Defaults on demurrage, duties waiver cause furore
Local manufacturers and importers have decried the non-compliance by agencies on certain directives the Federal Government had given to incentivize local production and cushion the effects of the COVID-19 pandemic on businesses and the economy.
To address the shortage of medical supplies during the onset of COVID-19, the government approved waiver of import duties on all medical equipment and supplies.
The Nigerian Ports Authority (NPA) also directed all terminal operators to suspend applicable terminal storage fees on consignments and demurrage for 21 days, effective March 23, 2020, followed by another 14 days.
However, clearing agents told our correspondents that the terminal operators flouted the NPA’s 21-day demurrage freeze and charged them for cleared cargoes. The Association of Nigerian Licensed Customs Agents, ANLCA, accused the terminal operators of noncompliance.
The Council of Managing Directors of Nigeria Customs Licensed Agents (CMDNCLA) also said most terminal operators at the seaports disobeyed the orders of NPA and the Nigerian Shippers’ Council (NSC) on waiving demurrage charges during the lockdown.
A Licensed customs agent confirmed paying 80 percent demurrage on goods that were not cleared during the COVID-19 lockdown. This was despite protest against move by the ground handling companies at the Murtala Muhammed International Airport (MMIA), Lagos to charge them demurrage.
Acting Director General of the Manufacturers Association of Nigeria (MAN), Ambrose Oruche, who responded to Daily Trust enquiries on these complaints by many entrepreneurs, said there was need for heightened fiscal stimulus to manufacturing sector in the face of the continuous fall in the Purchasing Manager’s Index (PMI). It is a measure of the prevailing direction of economic trends in manufacturing.
Oruche said: “Our members received a communication from the government that demurrage would be waived on our consignment during the lockdown, but as I speak to you, our members were forced to pay and the monies were not refunded.”
However, aviation ground handling companies including the Nigerian Aviation Handling Company (NAHCO) PLC and the Skyway Aviation Handling Company (SAHCO) PLC, insisted they would make the charges as they continued to maintain the warehouses during the lockdown.
A former Chairman of Association of Nigerian Licensed Customs Agents (ANLCA), Mr.
Aloy Igwe, lamented the situation, saying it was not the agents’ fault. “This was a natural occurrence and we are not supposed to bear the penalty.”
“They later went from 100 percent demurrage to 80 percent. We were clamouring for a total waiver because we felt the charge was unnecessary.”
He said the payment of demurrage is partly responsible for the high cost of goods in recent times as many importers had no choice than to hike their goods.
Igwe called on the government to come up with a policy to prevent future recurrence as the lockdown was not the making of the agents.
Responding to these issues, the Executive Secretary of NSC, Barr. Hassan Bello explained that it was NPA that on behalf of the Federal Government, directed terminal operators to suspend the collection of storage charges.
“Ours is demurrage charges on imported goods. We directed all terminal operators to grant demurrage waivers during the lockdown period as a way sustaining the economy. I am glad to say that 95 percent of our instructions were complied with.”
Spokesman of NPA, Mr. Jatto Adams, made headway. “Anyone importer who says the storage charges were collected from him during the lockdown period should go to the office of the port manager with the documents. The manager will calculate the amount and a refund will be made.”