Shippers Council Canvasses Business Registration Of Service Providers , Tasks Stakeholders To Embrace INCOTERMS

The Nigerian Shippers’ Council (NSC) has advised service operators in the industry to register their category of businesses accordingly.

 

The council said registration in specified categories will determine their scope of operation in the industry.

 

Mr Hassan Bello, Executive Secretary, NSC, gave the advice at a sensitisation clinic on Registration of Regulated Service Providers in the Nigerian Ports organised for freight forwarders, logistics providers and truckers.

 

Bello, represented by Mr Cajetan Agu, Director, Consumer Affairs Department, NSC, listed the categories to include government agencies, logistics service providers, shipping agencies, companies and lines, terminal operators and other port service providers and users.

 

The executive secretary, while answering questions by stakeholders, noted that  if one operated as a terminal, a logistics provider and barge operator, the person would need to register each to be able to operate those businesses.

 

“This registration is in compliance with the law.

 

“It will help to know your customers, authenticate the genuineness of port service providers and users, encourage professionalism, and create a pool of operators; thus, the need for all to register.

 

“Registration is of three categories and they are the individuals, organisation and partnership categories.

 

“Rendering service as an individual will enable the council to monitor the individual to improve service delivery,” he said.

 

Bello told stakeholders that the focus of the registration was for service delivery and as such, comparing it with that of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) ,which had to do with training and certification, was not right.

 

The executive secretary said that it was the mandate given to NSC as a service provider that enabled it to carry out these functions and as such, failure to register would attract some sanction.

 

According to him, one-month’s  `grace’ has been given to operators to register.

 

He listed some of the functions to include the provision of guidelines for tariffs setting for all regulated service providers, monitoring and enforcement of standards of service, encouraging competition, investment and others.

 

Also, Dr Osita Chukwu, National President, Save Nigeria Freight Forwarders, Importers and Exporters Coalition, urged the council to look inwards while regulating.

 

According to him, categorising all freight forwarders with the same amount of money is not good as some are established while others are still coming up.

 

Mr Ananias Anderson from the Nigerian Association of Road Transport Owners (NARTO) , called for harmonization of  members of the association as individuals who are  fragmented and `scattered’’ around the country would like to come as a body.

 

Anderson urged the council to look into it.

 

Mr Stanley Ezenga, National Publicity Secretary, National Association of Government Approved Freight Forwarders (NAGAFF), urged the council to let freight forwarders register as a group since shippers could do so.

 

Also, Dr Frank Farinto, Association of Nigerian Licensed Customs Agents (ANLCA), urged the NSC to synchronise with the CRFFN on regulation, so that it would not be double jeopardy for freight forwarders.

 

“This is a laudable project for the shippers’ council to identify every stakeholder that operates in the port.

 

“Although the amount is minimal, they should liaise with CRFFN to ensure this does not become double jeopardy for freight forwarders,” he said.

 

Mr Remi Ogungbemi, National President, Association of Maritime Truck Owners (AMATO), noted that the registration into categories was a welcome development.

 

He said that, however, it needs to be structured so that it would not be too cumbersome for stakeholders.

 

The Execuive Secretary in a related development on Thursday advised stakeholders involved in trade and transport in the country to ensure they are conversant with International Commercial Terms (INCOTERMS) to be able to enjoy full benefits of the African Continental Free Trade Agreement (AfCFTA).

 

Speaking during a sensitisation workshop on INCOTERMS organised by his Council in collabortion with International Chamber of Commerce (ICC), Bello such knowledge will save the stakeholders from issues of disputes and litigation, including waste of time and resources in international transaction.

 

The NSC CEO referred to a document published in September, 2019 saying this will help stakeholders in making choices in trade terms that would be of benefit to the country.

 

According to him, “It is pertinent for every stakehokder in the trade and transport sector in Nigeria to be conversant with incoterns because it is not only relevant in international trade but in local trade as well.

 

“When there is adequate understanding of the rules, it will mitigate trade dispute and litigation, waste of time and resources

“AfCFTA started in Nigeria in January, 2021 and Nigeria as the largest economy in Africa must put necessary things in order to understand the right application in incoterns 2020 for Nigerian stakeholders.

 

“It will create awareness, one will be able to make appropriate choices of the rules in the trading transactions so that our economy will benefit from such rules.

 

“Most of you are aware that INCOTERMS are trade commercial terms and it is the international chamber of commerce to provide international rules for the interpretation of commonly used terms of trade.

 

“They are also aimed at curtailing to a readable degree the disagreement and other things that associate with different interpretations of such trade terms in different countries.

 

“Incoterms term has gone through many amendments and the last which is the recent version which is incoterms 2020 published since October, 2019.

 

“On the issue of delay, it is very explicit on the issue of obligations and responsibilities of the parties in the contract, taking into account some complexities that usually arise which include security related obligations with carriage and costs”.

 

The Secretary General of International Chamber of Commerce ( ICC), Mrs Olubunmi Osuntuyi said that the document published about two years ago would be of immense importance for Nigerian businessmen who want to enter into international relationships.

 

Osuntuyi said, “This document became effective on first of January, 2021, it recognises that there are trade terms that we need to put in place so that we don’t short-change ourselves as we go into international relationship with exporters and importers.”