Importers, Customs Agents Clamour for Return of CTN over Unending Corruption, Spiraling Extortion at Ports

*We yearn for CTN as PAAR is now advisory – Shittu
*Regrets no third party intervention to check excesses of customs officials
By Francis Ugwoke
Unending corruption and spiraling level of extortionist tendencies involving personnel of government agencies, particularly those of the Nigeria Customs Service (NCS) in the ports system and desire to align with global best practices are among the reasons why importers, freight forwarders and customs brokers currently desire the return of Cargo Tracking Notes (CTN) in Nigeria.
Former President of the Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, who said though his members were responsible for the suspension of the CTN some years ago, they have now realized that it was better to have the scheme in place in view of the worsening situation in the ports.
Shittu who was a guest of the League of Maritime Editors and Publishers maiden Roundtable in Lagos, explained that the current shift to CTN was because Pre- Arrival Assessment Report (PAAR) which came with Destination Inspection (DI) that ended the regime of Pre-shipment Inspection (PIS) regime some years ago has been turned against importers and customs agents who have goods to clear at the nation’s ports.
The former ANLCA boss said specifically that PAAR has turned into an instrument of oppression against importers and customs agents who have consignments at the ports.
He added that customs officers on the field have been capitalizing on PAAR to extort importers and their agents who have goods to clear at the ports.
He explained that the dilemma of importers and customs agents was that there is no other authority or third party intervention that can call the Customs Service to order in Nigeria.
Shittu who disclosed that every PAAR is queried, added that it was even terrible that goods duly released at the ports based on processes they have undergone inside the ports and overseen by senior officers are intercepted few meters away from the ports and other places on the highway by operatives of the Federal Operations Unit (FOU) of the Customs for mere excuses to extort the importers.
He said that what has continued unabated at the ports was corruption by customs officers who now openly boast of certain amount of money they must make each month.
Shittu said, “ The PAAR was turned to an instrument of oppression. Officers in the field now capitalize on PAAR, either it’s deliberate action or not, every PAAR is queried, it can be for clarification or for value. The PAAR itself will uplift your value either by freight or the component itself. After payment, an officer in the field will now tell you the value is not correct and now refers you to online Alibaba or Jumia technique. An officer can decide to use 50% and decide that your value is N500, 000 additional payment. There’s no yardstick. The online reference like Jumia or Alibaba are illegal because there are six steps of valuation that every officer must follow but all those steps have been jettisoned now, PAAR has become advisory so every customs broker is yearning for intervention by a third party that can overrule the excess power of officers to determine and not follow the rule of guidelines. That’s why the re introduction of CTN became inevitable.
“We tried it because it was at cross purposes with PAAR then. Even the Customs has adopted the CTN. Before you can do inspection without PAAR provided your invoice is stamped by the Chamber of commerce of the country of origin. It is regarded as authentic to calculate your value and pay your duty, that’s about 15 years back. But now everything has been so called modernized by young boys who are brainy in computer manipulation who were employed by late CG Dikko then to add value to the system. Those boys are terror to the port. If you ask any agent now, which rank of officers do you fear most, they’ll tell you those one star officers. When they want to do examination, what will be the experience of a one star officer? Probably a graduate of two years to determine value and quality of cargo compared to an experienced officer. All these young boys do is extortion at the examination bay. One of the boys is boosting “if I get N500, 000 for a week that means the week is bad”. The CAC on the other side wants to meet the revenue target, he doesn’t see any anomalies at the ports”.

Shittu continued, “When we had pre shipment inspection, government was collecting CISS, who is paying them it’s the shippers. And then what they were giving us was not adequate because we know Nigerians can do that job so Destination Inspection came up and tie to that destinations inspection is the issuance of PAAR. And how do you get PAAR, if you buy something for $10 it’s the job of Customs to go and find out what is the average price of the item all over the world and they now confirm a figure, let’s say $12 instead of $10, you’ll pay that $12 and carry the cargo. But when the $12 you have paId is now subjected to another scrutiny, because of official interest, government said Customs your target is N1. 2 trillion, the CG wants to bring in 1.5 trillion Naira because that would make him retain his seat so he puts everyone on job to meet the target. Officials are now using the demand target to help themselves, some agents use the opportunity to help themselves. The preference for destination inspection is for loyalty and patriotism. PAAR has now been made an advisory, it’s no longer final document and subject to final interpretations by government officers in the field and patrol. People are now looking at the pre shipment inspection as nostalgia because in those days they issued CRI (Clean Report of Inspection), once that is paid no one looks at your cargo again, examination was not even necessary. We need the CTN because it serves as another proof of being genuine. They treat all Nigerians as being dishonest, once they sight your documents, it’s suspicious. The fear of every shipper is demurrage, if your document is with Customs for weeks or months, your fee is accumulating”.

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