Importers, Agents Dump Vehicles, Cargoes At Seaports Over Soaring Exchange Rate
LAGOS JULY 20TH (NEWSRANGERS)-Soaring exchange rate has made some importers and agents to abandon some of their cargoes at the seaports. It was learnt that some vehicles had been abandoned immediately government introduced new exchange rate. Because of high import duty, findings from the Nigerian Ports Authority (NPA)’s Shipping Position indicated that only three vessels offloaded 1,050 unit of used vehicles at the Port and Terminal Muliservice Limited (PTML), Tin Can Island Port in the last week of July, 2023. Expected at the port are Grande Marocco with 350 units; Repubblica Argentina, 350 units and Grande Costa D’avorio, 350 units.
According to the Association of Nigerian Licensed Customs Agents (ANLCA), vehicles imported into the country were trapped at the ports due to the skyrocketed vehicle duties. The Secretary of ANLCA, TinCan chapter, Mr Michael Imonitie, said that some goods, especially vehicles, had not been cleared at the port due to the challenge. Imonitie noted that out of 100 importers, only 20 were coming to the port to take delivery of their goods, explaining that with the latest development most goods would be incurring demurrage and overtime or even abandoned.
He said: “We all know that there is going to be a negative effect on the clearance of vehicles at the port. Since the government announced a uniform rate, the exchange rate has risen from N422.3 to N589.55 and now N770.88, which is a pure black market rate. The exchange rate of Central Bank of Nigeria (CBN) is N756/N757, government was supposed to have given us a notice of either 60 or 90 days before the implementation. “This is because a lot of importers have opened their Form M at the old exchange rate. I have not seen any importers that have done any new importation. Most of the goods in the port are old stock. This means that the end cost of goods will be high. If I am being forced to pay the exchange rate twice what I have paid before, it means that the end users will be the ones to suffer it. “Some goods have been lying down in the port, some agents are going the extra mile to borrow money from individuals because banks have not opened the window for soft loans.
The hardship is almost 85 per cent of what the government has imposed on us. “The importers are sourcing the money for clearing agents because they are the ones that pay the bill; they pay terminal operators and shipping lines, and we only take our commission. Now, the importers are complaining and we want them to channel their complaints through the Manufacturers Association of Nigeria and the Chartered Institute of Commerce of Nigeria because their voices need to be heard.”
Also, the association’s Taskforce Chairman, Alhaji Rilwan Amuni, explained that the floating of the naira was inevitable because the government wanted a uniform rate. He pleaded with the Federal Government to look into other levies paid at the ports, saying that the challenges faced by customs agents at the ports were enormous because of the high dollar rate which hiked duties on vehicles to over 50 per cent. Aminu added: “The job we used to do after the advent of the Vehicle Identification Number (VIN) in which we charged N1.4 million, is now like N2.2 million and this has resulted in vehicles being trapped in the ports. There has been a drop in importation because things are really biting hard.”
NewTelegrapg
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Posted by News Rangers
on Jul 20 2023. Filed under Business, National.
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