Frequent Asked Questions
The Cargo Tracking Note
What you need to know
Q : What is the Cargo Tracking Note (CTN) system and its background ?
A : CTN is an International Cargo verification solution and Cargo procedure in accordance with ISPS Code. Nigeria is a member of International Maritime Organization (IMO) and has almost ratified all international conventions like the SOALS Convention, ISPS Code, etc. After the September 11th terrorist attack on the USA, countries started the tracking of marine cargoes in accordance with ISPS Code because of its security, safety and economic benefits.
Q : Are other countries implementing CTN ?
A : yes. Countries like the United States, the European Union, Asia, Middle East and Africa are all implementing the scheme. See evidences N° :1, 2…..7
Q : Who are to comply with the CTN in accordance with ISPS Code and their roles ?
A : The Shippers, the shipping Lines and the Port Authority are to comply. The shippers comply by collecting the dannies on the goods to be shipped at a particular port. The Carriers comply by checking that all cargo is covered by a CTN number and the Port Authorities check the dannies and the statistics to eliminate any dangerous intentions.
Q : Are the other parties involved ?
A : The Customs Service is involved because of CTN’s real time statistics that made possible the advance completion of clearing process. Hence the customs require CTN during the electronic manifest procedure.
This is why there is a strong and urgent need to establish a regularization process for goods and other imported products with Nigeria as final destination and which come from the Nigerian neighboring countries ports such as : Cotonou- Lome- and Douala.
It is well known and proved now a day as per evidence N° : 8,9,10 that some CTN mandated agents or companies have been collecting some Cargo Tracking regularization fees on behalf of Nigeria and in the profit of their mandating countries.
This regularization system if well implemented has many advantages and purposes. We will just mention two :
- First of all, it will provide some real time and sensitive information to Nigerian customs service on the goods and products that are being introduced into Nigeria through its different land borders and,
- It will also generate and increase the Nation revenue because some regularization fees will be collected and paid back to Nigeria.
Q : Is CTN necessary for clearing agencies during the clearing process ?
A : No, the customs service doesn’t ask the forwarder, the clearing agencies or the importer for CTN before duty payment.
Q : Are the manufacturers or importers involved in the procedure ?
A : No, the manufacturers or any importer are not involved in an international maritime procedure done by shippers in liaison with our agents.
Q : Is the CTN an additional cost to the importer ?
A : NO, the CTN does not come with additional cost to the importer. The little fees charge are inbuilt in the freight that shippers have been charging. Evidence available (Evidence N°10) suggests that some shippers have been collecting and pocketing the fees long before the federal government decided to implement the system. Also, from the date of the commencement of the scheme, there has been a significant compliance all over the world (Evidence N°11, 12, 13….25) and no shipper that complied required any importer to make additional payment.
Q : Will CTN lead to the diversion of Cargo to other neighboring ports ?
A : No, the major neighboring ports being patronized presently all implement CTN. Before they achieve their present sate of efficiency, they started from CTN implementation. From CTN :
- They controlled freight charges ;
- They have advance information on al cargo which made actual advance billing possible ;
- Introduced a one point payment system that reduced time and energy in clearing goods thereby making a less-than-24 hour clearing possible ;
- Got a real time on line central information that makes statistics for decision making possible on a real time basis rather than historical basis ;
- They got information on cargo before it is even on the vessel ;
- Improved on the security of their port infrastructure, vessels and personnel.
- They got their port certified by USA and European nations and Green Status to their National Carriers ;
- Their national economy benefits from these value added benefits.
It is the same consultants that implement the scheme in these countries (where Nigerians divert their cargoes to for whatever reason) that the NPA engage to implement it in Nigeria.
Q : Is the CTN charge in Nigeria more exorbitant than those in other countries ?
A : NO. The fees structure has been constructed by independent international maritime experts known and respected by the international maritime community and is the list in the sub-region.
These charges are published on the website of the consultants at www.tpms-anatser.com. Other charges being flouted around by some people did not emanate from us. Sadly, MAN puts CTN charge as “20% of freight cost”. This is falsehood because there is no mathematics that can translate 50 Euros as 20% of 1,500 Euros, which is the list cost of transporting a 20 feet container from Europe to Lagos.
Q : How will funds generated by the CTN implementation be utilized ?
A : the funds will be utilized as a set out by the ISPS Code. A Stakeholder security committee will be constituted with a representative of International Maritime Organization as member. The committee will draw up a budget on improving port security. The budget implementation will be monitored by IMO. At a point, international inspectors will visit Nigerian ports to assess the adequacy of security measures and when satisfied, will certify our ports as is the case with airports. In the light of recent terrorist activities, the importance of adequate funding of ports security cannot be overemphasized. No one can predict where, when or which facility may be used to unleash mayhem.
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