Friday 7 March 2014

Freight Forwarders, Importers Protest New Vehicle Tariff

Clearing Agents Protesting The New Tariff On Imported Used Vehicles
At Tin Can Island Port Yesterday
• Ground Operations For Several Hours
• Another Group Threatens To Shut Down Ports
 
 Licensed customs agents operating at the ports in Lagos have kicked against the new tariff on imported vehicles which the Minister of Finance, Dr. Ngozi Okonjo Iweala has directed the Nigeria Customs Service to commence full implementation.

The freight forwarders yesterday grounded all activities at the Tin Can Island Port, the Apapa Port, and the PTML terminals; all in Lagos for several hours, displaying placards with various messages.
Some of the placards had messages like: "35%duty and 35% levy on vehicles is bad" "No to increment in vehicle Tariff" "The average Nigerian cannot buy a brand new car" "enough of unfriendly policies" and so on.

Some of the protesters who took time to speak with Shipping Position Daily lamented that the Federal Government had refused to carry them along in its policy formulation. According to them, the local assembly plants ought to have been functioning before the implementation of the new auto policy.

Tin Can Chairman of Association of Nigerian Licensed Customs Agents (ANLCA); Prince Kayode Oyinlola told our correspondent that several vehicles have been abandoned inside the port as a result of the policy."Nobody is paying, our members that have been taking valuation have not been able to pay because most of them have charged these jobs on old rates, therefore what they are giving at the valuation we cannot pay, most of the vehicles at the port now are accumulating demurrage in the hand of shipping companies and terminal operators", he lamented.

According to him, the new policy will have adverse effect on customs revenue because importers will now divert their cargoes through Cotonou port to the detriment of Nigeria.

Oyinlola said that car dealers and importers had earlier yesterday besieged the offices of their agents protesting the new tariff.

Also speaking, another operator, Patrick Ofeigbu, who is the  Caretaker Committee image maker of the National Association of Government Approved Freight Forwarders (NAGAFF) at Tin Can pointed out that the policy will have adverse effect on the final buyers of vehicles.

"The policies in this country is affecting the poor masses, the President should revert this policy, because it is going to affect him. There is no road and demurrages are accumulating on our cargoes already in the port", he stated.

Also speaking, a vehicle dealer at the Tin Can Port, who identified Francis Okeh stated that the local assembling plants had to be in operation before the policy can be effective.

According to him,"let the assembly plants start working, the poor masses are crying, the buyer, the seller and the agents, what we want the President to do is to have a re-think, those giving him this advise do not mean well for him"

The customs had on Monday began implementation of the new auto policy, following a circular from the Ministry of Finance to the Comptroller General of Customs that the new tariff on vehicle importation should be implemented to the later.
 
But, while the protests were going on, another group of practitioners; the Save Nigeria Freight Forwarders Importers Exporters Coalition (SNFFIEC) also threatened to shut down the ports, unless the Federal Government rethinks the policy.

Addressing journalists yesterday in Lagos, the national Coordinator of the group, Sir Osita Patrick Chukwu argued that the country is unripe for the new automotive policy, even as he urged the Nigeria Customs Service not to implement it.

The group also charged the Maritime Advocacy and Action Group MAAG, being led by Alhaji Alhassan Dantata to intervene within 72 hours, after which it will paralyse port activities.

"In as much as the power conferred on me as the coordinator of the SNFFIEC is concerned, our stand remains that the federal government should go back to status quo and if nothing happened, we will be waiting for MAAG to make input before shutting down the ports".

"As a group in MAAG, we cannot stay here and look at our country and the masses suffer, we are now telling the coordinator of MAAG that if in a couple of days we do not hear from him, we will have no option than to create an unfriendly environment in the ports, he threatened "

He noted that his group has rejected the circular signed by the deputy comptroller general of customs on tariff and trade on behalf of the Comptroller General on the automotive policy.
 
He added that the policy will ground the economy of the nation as most freight forwarders , importers and exporters will have to surrender their respective businesses at the detriment  this inhuman  policy.

Osita stressed that a large number of freight agents operating from the sector are into automobile clearance from the port and the policy will render most of them jobless.

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