Operators Abusing Temporary Import Permits — Maritime Lawyers

MEMBERS of the Nigerian Maritime Law Association, NMLA, have called on the government to cancel Temporary Import Permit (TIP) on vessels in Nigeria, saying that the permit has been grossly abused by operators in both the maritime and oil and gas industries.

TIPs are cargoes approved for a period of one year and may be extended  for two consecutive periods of six month each. However, the   equipment (vessel or aircraft)   must be re-exported  after use. Where equipment are not re-exported, import duty may become payable or the bank bond or cash deposit provided in lieu of the assessed import duty, for the issuance of TIP, liquidated by Nigeria Customs Service.

Speaking at the second edition of the breakfast meeting hosted by the association in Lagos, a former Public Secretary of the group, Mr. Adedoyin Afun, said that beyond the cancelation, the idea is to reduce the duty payable on vessels or scrap duty payment on such cargoes.

Afun said that the concession and intervention given to the aviation sector by allowing operators to own and lease aircraft should be extended to the maritime industry.

He also said this will enable Nigerians own newer vessels as against the old scraps that litters the nation’s coastal waters.

His words: “Really looking at it from a future perspective, I know the former Director General of the Nigerian Maritime Administrative and Safety Agency, NIMASA, was pushing and was awaiting the presidential assent for it to be gazetted.

“Because looking at the aviation experience, if you do not gazette it, Customs will not answer you. That is why you see a lot of airlines owing aircraft or leasing a few aircraft because of that waiver for aircraft and parts.”

Similarly, Mr. Chuks Nwana of Admiralty Law said that when the law was enacted, it was supposed to take care of heavy equipment, specialized and oil and gas equipment that can be used for a particular period of time and eventually take it out.

“I know from experience that the TIP is thoroughly abused and the protocol is that if there is TIP on a vessel and the vessel goes outside Nigeria’s territorial waters, then that is the end of the TIP.