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Waivers Abuse Forces Importers to Abandon Goods in Ports

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  • Waivers Abuse Forces Importers to Abandon Goods in Ports

The abuse of Customs and Excise Management Act (CEMA Act) by terminal operators is seen as being responsible for the abandonment of cargoes at the ports by over burdened importers.

The Guardian gathered that most of the operators fleece the ports after being forced to go through the rigour of dispute resolution and investigations during which the cargo is entitled to waiver of rent and demurrage for the period of resolution.

The cost of demurrage accumulated is rather transferred to the importer and further compounds his financial burden and complications to ease of doing business.

Reports showed that about 30 per cent of goods imported through Nigerian ports experience this discouraging act, and forces importers to find solace in neighbouring ports.

Apparently worried by the situation, the National Council of Managing Directors of Customs Licensed Customs Agents (NCMDLCA), has petitioned the Presidency on the need to ensure compliance with the statutory requirement for waiver of rent and demurrage as a result of delay on imported goods that are subject to Dispute Resolution (DR) and investigation activities in line with the ease of doing business.

The petition signed by the President, NCMDLCA, and Managing Director, Eyis Resources, Lucky Amiwero, cited the statutory provision under Section 152 Customs and Excise Management Act, which covers goods associated with delay that is undergoing dispute resolution as regards valuation, classification, rule of origin, intellectual property right, and investigation activities among others.

The letter read in part: “When any goods are deposited in Customs areas (Terminals) or in a Government warehouse under or by virtue of any provision of this Act, and the Board is of the opinion that having regards to all the circumstances of the case, no rent or reduced rent shall be charged therefore. It may waive or reduce any rent payable or refund the whole or any part of any rent paid under this Act.”

It further read: “The legal and global process on goods subjected to dispute resolution mechanism and investigative process are granted relief or waiver by removing the cost of associated delays.

“We hereby appeal to the government to implement the provision of Section 152 by the waiver of rent and demurrage associated with delays in dispute resolution and the investigating activities of the Customs and any government agency, involved in the inspection of imported goods, so as to reduce the abandonment of goods by importers after the completion of dispute resolution and investigative activities.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

A Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site

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Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site

Two residents from the eastern city of Dhahran, Saudi Arabia, on Sunday said they heard a loud blast, but they are yet to know the cause, according to a Reuters report.

Saudi’s Eastern province is home to the kingdom’s largest crude oil production and export facilities of Saudi Aramco.

A blast in any of the facilities in that region could hurt global oil supplies and bolster oil prices above $70 per barrel in the first half of the year.

One of the residents said the explosion took place around 8:30 pm Saudi time while the other resident claimed the time was around 8:00 pm.

However, Saudi authorities are yet to confirm or respond to the story.

 

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Crude Oil

Brent Crude Oil Approaches $70 Per Barrel on Friday

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Crude oil

Nigerian Oil Approaches $70 Per Barrel Following OPEC+ Production Cuts Extension

Brent crude oil, against which Nigerian oil is priced, rose to $69 on Friday at 3:55 pm Nigerian time.

Oil price jumped after OPEC and allies, known as OPEC plus, agreed to role-over crude oil production cuts to further reduce global oil supplies and artificially sustain oil price in a move experts said could stoke inflationary pressure.

Brent crude oil rose from $63.86 per barrel on Wednesday to $69 per barrel on Friday as energy investors became more optimistic about the oil outlook.

While certain experts are worried that U.S crude oil production will eventually hurt OPEC strategy once the economy fully opens, few experts are saying production in the world’s largest economy won’t hit pre-pandemic highs.

According to Vicki Hollub, the CEO of Occidental, U.S oil production may not return to pre-pandemic levels given a shift in corporates’ value.

“I do believe that most companies have committed to value growth, rather than production growth,” she said during a CNBC Evolve conversation with Brian Sullivan. “And so I do believe that that’s going to be part of the reason that oil production in the United States does not get back to 13 million barrels a day.”

Hollub believes corporate organisations will focus on optimizing present operations and facilities, rather than seeking growth at all costs. She, however, noted that oil prices rebounded faster than expected, largely due to China, India and United States’ growing consumption.

The recovery looks more V-shaped than we had originally thought it would be,” she said. Occidental previous projection had oil production recovering to pre-pandemic levels by the middle of 2022. The CEO Now believes demand will return by the end of this year or the first few months of 2022.

I do believe we’re headed for a much healthier supply and demand environment” she said.

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Crude Oil

Oil Jumps to $67.70 as OPEC+ Extends Production Cuts

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Oil Jumps to $67.70 as OPEC+ Extends Production Cuts

Brent crude oil, against which Nigerian oil is priced, rose to $67.70 per barrel on Thursday following the decision of OPEC and allies, known as OPEC+, to extend production cuts.

OPEC and allies are presently debating whether to restore as much as 1.5 million barrels per day of crude oil in April, according to people with the knowledge of the meeting.

Experts have said OPEC+ continuous production cuts could increase global inflationary pressure with the rising price of could oil. However, Saudi Energy Minister Prince Abdulaziz bin Salman said “I don’t think it will overheat.”

Last year “we suffered alone, we as OPEC+” and now “it’s about being vigilant and being careful,” he said.

Saudi minister added that the additional 1 million barrel-a-day voluntary production cut the kingdom introduced in February was now open-ended. Meaning, OPEC+ will be withholding 7 million barrels a day or 7 percent of global demand from the market– even as fuel consumption recovers in many nations.

Experts have started predicting $75 a barrel by April.

“We expect oil prices to rise toward $70 to $75 a barrel during April,” said Ann-Louise Hittle, vice president of macro oils at consultant Wood Mackenzie Ltd. “The risk is these higher prices will dampen the tentative global recovery. But the Saudi energy minister is adamant OPEC+ must watch for concrete signs of a demand rise before he moves on production.”

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