Combating Maritime Fraud: The ANLCA Example
The maritime sector is the second highest revenue yielder to the country's economy but appears to be number one in fraudulent practices. To stem this, the leadership of the Association of Nigerian Licensed Customs Agents (ANLCA) has devised a new means of minimizing the malaise. RAY UGOCHUKWU explains.
One major problem in the maritime sector of the economy, which the authorities have been battling to tackle to no avail, has been that of fraud. It comes in different shades and sizes. It is not limited to any particular operator or port user. Importers and their agents are neck-deep into it. Security agencies like the customs, police, immigration, among others, are fellow collaborators. Shipping companies thrive in it; shipowners savour it. Port administrators are embedded in it; even the banks that collect duties on behalf of customs for the government, make fortunes out of it. When it is not under-declaration, over-invoicing, concealment, wrong classification, it is the forging of trade documents, otherwise called Machined Outside (MO) and the like.
In Customs' parlance, as stipulated by the Customs & Excise Management Act (Cema), any action designed for the evasion of duty payment is smuggling. Smuggling is a name that irks government and its agents. The authorities frown strongly at any threat to maximum duty collection.
One major reason corruption appears to have overwhelmed the system is the dishonesty of importers and agents. Hardly any importer declares in his trade documents the actual things that are stocked in the container. His aim always is to maximise profit by hook or crook. This is why he would declare vehicle engines as tomato puree.
To check this, the Nigeria Customs Service (NCS) commenced a reform process that is IT-driven aimed at reducing human contact. Sadly, in the service's efforts to sanitise the system, it failed to carry the real implementers of government's policies, the licensed customs agents, along. These are the people that help customs to collect duty from importers, which in other climes are known as customs brokers. This group, the licensed customs agents, play a key role in the success or otherwise of government fiscal policies. The Association of Nigerian Licensed Customs Agents (ANLCA) founded by an Act of Parliament in 1954, is one of the key players in the collection of import duty for the government.
To be in tandem with the port reform programme of government, its leadership under the supervision of Prince Olayiwola Shittu, has taken it upon itself to key into the transformation agenda of the President Jonathan's administration. Having discovered that most of the perpetrators of frauds in the ports are touts masquerading as licensed customs agents, the association has decided to carve a niche for itself. To start with, ANLCA joined the International Federation of Customs Brokers (IFCB), meaning that members' modus operandi must be in conformity with world best practices. The leadership of the group has just come back from Greece where it attended the IFCB's conference where the association was inducted into the board of the world customs brokers' body.
Before this time, the dynamic leadership of the body had initiated a re-registration system that would eliminate touting in the system by adopting the biometric data identity (ID) card. The registration exercise, which is on-going is being handled by Secure ID, the company that produces Nigerian banks' ATM cards and also the one that handled the country's National Identity Card project. The biometric project is powered by Access Bank Plc, which serves as the platform for loading the cards and making payments for various transactions like those of terminal and shipping company charges, among others. Holders of the biometric ID cards are either the chief executive officers (CEOs) of licensed customs companies or individuals working for licensed firms, who must be identified by the firms' owners. Already, according to Prince Shittu, the ANLCA boss, 1,200 ID cards have been issued to individuals out of the expected 3,000 cards. The biometric ID card captures the holder's photograph, finger prints, his/her ANLCA registration number and other personal data of the holders. Presently, the association has 4,000 members some of whom their licenses are still operational or dormant. In the course of the biometric registration, said the president, about 50 disclaimers have been recorded, as those involved were disclaimed by the CEOs of the firms they purported to be their employers. Soon, he said, such people would face prosecution for impersonation in an exercise that would be ending next month, July.
With the ID card, which has received the nod of the customs, Nigerian Ports Authority (NPA), among others, entry into and exit from the ports would be properly regulated when the automated port gates are eventually installed. This is so because access to the ports would be for only those that have genuine businesses to transact. This makes it easy for NPA as the association's members' ID cards would be registered with it at the completion of the registration exercise. Since payments can be made with the card, it means agents can from the comfort of their homes or offices, transact business with port administrators be they terminal operators or shipping companies. This definitely will reduce human traffic and interface in the system thereby curbing corruption in the ports.
It has been accolades for the association from key stakeholders, who have expressed their support for the initiative, the first of its kind in the country. Among those that have showered encomiums on the leadership of the group is the managing director of the Grimaldi Group, Mr. Ascanio Russo, who saw the effort as highly commendable. It is the same story from the Area Controller of the Port & Terminal Multiservices Limited (PTML), Tin Can Island, Comptroller Timothy O. Aremu, even as his counterpart at the Apapa Area 1 command, Comptroller Yusuf Garko, has also hailed Shittu and his group for the effort.
For Shittu, the association would never intercede for any member that is involved in fraudulent practice, as according to him, as full-fledged members of the IFCB, world's customs brokers' body, they could not be seen to be supporting illegal practices.
In Customs' parlance, as stipulated by the Customs & Excise Management Act (Cema), any action designed for the evasion of duty payment is smuggling. Smuggling is a name that irks government and its agents. The authorities frown strongly at any threat to maximum duty collection.
One major reason corruption appears to have overwhelmed the system is the dishonesty of importers and agents. Hardly any importer declares in his trade documents the actual things that are stocked in the container. His aim always is to maximise profit by hook or crook. This is why he would declare vehicle engines as tomato puree.
To check this, the Nigeria Customs Service (NCS) commenced a reform process that is IT-driven aimed at reducing human contact. Sadly, in the service's efforts to sanitise the system, it failed to carry the real implementers of government's policies, the licensed customs agents, along. These are the people that help customs to collect duty from importers, which in other climes are known as customs brokers. This group, the licensed customs agents, play a key role in the success or otherwise of government fiscal policies. The Association of Nigerian Licensed Customs Agents (ANLCA) founded by an Act of Parliament in 1954, is one of the key players in the collection of import duty for the government.
To be in tandem with the port reform programme of government, its leadership under the supervision of Prince Olayiwola Shittu, has taken it upon itself to key into the transformation agenda of the President Jonathan's administration. Having discovered that most of the perpetrators of frauds in the ports are touts masquerading as licensed customs agents, the association has decided to carve a niche for itself. To start with, ANLCA joined the International Federation of Customs Brokers (IFCB), meaning that members' modus operandi must be in conformity with world best practices. The leadership of the group has just come back from Greece where it attended the IFCB's conference where the association was inducted into the board of the world customs brokers' body.
Before this time, the dynamic leadership of the body had initiated a re-registration system that would eliminate touting in the system by adopting the biometric data identity (ID) card. The registration exercise, which is on-going is being handled by Secure ID, the company that produces Nigerian banks' ATM cards and also the one that handled the country's National Identity Card project. The biometric project is powered by Access Bank Plc, which serves as the platform for loading the cards and making payments for various transactions like those of terminal and shipping company charges, among others. Holders of the biometric ID cards are either the chief executive officers (CEOs) of licensed customs companies or individuals working for licensed firms, who must be identified by the firms' owners. Already, according to Prince Shittu, the ANLCA boss, 1,200 ID cards have been issued to individuals out of the expected 3,000 cards. The biometric ID card captures the holder's photograph, finger prints, his/her ANLCA registration number and other personal data of the holders. Presently, the association has 4,000 members some of whom their licenses are still operational or dormant. In the course of the biometric registration, said the president, about 50 disclaimers have been recorded, as those involved were disclaimed by the CEOs of the firms they purported to be their employers. Soon, he said, such people would face prosecution for impersonation in an exercise that would be ending next month, July.
With the ID card, which has received the nod of the customs, Nigerian Ports Authority (NPA), among others, entry into and exit from the ports would be properly regulated when the automated port gates are eventually installed. This is so because access to the ports would be for only those that have genuine businesses to transact. This makes it easy for NPA as the association's members' ID cards would be registered with it at the completion of the registration exercise. Since payments can be made with the card, it means agents can from the comfort of their homes or offices, transact business with port administrators be they terminal operators or shipping companies. This definitely will reduce human traffic and interface in the system thereby curbing corruption in the ports.
It has been accolades for the association from key stakeholders, who have expressed their support for the initiative, the first of its kind in the country. Among those that have showered encomiums on the leadership of the group is the managing director of the Grimaldi Group, Mr. Ascanio Russo, who saw the effort as highly commendable. It is the same story from the Area Controller of the Port & Terminal Multiservices Limited (PTML), Tin Can Island, Comptroller Timothy O. Aremu, even as his counterpart at the Apapa Area 1 command, Comptroller Yusuf Garko, has also hailed Shittu and his group for the effort.
For Shittu, the association would never intercede for any member that is involved in fraudulent practice, as according to him, as full-fledged members of the IFCB, world's customs brokers' body, they could not be seen to be supporting illegal practices.
Clearing Agents Demand for Benchmark on Automobiles
To stem the prevailing confusion in the business of vehicle clearance at the ports, the leadership of the Association of Nigerian Licensed Customs Agents (ANLCA), has again called on the Nigeria Customs Service (NCS) to come up with a benchmark on all imported vehicles into the country.
Prince Olayiwola Shittu, the national president of the association, made the plea on behalf of his members when he paid a courtesy call on the Area Controller (CAC) of the Port and Terminal Multiservices Limited (PTML), Tin Can Island, Lagos, Comptroller Timothy O. Aremu. Shittu was on a working tour of the area command and the chapter.
The ANLCA boss explained that they had made a similar call earlier before the service introduced the suspended controversial benchmark that affected 26 items. According to him, the demand had become necessary in view of the discrepancies in duty at the various commands on same brands and age of vehicles.
He noted that the duty differentials from one area command to the other was causing confusion in the system and as such posing problems to his members, saying such did not happen in other climes.
“We made the demand for a benchmark on vehicles earlier before the suspended one was introduced. Lack of a harmonised duty on vehicles is causing serious problem among our members; that is why we are requesting for a benchmark. With a benchmark, an agent will know that if he goes to command A or B it is the same duty that will be paid for car or bus A or B. By this, he will be in a better position to advise the importer on what to pay”, Shittu said.
Prince Shittu also pleaded with the CAC to put in place measures that would eliminate delays in the release of cargo, pointing out however that the problem was not peculiar to the PTML command as, according to him, it was a general challenge among all customs formations.
Again, he pleaded with Comptroller Aremu to do everything within his powers to halt the practice whereby goods were being re-examined at the exit gate after having received a clean bill of health from releasing officers to leave the port.
The ANLCA president however acknowledged the difficulty the service could find itself when what was declared on paper was at variance with what was in the container but still pleaded with the CAC to check the problem.
He informed his host that ANLCA had become a member of the International Federation of Customs Brokers (IFCB), meaning that members were to adopt world best practices in their operations.
It was in pursuit of this, he disclosed, that the association had compiled a biometric list of its members to ensure that only genuine clearing agents practiced the business and complied with best practices.
He made it clear that the association would never intercede for any agent that got himself involved in fraudulent practices in the course of duty, even as he disclosed that with the biometric registration some fake agents had been discovered who would soon face prosecution.
In his response, Comptroller Aremu commended the association's leadership for the visit and the reform measures it had adopted to reposition the practice of its members.
The area controller disclosed that there had been a cordial relationship with ANLCA members, leading to the feat in revenue generation the command had recorded since January till date.
He however urged agents to assist the command to serve them better through honest declaration, informing that he had maintained an open door policy in order to tackle any genuine complaints from them.
Prince Olayiwola Shittu, the national president of the association, made the plea on behalf of his members when he paid a courtesy call on the Area Controller (CAC) of the Port and Terminal Multiservices Limited (PTML), Tin Can Island, Lagos, Comptroller Timothy O. Aremu. Shittu was on a working tour of the area command and the chapter.
The ANLCA boss explained that they had made a similar call earlier before the service introduced the suspended controversial benchmark that affected 26 items. According to him, the demand had become necessary in view of the discrepancies in duty at the various commands on same brands and age of vehicles.
He noted that the duty differentials from one area command to the other was causing confusion in the system and as such posing problems to his members, saying such did not happen in other climes.
“We made the demand for a benchmark on vehicles earlier before the suspended one was introduced. Lack of a harmonised duty on vehicles is causing serious problem among our members; that is why we are requesting for a benchmark. With a benchmark, an agent will know that if he goes to command A or B it is the same duty that will be paid for car or bus A or B. By this, he will be in a better position to advise the importer on what to pay”, Shittu said.
Prince Shittu also pleaded with the CAC to put in place measures that would eliminate delays in the release of cargo, pointing out however that the problem was not peculiar to the PTML command as, according to him, it was a general challenge among all customs formations.
Again, he pleaded with Comptroller Aremu to do everything within his powers to halt the practice whereby goods were being re-examined at the exit gate after having received a clean bill of health from releasing officers to leave the port.
The ANLCA president however acknowledged the difficulty the service could find itself when what was declared on paper was at variance with what was in the container but still pleaded with the CAC to check the problem.
He informed his host that ANLCA had become a member of the International Federation of Customs Brokers (IFCB), meaning that members were to adopt world best practices in their operations.
It was in pursuit of this, he disclosed, that the association had compiled a biometric list of its members to ensure that only genuine clearing agents practiced the business and complied with best practices.
He made it clear that the association would never intercede for any agent that got himself involved in fraudulent practices in the course of duty, even as he disclosed that with the biometric registration some fake agents had been discovered who would soon face prosecution.
In his response, Comptroller Aremu commended the association's leadership for the visit and the reform measures it had adopted to reposition the practice of its members.
The area controller disclosed that there had been a cordial relationship with ANLCA members, leading to the feat in revenue generation the command had recorded since January till date.
He however urged agents to assist the command to serve them better through honest declaration, informing that he had maintained an open door policy in order to tackle any genuine complaints from them.
Deep Seaports in Lekki, Ibaka, Badagry on Course - FG
The minister of transport, Sen. Idris Umar, disclosed last week in Abuja that the federal government was committed to the development of deep seaports to decongest the over-stretched port facilities in the country. Umar, who spoke at the just concluded 12th Maritime Seminar for Judges, explained that such commitment was meant to promote international trade and transform the nation into a hub for West and Central Africa.
According to him, already, the development of Lekki deep seaport by a firm, Tolaram, in collaboration with the federal and Lagos State governments had since commenced, while discussions had reached advanced stage on the development of Ibaka deep seaport in Akwa Ibom State as well as at Badagry in Lagos.
He explained that the projects were being executed under Public, Private Partnership (PPP) arrangement.
“There is equally great potential in the development of Olokola deep seaport in Ogun and Ondo states”, Umar said.
He said government was also committed to the dredging of the Calabar channel, adding that the contract for the exercise would be awarded this year, even as he disclosed that the contract for construction of break waters at Escravos would be awarded this year.
The minister said the development of Koko port “is sine qua non to the realisation of the gas revolution in the country.
Accordingly, the Federal Ministry of Transport is collaborating with the Ministry of Petroleum Resources and private investors to actualise the expansion of the port, he said
Umar also said that government was vigorously carrying out the total rehabilitation of the existing narrow gauge rail lines, adding that over 90 per cent of the existing 3,505 km one was being rehabilitated, while efforts were on in the construction of the modern standard gauge.
He said that it was quite commendable that the maritime seminar for judges had received international acclaim and acknowledgment, as it had brought an enduring partnership between the Nigerian Shippers' Council (NSC) and the National Judicial Institute (NJI).
On his part, the Speaker, House of Representatives, Hon. Aminu Tambuwal, commended the organisers of the seminar for updating the knowledge of judges, lawyers and other stakeholders on admiralty law.
Tambuwal said this was testimony that the seminar must be taken serious by the National Assembly.
He recalled that the National Assembly had passed some maritime laws like the Coastal and Inland Shipping Act (Cabotage) 2003; the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) Act 2007; and the Convention of Carriage of Goods as well as the Merchant Shipping Act.
Tambuwal urged the House Committee on Marine Transport to liaise with the Shippers' Council and other maritime parastatals and the Federal Ministry of Transport to domesticate international maritime conventions.