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They say the introduction of PAAR, which superseded the Risk Assessment Report (RAR) formerly issued by service providers, has failed to ease the clearing bottlenecks experienced by importers.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 Honourable Minister of Marine and Blue Economy, Adegboyega Oyetola has deposited three Instruments of Accession to IMO Conventions signed by President Bola Ahmed Tinubu with the global body.
He did so on Tuesday, at the headquarters of the International Maritime Organization (IMO), which acts as the repository for these conventions.
This move, coming a few weeks after Nigeria declared its intention to contest election for a seat on the IMO Council, is expected to enhance Nigeria’s maritime governance and align its practices with international standards, promoting maritime safety, security, and environmental protection.
Shortly after the presentation ceremonies, Oyetola informed the IMO Secretary General, Arsenio Dominguez, of the President’s commitment to ensuring that Nigeria aligns with international maritime standards regarding maritime safety, security, and sustainable marine practices.
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He also called on the IMO to extend technical support to Nigeria.
In his words, “These instruments, duly acceded by His Excellency, the President of the Federal Republic of Nigeria, signify Nigeria’s continued commitment to aligning with international maritime standards, ensuring maritime safety and security, and promoting sustainable marine practices.
“We hereby request tailored technical cooperation under the Integrated Technical Cooperation Programme (ITCP) to enhance Nigeria’s compliance with IMO conventions and improve our maritime governance and implementation of the instruments we submitted today.”
On his part, Dominguez, acknowledged with appreciation the formal deposition of the Instruments of Accession, stating that it underscores Nigeria’s steadfast commitment to aligning with global maritime standards.
“I congratulate Nigeria for its exceptional efforts in acceding to these six critical IMO instruments. I encourage continued momentum by securing presidential assent to additional key conventions. We at the IMO remains fully committed to supporting Nigeria through technical cooperation and capacity-building initiatives to ensure the successful implementation of these instruments,” he stated.
The instruments Oyetola handed over to Dominguez include the instrument of accession to the 2005 Protocol to the Convention for the Suppression of Unlawful Acts against the Safety of Fixed Platforms Located on the Continental Shelf (SUA Protocol 2005), the instrument of accession to the International Convention on Standards of Training, Certification, and Watchkeeping for Fishing Vessel Personnel (STCW-F), and the instrument of accession to the Protocol Relating to Intervention on the High Seas in Cases of Pollution by Substances Other Than Oil (Intervention Protocol 1973).
It was gathered that three other Instruments of Accession signed by President Tinubu are undergoing further steps to complete the processes for their deposit.
Funds accrued under the Cabotage Vessel Financing Fund (CVFF) are intact and currently held with the Central Bank of Nigeria (CBN) under the Single Treasury Account (TSA).
This assertion was made by the Nigerian Maritime Administration and Safety Agency (NIMASA), in a statement in Lagos on Tuesday.
The clarification became necessary to address “a misleading publication alleging that funds have disappeared from the CVFF account”.
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The statement reads, in part, “The report of a missing money is both misleading and false.
“For the record, the Cabotage Vessel Financing Fund, securely held in the NIMASA account at the Central Bank of Nigeria (CBN), remains intact. There has been no disappearance of funds, and no illegal transactions, as the article suggests. This misinformation is a figment of the authors imagination, aimed at undermining NIMASA’s integrity, and mislead the public about the Agency’s operations.
“The Management of NIMASA will ensure that the CVFF is utilised in line with its statutory purpose. NIMASA Director General, Dr Mobereola has assured stakeholders of the safety of funds under the CVFF.”
The statement cited the DG thus, “Let us be clear that the CVFF account at the Central Bank of Nigeria is safe, intact, and secure. We at NIMASA will continue to manage it with the utmost responsibility, and there are no irregularities or illegal activities surrounding the funds. I urge the public to disregard this false narrative and to continue trusting the Agency’s ability to uphold the integrity of Nigeria’s maritime sector”.
It was gathered that the CVFF is a fund established under section 42 of the Coastal and Inland Shipping (Cabotage) Act 2003 to promote the development of indigenous ship acquisition capacity and to provide credit facilities to local maritime operators.
The NIMASA, assured of its commitment “to transparency, accountability, and the advancement of Nigeria’s maritime sector.”
Edo State Governor, Senator Monday Okpebholo appears eager to deliver the dividends of democracy to his constituents.
This is discernible from the frenzy of activities being witnessed in his first few days on the job, including dissolution of boards, constitution of investigative panels, flagging off of infrastructure projects, among others.
In the bid to address the perennial road traffic congestion negatively impacting economic and social activities in Benin City, the state capital, Gov Okpebholo on Wednesday flagged off the construction of a flyover bridge.
Biztellers reports that the flyover bridge around the popular Ramat Park in the city centre is the first of such in the history of Edo State.
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The Edo State Government made the disclosure in its verified handle on micro-blogging site, X, on Wednesday.
It wrote, “Traffic decongestion: Gov Okpebholo flags off first flyover in Edo.
“Edo State Governor, Sen. Monday Okpebholo has flagged off the construction of a flyover bridge at Ramat Park, Benin City, the State Capital, as part of immediate efforts to reduce traffic congestion in the city.”
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