Maritime
Cargo clearing delay worsens as Nigerian Customs’ PAAR fails
LAGOS-Eight months into the introduction of Pre-Arrival Assessment Report (PAAR) by the Nigeria Customs Service (NCS) following the takeover of the Destination Inspection regime from the private service providers, importers say the regime has failed since they now face tougher clearing processes at the ports.
They say the introduction of PAAR, which superseded the Risk Assessment Report (RAR) formerly issued by service providers, has failed to ease the clearing bottlenecks experienced by importers.
According to them, the dwell time of cargo now averages 21 days as against minimum of 7-14 days in the last regime, causing increasing demurrage and storage charges. This, they say, has increased cost of doing business at the ports.
Lamenting the incessant querying of PAAR document by Customs officers, Emmanuel Nwabunwanne, a Lagos-based importer, says cargo clearing at the ports has become more difficult in recent times as it now takes an average of one to two weeks to get a final clearing document from Customs.
Nwabunwanne says Customs has failed to keep to the initial promise of transforming and fast-tracking cargo clearance at the ports.
BusinessDay findings reveal that importers see huge difficulties in obtaining PAAR, which is supposed to be issued before the arrival of the consignment. The importers say they sometimes spend an average of five to 14 days after the arrival of the cargo to obtain the document from Customs.
According to them, PAAR was initially designed to be the final cargo clearing document but has now been reduced to an advisory document which can be questioned or rejected by another Customs officer, thereby subjecting the importer to another fresh clearing process.
Boniface Aniebonam, an industry analyst, says non-compliance to the rule guiding PAAR by consignees is the major reason PAAR failed to alleviate the challenges confronting cargo clearance at the port, while dishonesty and under-declaration are the reasons PAAR is not adding value to the clearing process.
Reacting to this, Wale Adeniyi, national public relations officer, NCS, admits that PAAR has become an advisory document due to reoccurring errors from issuing officers.
He, however, also blames the failure on under-declaration of imports by consignees who aim to short-change government.
Another reason PAAR has failed, Adeniyi says, is lack of technical know-how on the part of some officers. He adds that an importer has the right to appeal for adjustment if the cargo is overvalued and an officer also has the right to query PAAR after carrying out physical examination of the cargo.
Manufacturers in Nigeria have also continued to pick holes at the level of capacity gaps existing in the implementation of PAAR. They say this has continued to stall delivery of raw materials to various factories, thereby disrupting production timelines.
“When imported raw materials get stuck at the ports, it results in a stock-out of raw materials, which means that the internal stock level of the manufacturers will decrease, resulting to low production levels,” says Rasheed Adegbero, immediate past acting director-general, Manufacturers Association of Nigeria (MAN), in an interview.
Similarly, manufacturing exporters are worried that the scheme crimps export capacity of their products. According to them, constant delays emanating from the scheme often lead to loss of markets for their products, as customers often have to look for alternatives in other markets rather than continue to wait for made-in-Nigerian goods which take time to arrive.
They also add that the delays result in high demurrage and consequently high production cost, thus making it difficult for locally-made goods to compete effectively in the international market.
“At the end of the day, our operating costs rise owing to the demurrage. There have been cases where such delays resulted in shortage in supplies, which prompted our customers to look for alternatives. I will also emphasise that the tariffs have been high,” a manufacturing exporter, who prefers not to be named, tells BusinessDay.
Stakeholders also say the basic problem with the scheme is capacity gaps in the areas of infrastructure, information and communication technology (ICT) and human capacity, among others, insisting that such is an indication that the NCS is not yet on top of the situation.
“The issue is that the Customs are not on top of the situation. When you have PAAR and you do not have, maybe, infrastructure, human capacity or ICT, it means there are capacity gaps in the implementation process,” says Muda Yusuf, director-general, Lagos Chamber of Commerce and Industry (LCCI), in an interview.
BUSINESSDAY-
The management of the Nigerian Maritime Administration and Safety Agency (NIMASA) has advised International Oil Companies, terminal and jetty operators, and all other companies involved in stevedoring in the country to refrain from engaging unregistered dockworkers.
The information was contained in a statement made available to Biztellers by the Head, Public Relations, NIMASA, Osagie Edward.
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According to the statement, all stakeholders, including dock labour employers and stevedoring companies, are encouraged to apply for new operating licenses or renew expired ones within a 30-day moratorium period.
“This requirement,” it added, “is stipulated by the NIMASA Act of 2007 and outlined in the NIMASA Stevedoring Regulations of 2014, which mandates strict compliance from all maritime operators.”
Osagie cited the Director General, NIMASA, Dr. Dayo Mobereola as laying emphasis on the need for stakeholders to comply with extant laws and regulations.
Dr Mobereola said, “No terminal or company shall continue to engage the services of unregistered dockworkers for cargo handling at their work locations.
“This move is part of our broader effort to ensure safe and regulated operations within Nigeria’s maritime industry. Compliance with these regulations will enhance our ability to maintain an up-to-date database of dockworkers operating in the country. It also improves our planning processes, as we are committed to developing their capacity to meet globally accepted standards for dockworkers in Nigeria. We intend to enforce full compliance after the moratorium period.”
It was gathered that the NIMASA Act, 2007, Part IX, Section 27, addressed the registration of Dockworkers with focus on Maritime Labour.
“It ensures the Registration, Regulation, and control of Maritime Labour, including dockworkers. The Act assigns the Agency the responsibility of maintaining standards in accordance with international best practices,” Osagie added.
Nigeria has expressed a strong desire to seek election into Category “C” of the International Maritime Organization (IMO) Council.
The Honorable Minister of Marine and Blue Economy, Adegboyega Oyetola, made the disclosure at the 2024 World Maritime Day parallel event in Barcelona, Spain.
Oyetola noted that Nigeria has put in place the basic needs for the development of her maritime industry in line with recognized global best practices.
In his words, “our active participation in upholding key conventions, such as the Safety of Life at Sea (SOLAS) and the International Ship and Port Facility Security (ISPS) Code, reflects our dedication to ensuring the safety of international shipping.
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There have been no incidents of piracy in the last three years, as confirmed by the International Maritime Bureau (IMB). By deploying resources to provide maritime security assets, Nigeria has solidified its role as a key guardian of maritime security in the Gulf of Guinea.
Nigeria remains a valuable source of manpower for the industry. I therefore urge our partners to explore this potential and assist where possible in the best interest of all. Our Maritime Academy has adequate resources and facilities to support this development.
“I am pleased to announce Nigeria’s resolve to seek a Category “C” membership on the Council.
On his part, the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola, assured that no stone will be left unturned to ensure success in the quest for IMO Category C membership at the next elections.
According to him, “We at NIMASA have met with the IMO technical team and have commenced work on all identified grey areas so that Nigeria can address the gaps identified during the last audit by the IMO.
”We have also commenced the process of effective communication with other member states using the IMO GSIS platform, among others. While we at NIMASA focus on the technical aspects of the preparations, our supervising Ministry will provide the political will to guide Nigeria back to the Council at the IMO.”
Oyetola, who held engagement sessions with the IMO Secretary General Arsenio Dominguez and other diplomats, was accompanied on the working tour by the Ministry’s Permanent Secretary, Mr. Olufemi Oloruntola; the Director General of the NIMASA; the Managing Director of the Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho; the Managing Director of NIWA, Mr. Bola Oyebamiji; and the Director of Maritime Safety and Security Services, Mr. Babatunde Bombata.
This year’s parallel event with the theme: Navigating the Future: Safety First, brought together international maritime leaders and experts to discuss future challenges and opportunities, with the aim of ensuring that safety is prioritized in the day-to-day operations of the global maritime sector.
The adoption of the Public Private Partnership (PPP) model is essential for the infrastructural development of Nigeria’s maritime sector.
This is the view of the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola.
The DG, shared his views while hosting the Director General of the Infrastructure Concession Regulatory Commission (ICRC), Dr. Jobson Oseodion Ewalefoh.
He emphasized the importance of the Commission’s increased involvement in attracting private investors to develop infrastructural capacity in Nigeria’s maritime sector.
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Dr. Mobereola said, “We appreciate the Management of the ICRC for being responsive. However, you know that the maritime sector is capital intensive and government funds cannot solely put in place the required infrastructure. We need the ICRC to develop PPP based business models that will be attractive to the private sector both from within and outside the country.
“There is the need to streamline processes by the use of technology, as we will continue to count on the support of ICRC to help drive the Agency’s PPP projects for effective and efficient service delivery to our stakeholders”.
Lending support to Dr. Mobereola’s views, Dr. Ewalefoh, underscored the significance of the maritime sector to Nigeria’s economy.
He noted that the PPP model would facilitate increased funding and expertise from the private sector, thereby accelerating the growth and development of the Nigerian maritime sector. Additionally, he stated that the ICRC is prepared to engage with the Agency on its projects and ensure timely execution.
“There is no time to waste; our country needs lots of funding for infrastructure and we need to create an enabling environment for activities to thrive. First, is service delivery, not revenue generation, and people will be willing to pay if they get the right services”, the ICRC boss noted.
The PPP model has proven to be the most viable approach worldwide for driving government policies that promote development and economic growth.
Biztellers reports that as a regulatory agency and Nigeria’s Maritime Administrator, the NIMASA has consistently embraced collaboration and partnership through the PPP initiative to ensure the growth and development of the maritime sector.
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