Assessing the impact of cargo clearance process on the cost of container clearance in Lagos seaports

Abstract

Background: This study investigates the impacts of cargo clearance process on the cost of container clearance in Lagos seaports. Objective: A questionnaire survey was conducted on 23 freight forwarding firms randomly selected from the register of the Council for the Regulation of Freight Forwarding in Nigeria. Method: Regression analysis was carried out using SPSS software to determine the effect of cargo clearance process on the overall cost of cargo clearance in Nigerian seaports. In doing this, seven stages of cargo clearance process, namely, Processing of Form M (FM), Processing of Pre-Arrival Assessment Report (PAAR), Assessment of Duty (AD), Payment of Duty (PD), Examination (E), Custom Release (CR) and Delivery (D), were identified as independent variables, while Cost of Cargo (CC) clearance was identified as a dependent variable. Results: The results show that FM has a positive correlation with CC, and it accounts for about 40.8% of the variations in the CC. Similarly, PAAR has a strong positive correlation with CC, and it accounts for about 58.1% of the variations in the CC. Furthermore, AD was found to have a positive correlation with CC, and it accounts for just about 35.5% of the variations in the CC. Finally, E has a positive correlation with CC, and it accounts for about 39.2% of the variations in the CC. Conclusion: Based on the above findings, the study recommends simplifications of processing documents and a reduction in the number of agencies involved in the cargo clearing process