The
Shippers Association Lagos State has said that importers and exporters may
abandon goods at the ports as a result of increase in Customs duty exchange
rate.
The
President of the association, Mr Jonathan Nicol, stated this in an interview
with the News Agency of Nigeria (NAN) on Monday in Lagos.
He
said that the exchange rate was moved up from from N197 to N282 to a dollar,
adding that this new Customs duty exchange regime had become another “scourge''
to shippers.
According
to him, it is the exchange rate on the contract document “the Form M'', that
should be used in payment of Customs duties.
“Any
distortion of that figure, obviously, will add to the clearing costs and the
market prices of goods.
“Importers
are then made to source for additional funds to meet the costs of clearance.
When the costs of clearing goods go up, it will be passed to the final
consumers.
“This
in itself is a big challenge to the shipper. Goods caught in this regime will
be grossly affected.
“Some
(goods) will be abandoned in the ports for lack of funds,'' Nicol told NAN.
The
shipper further explained that this would increase the cost of doing business
in Nigeria.
He
said, “The Nigeria Customs Service (NCS) is handicapped due to the envisaged
revenue target they must generate for government.''
Nicol
added that the situation could destroy import businesses expected in Nigeria.
“When
you add the new terminal charges just increased by the operators, they are
killing the “hen that lays the Golden Egg''.
The
shipper also expressed the concern that inflation in the country would
increase.
“The
shipper will add all his costs and roll out new tariffs on his goods to break
even, '' Nicol said.
He
suggested that such action (tariffs) should be done step by step, adding that
the new duty exchange rate from N197 to N282 is astronomical.
“We
envisage that more goods would be sent to ports in neighbouring countries where
they have almost stable cost regimes. Smuggling will also increase,''the shipper
said.
NAN
reports that the National Association of Government Approved Freight Forwarders
(NAGAFF) on Friday described as hasty the recent 43 per cent hike in import
duty by the NCS.
Speaking
through its Publicity Secretary, Mr Stanley Ezenga, NAGAFF said that the
increase in import duties would increase the cost of doing business as well as
prices of imported goods.
The
NCS, had through a circular issued to all Zonal Coordinators and Area
Controllers on July 1, directed that all commands should be charging duties
based on the new forex regime.
SOURCE: VANGUARD