Determining The Effects of Customs Procedure on Cargo Clearance Time in Nigerian Seaports

Abstract

Abstract In international trade, customs processing time in the seaports is an important component of the overall cargo delivery time. Understanding custom procedure and determining the clearing time of cargo in Nigerian seaports will help port operators and managers to optimize cargo clearance process and cargo clearing time. This study therefore, attempts to investigate the impacts of customs procedures on clearing time of cargoes in A papa and Tin Can Island Ports. A questionnaire survey method was used to collect data from operations managers of 23 Freight Forwarding firms operating in the City of Lagos. Respondents were randomly selected from the register of Council for Regulation of Freight Forwarder in Nigeria (CRFFN). A regression analysis was carried out to determine the effects of Customs procedures on clearing time of containers with the aid of SPSS. The results of the regression analysis show that none of the seven stages or procedures of clearing cargo in A papa and Tin Can Port; 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) has any significant effect on cargo processing time. This implies that the efficiency or otherwise of the container clearance system in A papa and Tin Can Ports in terms of speed or responsiveness (time) is not a function of the nature (complexity) of Customs procedures.