“CLEARING AGENTS” HAVE GROSSLY ABUSED THE FREIGHT FORWARDING PROFESSION
—- Emeka Paul Chiedozie
Recently, the duo of LOD Onyeji and Mcanthony Onuoha engaged the Chairman of National Association of Government Approved Freight Forwarders- NAGAFF, Tincan Chapter, Chief (Dr.) Emeka Paul Chiedozie, Rff, FITMT, in an interview in his Lagos office, the MD/CEO of Seagold Maritime Services Limited had a robust time to speak on the present operational challenges, consistent abuse of the freight forwarding profession, the need for honest import declaration, capacity building, and sundry maritime issues.
Enjoy the excerpt !
QUS: Could you highlight some operational challenges freight forwarders are facing at the ports presently?
Since l came into this industry it has been one challenge or the other, every profession has its own challenges. Once the bill of laden enters your hand, your trouble begins. As a business man you will start looking out for a cheaper way to deliver the job so that you make some gains to take care of your family. And already, Clearing Agents have grossly abused the profession, so the business presently is so challenging.
The profession has been so bastardized by those who are averse to compliance. If Customs say we should pay 20% with VAT for an item and we pay it, we will not be facing problems. All fair and good, if a freight forwarder pays the right duty, he can boldly push his job to Customs portal because he has nothing to hide. Sadly, some Clearing Agents accept ridiculous amounts of money from importers to clear their goods. A freight forwarder can charge an importer N50 million to deliver his good to him, and sadly, another agent tells him to give him N20 million to clear the same consignment, and one begins to wonder the magic the second person would perform.
Again, some Customs officers do not like coming to examination bay to witness what we are doing, and at times you notice that a container that is not supposed to be alerted has been alerted and to vacate it could take more than two days, not only that, they must extort money from you especially if you don’t know how to defend the job.
48hrs cargo clearance is possible if we make honest declarations. Under the new Customs Area Controller of Tincan Chapter, Compt. F.O. Onyeka, l believe that once you make the right declaration you can take delivery within 48hrs.
There is need for freight forwarders to equip themselves with the knowledge of the industry, that is why NAGAFF established NAGAFF Academy, and l can proudly say that many, including my humble self have benefitted from the academy by being adequately trained by maritime experts, among them are lecturers drawn from the prestigious University of Lagos. The orientation is, “always make true and honest import declarations.”
I always tell my clients to make honest declaration so that we will not experience unnecessary hitches in the course of delivery. But some agents would like to impress their importers, a job you are supposed to charge 18million, another person goes to tell the importer to give him 14million to deliver the consignment, with shipping and terminal charges inclusive, and that is exactly the cause of wrong declarations. Agents should tell their importers to always make the right declarations to avoid bottlenecks, or loss of money and manhour. The time that can be used to attend to other important issues will be spent on begging customs to release your consignment, and there is no how the agent won’t make up the difference at the end of the day, and also pay additional demurrage and handling charges just because he wanted to cut corners. If agents are compliant, there will not be much problem in the ports.
On Customs check points on the ports Access roads, l remember three years ago, ANLCA made a case before the then CG, Col. Hameed Ali (Rtd.) why the Customs check point are not within the parameter stipulated by the CEMA. When ANLCA raised that issue he gave them a very simple response. He told them to go and tell their people to do the right thing and he would withdraw the FOU from the roads. So it boils down to the issue of honest declaration, do the right thing and you are free to go. The Founder of NAGAFF, Chief Dr. Boniface Aniebonam has always used every forum to advise freight forwarders to always make the right declarations so as to avoid hitches and bottlenecks in the course of clearing their goods from the ports. We know who he is, if you do the right thing he will stand by you, but if you do the wrong thing, he will not come out to defend you.
Again, if l may add to what l said initially about 48hrs cargo clearance, we have this persistent server downtime, it is a recurring decimal, the server keeps breaking down every now and then, it is either at the terminal operator’s side or at the Customs side. Sometimes you release your consignment and you cannot print exit, and sometimes you get to the exit gate they tell you there is server issue. It poses serious challenge because every delay costs us money. The importer would be waiting for you and since he has not seen his consignment it means you have not delivered. In this case, the agent is not the cause of the delay, but he will still be the one to bear the brunt because he is incurring additional costs and the importer will not refund him such money. Honestly, if that 48hrs delivery is achieved, freight forwarders will be very happy because they are the ones that bear the brunt.
Qus: Sir, what can you say about the performance of Compt. F.O. Onyeka in less than six months he has been in charge of Tincan Command?
The new controller started so well. Before he came we used to face the issue of container blocking by the Enforcement Unit, and as he came in he gave them a matching order. if there are issues and the owner of a particular container is referred to the Unit, they can call for the repositioning of the container for 100% reexamination, that is quite understandable. But random profiling of every container by the Enforcement Unit has been stopped by the new Controller. It is a step in the right direction. He also made emphasis on shabby or improper examination at bonded terminals. He cautioned and mandated them to be compliant. Again, the issue of multiple alerts has been relaxed. The two alerts we have presently are that of Valuation and CPC (Query and Amendment). I make bold to commend the new Tincan Command CAC, he has done so well in a very short while.
QUS: As the Chairman of NAGAFF Tincan Chapter, how do you plan to build a better relationship with other Sister Associations?
Everyone in the industry knows that ANLCA just resolved the internal crisis that frustrated its activities as an association for almost 4 years. And l, as Chairman of NAGAFF, Tincan Chapter, have not had the opportunity to work with a particular Chairman of ANLCA, Tincan Chapter because of the disunity. I didn’t know which of the factions to work with. And since l assumed office as Tincan Chapter Chairman of NAGAFF, this is the first time ANLCA is having a duly elected Chairman in the person of Prince Oluwole Cole and Chief Sonniel Onochie as Vice Chairman. So l believe that with these gentlemen, we are going to work together in the interest of freight forwarders.
QUS: Where do you see the freight forwarders in Tincan Port in the next five years?
Hopefully, l am believing that there will be a tremendous transformation of the Port and improved commercial activities that will translate to financial independence for freight forwarders in the next five years. There will be high volumes of import goods and l also project high volume of export which will enhance commercial activities, making way for more revenue for Nigeria, and financial independence for freight forwarders and other maritime practitioners . Some vessels have stopped coming to Tincan, Maeskline vessels no longer come to Tincan Port, l want to believe that if one puts his house in order his friends would like to visit him, l am urging the new CAC to try all he can to make Tincan Port a business friendly Port. And l want to assure the new CAC that freight forwarders at Tincan are ready to collaborate with him to reposition Tincan Port as a business friendly Port.
QUS: What is your advice to young freight forwarders especially at a time of excruciating economic hardship?
I want to say that good name is better than riches. I implore them to be focused, endure and try very hard to build a good name for themselves. Once they are honest to those that come in contact with them, l am assuring them that they should get ready to meet success in common hours. Hard time does not last, their must be time for relief, and when it comes, it presents one with a lot of opportunities, and if you are honest and focused, one of such opportunities will not pass you by. The field requires
honesty and hard work, and once you are not fraudulent, and ready to learn , nothing will stop you from becoming successful in this field.
