The fragile peace currently being enjoyed at the maritime industry may soon be ruptured as a fresh gale of crisis may be triggered by the collection of the controversial Practitioners’ Operating Fees from the Customs agents.
The payment and collection of the Fees, which has been a source of disagreement among the stakeholders in the freight forwarding industry, especially the various Customs associations, was suspended when the idea was mooted few years ago to fund the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN).
The source of friction was the sharing formula among the federating associations in the Council.
However, the Minister of Transportation, Rotimi Amaechi, apparently caving into the persistent pressure and appeals from the cash- strapped CRFFN for financial lifeline, last week gave the Council the nod to commence the collection of the Fees from August 1st, 2017.
In his letter to all freight forwarding associations at the seaports, airport and land borders, Amaechi asked them to begin preparation by adding the fees to their cost of cargo clearance.
He warned any dissenting association of heavy sanction.
The letter, which was dated July 5, 2017, with reference number T. 4252/S.8/C.16/T/44, was signed by S.U. Galadanchi, Director of Maritime Services, Federal Ministry of Transportation.
According to Galadanchi in the letter, “I am directed to inform you that the Honourable Minister of Transportation has requested the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) to commence the collection of Practitioners’ Operating Fee (POF) at the seaports, airports and land borders in Nigeria from 1st of August, 2017. Consequently, your association is requested to ensure compliance by including payment of POF by freight forwarders as additional requirement for the release of cargo’’
However, the National President of the Association of Nigerian Licensed Customs Agents(ANLCA), Prince Olayiwola Shittu, warned of the dire economic consequences if the Minister enforces the order.
Shittu, in a strongly-worded letter to the Minister, noted with concerns the multiplier effects the collection of the controversial fees will have on the port industry and the economy as a whole.
He claimed that licensed customs agents presently are over –burdened with a lot of fees, saying that adding POF would amount to additional cost of doing business in Nigeria with adverse multiplier effects on the nation’s economy.
Shittu said licensed customs agents who are being asked to pay POF equally pay the following fees annually: License Renewal – N215,000.00; Nigeria Ports Authority License Renewal – N6,000.00; Customs Command Operating Fees – N15,000.00/Customs Command; Bank Changes for Customs Bond – N52,500.00 and CRFFN Annual Payment – N70,000.00/Staff Member before they can operate in any of the nation’s ports.
He said adding all these together with the daily payment of POF on all cargo would be financially burdensome on an average customs agency which when transferred to the importers/exporters, will eventually bear heavily on the Nigerian economy negatively.
According to him, nowhere in the world such payment as Practitioner’s Operating Fees is being collected from a customs agency/broker and Nigeria being a growing economy should not be saddled with the burden of POF.
The ANLCA chief said POF is a design of some few individuals to distort the national economy for their selfish interests.
The ANLCA President said it is only the Governing Board of Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) that can determine the fate of the POF and resolve some other issues.
He said that without the board in place, anything done is an aberration while appealing to the minister in the interest of the Nigeria generally to suspend the collection of the POF indefinitely.
“Adding daily payment of Practitioners’ Operating Fees would be financially burdensome on an average customs agency/company which when transferred to the importers/exporters, will eventually bear heavily on the Nigerian economy negatively.
“We want to state categorically that nowhere in the world is such payment as Practitioner’s Operating Fees being collected from a Customs Agency/Broker. We stand to be corrected, Nigeria being a growing economy should not be saddled with the burden or this Practitioner’s Operating Fees which is a design of some few individuals to distort the national economy for their selfish interests.
“Also, we believe election into the Governing Board of CRFFN should be held and the Governing Board inaugurated to determine the fate of the Practitioner’s Operating Fees and resolve some other issues, and not the other way round.
‘’And, despite the absence of a governing board for several years, CRFFN has been receiving budgetary allocations yearly, through the Federal Ministry of Transport/Transportation, without recourse to accountability.
“We, therefore, appeal to you in the interest of the Nigerian economy generally, to suspend the collection of the practitioner’s Operating Fees indefinitely to avoid the negative effects that the collection would attract to Nigeria, as a nation,” Shittu stated.
However, the Minister who warned again any act of disobedience to his order said he has directed that elections into the governing board of the Council be conducted in the month of September.
The Minister said government would not release fund for the election as the cost of holding the election will be defrayed from the money collected from the POF by CRFFN.
“In addition, the election into the Governing Board of CRFFN be conducted within the month of September 2017, with the financial cost of conducting the election to be defrayed from the collection of POF fees by CRFFN.
However, it was reliably gathered that the order may be observed in the breach as some aggrieved freight forwarders may drag the Minister to court.