Shippers Council, NRS Negotiate Duty Waiver For Importers Over Single Window-Induced Delays At Ports

The Nigerian Revenue Service (NRS), the Nigerian Shippers Council and the National Single Window (NSW) Committee on Friday held a stakeholders engagement with terminal operators and shipping companies, seeking support for importers hit by cargo delays arising from the ongoing migration to the NSW platform.

The meeting, which brought together key players across the port industry, was convened to address demurrage and detention charges that have accumulated on cargoes caught in the transition from legacy systems operated by SON and NAFDAC to the new single window platform.

Speaking at the engagement, NRS Chairman Dr. Zach Adedeji explained the purpose of the dialogue. “The essence of today’s meeting is to appeal to all that are concerned, especially terminal operators and shipping companies. There are some Single Window-induced demurrages as a result of migration from SON, NAFDAC, and that has led to cargoes being delayed and causing a glitch. I was told that you have rendered this type of help in the past, so while we are passing through this initial stage of stabilising the system, we want to know what kind of help we can receive from you, most especially for the importers, and this is our asking. This is why we appealed to our Executive Secretary to look at it, without compromising any private enterprise laws, what can we do to provide succour for the port users.”

He added: “Everywhere in the world when something that is not part of business happens, there has to be an agreement with the government. For example, with what is happening in Iran today, can any shipping company say they want to continue charging on container?”

Addressing journalists at the end of the meeting, Adedeji said the outcome was encouraging, noting that terminal operators had pledged to review cases on an individual basis.

He said they confirmed having internal processes for granting discounts and waivers for delays genuinely traceable to the single window migration.

The NRS chairman was emphatic that the government’s drive was not revenue-focused. “Like I told you, anytime people see me, they relate it to tax. If you see Mr. President, honestly our focus has never been on revenue. Our focus is on shared prosperity of Nigeria. If people prosper, we all prosper.”

He also warned that those benefiting from the old opaque system would not be spared. “We know there are saboteurs, it is expected in this kind of environment, some people are benefiting from the opaque system that we had in place. And as a government, we will not fold our arms and allow them to continue. So that’s why I have to issue that this is time we need to know who are really with us. What that means is that those that are really with the government initiatives and know those that try to sabotage us.”

On timelines for resolving the technical hitches, Adedeji said resolution was imminent. “When you have this kind of system, it’s a matter of days. And if you listen to the real issue, it’s just integration. You remember that when you opened, let’s say, master manifest, you are importing bit by bit on that one. You have some in the old system. And now we have some in the new system. So for the time of migration, that’s what we are talking about. So the system is perfect and working well. But when you cut over, you will see one that are the missing. And those are the one that is giving us the small delay that we are talking about. So we are talking about days, not months.”
Executive Secretary of the Nigerian Shippers Council, Dr. Pius Akutah, said the engagement was convened at the instance of the NSW Committee following the platform’s go-live on March 27.

“Things are now taking shape gradually and it is for the benefit of all Nigerians. Today’s meeting is to look at implementation and some of the challenges that has arisen that we need to tackle together as a family,” he said.

Akutah also disclosed that the Nigerian Shippers Council Act is obsolete and that moves are underway to replace it with a new legal framework. “It’s one of the old laws, which we have already gone to the National Assembly to repeal and reenact a new law for Nigerian Port Economic Regulatory Agency. And the law is just about to be passed finally by the Senate.

“We are hoping that when that law comes, it will give us the impetus to provide the kind of service that the stakeholders need from us. You know, at the moment, we are just operating under the presidential order and the regulations to that effect of 2015.”

Chairperson of the Shipping Association of Nigeria (SAN), Boma Alabi SAN, said shipping companies were not new to rendering support in such situations, recalling a similar occurrence during the B’Odogwu platform rollout by the Nigeria Customs Service.

“It happened with B’Odogwu, importers spent two months before discharging their cargoes because the government has created some solution with right intent. We want efficiency, we want to reduce costs, we want fast turnaround time for vessels.

“There is no benefit for us in delaying release of cargoes, we don’t want to keep the containers because we are also being charged daily for it.”

She added: “Our objectives are the same and we are partners in progress, we want efficiency, we want speed and we want a reduction in bottlenecks. We have heard you sir, we would take it back to the decision makers, we need to know when you are going to resolve these issues, how long is it going to take.”

 

Managing Director of Lagos and Niger Shipping Agency (LANSA), Todd Reaves, who said he has been in Nigeria for over 60 years, described the NSW as one of the most significant positive changes he had witnessed from government in all his years in the industry.

General Manager of PTML Terminal, Tunde Keshinro, commended the federal government on the NSW implementation but urged caution against blanket waivers.

“We must be careful not to reward non-compliant importers. There is an already existing platform and pattern of granting waivers to deserving importers, it is not going to be a blanket approval. Some importers deliberately abandon their cargoes inside the terminals, and after it entered overtime, they would go and buy it back as overtime cargo,” he said.

NSW Committee Chairman Tola Fakolade sought to reassure stakeholders that the situation at the ports was not dire. He said the agency was being proactive in its engagements to ensure all service providers were aligned and working to cushion the impact on importers.