Head of Research, SEREC, Dr. Eugene Nweke rff

A maritime and shipping research-based organisation, the Sea Empowerment and Research Centre SEREC, has made a strong case for the introduction of a regime of well-structured licensing framework that promotes professionalism, efficiency and effectiveness in Customs clearing processes in Nigeria’s maritime industry.

The proposal is coming against the backdrop of current discussions in the industry over the planned increment of operational license fees for Customs Agents, Chandlers and Bonded Terminal operators by the Nigeria Customs Service, which has sparked several discussions and arguments among industry operators.

In a position paper by the organisation entitled: “Effectiveness and Efficiency of License Regulations for Customs Agents”, signed by its Head of Research, Fwdr Eugene Nweke, SEREC noted that it has become imperative to enthrone a regime of structured licensing framework given recent developments especially on the basis of ensuring effectiveness and efficiency of license regulations for Customs Agents in the country.

“A well-structured licensing framework will promote professionalism, efficiency and effectiveness in Customs clearance processes. As stakeholders in the maritime industry conversant with Customs clearance process, we believe that a well-structured licensing framework is crucial for promoting professionalism, efficiency and compliance”, he said.

He listed the components of the proposed framework to include – balanced licensing fees, under which licensing fees should be set at a level that balances the need for regulatory oversight with the need to promote competition and efficiency in the Customs clearance process.

According to the position paper, a possible solution could be to implement a fee structure that is tiered based on the type of service or level of license, with smaller businesses and new entrants paying lower fees.

SEREC also proposed a categorisation of licenses based on services provided, under which licenses could be categorised based on the type of services offered, such as import/export, Customs brokerage, and freight forwarding.

Another form of structure, according to the organisation is a tiered- licensing system, which could be implemented with different levels of licenses based on factors such as experience and specialization and a competency-based licensing, under which requirements should focused on demonstrating competence in Customs procedures, tariff classification, valuation, and origin determination, among others.

It also made a strong case for regular and continuous training and professional development, adding that license holders should be required to undergo regular training and professional development to maintain their licenses.

The paper also reads in part: “Fair and reasonable fee increment; we advise against exorbitant fee increments in the current port system, given the already challenging environment. Instead, we recommend a fair and reasonable increment that takes into account the needs of small and medium-scale enterprises.

“Alternative approaches to licensing reform: We caution against recapitalisation, consolidation, or merger/acquisition of Customs licenses as a method of ensuring effective licensing regulations, as this may entail lengthy processes and timing. Instead, we recommend a more streamlined and efficient approach to licensing reform.

“Stakeholder Consultation: We recommend that the NCS consults with a broad range of stakeholders, including the Nigerian Shippers’ Council NSC and professional regulatory councils including the Council for the Regulation of Freight Forwarding Practice in Nigeria CRFFN, in any decision-making process related to fee increments or licensing reform. This will help ensure that the interests of all stakeholders are taken into account and that the industry is not unduly burdened.

“In conclusion, SEREC believes that a collaborative and inclusive approach to licensing reforms can benefit all stakeholders, including the NCS, Customs Agents, and the trading public. We look forward to working with the NCS to implement a licensing framework that balances regulatory oversight with industry needs.”