MONROVIA – The Plenary of the Liberian Senate has constituted an ad-hoc committee to investigate the increase in fees for inspection and clearing of containers at the Free Port of Monrovia.
The decision was reached on Thursday after communication from Senator Edwin Melvin Snowe of Bomi County urged his colleagues to look into the matter.
“Honorable Pro Tempore and distinguish colleagues, in the wake of the reported increase of tariff on containers brought at the Freeport of Monrovia by this new tech company, I am recommending that this Senate investigates the situation to avoid economic embarrassment,” Sen. Snowe stated in a letter to the Pro-Tempore of Senate, Sen. Albert Chie.
In his communication, Senator Snowe informed the August Body that MEDTECH SCIENTIFIC Company LTD operating at the Free Port of Monrovia has rapidly increased charges for Container Inspection at the Free Port of Monrovia.
According to him, MEDTECH SCIENTIFIC Company LTD has increased the charges from US$190.00 and US$280.00 to US$280.00 and US$400 for 20ft and 40ft Containers, respectively.
Additionally, Senator Snowe stated in his communication that there are complaints from business people women who are facing the harsh constraints of importing goods in containers from aboard.
What’s Medtech Scientific Company Ltd.
Medtech Scientific Company Ltd. was designated by the Liberian government through the Liberia Revenue Authority (LRA) to conduct Destination Inspection (DI) at the ports.
This contract, according to the government, was necessitated by the requirements of the World Trade Organization Trade Facilitation Agreement (WTO-TFA).
The government then abolished Pre-shipment Inspection (PSI) beginning August 1 and introduced the Destination Inspection conducted by Medtech Scientific Company Ltd.
Also, with the new procedure, all goods intended to be shipped to Liberia will be inspected only once in Liberia by MTS, Customs and any other interested parties with a defined statutory role linked to inspection.
The government also indicated that beginning August 1, 2021, a flat fee structure as per attached Schedule of Fees for DI services shall be introduced and paid to MTS at the designated account with ECOBank (Liberia) Ltd.
Who’s on the Senate Com’tee?
During Thursday Session, the President Pro-Tempore named Bomi County Senator Edwin M. Snowe as Chairman, Senators Henrique Tokpah of Bong County, Botoe Kanneh of Gbarpolu County, Jonathan Boycharles Sogbie of River Gee County and Emmanuel Nuquay of Margibi County as members of the committee to probe the exponential increment in the service fee for import and export of containers.
Based on a motion proffered by Senator Jonathan Boycharles SogbIe of River Gee County, the committee is expected to report its findings within two weeks.
Fear of shortage of Rice, Essential Commodities
Recently, some local businesses in Liberia expressed concern over the possible shortage of rice and other essential commodities due to increment in several fees and cost of services at the Freeport of Monrovia.
According to the local businesses, despite the adverse effects of the Covid-19 pandemic on the business community, there continues to be increment in services at the port which is further putting the business community in a tight corner and strangulating them.
They mentioned increment in demurrage, increment in APM Terminals charges, increments by the stackers union, truckers union, costs of Container Tracking Number (CTN), BiVAC and MedTech Scientific Ltd have all causing serious constraints for the smooth operation of business.
According to the local businesses, with the increasing cost of doing business, there is likely to be an increment in the price of some basic and essential commodities.
“Rice for example, our fear is that we may soon run out of rice on the market become those bringing it may decide to scale down their importation because the government would not allow them to increase the price of rice. You cannot be running into extra expenses and they still expect you to sell at the same price,” a local entrepreneur who asked for anonymity said.
Protest Threatened
On Tuesday, the chairman of the Patriotic Entrepreneurs of Liberia (PATEL), Mr. Dominic Nimely, in a press conference called on the government to rescind its decision on the various increment in the cost of services at the port else, they as a business community will protest by shutting down all their businesses.
Mr. Nimely said over the weekend, the business people received from the Liberia Revenue Authority (LRA) additional fees valued a little over US$1100.00 as additional fees which are unfortunate and will not be accepted by the business community.
“We have been crying already with BiVAC and now there is an additional US$200.00 increment. We have over US$1000.00 increased to free a container and it’s very high for businesses now. We were paying US$250.00 BIVAC but now I have a container and I’m informed that I have to pay US$450.00 to BIVAC,” Mr. Nimely.
According to Mr. Nimely, it’s only in Liberia that more than 30 persons own a container of goods, which is a due to lack of finances.
Mr. Nimely said over the weekend, the business people received from the Liberia Revenue Authority (LRA) additional fees valued a little over US$1100.00 as additional fees which are unfortunate and will not be accepted by the business community.
“We have been crying already with BiVAC and now there is an additional US$200.00 increment. We have over US$1000.00 increased to free a container and it’s very high for businesses now. We were paying US$250.00 BIVAC but now I have a container and I’m informed that I have to pay US$450.00 to BIVAC,” Mr. Nimely.
According to Mr. Nimely, it’s only in Liberia that more than 30 persons own a container of goods, which is a due to lack of finances.
Mr. Nimely said the government through LRA is now asking each importer who has goods to pay US$160.00 for inspection for 20′ container while each importer will be paid US$300 for 40′ container excluding US$280 and US$480 stating “it’s unacceptable.”
Mr. Nimely said the increment of charges from APM Terminals and the LRA are unbearable for business people, stating “the government should be reducing duties and giving incentives to businesses and Liberian owned businesses in particular as a way of encouraging people to come because the government is unable to provide jobs for many people now.”
He said the private sector continues to help in providing jobs for many people in Liberia, but it’s on the opposite which the government is now suffocating business people.
“Again, this is a result of lack of access to finance by business people. With this, the government needs to be helping the business people and not harming them by increasing fees,” Mr. Nimely told reporters.
Mr. Nimely said PATEL is asking the government to revoke the new list of charges released as the business community will not protest but shut down businesses.
