Nigeria is said to lose an estimated N25 billion yearly as Lagos ports, the gateway to the economy, transmutes into hotbeds of smuggling, with container terminals in Apapa, Tin Can Island, and Lily Pond as channels for banned items or concealed dutiable goods.
Furniture, textiles, tyres, fridges, and compressors – which attract high duty – are often concealed in containers for machinery, hospital and medical equipment which have low or zero duty.
TheNiche obtained through a ship manifest details of a container laden with furniture but said to be carrying “refurbished hospital equipment.”
Some items of furniture attract 20 per cent duty and 30 per cent levy. Duty on hospital equipment is 5 per cent.
The container (number and number withheld) arrived APMT Apapa terminal on October 13, 2014 on board China Star, with voyage number 80IE and rotation number AP14/1737.
Dual manifests
Some ship manifests bear dual manifestations which include shipping company’s official manifest that shows the main item being transported, as well as the consignee’s manifest showing a different item from the shipping company’s manifest, an intention to conceal.
Although the consignee’s declared items in the manifest could be in the container, it could be in small quantity to conceal the real item.
And, since there can be no 100 per cent physical examination, Nigerian Customs Service (NCS) officers at times allegedly connive with clearing agents to conduct skeletal examination based on the outer content.
An “unfreighted manifest” of Gold Star Line of June 25, 2014 obtained by The Niche showed that a vessel, Noble Matar (voyage number 787/W and expected date of arrival (ETA) on July 10, 2014 at the Tin Can Island Port, TCIP), berthed with some containers having dual manifest declarations.
One container, number TTNU 376643-0, had 236 cartons of motor spare parts. But the shipping company’s manifest declared “other embroidery of manmade fibres” with HS code 5810.92.
Motors spare parts attract 10 per cent duty, embroidery attracts 20 per cent duty and 30 per cent levy.
Other containers are
• CLHU 284578-1, which has woven textile fabrics with HS code 6805.10 but was declared to have 315 cartons of abrasive cloth rolls.
• TCKU139934-4 (printed plain weave with HS code 5205.52 but declared to have 265 packs of motorcycle spare parts).
• TCKU139673-0 (embroidery of manmade fibres but declared to have 165 packs of dry containers).
• TEMU 676926-1 (embroidery of cotton HS code 5810.91 (912 cartons of educational materials of zero per cent duty).
• CRSU 901936-4 (embroidery of cotton HS code 5810.91 (681 cartons of educational materials).
Another vessel, Maria-Katharinas, with ETA on July 12, 2014, brought the following containers, among others, to Apapa Premier Port:
• ZCSU876250-6 (embroidery of manmade fibres HS code 5810.92 (700 cartons of electrical goods, 20 per cent duty).
• CLHU287782-9 (embroidery of manmade fibres HS code 5810.92 (185 cartons of motors spare parts).
• ZIMU 236367-9 (embroidery of manmade fibres HS code 5810.92 (248 cartons of electrical goods, 20 per cent duty).
• ZIMU 277636-9 (Trichlor tablets HS code 2903.22 (105 bales of tailoring materials).
TheNiche obtained over 1,000 container numbers of such items. Some consignees and their clearing agents do not have identifiable contact addresses.
Some clearing agents still use as their contact addresses Nigerian Ports Authority (NPA) buildings demolished in 2006 when private terminal operators (PTOs) took over the ports.
Clearing dangerous items
There are several bonded terminals specifically used for clearing dangerous items. At times, containers get missing while in transit to the terminals.
For instance, a notable bonded terminal owner (name withheld) was arrested by Customs officers in May this year over alleged missing six containers meant to be delivered to his bonded terminal for clearing.
An assistant comptroller of Customs was allegedly arrested in Apapa for allowing the bonded terminal operator to use his (customs officer’s) mobile telephone to call a former chieftain of the Peoples Democratic Party (PDP).
The politician allegedly persuaded the NCS hierarchy to relax the bail conditions and he was let off the hook. The whereabouts of the six containers remain unknown, and their contents, suspected to be among dangerous imports, are not made public.
Smuggling on the rise
Smuggling involves banned items, concealment, under-declaration, false declaration, and duty evasion.
Alfred Irabor, a clearing agent and member of the Save Nigerian Freight Forwarders (SNFF), said smuggling in the Lagos ports has increased since 2012, costing the treasury estimated N25 billion yearly.
He blamed the Customs leadership and decried the “centralised booking” which gives impetus to smuggling.
He alleged that the “compromised” Demand Notice (DN) issued to clearing agents defrauds the government and puts “too much money” in private pockets.
“While the Customs kill and maim petty traders who smuggle small quantities of rice, chicken and turkey in villages around border stations in the name of protecting Nigeria against smuggling activities, the real smugglers are having a field day at the Lagos ports.
“Everyday these wealthy smugglers connive with the big men in the Customs to defraud Nigeria and kill local industries. The country has lost over N70 billion to smuggling since 2012 when this madness escalated.
“The federal government must look into this development, otherwise the economy will crumble,” Irabor said.
Importer defends Customs officers
However one importer, whose office is located in Apapa, countered that “there is no saint on earth. Saints can only be found in heaven. But that does not mean that all our imports are the same.”
He made the point when The Niche showed him a list of containers he brought in as having medical or hospital equipment but are laden with furniture.
“In fairness to the Customs,” he argued, “if officers were to do 60 per cent of their job, Nigerians will be dying every day because of hunger. So, let’s respect them for that.”
A Customs Deputy Comptroller in charge of one terminal absolved himself of complicity and blamed the incidents on “the releasing officers.”
He said if any action is taken he would identify the releasing officers for them to defend themselves.
SNFF blames Customs
But SNFF Convener, Ositadinma Chukwu, blamed the rising rate of smuggling on the Customs leadership.
In his view, “As long as the status quo remains there will be more corruption, more smuggling and more inefficiency. Since President Goodluck Jonathan does not want to sanitise the Customs and the ports, we will never get tired of telling the masses the truth.”
NCS Public Relations Officer, Wale Adeniyi, could not be reached on his mobile telephone line for comment.
NCS Public Relations Officer in TCIP, Chris Osunkwo, said only his area controller is competent to speak on the issue.
