Shippers protest increase in import duty

The Shippers Association in Lagos State has threatened that importers and exporters may abandon goods at the ports as a result of increase in Customs duty exchange rate.
The association’s President, Jonathan Nicol, lamented in Lagos that the exchange rate was moved up from N197 to N282 to the dollar, and the duty exchange regime has become another “scourge’’ to shippers.
He said 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,” Nicol added.
“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 stressed that this would increase the cost of doing business in Nigeria.
“The Nigeria Customs Service (NCS) is handicapped due to the envisaged revenue target they must generate for government.’’
He warned that the situation could destroy import business in Nigeria.
“When you add the new terminal charges just increased by the operators, they are killing the hen that lays the golden egg.”
He also expressed concern that inflation would increase.
“The shipper will add all his costs and roll out new tariffs on his goods to break even.”
He suggested that 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.”