How to End Massive Ports Fraud, Corruption at Nigerian Ports, by Ex-NAGAFF Boss
LAGOS PORT
By Francis Ugwoke
The former President of National Association of Government Approved Freight Forwarders (NAGAFF), Dr. Eugene Nweke has said that glaring honesty demonstrated by customs personnel, freight forwarders and importers can bring an end to massive fraudulent practices through which government loses revenue at the nation’s ports.
Nweke said the problem in the ports can be traced to those who are involved in the trade facilitation chain.
He identified them as importers or exporters, foreign forwarders/brokers, carriers on one hand and the shippers, shipping lines, customs officers, forwarders/ customs brokers on the other hand.
In a paper titled ‘Towards Legitimate Trade Facilitation: A Welcome Back to Professional Customs Administration’, which he described as a series of shared professional thoughts, Nweke pointed out that “the greatest challenges that bedevil customs operations in the context of its overall national performance, global assessment and rating have been adduced to DISHONEST DECLARATION/NON COMPLIANCE TO TRADE LAWS AND OPERATIONAL HAGGLING AND HIGH-HANDEDNESS LEADING TO DELAYS”.
He added, “From system study these thrive owing to the collusions between the ‘ insider traders and external traders ‘ arrangements (an operational connivance between the Shipper either as “Importer or Exporter” Foreign Forwarder/Broker and the Carrier on one hand and the Shipper, Shipping lines, Customs Officer, Forwarder/ Customs Brokers on the other hand.
“This unholy alliance breeds operational malpractices, security challenges and revenue leakage. Efforts to mitigate this challenges via ICT tools and applications are often tactically resisted or proves high tasking and a near impossibility by the management (even where the management seems to undertake higher measures nigh uncustomed approach), owing to the prevailing connivance in the system.
“In spite of these, concealments, transfer of pricing, deliberate under declaration, wrong clarifications, over invoicing, cartels and racketeering etc, persists.
“Whereas it is not enough to claim that the trading public are not COMPLIANT, it would appear that our international trade safety and security supply chains are not actually secured in line with global standards. Hence the Integrity of our entire trade and Customs ports supply chains requires urgent probing”.
Nweke recommended, “In general, if both the operational officers and the forwarders will dwell within the ambit of their professional engagements, connivances will fizzle out on its own. While the officers work for their salary, the Freight Forwarders/brokers stay with their professional scale of charges and the shippers pays its appropriate duty and receive his imports timely. With this, compliance will be enhanced, malpractices drastically reduced, trade predictability and competitiveness will be promptly achieved and revenue growth attained, and throughput will appreciate. We have what it takes to achieve this feat; it is doable and can be done.
“Therefore, this modest solicit your understanding not to dwell on the recent contract award, aka the ambitious e – customs modernization concession for the period of 20 years for obvious reasons, especially so, from the professional knowledge and experiences driving this modest, it is obvious that the spirit behind it, is the same spirit that promoted the erstwhile pre-shipment arrangement of yesterday. Except proven otherwise, the concession arrangement is more or less a going back to yet another pre-shipment contract arrangement in its own disguise. Only time shall tell.
“Finally, while Congratulating the management team in their respective portfolios, this modest wish to reinstate, that, you all have the opportunity to rekindle professionalism in all ramifications for a better customs administration beyond your years in office, that you can be proud of. It calls for team work and trust”.
Nweke also advised that since Customs is administered by codes, hence, it provides applicable tools, instruments and initiatives to ease global Customs administration, the management team of the Customs should come up with an aggressive policy to restore professional sanity that can instill professional integrity.
He said this will not only “boldly confront trade breaches and non compliance on the part of the trading public headlong, but with clear sense of patriotism, by maximizing and domesticating the applicable tools, instruments and initiatives of the World Customs Organisation (WCO)”.
The former President of National Association of Government Approved Freight Forwarders (NAGAFF), Dr. Eugene Nweke has said that glaring honesty demonstrated by customs personnel, freight forwarders and importers can bring an end to massive fraudulent practices through which government loses revenue at the nation’s ports.
Nweke said the problem in the ports can be traced to those who are involved in the trade facilitation chain.
He identified them as importers or exporters, foreign forwarders/brokers, carriers on one hand and the shippers, shipping lines, customs officers, forwarders/ customs brokers on the other hand.
In a paper titled ‘Towards Legitimate Trade Facilitation: A Welcome Back to Professional Customs Administration’, which he described as a series of shared professional thoughts, Nweke pointed out that “the greatest challenges that bedevil customs operations in the context of its overall national performance, global assessment and rating have been adduced to DISHONEST DECLARATION/NON COMPLIANCE TO TRADE LAWS AND OPERATIONAL HAGGLING AND HIGH-HANDEDNESS LEADING TO DELAYS”.
He added, “From system study these thrive owing to the collusions between the ‘ insider traders and external traders ‘ arrangements (an operational connivance between the Shipper either as “Importer or Exporter” Foreign Forwarder/Broker and the Carrier on one hand and the Shipper, Shipping lines, Customs Officer, Forwarder/ Customs Brokers on the other hand.
“This unholy alliance breeds operational malpractices, security challenges and revenue leakage. Efforts to mitigate this challenges via ICT tools and applications are often tactically resisted or proves high tasking and a near impossibility by the management (even where the management seems to undertake higher measures nigh uncustomed approach), owing to the prevailing connivance in the system.
“In spite of these, concealments, transfer of pricing, deliberate under declaration, wrong clarifications, over invoicing, cartels and racketeering etc, persists.
“Whereas it is not enough to claim that the trading public are not COMPLIANT, it would appear that our international trade safety and security supply chains are not actually secured in line with global standards. Hence the Integrity of our entire trade and Customs ports supply chains requires urgent probing”.
Nweke recommended, “In general, if both the operational officers and the forwarders will dwell within the ambit of their professional engagements, connivances will fizzle out on its own. While the officers work for their salary, the Freight Forwarders/brokers stay with their professional scale of charges and the shippers pays its appropriate duty and receive his imports timely. With this, compliance will be enhanced, malpractices drastically reduced, trade predictability and competitiveness will be promptly achieved and revenue growth attained, and throughput will appreciate. We have what it takes to achieve this feat; it is doable and can be done.
“Therefore, this modest solicit your understanding not to dwell on the recent contract award, aka the ambitious e – customs modernization concession for the period of 20 years for obvious reasons, especially so, from the professional knowledge and experiences driving this modest, it is obvious that the spirit behind it, is the same spirit that promoted the erstwhile pre-shipment arrangement of yesterday. Except proven otherwise, the concession arrangement is more or less a going back to yet another pre-shipment contract arrangement in its own disguise. Only time shall tell.
“Finally, while Congratulating the management team in their respective portfolios, this modest wish to reinstate, that, you all have the opportunity to rekindle professionalism in all ramifications for a better customs administration beyond your years in office, that you can be proud of. It calls for team work and trust”.
Nweke also advised that since Customs is administered by codes, hence, it provides applicable tools, instruments and initiatives to ease global Customs administration, the management team of the Customs should come up with an aggressive policy to restore professional sanity that can instill professional integrity.
He said this will not only “boldly confront trade breaches and non compliance on the part of the trading public headlong, but with clear sense of patriotism, by maximizing and domesticating the applicable tools, instruments and initiatives of the World Customs Organisation (WCO)”.
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