Factors Influencing Nigerian Customs Clearing

This case study investigates the factors influencing the Nigerian customs goods clearing process and its impact on the brand reputation of UK-based cargo companies. It covers various aspects including the background of the research, relevance of the study, research methodology, data analysis, and recommendations for improving the customs clearing process. The findings highlight the importance of brand reputation in the logistics and supply chain management sector, particularly for companies operating in both Nigeria and the UK.

FACTORS INFLUENCING THE NIGERIAN CUSTOM-GOODS
CLEARING PROCESS
AND THE IMPACT ON BRAND REPUTATION OF UK BASED
CARGO COMPANIES
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Table of Contents
CHAPTER ONE................................................................................................................................ 4
1.0 Background of the Research................................................................................................4
1.1 Relevance of the Study ........................................................................................................4
1.2 Case Study of AAA Freights..................................................................................................5
1.3 Research Rationale/ Justification of the Study.....................................................................6
1.4 Study Rationale.................................................................................................................... 7
1.5 Research Aim....................................................................................................................... 7
1.6 Research Objectives.............................................................................................................7
1.7 Research Questions..............................................................................................................8
1.8 The Structure of the Project.................................................................................................8
CHAPTER TWO............................................................................................................................... 9
LITERATURE REVIEW...................................................................................................................... 9
2.1 Scope of Literature Review..................................................................................................9
2.2 Concept of goods clearing process of Nigerian Customs Service.........................................9
2.3 Factors Influencing Custom Goods Clearing in Nigeria ......................................................11
2.4 Current working and brand reputation of UK cargo companies........................................13
2.5 Impact of inefficiencies of clearing process on brand reputation of UK cargo companies 17
CHAPTER THREE........................................................................................................................... 19
3.0 RESEARCH METHODOLOGY....................................................................................................19
3.1 Overview............................................................................................................................19
3.2 Research Philosophy and Strategy.....................................................................................20
3.3 Research design ................................................................................................................ 22
3.4 Research Approach............................................................................................................ 23
3.5 Research Methods.............................................................................................................24
3.5.1. Secondary Data..................................................................................................... 24
3.5.2. Primary Data..........................................................................................................24
3.6 Data Collection Techniques................................................................................................25
3.7 Sampling Techniques......................................................................................................... 26
3.7.1 Sample Size....................................................................................................... 26
3.8 Method of Data Analysis ...................................................................................................26
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3.8.1 Logic of Summative Content Analysis.....................................................................28
3.9 Data collection, analysis Techniques and procedures........................................................29
3.10 Data Reliability.................................................................................................................29
3.11 Limitation of Data collection............................................................................................29
3.12 Time Horizons.................................................................................................................. 30
3.13 Analysis of Reports...........................................................................................................30
3.14 Research Ethics................................................................................................................ 30
CHAPTER FOUR............................................................................................................................ 31
4.0 DATA ANALYSIS...................................................................................................................... 31
4.1 Overview............................................................................................................................31
4.2 Result and Discussion ........................................................................................................32
4.5 Brand Reputation Information Disclosure ??.....................................................................35
CHAPTER FIVE.............................................................................................................................. 38
5.0 CONCLUSION AND RECOMMENDATIONS..............................................................................38
5.1 Conclusion..........................................................................................................................38
5.2 Recommendations ............................................................................................................41
BIBLIOGRAPHY............................................................................................................................. 44
REFLECTIVE STATEMENT..............................................................................................................46
APPENDICES................................................................................................................................. 48
Appendix 1: Questionnaire......................................................................................................48
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CHAPTER ONE
1.0 Background of the Research
The process related to custom goods clearance is essential for the Nigerian and United
Kingdom economy, which makes it possible for the two countries attain development (Ojadi &
Walters, 2015, p. 3). This study deals with the issues related to AAA Freight Forwarding Agents
& Customs Clearance Agents, which has its base in the United Kingdom and has branches in
different parts of the world including Nigeria. The aim of AAA Freights is to provide the best
services and at a favorable price for their customers (Baoqing, 2011).
1.1 Relevance of the Study
Brand reputation works both ways for the community and the business as it is embedded
into ensuring that the two work together. The ideology behind establishing a business is to have
sustainable profits.
At the same time, organizations that are influential to the society find it easy to make
profits and remain relevant in the market since the society expect them to always do more. The
business individuals who play the major roles in these organizations are expected to have other
responsibilities within the society. The businesses cannot be separated from the management
whereby the manner in which they are run would explain their position in the society and their
profit sustainability.
Moreover, things might not be the same compared to the organizations related to the
government since the social responsibility would not be the same. The core aim of businesses is
to make money though this does not make them be in a better position to be successful if they do
not take up responsibility of the society that surrounds them. The business should ensure that
they are built on their name and brand instead of the money they make at the end of the day.
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Businesses that have the best brand reputation look at their impact in the society and the number
of lives they change instead of the profits they make.
1.2 Case Study of AAA Freights
With over a decade of service excellence in freight & logistic solutions, AAA Freight
Services provide the right freight solutions, unbeatable quality and timely services in shipping,
marine and logistics across the globe. They have since emerged as one of the leading and highly
regarded Logistics and Supply Chain Management Company in the UK region and several parts
of the world where it has branches (Davis, Nicholas and Richard 2009).
The services that the AAA Freight offers include customer clearance, completion of
procedures related to examination and payments, imports and exports, guidance and consultancy
services related to pre and post-shipment services for containers and dealing with different forms
of cargo through regulating the council, agent, and government agencies (Deng, Cao, Zhang and
Zhang, 2011).
Their core strengths lie in their ability to provide flexible, cost effective, and customized
freight solutions that perfectly meet their different client requirements. They do not compromise
on integrity and quality, which they believe are quintessential factors in achieving sustainable
growth. They have learnt that growth is a by-product in the pursuit of excellence, and not itself a
primary goal (Finch, 2006).
As such, during custom goods clearance that takes place in AAA Freights, numerous
things need consideration before the AAA Freights can attain better working conditions and
results. There are occasions that might lead to selection and recruitment of new personal into the
AAA Freights so that they implement custom goods clearing properly (Forcolin, Fracasso,
Tumanischvili and Lupieri, 2011).
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The reason behind establishing the Custom goods clearing in the AAA Freights is to
remain relevant and competitive in the market. The processes of implementing the Custom goods
clearing in AAA Freights are re-engineering, reorganizing, implementation of new technologies
and downsizing. The element of change in this regard is constantly remaining relevant (Baoqing,
2011).
Numerous companies, especially in the American market, would attest to a change
initiative in the AAA Freights per year. However, only 46% of those companies attain the
required results related to the Custom goods clearing. This, the AAA Freights attributes to the
lack of better strategies and visions to implement the Custom goods clearing accordingly. Other
failures include lack of better trust and communication skills, lack of commitment by the top
management, lack of resources, change management skills and resistance to change (Davis,
Nicholas and Richard 2009).
The AAA freight management team possesses varied background, but guided by a central
vision and a common goal. They have long standing experience, in-depth market knowledge and
a thorough understanding of logistics & supply chain management. Together, they sustain an
intense focus on the customer satisfaction and service excellence (Deng, Cao, Zhang and Zhang,
2011).
1.3 Research Rationale/ Justification of the Study
Research that has been previously conducted in AAA Freights about Custom goods
clearing has always focused on the AAA Freights and neglected the important element of the
people supposed to implement the Custom goods clearing. The person-oriented implementation
of Customs goods clearing in the AAA Freights can assist AAA Freights in dealing with failures
in AAA Freights Custom goods clearing (Ojadi & Walters, 2015, Pp. 4). AAA Freights Custom
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goods clearing have always focused on macro-level implementation of AAA Freights Custom
goods clearing, forgetting the micro-level element responsible for success. It is also essential to
determine the personal attributes and characteristics of individuals, which would help in
ascertaining the Custom goods clearing, take place in a positive aspect (Baoqing, 2011, Pp. 279).
The skills and characteristics need directing towards the important people given the mandate for
implementing the Custom goods clearing.
1.4 Study Rationale
The rationale of the study is to identify some of the issues related to the cargo companies
in the UK and their connections to the Nigerian companies. In this case, the paper will discuss
some of the issues that AAA Freight Customs deal with during their daily operation of business
in Africa.
1.5 Research Aim
To identify factors influencing the inefficiency of the Nigerian customs goods clearing
process and to understand the impact these inefficiencies will have on the brand reputation UK
based cargo companies.
1.6 Research Objectives
1) To identify the factors influencing inefficiency of clearing process of the Nigerian Custom
Service
2) To understand the current brand reputation of the UK cargo companies
3) To ascertain whether or not factors influencing the efficiency of the Nigerian Customs
clearing process can be influenced to improve the brand reputation of the UK based cargo
companies
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1.7 Research Questions
1) What are the factors influencing inefficiency of clearing process of Nigerian Custom Service
2) What is the current brand reputation of the UK based cargo companies
3) Can the factors influencing the NCC process be influenced to improve the brand reputation
of the UK based cargo companies
1.8 The Structure of the Project
The project is divided into six chapters whereby each chapter focuses on the different
fields within the perspective of the topic.
Chapter 1 Introduction: This chapter lays its focus on introducing the project, background,
objective, rationale, research aim and the research question.
Chapter 2 Literature Review: This chapter will explore the theories, concepts and relevant
literatures.
Chapter 3 Research Methodology: The chapter will give a clear perception of the research
method, design and research philosophy of the project.
Chapter 4 Data Analysis: In this Chapter, an analysis of the collected data will be presented.
Chapter 5 Discussion: The chapter would establish exclusive detailed critical evaluation and
discussion of the outcome of the result from the data analysis.
Chapter 6 Conclusion and Recommendation: The final chapter will summarise some of the
basic findings of the research and propose viable business recommendations.
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CHAPTER TWO
LITERATURE REVIEW
2.1 Scope of Literature Review
This Chapter looks at the different literatures and some of the topics related to the
different factors related to customs clearing in Nigeria and the influences they may have on the
brand reputation of AAA Freights which is a company based in United Kingdom. Additionally,
the chapter will scrutinize the brand reputation of the company and the manner in which it is
connected to offering services in foreign land (Finch, 2006).
Brand reputation is completely depends upon the overall working of the
organization. If clearing process of the organization is not good then it can harm the brand image
of entity to great extent. Goods clearing process of Nigerian customs service is the most
important part of cargo companies’ operations. Banker checks all presented documents and in the
next stage they send these documents to customs office of the country.
2.2 Concept of goods clearing process of Nigerian Customs Service
According to Yan, Xue-jun and Wei, (2011) cargo companies transfer goods from one
place to another by following all regulations and norms. VHI cargo helps these organizations in
customs clearance documentation processing. So that transporters can clear their goods in the
Nigeria airport easily. In the clearing process cargo companies have to start process through
consignee's banker. In this entities have to send proforma of involve and marine insurance copy
to the banker (Deng, Cao, Zhang and Zhang, 2011). After that banker check all documents and
if there is no mistake then give permission to further process goods. In the next phase of clearing
of good supplier or manufacturer have to forward shipping documents. These shipping
documents include bill of landing, final invoice, CCVO etc.
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As per the view of Finch, (2006) PAAR (Pre-Arrival Assessment Report) is generated
by customs which is transmits to importer's bank. Author has stated that tasking and technical
areas of clearing process are quit complicated. Davis, Nicholas and Richard (2009) has argued
that it is essential to submit several documents in the goods clearing process. These are form,
original bill of lading, packing list, invoice proforma, CCVO, necessary certificates, letter
headed application for PAAR and value (Baoqing, 2011).
According to Forcolin, Fracasso, Tumanischvili and Lupieri, (2011) cargo companies
have to follow customs clearing process carefully because small mistake in customs can create
big trouble for the owner and the organization as well. Author has stated that once the airway bill
is generated and it is received by the person then on immediate bases responsible person is
required to the office of airline for cargo advice. In this process when individual has received
advice and has made payment for its goods then related documents are needed to be released
Baoqing, (2011) it is essential to have good knowledge of customs clearance charges. If any
mistake find by the custom officer then cargo company will be liable to pay charges for the
mistakes (Davis, Nicholas and Richard 2009). Cost of handling changes is depends upon the
weight of the goods. Generally it is charged N52 Naira per kilogram of shipment. In this
handling changes VAT and other things are included. It is essential for the cargo firm that to take
care of the thing that custom duty and handling of goods and services go side by side.
As per the view of Davis, Nicholas and Richard B. (2009) terminal and shipping
companies have to pay their respective amount in the designated bank. Goods cleaning process
has one ending procedure in which when the truck or ship reach to the gate then they have to
wait for document verification again (Finch, 2006). Customs officers check the duty payment,
endorsement and multiple registrations of documents. After second conformation of all these
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documents container gets way out of the sea port. This clearing process is quit complicated for
the new cargo companies but those which are working since longer duration they have all
information and follow all these phases carefully.
2.3 Factors Influencing Custom Goods Clearing in Nigeria
a) Leadership: According to Forcolin, et al (2011), it is fundamental for AAA Freights
planning to implement Custom goods clearing in their system to have encouraging
individuals who are ready to ensure that the Custom goods clearing are implemented
successfully. The individuals would instigate new behaviors that will be helpful in
achieving the desirable Custom goods clearing. There should be the implementation of
charismatic leadership that deals with transformation in the management in the AAA
Freights to attain reputable Custom goods clearing (Deng, Cao, Zhang and Zhang, 2011).
The top leadership would have to implement the AAA Freights Custom goods clearing
through dealing with phenomenon associated with resistance to change. The same
implications should deal with the predisposition and psychological Custom goods
clearing of individuals associated with Custom goods clearing (Deng, et al, 2011, Pp.
251).
a) Economy: As per the view of Anupindi, Sunil, Sudhakar Deshmukh, and Eitan
(2006) economy is the major factor that impacts the overall working of cargo
companies. Changes in oil rates can impact on the economy of the nation. By this
way cargo firms have to pay more amount to deliver the goods on the particular
destination. Nigerian economy plays significant role in the field of exports. The
growth and stability of an economy in a given area are directly proportional to the
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income of the business structure. For there to be high living standards and high
job opportunities which will lead people wanting to purchase more goods, the
economy should be stable to ensure the demand of AAA Freights goes up (Deng,
et al, 2011, Pp. 251).
b) Spending Power: with the people has brought about more purchase, of goods
from AAA Freights, which means that there is more income within the area and
this is viewed by analysts to continue even for next ten years because of the
growth of the economy.
c) Leadership strategies: On the other hand, managers have embarked on strategies,
which rely on observing measures related to personality and dispositional traits in
evaluating suitable applicants to the AAA Freights (Ojadi & Walters, 2015, Pp.
4). The attitude of Customs goods clearing that employees exhibit depend on the
change Schemata of the individual. The capabilities of Customs goods clearing
define themselves as the mental maps attributed to knowledge structures required
for attaining Custom goods clearing (Yan, Xue-jun & Wei, 2011. Pp. 4219). At
the same time, the change schemata have a significant relationship with the
reaction of an individual towards change. Some employees have the high levels
change related self-efficacy, which have enabled them to evade distresses
associated with Custom goods clearing that sometimes make individuals feel
inadequate (Forcolin, et al, 2011, Pp. 9). This enables employees to manage the
issues related to AAA Freights Custom goods clearing.
d) Issues related to Custom goods clearing: This sometimes make it difficult for
employees to cope with the Custom goods clearing. It is essential to understand
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