Elochukwu Speaks On Customs Brokerage Profession

…As Brokers Say No Ideal Freight Forwarding Practice In Nigeria

BY FUNMI ALUKO

Former National President of the Association of Nigeria Licensed Customs Agents (ANLCA) and Member, Board of Trustees (BoT), Chief (Sir) Ernest Elochukwu has provided declared that contrary to a recent opinion expressed by an industry player, the customs brokerage is a profession.

His views which tallies with a number of other industry stakeholders on the subject matter, clarifies the debate on whether customs brokerage is a recognized profession within and outside Nigeria.

Above reaction is coming on the heel of a statement by Chidi Anthony Opara, RFF, FIIM, CDOA, a freight forwarder and co-convener of the 2023 ‘Concerned Nigeria Registered Freight Forwarders’, purporting that   “There is no profession in Nigeria known as “Customs Brokers”.

Mr. Opara in a statement posted on social media and industry platforms, captioned “Important Information For Professional Guidance” said inter alia:

(1)The only professional in the transportation/logistics/supply chain sector in Nigeria is the Registered Freight Forwarder(RFF)(act 16 of 2007).

(2)The first set of Registered Freight Forwarders in Nigeria were inaugurated in 2012, so no Registered Freight Forwarder in Nigeria have practised for more than thirteen (13)years(2012-2025).

(3)The only profession regulatory agency in the transportation/logistics/supply chain sector in Nigeria is the Council For The Regulation Of Freight Forwarding In Nigeria (CRFFN)(act 16 of 2007).

(4) Nigeria Customs Service, Nigerian Shippers Council, Nigerian Ports Authority, Nigerian Airports Authority, etc are not profession regulatory agencies, they are government agencies whose duties are spelled out in the acts establishing them.

(5) Nigerian Customs Licensed Agents are not natural persons, they are corporate bodies and corporate bodies cannot be professionals.

(6) There is no profession in Nigeria known as “Customs Brokers”.

Reacting however, the very essential, erudite former national president of ANLCA said while Opara’s effort at educating the public is appreciated, he notes that Opara’s perspective nonetheless has the tendency to mislead and misinform.

Relying on both empirical and historical data, Chief Elochukwu provided a broad based outlay of the freight forwarding and customs brokerage practice in Nigeria, and concluded that customs brokerage is indeed a profession.

Carefully separating the profession from the practitioner, the cerebral, leading customs broker said: ‘Good effort to disseminate “official” information. However, it may not be entirely correct to say that there’s no business in Nigeria known as “Customs Brokers” (of course, I think it’s intended to read “Customs Brokerage”).

He then proceeded to dissect the subject matter as follows:

1. The “business” at the ports started out as “clearing and forwarding” and the practitioners were known as “clearing agents” and what they were doing was basically customs clearance on imported cargoes.
2. Because of stories of unethical dealings and sharp practices, the name “clearing and forwarding” gained a gargantuan notoriety. And this led the Nigerian Shippers Council under the leadership of Chief Adebayo Sarumi to sponsor a Bill that culminated in NASS enacting the CRFFN Act of 2007.
3. However, whereas “freight forwarding” is the new name, the practice still remains “customs clearance” as freight forwarding is nonexistent in Nigeria. (That is, if we compare with other parts of the world where freight forwarding takes place).
4. In essence, the CRFFN was established to “professionalize” what has been going on for decades as “clearing and forwarding” but it failed woefully because it fell into the control and manipulation of people with the mindset that made “clearing and forwarding” notorious. They exploited the gap created by incompetent and unpatriotic civil servants who invariably had to drive the new process.
5. The inescapable truth is that what has always been practiced in Nigeria is customs clearance and never freight forwarding. The Nigeria Customs has been the central focus of attention. Perhaps, the failure of the CRFFN was predicated on making Transport as the controlling Ministry instead of Finance that at least theoretically controls the Customs!

This is even as some other customs agents were unanimous in the claim that the adoption of freight forwarders in the CFRRN Act was one of convenience, while noting that everyone in the clearing and forwarding business is a customs broker;  and their customs brokerage license issued by the Nigeria Customs Service (NCS).

The custom brokers further explained that while freight forwarders in the strict sense are involved in the logistics aspects of overseeing the delivery of cargo to designated warehouses, customs brokers are concerned with the classification, valuation and documentation of same for the clearance of cargo.

While ANLCA members identify themselves as clearing agents, customs agents or customs brokers, their counterprts at the Association of Government Approved Freight Forwarders (NAGAFF) which is a splinter group from ANLCA, founded by Dr. Boniface Okechukwu Aniebonam, an indefatigable doyen of the freight forwarding industry, aligns themselves with being freight forwarders.