding the woes businesses face as manufacturers and importers that do business at the ports pay dearly – as demurrage to shipping companies and rent to terminal operators.

Repeatedly, Nigeria has failed in meeting the 48-hour cargo clearance target as cargo dwells for a minimum of 21 days (three weeks) in the nation’s seaports with its attendant cost implications for cargo owners.

Presently, the Nigerian Customs Service (NCS) has over 12 different units at each port, which include Enforcement, Valuation, Customs Intelligent Units (CIU), Residence, Taskforce, Strike Force, CG Squad, Headquarters Strike Force, Customs Police, Special Weapons and Tactical Team (SWATT), Abuja Alert and the Federal Operations Units that mount checkpoints right at the port gate.

These units are involved in cargo clearance such that importers and their agents are made to pass through their clearing documents to obtain approval from each of the units before the cargo is released.

BusinessDay search shows that these units from the NCS are currently creating bureaucratic bottlenecks, and delaying cargo clearance as against the objectives of the Federal Government’s Ease of Doing Business policy.

Jonathan Nicol, president, Shippers Association of Lagos State, who calls for restructuring of the NCS, points out the need to reduce the number of government agencies operating at ports.
Nicol says the Federal Operations Units (FOU) is gradually becoming a terror to traders such that it has turned itself to an unauthorised terminal where containers duly released from ports are laid on the highway or sent to FOU for re-examination.

The duplication of Customs units shows that the NCS management lacks trust on their officers, which does not go down well with the trade facilitation drive of the government, especially at this time the ports are heavily congested, he states.

“There is need to provide accelerated clearing methods to decongest the ports. Customs should be made to follow the rule of engagement without militarising the trade environment with gun throttle officers intimidating the public. FOU should be discontinued,” he notes.
Ari Ayuba, a clearing agent, who frowns at the creation of multiple Customs units at the ports, says their presence constitutes obstacles to trade facilitation at the ports.

“Customs keeps bringing different units to the port under the guise of checks and balance, and this is what encourages corruption at the port. This has made clearance of cargo at the port very difficult and clumsy. For instance, one wonders what Customs Police is policing when there is Customs Intelligent Unit (CIU). They are just there to make cargo clearance difficult for us at the port and the system more corrupt,” he laments.

According to Ayuba, it has become very offensive when a Customs officer conducts an examination on an import, writes his report and releases the goods, only for another unit to seize the released goods after few metres away from the port.

Tony Anakebe, managing director, Gold Link Investment Limited, a Lagos-based clearing and forwarding company, says there are several bottlenecks hindering timely clearance of goods at the ports.

According to Anakebe, the clearing procedure has become very tough with Customs having over 12 different units that must authorise the release of the consignment, and this is aside other government agencies that must also authorise the cargo release before the importer is allowed to take delivery of his consignment.

“Our ports are currently congested and it is bottleneck such as this that delays cargo from leaving the port. For instance, it takes a minimum of three weeks to clear a container with genuine documents out from the port due to the delays that come with the bureaucracy of passing the document of one container to multiple units of Customs and other government agencies at ports,” he says.

Stating that multiple units of Customs will only breed corruption at the ports, he calls on government to take decisive step in reducing the number in order to make it easier for Nigerians take delivery of their consignments within 48 hours.

Recall that as part of efforts to improve efficiency in port operations, the Vice President/chairman of the Presidential Enabling Business Environment Council, Yemi Osinbajo, directed the Nigerian Ports Authority (NPA) to ensure only eight Federal Government agencies were allowed to operate and have physical representation at all ports.

The agencies include Customs; Nigerian Maritime Administration and Safety Agency (NIMASA); Nigeria Police Force; National Agency for Food and Drug Administration and Control (NAFDAC); Department of State Security (DSS); NPA; Nigerian Immigration Service (NIS) and Port Health, while other are allowed to operate on invitation of Customs.

Despite this, other unauthorised agencies such as Standards Organisation of Nigeria and National Drug Law Enforcement Agency, among others have been striving to return to the port.