Cargo Tracking Note and likely cost implications to Nigerian businesses
Recently, the Nigerian Shippers’ Council (NSC) said it is perfecting plans to introduce an advanced cargo information system known as Cargo Tracking Note (CTN) into the Nigerian port system.
According to the Council, CTN, which was formerly abolished from the port years back due to the controversies that trailed its implementation especially as regards the cost implication to shippers, will fasten the process of cargo clearance at the port. It argued that CTN, just like shipping manifest, will give the Nigeria Customs Service (NCS), terminal operators, shipping companies, Plant Quarantine, NAFDAC and other agency involved in cargo clearance at the port, advanced information of the cargo that is coming into the port to commence documentation in earnest.
To Hassan Bello, executive secretary of NSC, CTN that was formerly introduced about three years ago brought a lot of delay and also had cost implication, but this new CTN will have no cost to the economy and the shippers.
However, industry close watchers, who have carried out due diligence research on cargo tracking note, insist that such cannot be effectively and successfully implemented in the port system without having any cost implication on either the shipper, economy or the promoter of CTN.
To implement CTN, they said, Shippers’ Council needs to be physically present at every port of loading (scattered all over the world) to inspect the cargo content so as to carry out the confirmation inspection at the destination port, which is Nigerian seaport.
Frank Ojadi, a renowned lecturer of the Lagos Business School (LBS), Pan-Atlantic University, who said that the planned reintroduction of the controversial CTN will not only attract charges, but will also increase the cost of doing business at the port.
Ojadi, who is the head, Operations Management Department of LBS with specialisation in transport logistics, said his investigation on Nigerian ports over a period of five years, has shown that CTN has logistic implication that attract charges, which shows that it would not be at zero cost to shippers as argued by NSC.
He insisted that CTN will not be able to check under-declaration or corruption at the port as claimed by the NSC. He believed that Customs has the means and ways of monitoring the risks associated with imports in Nigerian port.
“Curiously NSC has been silent on who bears the cost of this scheme. Economic regulation of port operations does not cover issues of this nature. This appears to be another taxation, which will lead to increase in the cost of doing business in Nigeria,” he explained.
Ojadi, who explained that CTN cannot be issued without inspection of the cargo from port of origin to confirm the content of the container, also affirmed that the Council need to appoint agents to carry out this function in all ports of origin, where Nigerians import from and this must have cost implication .
“Clean Reports of Inspection (CRI) were issued at foreign ports by appointed agents during the pre-shipment era and CTN will not be different. The organisation to issue the CTN has to be present at the ports of origin, which are scattered all over the world. Who will pay for this service? Or are we going to restrict all imports to Nigeria to specific ports abroad?” questioned the LBS don.
Ojadi also tasked the NSC to come clean on the modalities for issuing the CTN before shipment is done. “If you are aiming to stop trade fraud, then you must ensure that all imports follow the Form M procedure and prosecute all cases of concealment and/or false declaration of imports.”
UZOAMAKA ANAGOR-Ewuzie