The failure of the Nigeria Customs Service (NCS) to process Form M and the Pre-Arrival Assessment Report (PAAR) opened by importers on the platform of Frist Bank has spiked a fresh crisis at the nation’s seaport leading to delay in cargo clearance, according to freight forwarders.
Speaking in Lagos on Thursday, Ibrahim Tanko, the national coordinator of the National Association of Government Approved Freight Forwarders (NAGAFF), 100% Compliance Team told newsmen, said the issue has been on for more than two weeks, and that it was a result of the ban placed on the bank by the Central Bank of Nigeria.
“Customs have blocked the processing of Form M from First Bank. This has become worrisome because there is an alternative option which is to generate another code to enable affected agents to pay Customs duty and reconcile transactions using other banks in order to take delivery of their consignment, but Customs has refused to allow port users access to this alternative means,” he said.
Tanko said the situation is seriously affecting importers and freight agents who would be forced to pay demurrage and storage charges arising from the delays in clearing their cargo from the port.
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“Customs should allow freight agents to use the alternative means of payment to avoid demurrage and consequent inflation on imports,” Tanko said.
Pointing out that volume has dropped at the port, he said that due to the impending change in government, importers are afraid of bringing in goods as they are not sure of the policies of the new administration.
He said that Customs revenue has dropped by 7 percent due to a drop in the volume of imports.
He also blamed the decline in revenue on the import duty exemption granted to multinationals even as he advised the Minister of Finance to review the multinationals’ exemption from paying Customs duty because Customs may be forced to overburden importers in order to meet their revenue target.
Worried about the country’s trade imbalance, Tanko stressed that the nation doesn’t have to continue its overdependence on importation while neglecting local industries and opportunities for exports.
“We appeal to the Comptroller General of Customs, Col. Hammed Ali (Rtd) to assist in the training of young freight forwarders. This is to enable them to fully understand Customs process and operations, turning them into professionals,” he added.
