The Sea Empowerment and Research Centre (SEREC) has advised the Nigeria Customs Service (NCS) to adopt a tier system, categorisation-based and competency-driven approach to the proposed operating licensing fees for customs agents, ship chandlers and bonded warehouses, warning against steep fee hikes that could stifle small businesses and undermine trade facilitation.
In a position paper issued and signed by its Head of Research, Dr Eugene Nweke, SEREC acknowledged the importance of an effective licensing framework in promoting professionalism and compliance, cautioning that reforms must be carefully structured to protect industry growth.
SEREC noted that licensing fees should be set at a level that balances regulatory oversight with the need to promote competition and efficiency in the customs clearance process.
The research centre proposed a tiered licensing system based on experience and specialisation, with a fee structure that allows smaller businesses and new entrants to pay lower rates, alongside categorising licenses based on the type of services provided, such as import/export, customs brokerage and freight forwarding.
SEREC also recommended the adoption of a competency-based licensing requirement covering customs procedures, tariff classification, valuation and origin determination.
The group further called for ongoing training and professional development mandates for licence holders as well as fair and reasonable fee increments that reflect the operating realities of small and medium-sized enterprises and regular reviews of the licensing framework to ensure it remains effective.
The research centre strongly cautioned against recapitalisation, consolidation or forced mergers/acquisitions of licence holders as a reform tool, noting that such measures may entail lengthy processes and timing.
Instead, the group urged the NCS to engage in wide stakeholder consultations, including the Nigeria Shippers’ Council (NSC) and the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), before implementing any changes related to fee increments or licensing reform.
The centre also suggested a new categorisation model for the sector, including standard, advanced, specialised and brokerage licenses, as well as a multi-tasking operating licence for bonded warehouses/terminal operators, Specialised Economic Zone Operator, Fast-Track Statute Operator and Authorised Economic Operator (AEO), among others.
“Agents or brokers should receive a fair allocation of a certain percentage of total duty collected, to incentivise compliance and reduce the likelihood of collusion with traders to circumvent duties.
“A well-structured licensing framework can promote professionalism and efficiency in the customs clearance process, ensure compliance with regulations, reduce the risk of delays, fines, and penalties, and contribute to increased economic competitiveness and growth,” the group added.
