Ports: 15% NAC Levy, Strike Threat and Divided Agents
LAGOS PORT
By Francis Ugwoke
In the next few hours, the much acclaimed unity among customs agents would again be put to test. This time it is on the fight against the 15 percent National Automative Council (NAC) levy introduced on imported vehicles. The agents had few months ago following government position on the election into the Board of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) come together to fight for adoption of 6 .6 1 1 1 concept. The idea was for ANLCA and NAGAFF to have six representatives each into the Board while the remaining other associations had one representative each into the Council. Under this concept the associations did not want independent candidates, a fight which they lost to the supremacy of the Ministry of Transportation which insisted that what the associations canvassed for was against the rules and regulations guiding the CRFFN election. Among the associations involved in the fight were the Association of Nigerian Licensed Customs Agents (ANLCA), National Association of Government Approved Freight Forwarders (NAGAFF), National Council of Managing Directors of Customs Agents (NCMDCA), Association of Registered Freight Forwarders of Nigeria (AREFFN) and Nigerian Association of Air Freight Forwarders and Consolidators (NAFFAC).
However, this time around, there appears to be confusion among the associations and members in terms of who is in favour and against the recently introduced 15 percent NAC levy. The National Public Relations Officer of the Nigeria Customs Service, Mr Timi Bomodi, had in statement given details of the NAC levy.
He said, “On Friday, April 1, 2022, the Nigeria Customs Service migrated from the old version of the ECOWAS Common External Tariff (2017- 2021) to the new version (2022- 2026). This is in line with WCO’s five years’ review of the nomenclature. The contracting parties are expected to adopt the review based on regional considerations and national economic policy.
“The nation has adopted all tariff lines with few adjustments in the extant CET. As allowed for in Annex II of the 2022-2026 CET edition, and in line with the Finance Act and the National Automotive Policy, NCS has retained a duty rate of 20 per cent for used vehicles as was transmitted by ECOWAS with a NAC levy of 15 per cent. New vehicles will also pay a duty of 20 per cent with a NAC levy of 20 per cent as directed in the Federal Ministry of Finance letter ref. no. HMF BNP/NCS/CET/4/2022 of 7th April 2022”
So far, the protests against NAC levy have been ANLCA affair. Even among the membership there also appears to be division. As at the time of writing this report, NAGAFF has remained on the fence. Efforts made to reach the President of NAGAFF, Chief Tochukwu Ezisi, to confirm involvement of his association on the strike failed as he did not pick his calls.
In a statement credited to the Taskforce chairman and youth leader of ANLCA at Tin Can Island Port, Alhaji Rilwan Amuni, all freight forwarders would be embarking on one-day warning strike which is today, Monday, April 25. Beyond the fight against 15 percent benchmark, the agents are also aggrieved over Customs policy on Benchmark on Pre Arrival Assessment Report (PAAR). Amuni was reported saying in a notice to members, “Having consulted widely among the critical stakeholders as per this 15%NAC and Illegal benchmarks on PAAR, it has been concluded that the 15% NAC is a ‘FRAUD’ and an ‘OBNOXIOUS POLICY’.
“In view of this, in conjunction with other stakeholders, there would be a one-day warning strike on Monday 25th of April by 10am prompt, starting from our ‘Holy Ground’ in front of Grimaldi and we move down to CAC’S of PTML and Tincan enroute all other terminals in Tincan and Apapa.
“After sensitising/information we believe the authorities concerned will reverse this ‘Illegal 15%NAC and also review the Benchmarks on PAAR’ within the next 48hours.
“Failure to do this, all members should be ready to downtool and make sure we have a total shutdown at the Ports”
“Please note that Monday and Tuesday is just a ‘WARNING STRIKE’ agents are allowed to do their jobs and tidy up against Wednesday in Lieu of whether their will be a reverse or not”.
The position of Amuni however contradicts that of the Vice President of ANLCA, Dr. Kayode Farinto who appears to be against the strike. Farinto strongly believes that strike was not the solution to the problem, adding that what is needed was dialogue. He was quoted saying, “So, it is the rule of engagement and dialogue that we will be embarking on, and we have started doing so. The National Automotive Council itself is a policy that was actually formulated to protect our local assemblers, thinking that by now, we will be able to produce Nigeria-made vehicles. It is supposed to be two per cent of Cost Insurance and Freight on new vehicles or spare parts, but imposing NAC on used vehicles is an aberration and we will make sure we fight it from here to Abuja.
“We have legal notices that talk about rebates on usable vehicles and the notice is so explicit that it gives 10 per cent rebate per year as per usable. This VIN Valuation policy is a lofty idea from us and we sold the idea to Customs so as to have a uniform value across all terminals but unfortunately, Customs’ added outrageous internet values. In a normal clime, the over N700m storage that Nigerians paid should have been paid by the service or they be dragged to court, but Nigerians are not litigious.”
Observers believe that if ANLCA could be divided on any strike, then it could even be worse getting NAGAFF and allies join in the strike. A strong member of NAGAFF who spoke under anonymity said the association was yet to discuss participation on any strike in respect of 15 percent NAC levy. He said, “we will not be opposed to dialogue on the issue. Before embarking on strike, we look at the consequences to the economy as well as clients and members who will be directly affected because sometimes when on strike the demurrage continues to rise on affected goods”.
In the next few hours, the much acclaimed unity among customs agents would again be put to test. This time it is on the fight against the 15 percent National Automative Council (NAC) levy introduced on imported vehicles. The agents had few months ago following government position on the election into the Board of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) come together to fight for adoption of 6 .6 1 1 1 concept. The idea was for ANLCA and NAGAFF to have six representatives each into the Board while the remaining other associations had one representative each into the Council. Under this concept the associations did not want independent candidates, a fight which they lost to the supremacy of the Ministry of Transportation which insisted that what the associations canvassed for was against the rules and regulations guiding the CRFFN election. Among the associations involved in the fight were the Association of Nigerian Licensed Customs Agents (ANLCA), National Association of Government Approved Freight Forwarders (NAGAFF), National Council of Managing Directors of Customs Agents (NCMDCA), Association of Registered Freight Forwarders of Nigeria (AREFFN) and Nigerian Association of Air Freight Forwarders and Consolidators (NAFFAC).
However, this time around, there appears to be confusion among the associations and members in terms of who is in favour and against the recently introduced 15 percent NAC levy. The National Public Relations Officer of the Nigeria Customs Service, Mr Timi Bomodi, had in statement given details of the NAC levy.
He said, “On Friday, April 1, 2022, the Nigeria Customs Service migrated from the old version of the ECOWAS Common External Tariff (2017- 2021) to the new version (2022- 2026). This is in line with WCO’s five years’ review of the nomenclature. The contracting parties are expected to adopt the review based on regional considerations and national economic policy.
“The nation has adopted all tariff lines with few adjustments in the extant CET. As allowed for in Annex II of the 2022-2026 CET edition, and in line with the Finance Act and the National Automotive Policy, NCS has retained a duty rate of 20 per cent for used vehicles as was transmitted by ECOWAS with a NAC levy of 15 per cent. New vehicles will also pay a duty of 20 per cent with a NAC levy of 20 per cent as directed in the Federal Ministry of Finance letter ref. no. HMF BNP/NCS/CET/4/2022 of 7th April 2022”
So far, the protests against NAC levy have been ANLCA affair. Even among the membership there also appears to be division. As at the time of writing this report, NAGAFF has remained on the fence. Efforts made to reach the President of NAGAFF, Chief Tochukwu Ezisi, to confirm involvement of his association on the strike failed as he did not pick his calls.
In a statement credited to the Taskforce chairman and youth leader of ANLCA at Tin Can Island Port, Alhaji Rilwan Amuni, all freight forwarders would be embarking on one-day warning strike which is today, Monday, April 25. Beyond the fight against 15 percent benchmark, the agents are also aggrieved over Customs policy on Benchmark on Pre Arrival Assessment Report (PAAR). Amuni was reported saying in a notice to members, “Having consulted widely among the critical stakeholders as per this 15%NAC and Illegal benchmarks on PAAR, it has been concluded that the 15% NAC is a ‘FRAUD’ and an ‘OBNOXIOUS POLICY’.
“In view of this, in conjunction with other stakeholders, there would be a one-day warning strike on Monday 25th of April by 10am prompt, starting from our ‘Holy Ground’ in front of Grimaldi and we move down to CAC’S of PTML and Tincan enroute all other terminals in Tincan and Apapa.
“After sensitising/information we believe the authorities concerned will reverse this ‘Illegal 15%NAC and also review the Benchmarks on PAAR’ within the next 48hours.
“Failure to do this, all members should be ready to downtool and make sure we have a total shutdown at the Ports”
“Please note that Monday and Tuesday is just a ‘WARNING STRIKE’ agents are allowed to do their jobs and tidy up against Wednesday in Lieu of whether their will be a reverse or not”.
The position of Amuni however contradicts that of the Vice President of ANLCA, Dr. Kayode Farinto who appears to be against the strike. Farinto strongly believes that strike was not the solution to the problem, adding that what is needed was dialogue. He was quoted saying, “So, it is the rule of engagement and dialogue that we will be embarking on, and we have started doing so. The National Automotive Council itself is a policy that was actually formulated to protect our local assemblers, thinking that by now, we will be able to produce Nigeria-made vehicles. It is supposed to be two per cent of Cost Insurance and Freight on new vehicles or spare parts, but imposing NAC on used vehicles is an aberration and we will make sure we fight it from here to Abuja.
“We have legal notices that talk about rebates on usable vehicles and the notice is so explicit that it gives 10 per cent rebate per year as per usable. This VIN Valuation policy is a lofty idea from us and we sold the idea to Customs so as to have a uniform value across all terminals but unfortunately, Customs’ added outrageous internet values. In a normal clime, the over N700m storage that Nigerians paid should have been paid by the service or they be dragged to court, but Nigerians are not litigious.”
Observers believe that if ANLCA could be divided on any strike, then it could even be worse getting NAGAFF and allies join in the strike. A strong member of NAGAFF who spoke under anonymity said the association was yet to discuss participation on any strike in respect of 15 percent NAC levy. He said, “we will not be opposed to dialogue on the issue. Before embarking on strike, we look at the consequences to the economy as well as clients and members who will be directly affected because sometimes when on strike the demurrage continues to rise on affected goods”.
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