Fear of multiple port charges grips importers, agents

Fear of paying multiple port charges arising from dislocations in port operations consequent upon the movement restriction order in Lagos has continued to grip importers and clearing agents. Charges payable to shipping companies and terminal operators include container deposit, which is paid to a shipping company, and storage and container positioning charges, paid to terminal […]

Fear of paying multiple port charges arising from dislocations in port operations consequent upon the movement restriction order in Lagos has continued to grip importers and clearing agents.

Charges payable to shipping companies and terminal operators include container deposit, which is paid to a shipping company, and storage and container positioning charges, paid to terminal operators.

The Nigerian Ports Authority, in a statement by its General Manager, Corporate and Strategic Communications, Jatto Adams, noted that the Authority recognised the financial implications on terminal operators and would consider a shift in its operational charges to ameliorate the situation of stakeholders.

Adams said the gesture was in recognition of the pressure that COVID-19 pandemic imposed on businesses, and the responsibility imposed on the Authority to relieve this burden on its customers, as well as attaining the objective of the federal government’s ease of
doing business policy at this trying period.

But in anticipation of a sharp rise in charges, the President of the Association of Nigeria Licensed Customs Agents, Chief Iju Tony Nwabunike, urged the federal government to prevail on terminal operators and shipping companies to give tax waivers on cargoes that arrived before and during the outbreak of COVID 19.

In an open letter to Vice President Yemi Osibajo, ANCLA members said their fear had heightened due to the strong possibility of losing money and investments through demurrage and other charges as may be effected by shipping companies and terminal operators operating in the
ports.

Nwabunike said that before the Covid 19 pandemic subsides and businesses at the seaports, airports and border stations return to full swing, many imported and exported items might have been trapped in the various gateways to the nation and, as such, demurrages and rent payable to shipping companies and concessionaires/terminal operators would be affected.

He stated, “As you already know, sir, it is difficult, if not totally impossible to process Customs documentation and take delivery of cargoes in our ports during this period. Even when attempts are made, it becomes difficult because state governments have closed inter-state borders, markets are locked and movement of certain vehicles restricted.

“We now have a situation and irresistible circumstances that make the plea and activation of ‘force majeure,’ in line with international best practices inevitable.

“We hereby call for the enforcement of a ‘force majeure’ and total lockdown of our seaports as already done in the airports and border stations to curb the spread of the deadly coronavirus and to protect the Nigerian workforce operating in our ports.

“We also appeal to the federal government to prevail on shipping companies, terminal operators and other agencies in the ports to be prepared to waive all charges, taxes and fees during this period of national compromise at all levels.

“Consequently, we seek for all demurrage, rents, penalties, etc. emanating from inability to clear cargoes as at when due from the ports at this period to be waived effective from the first week of
March 2020 when the first case of the deadly virus was detected in Nigeria through an Italian citizen.

“Your Excellency, sir, we are appealing that you use your good office to ensure that this is implemented immediately. Sir, please note that we are dealing with concessionaires, shipping companies and others who are mainly foreigners, hence the need for government intervention
and enforcement has become necessary.”