Overtime vehicles: Customs plan auction after two-week ultimatum

The Nigeria Customs Service on Thursday gave a two-week ultimatum to owners of some overtime containers and vehicles to clear them or else the cargoes would be auctioned.

The service in an advertorial with The PUNCH stated that it would commence the process of auctioning the overtime cargoes at the expiration of the two-week grace period starting from the day of the publication.

According to the publication, the affected 512 overtime cargoes are littered around Lagos Ports, including, Apapa, Kirikiri Lighter Terminal, Ports & Terminals Multiservice Limited, and Tincan Island Ports.

The NCS explained that the move was in line with the NCS Act 2023, following a motion of exparte with file number FHC/L/MISC/8262024 dated 28th November 2024.

“In line with the NCS Act 2023, the under-listed overtime containers and vehicles domiciled at the under-listed commands, following a motion of exparte with suit number FHC/L/MISC/8262024 dated 28th November 2024, are hereby published for the information of the general public.

“Accordingly, importers/agents of the overtime goods are given a two-week grace period from the time of this publication to process and clear their goods or forfeit the same to the Federal Government of Nigeria. Please note that by the NCS Act 2023, the Nigeria Customs Service will commence auctions of all uncleared overtime goods immediately after the expiration of the grace period,” the service stated in the notice.

This is coming months after the Comptroller-General of Customs, Mr Adewale Adeniyi inaugurated a committee to dispose of overtime cargoes to fast-track the movement of imported goods and those for export.

Recall that on November 9, 2023, the spokesperson of the NSC, Abdullahi Maiwada, stated in a statement that the CGC had inaugurated the Committee on Disposal of Overtime Cargo at the organization’s headquarters in Abuja.

This development arises in response to the new Customs Act’s provisions, which empower the NCS to dispose of containers that have exceeded their allotted time within the ports.

Adeniyi emphasized that alleviating port congestion stands as a paramount objective for the Nigeria Customs Service, as well as President Ahmed Bola Tinubu, offering the promise of heightened efficiency and enhanced trade facilitation.

“It’s worth noting that approximately six months ago, the new NCS Act received former President Mohammed Buhari’s signature, ushering in substantial modifications to the previous protocols governing the disposal of overtime cargo. The Act also stipulates that goods must be disposed of through public auction or tender, to be widely publicized in advance through national newspapers, television, and the service’s official website,” the CGC stated.

The General Manager of MD’s office, Nigerian Ports Authority, Durowaiye Ayodele, expressed his relief at the decision to clear the over 7,000 overtime containers that have remained for years across the ports.

“We have containers that have been there for over ten years, occupying economic space for which we are unable to dispose of. So this is a significant relief for our operations. We are delighted that we have reached a point where we can begin to remove some of these lingering containers and overdue cargo from the port,” he stated.

Meanwhile, reacting to the publication on the proposed auction of overtime cargoes, the Secretary-General, Western Zone of the National Association of Government Approved Freight Forwarders, Mr Stanley Ezenga, lauded the service for the development.

He explained that when a cargo stays beyond six to eight days, it has entered overtime.

“Then, when it stays for more than three months, that means that those containers may be liable for forfeiture, this is the law.  So, if customs are, in their magnanimity, now advertising again for people to come and clear their overtime cargo, that means they have thrown the olive branch,” Ezenga said.

According to him, if the owners of such consignments do not come forward and those consignments are condemned and they are disposed of at auction, they have no choice but to accept that.

“The service has not done like this before. So, I think this is a departure from the norm and it is a welcome development,” he said.

The National Public Relations Officer of the Association of Registered Freight Forwarders of Nigeria, Mr Taiwo Fatobilola, said that the two weeks grace is not enough.

He urged the service to give a duty rebate or reduction instead of a two-week grace, adding that someone who was not able to raise money to clear his or her consignment for this number of time would find it difficult to clear it in two weeks.

He blamed the fluctuating exchange rate as the reason a lot of cargoes were left uncleared at the ports.

“There is nothing we can do, and there is nothing we can say that can stop them. To me, the duty is high, and the exchange rate is fluctuating. So, the fluctuating exchange does not encourage the clearance of vehicles and containers. You may budget N2m or N3m to clear, and then you come back, and the exchange rate is high. How do you reconcile such?

“Somebody whose consignment has been here for a long time and does not have the avenue to clear, do you think giving the person two weeks will provide what would be used to clear the consignments? It is not enough for somebody to raise his money now,” Fatobilola said.

According to him, the best the service could do is to give a duty rebate for importers to pay less duty to encourage cargo clearance.

“How do you raise money in the next two weeks to clear containers, or to clear vehicles, or to clear whatever cargo you have in the post? The best thing they would do would have been to give less duty to encourage those who are coming to pay. Because they will see where the terminal charge is as high as possible. Terminal owners are giving rebates. So if customs can give rebates as well, that would have been a welcome idea not just to give them a mandate,” he advised.