Bickering over Operating Fee Collection
Eromosele Abiodun who sampled the opinions of clearing agents writes that the Council for the Regulation of Freight Forwarding in Nigeria must dialogue with the agents before going ahead with the Practitioners’ Operating Fee collection
In a letter dated January 6, 2020, and signed by the Director, Home Finance, Okokon Udo, the Minister of Finance, Budget and National Planning, Zainab Ahmed, gave the approval for the commencement of the collection of Practitioners Operating Fee ( POF) at the nation’s seaports by the Regulation of Freight Forwarding in Nigeria ( CRFFN).
The minister stated that freight forwarders must henceforth show receipt of payment of POF before they can exit their cargoes at the ports.
To drive home the message, the CRFFN organised a sensitisation workshop in Lagos earlier this year. A the forum, the agents lamented that the implementation of the new directive by the Finance Minister will lead to congestion and increase the cost of doing business at the nation’s
ports.
According to CRFFN, under the POF regime, importers will pay N3.50 per every ton of cargo imported into the country, N1.50 per kilo of every air cargo, N1, 000 on every imported 20- feet container and 2,000 per 40- feet container.
After several failed attempts by the council, it last week announced that it has commenced the collection of the controversial POF. The CRFFN, it was gathered, is expected to rake in as much as N10 billion annually from the imposition of these fees on shippers.
At a press briefing last week to announce the commencement of the collection of the POF, the agency warned that freight forwarders who fail to comply will not be allowed to exit the ports with their containers.
The Registrar/CEO of CRFFN, Samuel Nwakohu, said with the approval from the Finance Ministry and other government agencies at the ports, there will be no going back on the collection of POF.
With the new initiative, he said the council would now be fully equipped to regulate freight forwarding in the country, adding that as a noble profession, freight forwarding is not an all comers’ affair.
The CRFFN had, following the conclusion of the integration with the Nigerian Ports Authority ( NPA) and the Nigeria Customs Service ( NCS) in January this year, announced plans to commence the collection of POF in all seaports in the country, a move that was held back by fierce protest by freight forwarders and COVID- 19.
Speaking during the media briefing Nwakohu revealed that any freight forwarder that refuses to comply with POF payment will not be allowed to carry his or her cargo out of the ports.
“We are glad to inform you that following successful integration with terminal operators in the western ports, enforcement of POF collection has now commenced,” he said.
This is just as he revealed that only 64 freight forwarders out of a total registered 787 freight forwarders are currently practicing legitimately at the nation’s ports and borders points.
He added that the POF, which is derived from the provisions of section 6 of the CRFFN Act is a major source of the Council’s internally generated revenue, first for the government and second to drive the necessary reforms and develop the industry
According to him, “Integration with terminal operators in the Eastern ports is on- going and we shall communicate to you accordingly with respect to enforcement of same in the Eastern ports.
“The user public is strongly advised to verify the authenticity of the freight forwarder they wish to engage on the CRFFN website. This is to ensure you are dealing with a registered freight forwarder.
“We really want to appreciate the body of shippers and freight forwarders who operate under very difficult conditions to keep Nigeria moving. The CRFFN will do her best to provide the enabling environment for the freight forwarding industry,” the CRFFN boss added.
Challenges expected
On challenges expected from operators as regards the POF collection, Nwakohu said: “I did not wake up one morning and decided that CRFFN should start collecting POF from operators. POF is nine years old,