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Friday, August 28, 2015

Cargo Tracking Note has Logistic Implication that attract Charges, says LBS Don

A renowned lecturer of the Lagos Business School (LBS), Pan-Atlantic University, Frank Ojadi, has raised alarm that the planned reintroduction of the controversial Cargo Tracking Note (CTN) by the Nigerian Shippers’ Council (NSC) will not only attract charges, but also increase the cost of doing business at the nation’s seaport.

NPA-cargos 
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.

Speaking at a press briefing in Lagos recently, he said that CTN was abolished almost immediately it was introduced in 2010 due to the high cost it imposed on importers and exporters.
Ojadi, who stated that CTN will not be able to check under-declaration or corruption at the ports as claimed by the NSC, also said that the Nigeria Customs Service (NCS) has the means and ways of monitoring the risks associated with imports in Nigerian ports.
“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 said.

Ojadi, who explained that CTN cannot be issued without inspection of the cargo from port 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 procedures and prosecute all cases of concealment and/or false declaration of imports.”

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