Bonded Terminals: Importers and the Old Habit of Container Flying

By Francis Ugwoke

Old habits die hard is a popular adage. In Nigeria’s shipping environment, this appears to be the case. Despite all the reform measures as well as stern measures, some importers are still into the game of stark trade malpractices that were the tradition before the 2006 port reform exercise. That was when a syndicate can simply take some containers out of the ports system without paying duties or undergoing any processes of examination. It was then described as ‘container flying’. This then appeared to have ended with terminal operators under the obligation to give account of whatever consignment is in their terminals.
The fraud in the bonded terminals were first reopened by the two Controllers of Apapa and Tin Can Island Customs Commands, Compt. Babatunde Olomu and Compt. Frank Onyeka. The two Controllers were under intense pressure to stem containers to bonded terminals, but they appeared reluctant apparently in doubt about the handling of the containers in line with trade facilitation. Just as the Tin Can Island Customs Controller was insisting he was not comfortable allowing any container to leave the terminal to the bonded terminal, his Apapa Controller counterpart was announcing closure of three bonded terminals over infractions.
In Apapa, the Customs Command was forced to dangle its axe against the bonded terminals, sealing them over various trade infractions.
The Controller of the Customs Command, Dr. Babatunde Olomu told newsmen that the Command could not bear the trade malpractices any longer.
He disclosed that two of the terminals were being investigated over other trade offences, warning the operators against illegal activities.
His Tin Can Island counterpart, Frank Onyeka, also
made it clear when he spoke to members of the League of Maritime Editors (LOME) that he is usually not comfortable with some of the bonded terminals. Onyeka disclosed that when three containers are stemmed for bonded terminals, there may not be any assurance that all of them will get there.

Besides, he said, even if all get to the terminals, not all of them may be examined.

To ensure that all containers going to the bonded terminals are examined, he said he makes sure that the video of the examination is sent to him by a high ranking officer.

Few days later, the Comptroller General of Customs, Bashir Adewale Adeniyi stormed the Lagos ports and announced the end of stemming of containers laden with pharmaceuticals to bonded terminals. The decision was an end to decades of practices of stemming of containers of pharmaceuticals to bonded terminals.

Adeniyi disclosed that the sins of some of the bonded terminals include violation of trade laws.

He said that henceforth, every pharmaceutical, will be released only in designated ports of Apapa, Tin Can, PTML and Onne Ports, as a deliberate measure to check trade abuse in the bonded terminals.

Affirming that the Customs Service cannot continue to allow such violations, Adeniyi revealed that some of the bonded terminals were currently being investigated, adding that only things that are in line with trade laws can be tolerated.

He revealed that about N1.5bn had been recovered from one of the bonded terminals, while another N1.6bn was expected to be recovered from another bonded terminal operator. The Service may have recovered the sum.

Adeniyi also stated that the Customs Service plans to review the licensing fees paid by the bonded terminals, adding that this has not been done for about a decade.

At Apapa port, Lagos, the Customs Command handed over 25 containers laden with counterfeit medications, unregistered pharmaceutical products and prohibited substances, including codeine based preparations that pose imminent danger to public health, and worth N9.2bn to NAFDAC.

The containers seized by the Apapa Command of the Customs under Comptroller Babatunde Olomu, include 21 .. 40 ft containers and 4 ..20ft containers, containing predominantly unregistered products, sexual enhancement drugs such as REDSON and Hyegra sildenafil citrate injections.

Observers believe that the action of the customs administration came at the right time to check resurgence of what was the trend before the seaports were concessioned.

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