Freight Forwarders alleged that from the vintage point and reports available, the full potentials of the Free Trade Zones (FTZs) in Nigeria have not been fully harnessed, especially in the areas of qualitative and efficient infrastructures, in spite various inceptives given by the government.
Speaking under the auspices of National Association of Government Approved Freight Forwarders (NAGAFF), the agents are of the view that the FTZ policies and principles need to contain provisions that would compel investors to see as an obligation to develop the centres for the interest of all parties involved.
Dr. Boniface Aniebonam, founder of the Association in a statement made available to Nigeria CommunicationsWeek identified, at the same time, that there must be incentives like electricity, good roads, access to raw materials and labour etc that would encourage and attract foreign direct investment to the Zones.
“Above all, Government at all levels should strive to guarantee peace and stability which are the two major attractions for FDI,” he said.
Aniebonam also frowned at unprofessional conducts of some Agents at the Zones admonishing them that Free Trade Zones should be regarded as a country within a country.
He said: “It is important that practitioners should know that Free Trade Zones are regarded as a country within a country. The essence of Free Trade Zone is to bridge the distance between the foreign manufacturers and the consuming nations. It is also expected to generate employment for the local nationals and equally transfer technology.
“Operations at free trade zones are expected to save cost in freight charges in a country like Nigeria whose import is based on cost, insurance and freight. Free Trade Zones are expected to accommodate semi-finished products, raw materials and machineries only.
“It is most unfortunate that information reaching NAGAFF Headquarters indicate that some freight forwarders may be acting in ignorance by involving themselves in clearing goods like rice, wine, furniture and car battery into the free zones without payment of Customs duty. This is very wrong and should have to stop immediately.
“We want to emphasise that one of the major problems in our seaports and border station operations has to do with the non-compliant attitude of the importers and freight forwarders. It has not been easy with the Nigeria Customs Service to contend with this unprofessional act. Free trade zone operation in Nigeria is becoming a factor in our foreign trade and it is our belief that we should not allow what is happening at the ports and border locations to rear their ugly head in that virgin area.
“We want to state clearly that any attempt to take into Free Trade Zones finished products in contravention of Customs laws is an act of smuggling and the law is very clear in that regard. It is equally important to note that goods manufactured in the Free Trade Zones are expected to pay
Customs duty before they could be allowed by Customs to enter Nigeria. It is either way for all finished products in the Free Trade Zone operation”.
The NAGAFF founder also enjoined all practitioners to ensure due compliance and they should not allow anybody to use them to flout the laws governing Free Trade Zone operations.
“We will not fail to mention that we have noted some sort of blackmail against the Nigeria Customs Service in ensuring best practices in the Free Trade Zones in some parts of the country and we are monitoring the situation.
“It is on record that Nigeria Customs Service may have impounded about 52,000 bags of rice, 80 x 40’ containers of wine, 90 x 40’ containers of furniture and 7 x 20’ containers of motor battery entering into the Free Trade Zones without payment of Customs duty. It is our belief that the management of Free Trade Zones should ensure the rules of engagement to avoid putting our members in problem.
“It shall therefore be an act of sabotage to do otherwise to the contrary. At the moment only Calabar Free Trade Zone and Onne Oil and Gas Free Trade Zone are operating at 80% capacity. Others like Kano, Banki and Lekki Export Processing Zone etc are under construction,” he added.
It is on record that the Federal Government had enabled incentives to Free Trade Zone operators which shall include but not limited to; exemption from payment of all federal, state and local taxes, levies; rates, and Customs duties on semi finished goods, raw materials and
machinery; repatriation of foreign capital investment in EPZs at any time with capital appreciation on the investment; no import or export licence; rent free land during construction of factory space and services such as warehousing, standard pre-built factories, transportation, sanitation, canteen, etc, are available within the zones.
There are also unrestricted remittance of profits and dividend earned by investor in the zone; 100% foreign ownership of enterprises in the EPZ allowable and sale of up to 25% of production permitted in the domestic market, however, the Zones have not yielded expected results.