Freight Forwarders Caution Reps On Proposed Bill To Repeal Shippers’ Council Act

A former acting President of the Association of Nigeria Licensed Customs Agents (ANLCA) and the National Coordinator of the KayFar Freight Forwarding Forum, Dr. Farinto Kayode, has submitted a memorandum to the House Committee on Shipping, Services and Related Matters, expressing concerns about the proposed bill to repeal the Nigerian Shippers Council Act and enact the Nigerian Shipping and Ports Economic Regulation Agency.

The amendment, which seeks to give the Council the requisite legal and administrative instruments to effectively become an economic regulator in the maritime and transport industry is scheduled to be discussed at a Public Hearing by the House of Representatives Committee on Shipping, on Monday, May 27, 2024.

The memorandum obtained by our correspondent pointed out potential conflicts with existing laws, including the CRFFN Act 16 of 2007, and urged the committee to consider the interests of Nigerian freight forwarders.

The KayFar Freight Forwarding forum in the memorandum also frowned at the user guide document purported to have been issued by the Council stating money to be collected from different stakeholders under the guise of registration.

Farinto pointed out that the bill if passed could lead to double taxation and multiple registration while also explaining that it will lead to overlapping roles with the Nigerian Ports Authority and CRFFN.

According to him, the bill raises potential increase in freight charges and cargo clearance costs, unfair practices and price fixing including usurpation of CRFFN’s powers.

However, the memorandum proposes alternative solutions, including excluding freight forwarders from certain provisions, strengthening inter-agency relationships, charging a 0.05 per cent documentation fee on repatriated funds instead of imposing levies on shippers.

Farinto charged the committee to carefully consider these concerns to ensure a fair and effective regulation of the shipping and ports industry.

 

The Sun