New Telegraph

ICTN: Groups Disagree Over Implementation As FG Loses N825bn

Sea Empowerment and Research Center (SEREC) and Air Logistics of the National Association of Government Approved Freight Forwarders (NAGAFF) have disagreed over the implementation of International CargoTracking Note (ICTN) in the port.

The tracking note was approved by the Federal Government to curb annual loss of N825 billion ($500 million) to cargo fraud in the ports.

While SEREC urged the Federal Government to quicken the implementation of ICTN in the seaports to curb insecurity and improve trade facilitation by providing an accurate and reliable system to track and manage cargo, NAGAFF said that it was a fraud to cheat importers.

However, SEREC said that this would reduce the risk of theft, loss or damage in the ports, noting that it had made a comprehensive analysis of the relevance of reintroducing the CTN in enhancing trade security and port efficiency.

According to SEREC’s Head of Research, Fwdr. Eugene Nweke, implementation of ICTN would reduce delays in cargo shipment, cut costs for importers and make the process more efficient and transparent.

Nweke explained that despite these advancements, the implementation of the approved trade security and facilitation tool had been delayed for reasons not communicated to industry stakeholders.

He noted that ICTN played a crucial role in enhancing trade security, efficiency and transparency, benefiting all stakeholders in the port and shipping industry, including shippers, freight forwarders, port operators, and the overall port system.

He said: “The adoption of modern trade facilitation tools, such as electronic CTNs, blockchain-based CTNs, and API-based CTNs, underscores the need for a standardised and reliable system to track and manage cargo.

The CTN’s complementary roles in various trade facilitation initiatives, such as the Single Window Project, B’odogwu Application, Advanced Ruling, Authorised Economic Operators (AEO) programme, Forensics Application, and the deployment of scanners, further highlight its indispensability.”

He advised the Federal Government to expedite the implementation, saying by this, Nigeria could create a more attractive and competitive trade environment, fostering increased trust and confidence among businesses and investors.

Nweke said: “In shipping operations and industry, the cargo tracking note (CTN) plays a crucial role in ensuring the smooth and efficient movement of goods.

The ICTN allows shippers, freight forwarders, and shipping lines to track the movement of cargo in realtime, from the point of loading to the point of discharge.

“It provides a unique identifier for each shipment, making it easier to identify and locate cargo in the event of a delay or discrepancy. Shipping lines use the CTN to track and manage cargo, as well as to provide customs clearance and other regulatory compliance.”

However, the National Vice President, Air Logistics of NAGAFF, Dr. Segun Musa said that ICTN was an intellectual fraud designed to defraud importers of their hard earned money and add to the cost of doing business in Nigeria.

Musa said in Lagos that with ICTN, cargo would be subjected to Inspection abroad before it comes which negated the essence of the Destination Inspection.

According to him, the ICTN implementation would lead to double inspection with the deployment of ICTN, adding that if the Nigeria Customs Service (NCS) gave its backing to ICTN, it would amount to giving up its mandate to foreign inspection.

The vice president noted that if the cargo had been inspected and inspection report issued from offshore, there won’t be any further need for inspection when it arrives the shores of Nigeria.

He said: “So, why must you allow the Importers to pay double cahrges? We are pay – ing CISS and now somebody will be paying for Cargo Tracking Inspection charges again offshore. That will automatically inflate the cost of that commodity.

“If you are looking for concealment, customs will inspect when it arrives here. Why must we inspect before it arrives here? So, cargo tracking note is a document of intellectual fraud designed to defraud importers and worsen the economy.”

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