Operators Carpet NPA over CTN Levy

The newly introduced Cargo Tracking Note (CTN) levy by the Nigerian Ports Authority (NPA), will lead to an outrageous increase in freight cost and concomitant rise in the cost of imported goods, Nigeria CommunicationsWeek can now reveal.
Cargo tracking levy, part of the cargo tracking note (CTN) system is on all imports and exports, into and out of Nigerian ports, to cover the cost of tracking shipments.
Accordingly, the bill of lading for each container must now correspond to a CTN issued by the NPA’s authorized representative.
According to Mr. Stephen Ibe, CEO of Stephen Global Services Limited, the CTN levy which is payable in foreign currency to NPA amounts to double payment, which will consequently increase freight cost and the cost of imported goods.
Ibe, who is also an official of the National Association of Government Approved Freight Forwarders (Nagaff), said the CTN does not add any value to cargo delivery processes and amounts to double payment because over the years importers have been paying a ports levy of seven per cent of import duty.
He said, “This policy will impact negatively on business activities by increasing the cost of all imports coming into the country and automatically the cost of goods and services will also increase.”
Also, a petition sent to Goodluck Jonathan, the acting president signed by Otunba Femi Deru, president of the Lagos Chamber of Commerce and Industry (LCCI), said that already the shipping companies have a cargo tracking mechanism for all cargoes on their vessels, as they submit shipping manifests, a summary of all bills of lading. The bill of lading provides a comprehensive documentation on cargoes being brought into the country or leaving the country.
According to Deru, the circumstances that led to the introduction of CTN levy by the NPA raised serious issues of transparency, integrity and due process, noting that there was no consultation with the stakeholders before the policy was introduced.
He said, “We gather from the NPA that CTN levy was purportedly approved by the Federal Executive Council. In the event that this is the position, we submit most respectfully, that the Federal Executive Council has been misled into approving a policy which is neither in the interest of investors, nor consistent with the vision of the present administration for the Nigerian economy.”
However, he said the CTN levy was unnecessary at this time when many businesses were grappling with unfriendly operating cost conditions, adding that it was insensitive of the NPA to introduce a levy which has no basis in law and constituted a burden on business.