Destination Inspection: Stakeholders Warn Against Extension of Contract

Dikko

World Bank team who visited the ports and border stations last week to ascertain  the capacity of the Nigeria Customs Service (NCS) to take-over Destination Inspection from the current service providers from June 1, this year, were stunned when stakeholders  threatened to shut the ports if the scheme is not handed over to the Customs Service, reports Francis Ugwoke

Four months to the end of the contract of Destination Inspection Agents (DIAs) at the ports and border stations, stakeholders in the shipping industry have warned against the extension of the contract, insisting that the Nigeria Customs Service (NCS) has the capacity to carry out the scheme. The position of the stakeholders followed the visit during the week of World Bank team to the seaports, airports and border stations to assess the ability of the Nigeria Customs Service (NCS) to take over the scheme. The World Bank team led by Mr. Ramesh Silver came to the country on the invitation of the Federal Government through the Ministry of Finance. The visit of the World Bank team climaxed  with speculations that the federal government  intends to further extend the contract of the DIAs due to expire in June this year. The juicy contract is currently being carried out by SGS, Global Scan and Cotecna.  Leaders of customs agents and freight forwarding associations were bitter that  the government had  January this year extended the contract on the advice from  those they described as unscrupulous practitioners who were accused of having  been settled  to carry out a campaign of calumny against Customs on the issue.

World Bank Team, Freight Forwarders Disagree
At a closed door meeting between the World Bank team and leaders of  freight forwarding    associations, there was a sharp disagreement between the two groups. A source at the meeting which was held in the Conference Room of Apapa Customs Command  six days ago told THISDAY that while  some members of the World Bank team expressed doubt over the capacity of the Custom to  take over from the  DIAs in June, the leaders of the agents insisted that  the Customs can do so.  The delegation was shocked  when one of  the leaders of the agents pointed  accusing  fingers on one of the team members  of having a secret agenda  or  working for the DIAs  for  holding a strong  view  that the  Customs  does not have the capacity to carry out the  scheme.  Another leader of the agent was said to have  frightened  the world bank team  when he said that the officials  could  have been attacked  for holding the view that Customs does  not have the capacity for DI if other members of agents associations  attended the meeting.

Threat to Shut Ports by Customs Agents
During the meeting,  the President of  ANLCA, Prince Olayiwora Shittu was  said to have threatened  that  if the Federal Government does  not disengage the  DIAs  for the Customs Service to begin DI,  the  associations will  embark on industrial action that will lead to the closure of the ports and border stations. He was supported  by other association leaders, including the founder  and President of NAGAFF, Dr. Boniface Aniebonam and Mr Eugene Nweke respectively. This threat, our source at the meeting  said  shook the team, but  said that such threat cannot influence  what will  be the position of the World Bank  team  in their final report.

However, as expected, some notable freight forwarders who hold contrary view that Customs is not yet prepared for DI were not part of the meeting.  The freight forwarders were accused of working against the interest of Customs. Although, they were invited, they failed to show up. Soon after the extension of the contract, the President of the  National Council of Managing Directors of Customs Agents (NCMDCA), Mr Lucky Amiwero welcomed the decision,  arguing  that  the Customs did not prepare for the take-over. He told THISDAY last week  that Nigeria should learn from  Ghana’s  experience as far as DI is concerned.  He  had insisted  that  the issue of scanning equipment and necessary training should be addressed first, followed by a transition period during which the  Customs  can take over.

Former Chairman of  the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), Iju Tony Nwabunike had in an interview shortly after  the extension of the contract  welcomed  the government decision. He argued  that it makes room for consistency. Sources said that the World Bank team may have    met with these agents  to have a balancing view. But the venue was not known.

Element of Sabotage
In a paper presented to the team, the Secretary General of NAGAFF, Mr Increase  Uche maintained that the determination  on the part of the Customs to take-over  DI was not in doubt. What is in doubt, he said, is the sincerity on the part of the service providers  to handover at the end of the six months extension period. “There is no doubt that there are clear signs of element of sabotage in the whole essence of transfer to the Customs. Customs is prepared to take the responsibility and they have the support  of the critical stakeholders  to do so”, he said. Uche called on the intervention of the President  at this critical stage, adding that except this was done, “corruption may take high toll  and public interest shall be jeopardized”. 

To prove that Customs was ready for the scheme,  Uche  said that the service providers have been able to  deploy 22 mobile and fixed scanning equipment, trained 6,788 customs officers, and provided an ICT network backbone to enable customs deliver e-customs  services to the trading public. He said that following these, Customs in a bid to take-over effectively had engaged experts on ICT  technology to develop an indigenous Pre-Arrival Assessment  Report (PAAR) with  capability to over-come the inefficiencies of the previous destination inspection system. Uche identified take-over action of the Customs as  a review of import  guidelines to reflect customs role in PAAR issuance,  transfer  of functional scanners and upgrade, integration of scanner service in  customs procedure and  request for an updated version of the valuation and classification database from service providers, among others.

Waste of  Public Fund
To the agents, the continued  engagement of the DIAs was simply a waste of public fund. They gave an indication that the agents may equally approach the court  for a restraining order in the interest of public fund, “because  we are not even sure of the interest of the world bank delegation may be protecting. We do hope that we should be told to avoid the speculations or insinuation of the critical stakeholders of their concern”.  This was the  position of all the leaders of the agents that attended the meeting  this week.  But reacting to the  issue of what interest  the world Bank  is pursuing, a neutral stakeholder said that  as far as he is concerned,  some of the gladiators  either in favour or against customs take-over of DI  all have interest s they are pursuing. “Those who want Customs to take over the DI have a point,  but  it is possible  that DI  under customs could be mismanaged  if the Service continues to romance  the customs agents”, he  said.

President of NAGAFF, Eugene Nweke told  the World Bank team that one problem against  Customs is the fact that past findings and recommendations to improve the workings of the organisations were ignored. Nweke may have implied that addressing  these problems was the only way to make customs be in a position to take up  serious challenges like destination inspection. He said that poor funding has resulted in dilapidated infrastructure, broken and obsolete equipment and optimum productivity. He  recommended, “ government  should accord the Customs appropriate recognition and importance  by adequately meeting its funding requirements. Funding  should be addressed to cover the present dilapidated infrastructure, dearth of working materials”, he said. He also  called on government o consider allowing Customs to retain at least  2% of its annual collected revenue  to enable  the service rise to  the present day challenges, including the  take-over of destination inspection.