By Eugene Nweke
The Board and Management of the National Association of Government Approved Freight Forwarders (NAGAFF) has noted the miscomprehension from some interest groups in the Nigeria Maritime economy about the re-introduction of an International Cargo Tracking Note (ICTN) for all imports into Nigeria. Recall that, the Federal Executive Council of Nigeria, had at its session on December 9th, 2009 given due approval to this effect, but was later cancelled to enable a review. In 2012 it was the last administration granted another approval with emphasis on cost.
The argument propounded by the protagonists is that the International Cargo Tracking Note (ICTN) would have adverse effect on the Nigeria economy, in that it is capable of the increasing cost of doing business I the port.
However, after due consultation between the Nigeria Shippers Council (NSC) and freight forwarders, importers and other port stakeholders, it has become clearer now that stakeholders had a wrong perception about the objective of the ICTN, which in no way affects the cost of imports, neither does it increase port charges nor causes additional delays in the clearance of goods out of the ports.
NAGAFF’s findings reveal that the idea of introducing the ICTN in Nigeria was mooted since 2007 through the Federal Ministry of Transport and it was eventually approved by the presidency after consultations with the Nigeria Customs Service, the Attorney General and Minister of Justice and other
concerned stakeholders.
At this point, it is pertinent to educate freight forwarders, manufacturers, importers and members of the trading public about the relevance of the ICTN which is not a peculiar practice to Nigeria, but
also a global practice that is beneficial to the international trading community. The idea of mandatory tracking of cargo was introduced by the United Nations through the International Maritime Organization (IMO) under the ISPS Code in response to the September 11 terrorist attack in the United States.
The ISPS Code regulations requires that port authorities initiate and develop security plans for vessels, port facilities, cargo and persons. The ICTN in this regard is meant to provide relevant information that
would help to check maritime security threats, and also generate administrative costs, and financed through a token Cargo Tracking Levy (ICTL), which in this context, will be built into the ocean freight
components after a down-ward renegotiations by the Council. Aside from administering the ICTN, and ensuring compliance, additional revenue generated is expected to be used in beefing up security at the ports and entry points in line with globally agreed standards.
Practicing freight forwarders are hereby called upon to support the new ICTN initiative because it does not in any way constitute a clog in cargo clearance process, neither does it increase the cost of doing business in the ports. In the past, freight forwarders have had cause to protest what constitutes the cost element of ocean freight rates for Nigeria Bound Imports, the exorbitant port charges and delays in the positioning of goods for customs examination, 7% surcharge, Sugar levy, Terminal Handling Charges (THC), 2% NAC etc. These are levies on cargo that pose genuine concerns about their relevance; and it is imperative that these resources are judiciously utilized to the benefit of the country.
We encourage the importers and shippers to get themselves properly organized and dialogue with government, as often as possible with a view to promoting the import – export business in Nigeria. Freight forwarders should now remain focused and think about how our profession can be promoted through adequate capacity building and a proper functioning of the Council for the Regulation for Freight Forwarding Practice in Nigeria-CRFFN.
NAGAFF has also noted that the ICTN regime is already in force in several countries in Europe, Asia, the Americas and Africa including countries in our sub- region such as Benin, Cameroun, Togo, Congo, Angola, Cote d’voire and Burkina Faso. The security imperative for the introduction of the CTN cannot be overemphasized because the war against terrorism should be a concern to all. At the moment we have a lot of challenges in the ports industry which revolves around the high costs of doing business in the
ports, particularly the high rate of progressive storage charges in Nigeria seaports. The Terminal Handling Charges-THC and the Progressive Storage Charges are among the charges stakeholders should confront by engaging in constructive dialogue with the relevant authorities.
The notion that it will attract additional costs on goods is totally unfounded because cargo consolidation operating from Europe have for several years been enforcing ICTN and utilizing the revenue as Cargo
Tracking Levy. The government of Nigeria has now realized the need not only to physically get involved in securing and tracking our cargo vessels for obvious security reasons, but also to generate the revenue that is hitherto collected by foreign cargo consolidators. It is now obvious that once freight is paid for imports, the levy is built into it and there is no extra levy on importers, shippers, freight forwarders or agents. Shippers are hereby advised to dialogue with cargo consolidators in this regard.
It is worth noting that the security and safety of the nation should be paramount to all Nigerians. Although nations are responsible for their individual security, it is on record that global co-operation in matters of security and in the fight against terrorism, trans-border trafficking in arms and ammunition and movement of illicit drugs yields more positive impart. Since the CTN itself is born out of the need to enhance global security, it is imperative that Nigeria cannot survive in isolation.
Failure to enforce globally agreed security and safety measures in our seaports could have negative impacts on our lives and properties as well as obstruct the nation’s external trade and discourage foreign direct investments. There is also the likelihood of blacklisting our ports and
increase in freight rates to Nigeria as our ports could become “ports of interest”.
Aside from being an economic enhancement security measure and veritable tool for the full compliance to SOLAS Convention and ISPS Code, the ICTN itself is an official trade document that contains, certain amount of information regarding the state and location of the cargo and it provides cargo traffic information alerts which also serves as a useful source of information about cargo movement. It also acts as a veritable and reliable tool for compiling import related economic data.
It is indeed heartwarming to note that the Nigeria Shippers Council (NSC) has putting in place a mechanism to down-ward renegotiate the components of ocean freight for the Nigeria Bound Cargo.
NAGAFF wants to use this medium to appeal to all freight forwarders, importers, manufacturers and members of the trading public to ensure proper compliance with the new ICTN regime which is meant to further enhance Nigeria’s foreign trade with regards to safety of cargo, security of the Nigerian state and data collection for trade and planning purposes. It is pertinent to inform all freight forwarders and agents that in accordance, with the brief of the Nigeria Shippers Council as government’s implementation agency for the CTN, Transport and Ports Management System (TPMS) Limited are the sole agent charge with the administration of CTN and it is imperative that for security and economic enhancement reasons a CTN is required for clearance of all cargo loaded for Nigeria as final destination, at a Nigeria port. The CTN does not in anyway affect or delay the customs cargo clearance process.
NAGAFF wishes to reaffirm its confidence on the management of the Nigerian Shippers Council to effectively administer the ICTN regime with all intent of protecting the interest of the Nigeria Shippers at all time.
It is our opinion that stakeholders must now come to terms with current reality that except air, nothing is free in life. Therefore Importers and the manufacturing group should comply with ICTN regime application. All freight forwarders in this regard are hereby directed to go about their legitimate duties and encourage their principals to comply with the ICTN regime and other subsisting fiscal policies measure of government regarding international trade.
Eugene Nweke
National President, NAGAFF.
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