• Friday, May 03, 2024
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BusinessDay

Operator appeals to finance ministry over containers of equipment trapped at ports

FG begins process to declare all ICDs as ports of destination, origin

Josepdam Port Service, operator of terminal A, at the Tin-Can Island Port complex has appealed to the Federal Ministry of Finance to prevail on the management of the Nigeria Customs Service to release the 60 containers of agricultural equipment trapped in Lagos Ports.

According to the terminal operator, the equipment, which are for the construction of silos and the fixing of purveyors for conveying wheat, malt and other items into the silos, have been trapped in the port for the past three years due to disagreement over waiver.

BusinessDay understands that the ministry of finance granted Josepdam a waiver to import the equipment but, the Customs refused to release those containers that are presently accruing storage and demurrage charges.

Ganiyu Kuteyi, deputy managing director, Josepdam, said the ministry has asked Customs to release the containers without any luck.

“The ministry of finance gave us a waiver that covers all our equipment that is on the ground including the one that are outside our terminal, TICT and Port and Cargo. Customs refused to release the items. They want us to pay duty on those items that are already waived by the ministry of finance. The ministry of finance has questioned Customs on why, and they are still unable to respond to the query,” he said.

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Kuteyi said the terminal has been discussed with the Tin-Can Island Customs Area Controller (CAC), but Customs has insisted that the items are not agricultural items.

“We have 50 in our terminals, five in TICT and five with Port and Cargo terminal. We want them to put pressure on Customs to release our containers, we have paid all that we are expected to pay. We have a legal waiver so, no reason for holding on to the containers,” Kuteyi said.

Responding, Uche Ejesieme, public relations officer of Tin-Can Island Command of Customs, said the command’s CAC has informed the headquarters that the waiver was given to the terminal operator in error.

“With respect to the issue of Josepdam, the command believed that the import duty exemption certificate granted the company under agriculture concession may have been in error. However, in line with trade facilitation principles, the Customs Area controller has escalated the issue to Customs headquarters for resolution and we await the decision of the headquarters,” he explains.

He said Customs appreciates the strategic relevance of Josepdam in the trade value chain and cannot afford to deliberately delay the release of a consignment which documentation is questionable.