Clearing Agents Associations Unanimously Reject Proposed Increment in Customs Licensing Fees

By DAPO OLAWUNI

Clearing agents associations operating in the Nigerian maritime sector have unanimously agreed that the proposed increment in the licensing fees by the Nigeria Customs Service is not acceptable to them, and that status quo should remain.

According to the Nigeria Customs proposed review, the fee for a new license would skyrocket from N515,000 to N10 million, while the annual renewal fee would increase from N215,000 to N4 million.

The various associations cutting across Association of Nigerian Licensed Customs Agents (ANLCA) Africa Association of Professional Freight Forwarders and Logistics (APFFLON) National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) Association of Registered Freight Forwarders of Nigeria (AREFFN) Save Nigeria Importers, Exporters and Freight Forwarders Coalition (SNIEFFC) as well as the Lagos Chamber of Commerce and Industry (LCCI) came up with a united decision, kicking against the proposal a meeting held in Apapa Lagos on Thursday.

The associations subsequently set up a 5-man committee to harmonise their positions and come up with a proposal to be presented to the Comptroller-General of Customs, Bashir Adewale Adeniyi at a later meeting. The committee is headed by a Retired Customs Controller, Lewis Ogunojemite, while other members include; Tope Akindele from ANLCA, Chief Osita Patrick Chukwu from Save Nigeria, Alhaji Hakeen Ayobiojo from APFFLON and Chief Festus Ukwu from NCMDLCA.

Speaking at the meeting, ANLCA National President, Emenike Nwokeoji
warned that if the hike is implemented, the cost will inevitably be passed on to customs agents and consumers through higher prices for goods, further impoverishing Nigerians.

Emenike stressed that the report of the committee should be supported by critical logic rather than just emotion, aiming for a position that is difficult to dispute. He noted that the general mood among attendees was not in favor of any fee increase.

Also speaking, the Chairman Board of Trustees of ANLCA, Alhaji Taiwo Mustapha acknowledged that Customs presented the fee increase as a proposal and appreciated that the associations were consulted.

However, he questioned the necessity of the increase and its potential effect on customs revenue or trade facilitation. He pointed out the recent successes of the Comptroller-General of Customs (CGC), including meeting revenue targets, receiving a one-year extension, and becoming chairman of the WCO. He argued that this is a time for celebration, not for creating new issues.
Mustapha said that while he could personally afford the increase, a large number of agents could not, especially a 2,000% increment.

He said, “The CG came and told us these are proposals but coming from our experience in the past, when we were moving from NICIS 11 to B’Odogwu, were we consulted? No.
“When a good number of various decisions were taken, we were not consulted. And I think they knew, that perhaps, because this one has to do with us directly, in terms of what will be coming out of us, they decided to keep it as a cart before us like, it is a proposal.
“But I believe that certain decisions have been taken on this issue. However, if after engaging them they refuse to listen to us, we will down tool.”

The Chairman of APFFLON, Tin Can Chapter, Alhaji Hakeem Ayobiojo condemned the claims of the Customs service who had argued that the increase is due to agents and bonded terminals abusing their licenses, which leads to illegal activities, including allowing importation of fake drugs.

Ayobiojo condememned these claims, arguing that those who commit offenses are known by customs and should be held accountable individually.
He suggested that Customs should arrest and prosecute the specific agents and terminals who are misusing their privileges, rather than penalizing all agents by increasing the costs of issuing clearing licenses.
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Chief Festus Ukwu from the NCMDLCA referenced documents from the World Customs Organization (WCO), stating that licensing fees are not intended to be a source of revenue and should not be constantly increased. He also countered the claim that agents are abusing the licenses, arguing that, no abuse can be possible without the collaboration of customs officers.

Deputy Chairman, Clearing and Forwarding Trade Group at the Lagos Chamber of Commerce and Industry (LCCI), Dr. Ikenna Nwosu, stated that such an exorbitant increase proves the NCS’s objective is to generate revenue rather than to simply issue a permit.

“All over the world, license fee is not a revenue generation base, but with the increase proposed by Customs, it is clear that it is a revenue generation base,” he said.
The agents who challenged the NCS’s annual renewal policy, argued that it is out of sync with what obtains in other countries and the fees among the highest in the world.
They cited countries like Canada, the US, and Singapore, as well as West African countries where licenses are renewed every three to ten years, with some being permanent.

One of the licensed customs agent and retired Comptroller of Customs, Lewis Ogunojemite called the 2,000% increase for a new license illogical and described it as a ploy by Customs to push agents out of job and hand them over to money bags.

His words, “We should not give room to any negotiation. When we engage them, it is to fall inside their trap. This is an attempt for customs to take over the job when they leave office. ”