Business
Challenges Of Destination Inspection
Destination Inspectors in Nigerian Ports, otherwise known as Service Providers like the SGS and other risk management and scanning service providers are faced with a lot of challenges in the course of their service delivery.
These challenges which are manifested on the day to day running of their businesses at the nation’s port ranges from Risk Assessment Report (RAR)/Risk Management and price verification and classification of information to cargo scanners and scanning services, as well as training courses and complete handover to the Nigerian Custom Service (NCS).
The aim of the Destination Inspection Policy of the Federal Government was primarily to strengthen the capacity of the Nigerian Customs Service (NCS) by replacing pre-shipment inspection in exporting countries with inspection on arrival in Nigeria using the latest technology tools.
This objective was envisioned to take care of notable irregularities which had characterised the Nigerian Maritime business as the case may be.
Other reasons for the destination inspection include the facilitation of trade through risk management and the use of non-intrusive inspection (x-ray scanning) of selected imports prior to Customs clearances thereby minimising the need for physical examination, as well as to enhance regulatory compliance and collection of import duties/taxes.
In a move to meet the objectives, the Federal Government engaged the services of some service providers like the SGS scanners to assist NCS with the implementation of the Destination Inspection Service (DI).
The three service providers commissioned for the job are SGS, Global Scan and Cotecna, and the function of the service providers are splited into three: port/point of arrival and entry into Nigeria.
SGS zone covers the Port Harcourt main port and airport, Onne Port, Idiroko border post, and the Ilorin International Airport.
Other service providers like the Global Scan covers Calabar Port, Warri, Lagos Airport, and Service Border Area, while the Cotecna canner covers the Apapa Port, Tincan Island Port, Abuja Airport, Kano Airport, as well as the Jibiya and Banki border posts.
In an effort to meet up the stated objectives in their zone, the SGS on their part has said that it has provided both classroom and on the job training for NCS, in all Destination Inspection (DI) aspects, to enable them complete the handover process to NCS at the end of the contract.
Like other service providers might have done, the SGS also said that it has deployed a Risk Management System and X-ray Cargo Scanning Machines to facilitate trade, which have minimised need for physical inspection.
This has also helped to identify suspected containers with contraband goods thereby enhancing the clearance of cargoes as well as reducing the delay caused by physical inspection.
The Managing Director of SGS, Mr Nigel Balchin who dropped the hint when the House of Representative Committee on Customs visited Port Harcourt recently, also posited that the interlink between the service providers system and NCS ASYCUDA system, which is the electronic Customs (e-Customs) and Direct Trade Input (DTI) introduction has helped in compliance and proper accountability.
The ASYCUDA (e-CUSTOMS) which was implemented at Onne Port in November 2007, was later implemented in Port Harcourt in June 2009, which has facilitated documentation/transactions.
Inspite of this progress recorded by SGS, there are other issues that have impeded the smooth sail of the DI activities which have translated to delay in cargo clearing process.
Transmission of documents to service provider(s) is one of such challenges in the DI operations. The guideline requires that Form “M” and other final shipping documents must be received from the bank in Lagos.
The guideline for DI also requires that duly completed and approved form “M” should be submitted to the office of the respective scanning and Risk Service Provider in Lagos not later than five working days after the approval.
According to SGS, this policy has placed importers, particularly those at Eastern ports at a disadvantage as the form “M” application is still in hard copy and has to be sent by courier by the importer’s local bank branch to the bank’s head office in Lagos for approval.
From the SGS presentations, an importer who completes and submits Form “M” in Port Harcourt to his bank, the form has to go by courier to the bank’s office in Lagos, who also will in turn send this document to SGS office in Lagos, which may take up to three days before getting to SGS.
By estimate, a document returned for submission will take six days on the journey, and this will result to delay in cargo clearing process.
Transmission of copies of Risk Assessment Report (RAR) to importees has posed big challenge to service provider like the SGS.
Making a presentation at the seminar organised by maritime reporters in Port Harcourt, Mr Oyebode Joseph of SGS stated that the issue of sending RAR in hard copy to head offices of banks has posed challenges to quick service delivery.
He said RAR contains vital information about the value, and classification for the guidance of NCS to facilitate the final determination for clearing.
According to Mr Joseph, experience has shown that cargoes are not normally presented for scanning by the clearing agents on time. This puts pressure on the scanning operators to cope with the rush at closing time.
The possibility of training Customs officers that will man the scanning and e-Customs services is another challenge facing SGS and other DI contractors before the end to their contract period.
Apart from operating, the maintenance is also vital as well as getting acquainted with the latest technology on scanning and ASYCUDA, before termination of contract.
For the 48 hours cargo clearing process to be effective, the processes of documentation and inspection which have posed challenges to service providers have to be addressed.
As part of solutions to the challenges, Mr Oyebode of SGS has stated that the Central Bank of Nigeria (CBN) is rolling an electronic Form “M” project in the near future and this will assist importers outside Lagos.
Also, SGS is positioning to begin to send copies of RAR by e-mail to bank branches that opened the Form “M”.
On the delay on presenting cargo for scanning, clearing agents are being encouraged to make use of the mornings when cargoes can be cleared without delays so as to leave the port in good time.
Also, the SGS has maintained that it will adopt the train the trainer method for Customs officers, who will in turn train others, and this will be done in batches.
When these challenges are taken care of then cargo clearing process could be easier, and there is hope that 48 hour clearing will be achievable, even outside the Lagos ports environs.
Corlins Walter
As part of efforts to curb mishaps in the aviation industry, the Nigerian Safety Investigation Bureau (NSIB) has signed a Memorandum of Understanding (MoU) with the African Aviation and Aerospace University (AAAU) to deepen training on preventing and reducing accidents in Nigeria’s air transport.
Director, Public Affairs and Consumer Protection of NBIS, Mrs Bimbo Olawumi Oladeji, in a statement, said NSIB granted AAAU access to its facilities to facilitate an efficient exchange of resources and expertise.
According to the statement, the Director-General/Chief Executive Officer of NSIB, Captain Alex Badeh, who spoke at the ceremony held at the NSIB Training School, noted that the MoU sets the stage for facility sharing, capacity building, and collaboration between the Bureau and AAAU.
“I am confident that this MoU will enhance the effectiveness of our collaboration and commitment to promoting safer skies and operational excellence in the aviation industry in Nigeria and beyond”, Badeh said.
Registrar of AAAU, represented by the Director of Physical Planning and Works, Engineer Masud Aliyu Yerima, was also quoted in the statement, saying, “The journey of AAAU’s establishment and progress would have faced considerable challenges without NSIB’s generous support”.
He commended Badeh for his exemplary leadership and steadfast dedication in propelling NSIB to greater heights, and affirmed AAAU’s readiness to engage in mutually beneficial endeavours with NSIB.
“This partnership marks a significant milestone in fostering a culture of safety and excellence within Nigeria’s aviation sector, and both NSIB and AAAU are poised to leverage this synergy for the benefit of the industry and the nation at large.
“The African Aviation and Aerospace University, AAAU, is the first Pan-African university dedicated to aviation, aerospace, and environmental science.
“Addressing two critical needs within the continent’s industry, AAAU tackles the research and development gap in Africa’s aviation and aerospace sector while simultaneously cultivating a skilled workforce to propel it forward”, the statement added.
By: Corlins Walter
he commencement of flights operations on the London route by an indegenous Carrier, Air Peace Airline, and the recovery of the local currency have sparked fresh competition on international routes.
Air Peace, Nigeria’s outstanding indigenous airline, may face a prolonged market battle with many foreign airlines with decades of experience in the industry following its entrance on the Nigeria-London route.
Some of the industry’s experts say the airline required support from the government and a strategic approach to stay competitive.
Analysts have also stated that the strategic move has garnered high praise from stakeholders in the aviation sector, considering that Nigerians were paying exorbitant prices to travel from Nigeria to London, but that sustaining this momentum will require more than just offering low prices.
On March 31, 2024, the 11-year-old airline made a bold statement with its inaugural flight, using a Boeing 777 aircraft, offering a capacity of 274 seats and carrying 260 passengers from Lagos to London.
It sold its tickets for N1.2m, a price way lower than the rates offered by most foreign airline operators plying the same route.
Just two weeks after entering the market, Air Peace’s Chief Executive Officer, Allen Onyema, complained on Arise TV that foreign airlines were undercutting prices in an attempt to push Air Peace out of the market.
Onyema said, “We are aware that there are devilish conspiracies. All of a sudden, airlines are pricing below the cost. One airline is advertising $100 and the other $350. If you peel up your entire aircraft and carry people on the wings, it is not even enough to buy fuel.
“Why are they doing that? Their government is supporting them because Nigeria has been a cash cow for everybody. The idea is to take Air Peace out, and the moment they succeed in taking Air Peace out, Nigerians will pay 20 times over. It would happen, God forbid, if they were able to take Air Peace out”.
It was gathered that an economy ticket for a flight scheduled for April 29, 2024, from Lagos to London costs about N679,375 on Ethiopian Airlines, an operator with 75 years of experience.
Air Peace priced the same ticket at N1,090,750. The difference is that on Air Peace, it will be a 6-hour non-stop flight, while on Ethiopian Airlines, it will take 16 hours with one stopover.
Last Friday, Ethiopian Airlines reduced the price of its London ticket by 0.77 per cent to N1,628,660 from N1,641,249 two weeks ago.
In the same period, Air France’s price dropped to N1,687,824, nearly halving from last month’s N2,482,138.
On March 4, 2024, Lufthansa offered the Lagos-London route for N1,966,165. Qatar Airways provided the same ticket for N2,016,824, and KLM priced it at N2,448,740.
This continuous decline in air ticket prices was also driven by the strengthening of the naira against the US dollar and the payments of airlines’ trapped funds by the Central Bank of Nigeria.
Minister of Aviation and Aerospace Development, Festus Keyamo, had confirmed that the Federal Government, through the CBN, had cleared all the trapped funds (foreign exchange backlogs) to the tune of about $160m.
Beyond the ongoing price war, the Air Peace Chairman had also lamented the challenges with ground handling and space allocation at the London Gatwick Airport, adding that no airline has faced such obstacles before.
He noted, “On the inaugural flight out of London, 24 hours before departure, the management of Gatwick Airport moved us to another checking area instead of the designated one.
“The area they provided had a malfunctioning carousel, forcing us to manually transport luggage 50 meters away, causing delays”.
Users and business operators at the Port Harcourt International Airport, Omagwa, have decried the downward trend in flight operations at the airport.
Some of the users and operators told The Tide that flight operations at the airport, rather than go upward, have steadily been irregular, and diminishing steadily.
A regular air passenger of the airport, Simeon Echeonwu, in a chat with The Tide, said many airlines, both domestic and international operators, that usually operate at the Port Harcourt airport, have stopped operations, whereas others that are still operating are no longer very stable as before.
Echeonwu noted that airlines such as Aero Contractors, United Nigeria, and Green Africa airlines, now operate about one flight, twice a week, unlike before that they flew every day on Lagos and Abuja to Port Harcourt.
Also speaking, former Chairman of the FAAN Accredited Car Hires Association, Clifford Wahunoro, lamented that the down turn in Operations has affected the business of car hires.
“If you have noticed, I have not been regular at the airport for some time now, because business is no longer flowing at the airport as before. I will not fold my hands and be sitting down doing nothing, so I have to look for other things, so I come when I think there will be something.
“You can see that between 12noon and 1pm, after that segment of flights, when you have few flights arrival, many people will close for the day, and when you wait till evening, flight like Dana may come very late at night, and sometimes, it will not arrive, and by that time, many people will not like to book for commercial vehicle”, he said.
Meanwhile, a travel agent, who wished to be anoyimous, decried the rate at which the airport is going down in terms of flights operations, noting that Port Harcourt airport ought to be competing with the other major airports like Lagos and Abuja.
He queried if such was a calculated attempt to bring the airport to its kneel in terms of flight operations, while other major airports have steady flow of flight operations both for domestic and international.
TheTide observed a continuous distortions in flight movement at the airport. Some of the airlines, like Max air, which many passengers patronize, have completely stopped operations, and no new airline has been added.
Apart from the Air Peace Airline that has maintained some level of stability in operations, other few operators have been involved in either steady rescheduling of flights, cancellation and regular delay, resulting in poor and unpredictable flight movement, which affects or determine other businesses in the airport.
By: Corlins Walter
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