By Innocent Orok
Kayfars Freight Forwarding Forum, a group of professional Customs Brokers and Freight Forwarders have send a Memorandum to the House of Representatives Committee Chairman on Shipping Services and other Matters. The document contains suggested inputs in some sections of the Bill to amend the NSC Act .
Recalled, the House Committee on Shipping Services of the National Assembly has fixed today 27 May for a Public Hearing to amend the NSC Act.
According to a letter addressed to the Committee Chairman containing some adjustments and suggestions to some sections and sub- sections of the new bill, the National Coordinator of Kayfars Freight Forwarding Forum, Farinto Collins Kayode PhD, said if not adjusted, some of the provisions of the new NSC bill , may affect Nigerian frieght forwarders, as well as conflict with the existing NPA and CRFFN Acts. The letter reads as follows:
The chairman,
House Committee on Shipping
Services and Related Matters
Venue-Conference room 034 House of Representatives, New Building,National Assembly
Dear Sir,
RE- PUBLIC HEARING ON ‘A BILL FOR AN ACT TO REPEAL THE NIGERIAN SHIPPER COUNCIL ACT 2010 AND ENACT THE NIGERIAN SHIPPING AND PORTS ECONOMIC REGULATION AGENCY BILL.
We hereby forward our memorandum to your committee on issues noticed which requires your understanding. This becomes imperative, in other that you may not enact laws that may affect the interest of Nigeria freight forwarders. In line with an existing Act called CRFFN Act 16 of 2007.
Also attached with our memorandum, is a user guide document purported to have been issued by the Council, stating money to be collected from different stakeholders under the guide of registration among ports user.
MEMORANDUM ON A BILL FOR AN ACT TO REPEAL THE NIGERIAN SHIPPERS COUNCIL ACT (CAP NO 133 LFN 2004) AND 2010 AND ENACT THE NIGERIAN SHIPPING AND PORT ECONOMIC REGULATORY AGENCY,
ATTN: THE CHAIRMAN HOUSE COMMITTEE ON SHIPPING SERVICES AND RELATED MATTERS THROUGH THE CLERK
PART ONE: OBJECTIVES, APPLICATION:
There ought to be an addendum to the aims and objectives of establishing a Ports Economic Regulation to include:
Ensuring that, Nigerian shippers are protected against any arbitrary taxes, levies in addition to creating and enabling environment. The Nigerian shippers are the golden chicken laying the large eggs, hence deserve all protection,
SECTION SUB (h)
Should read, in accordance with the Consumer Protection Act, the Shippers’ Council shall key into this act to ensure that Nigerian shippers privileges and rights are not trampled upon.
SECTION (p) proffers mandatory role among regulated service providers and users: Should read, in line with arbitration and reconciliation Act, Nigerian shippers, service providers and port users shall enjoy mandatory roles where conflicts arise.
THE BILL UNDER SECTION 4 FUNCTIONS AND POWERS OF THE AGENCY:
Sub section (1) Regulating Nigerian ports concession agreement may conflict with the role of Nigerian Ports Authority saddle with that responsibility except it shall in conjunction with NPA ensure that it regulates the ports concession agreement
SUB SECTION (181) may contradict the role of the Council for the regulation of freight forwarding practice under section 17 of the CRFFN’s Act, which is mandated and saddle with regulating freight forwarding practice in Nigeria. Shippers’ Council cannot impose any levy, licences, registration fees on this practice because there is an existing law, Act No 16 of 2007.
SUB SECTION (r) (11) ensure the prevention of unfair practices including price or rate fixing under the CRFFN Act, the issue of charges and standard operating procedure, standard charging conditions rest solely with the practice hence freight forwarders should be excluded in clear terms under this sub- section
SECTION 6: MEMBERSHIP OF THE BOARD:
It is pertinent to make a member of CRFFN management team/board a member of the board of Nigeria Shippers’ Council, in order to strengthen inter Agency relationship particularly as regards issues that may have overlapping effects between the two bodies. Let relating to freight forwarding practice.
SECTION 35: POWER TO MAKE DETERMINATION:
SUB SECTION 1(b) the Agency shall have the power to make determination for or with respect to licensing, certificate or permits.
Should read: With the exception of freight forwarders in other not to suffer double jeopardy and multiple registration.
SECTION 36 (1,2) will conflict with the CRFFN Act 16 of 2007, and regulation 2030 of the Council for rRgulation of Freight Forwarding on the exercise of the powers confers on the Council by SECTION 3,4 and 29 of the CRFFN Act.
SECTION 36: LICENSING, CERTIFICATION AND PERMITS:
SECTION 39 SUB 1(a,b,c,2,3,48 5) and SECTION 40a cannot be applicable to freight forwarders as it amount to usurpation of the power of the Council for the Regulation of Freight Forwarders, the only agency empowered to Regulate, Control and License freight forwarding practice in Nigeria.
SECTION 58, power to enter premises, the entire sections and sub-section may confer an illegitimate power on the agency, instead the agency shall liase with the Nigerian Ports Police or any other Police to ascertain contravention of this here. Please note that the Nigerian Shippers’ Council is not a para-military organisation and in line with international best practices, should not be turned to one.
SECTION 26 SUB 2(C) A CHARGE OF:
1. Three percent of carriage or haulage contract or charter fees or charges to be collected by shipping company lines, carriers, agents or haulers and tend over to the agency.
II. Two percent of gross tariff earnings of Service Providers in the regulated sector to be collected by the agency
NOTE:
The above SECTIONS and SUB SECTIONS will amount to double taxation which negates the policy of the present government to ensure that all multiple taxes and levies are discontinued.
Further, imposing the above will automatically increase freight charges and all shipping agents will not hesitate to transfer such charges to the shippers which will automatically increase cost of cargo clearance in our ports. Nigerian shippers council receives money from the Federal government through Budgetary Allocation and can convince government to increase it when necessary.
INSTEAD: The Shippers’ Council can charge (0.05%) 0.05% from all money repatriated legally to all shipping companies abroad. Instead of subjecting the locals & shippers to another levies.
It shall be mandated that before the NSC will approve any REPATRIATED FUND. Such liner/ agents must pay 0.05% of such money into the Council’s account to serve as documentation charges, which shall run into millions of naira when converted from dollars.
