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Steve Agbota,[email protected]
The Federal Executive Council’s (FEC) approval on December 9, 2009 to introduce electronic Cargo Traffic Note (TCN) may have been a step in the right direction given its potential benefits to shipping community, but its implementation over these years has left much to be desired.
The Cargo Traffic Note also known as ICTN was initially overseen by the management of Nigerian Ports Authority (NPA) and administered by a private firm, Transport and Ports Management Systems Ltd (TPMS) Antaser.
Back then, the key objective for introducing the Cargo Tracking Note regime was to safeguard the seaports from dangerous weapons and other prohibited cargoes at a time that movement of goods and people across international boundaries was becoming a cause of worry to security agencies over probable acts of terrorism.
From inception, there were strong indications that the system would not attract extra charges to shippers, particularly importers and exporters.
However, shortly after its introduction, it dawned on all that the proclamation was far from stakeholders expectations. This is because CTN attracted various sums ranging from €150 to as much as €450 depending on the type and size of cargo.
But following widespread criticisms by stakeholders in the maritime industry and the organised private sector, CTN was suspended on November 9, 2011. In a terse statement issued in that regard, the Nigerian Ports Authority (NPA) said, “in essence, no shipping line is authorised to demand for Cargo Tracking Note (CTN) as a condition for cargo shipment to Nigeria. This directive takes effect this day, 9th of November 2011 and all shipping lines operating in Nigeria are to adhere strictly and ensure compliance.”
Four years after its suspension, the Nigerian Shippers’ Council (NSC), claimed ownership of the project and reintroduced it again in July 2015 as a mandatory requirement for importation into Nigeria. The reintroduction faced stiff opposition from importers and ship owners who knew it would curb activities that lead to swindling the Federal Government of the much needed revenue from the ports through under declaration of tonnages.
While Nigeria was still struggling to implement CTN, other African countries such as Angola, Benin Republic, Central African Republic, Togo and Cote D’Ivoire introduced CTN to track cargoes coming into their respective territories.
But after much consultations and deliberations, it was learnt that NSC in collaboration with other agencies and stakeholders would commence the implementation of the CTN in the next two months, to end the increasing incidence of under declaration of cargoes and concealments that had denied the Federal Government of huge revenues.
The Executive Secretary/CEO of NSC, Hassan Bello, said by the time the CTN starts working, the manifest of whatever is coming to Nigeria will be known from the port of loading before the ship sails, adding that the CTN would enhance government revenue given that nearly 80 per cent of goods coming into Nigeria are under-declared.
He added: “Besides, the system was started with Nigerian Ports Authority (NPA) before it was properly transferred to NSC because it is Cargo Tracking Note; it is not Port Tracking Note. It was later brought to NSC. I hope in the next two months, it will be resolved and it will start working. That means we are taking control of our international trade.”
Meanwhile, stakeholders have thrown their weight behind the NSC’s plan to kick-start the implementation of the CTN, saying it would redeem the image of ship owners, shippers and generate more revenue into government’s coffers.
Speaking with Daily Sun in a telephone interview, Chairman of the Lagos State Shippers Association, Mr. Jonathan Nicol, said Cargo Trafficking System has been in operation for long before but nobody took it seriously until recently.
According to him, the purpose is to eliminate the practice of people not declaring what is right in their consignments and the second would be the issue of security, which is key.
He explained: “So we looked at it from the angle of shippers critically. You know it is our cargo and how it will affect our inflow of goods. If that (CTN) will eliminate Customs constant harassment at the ports, so be it because before the cargo comes, Nigerian Shippers Council would have known exactly what is in each container.
“We came together to say yes, we will support it and that will bring some kind of dignity to the shippers and also help in providing security of cargo into our ports.”
When asked on the sustainability of the system, he said that the Cargo Tracking Note is an international issue, which means that NSC will not have problem with the shipping lines abroad.
He added: “And I don’t believe Nigerian Shippers Council will have problem with sustenance of this CTN because it is what has been released to its system that will be showing in its computer. We have platforms and everybody will know what to do inside a particular shipment.
“It is good for Shippers Council to start it. And of course when there is what we called change, it would be something that whoever comes after should sustain because it will help to streamline some of these shippers that are not declaring the correct cargoes. It is a very sad development for shippers and I don’t like it. If the system will wipe out that bad name from shippers, so be it.”
He said that it would be a source of pride for NSC to sustain the CTN considering the fact that there is no maintenance culture in country, which is something Nigeria needs to work on.
Nicole further said, “we will start something good and at the end of the day, we won’t be able to sustain it because of lack of experience and that is what we are saying that we need professionals in the system.
“If a professional handles a very complex issue like that, he will be able to keep it up for protection of Nigeria’s platform. We think Nigerian Shippers Council will start something that will endure and if it collapses, then government has collapsed. So I believe it will work.”
On measures put in place by the Association to ensure compliance with the CTN, he said, “when they first introduced it, they placed a fee on it and we kicked against it because we don’t have issues of cost on CTN agreement. In the bills of shippers, we are paying so much. We are the forefront of saying reduce cost of doing business in Nigeria.
