Sonoco Sierra Leone, an agribusiness and industrial affiliate of Sonoco Group (Guinea), is facing scrutiny over allegations that iron rods imported into Sierra Leone under a duty-free concession were diverted into the local commercial market. The shipment was allegedly declared under a customs duty exemption for a development project, allowing the materials to be imported without payment of customs duties, Goods and Services Tax (GST), or other applicable import charges. These allegations suggest significant revenue losses for the Government of Sierra Leone and create an uneven playing field for local manufacturers and importers who comply with customs and tax obligations. Such practices, if proven, could undermine the integrity of the nation's import regulations and tax collection mechanisms. A source familiar with the matter urged the National Revenue Authority (NRA) and Customs Department to investigate the shipment, stating, "I employ about 500 workers and pay all the required duties and taxes. How can we compete under those conditions?" The source also said, "The documentation and the cargo can be verified. If the authorities investigate the shipment and examine the relevant customs records, they will be able to determine whether the materials were lawfully imported under a duty exemption and whether the conditions attached to that exemption were complied with." The article calls on the National Revenue Authority (NRA), Sierra Leone Standards Bureau (SLSB), and other relevant agencies to inspect and verify the shipment, ensuring transparency and accountability in the import process.
Shipping and Cargo Details
A Cargo Manifest reviewed for a shipment aboard the vessel M/V ANUNNAKI detailed its journey and contents, providing key insights into the movement of the contested materials. The vessel loaded its cargo at Aliaga Port, Türkiye, a significant port for international trade, before embarking on its journey to West Africa. Upon arrival, the M/V ANUNNAKI docked at the Port of Freetown, Sierra Leone, where the cargo was subsequently discharged. Metal Market Dis Ticaret A.S. Based in Istanbul, Türkiye, served as the exporter for the shipment, indicating the international origin of the iron rods.
The consignee was listed as “To the Order of Banque Pour Le Commerce et L’Industrie de Guinée (BCI Guinea)”, a financial institution. Further details on the manifest identified SIEG BCI, located at Avenue de la République, Conakry, Guinea, and Metal Import, at Matoto Marché Matoto, Conakry, Guinea, as the notify parties. These entities would typically be informed upon the arrival of the shipment, playing a role in its subsequent handling and distribution. The involvement of entities based in Guinea raises questions about the ultimate destination and intended use of the materials within Sierra Leone.
The cargo primarily consisted of steel bars and rebar in coils, essential construction materials widely used across various infrastructure and building projects. Specifically, the shipment included 2,274 bundles of steel bars, which collectively weighed 4,612.989 metric tonnes. Additionally, 346 coils of rebar were part of the consignment, contributing significantly to the overall volume, with a recorded weight of 579.100 metric tonnes. The total number of packages for the entire shipment was 2,620, indicating a substantial volume of materials. The manifest indicated a theoretical cargo weight of 5,192.089 metric tonnes, while the recorded gross weight for the shipment stood at 4,621.320 metric tonnes, noting a discrepancy between theoretical and actual weights, which is not uncommon but can sometimes warrant further examination. The significant quantity of these construction materials shows the potential market impact of their alleged diversion.
Allegations and Market Impact
A source with knowledge of the construction materials sector provided information regarding the shipment, shedding light on the alleged activities. The materials were allegedly sold to businesses operating within Sierra Leone, bypassing the intended project use for which the duty-free concession was granted. Sources allege that Metal Import, one of the notify parties, was used by Sonoco Sierra Leone in connection with the shipment, suggesting a direct link in the alleged diversion scheme. The source requested anonymity for fear of reprisals, claiming that compliant businesses find it difficult to compete with products allegedly imported under duty-free arrangements. This creates an unfair competitive environment where businesses adhering to all tax obligations are disadvantaged.
The source claimed that the shipment was declared to the Customs Department as duty-free under an exemption linked to a specific project. Such exemptions are typically granted with strict conditions regarding the end-use of the imported goods. The source alleged that the imported iron rods were being supplied to businesses in the local market at significantly reduced prices, making it nearly impossible for other importers who pay full duties and taxes to compete. "I employ about 500 workers and pay all the required duties and taxes. How can we compete under those conditions?" the source stated, articulating the frustration and economic pressure faced by legitimate businesses. The potential for significant revenue losses for the Government of Sierra Leone due to uncollected duties and taxes is a major concern stemming from these allegations.
The source indicated discussions had initially linked another company to the shipment, but no documentary evidence was produced to support that claim, focusing the scrutiny on Sonoco Sierra Leone and its alleged partners. The materials remain at the Queen Elizabeth II Quay, presenting an opportunity for authorities to conduct a thorough physical inspection. "The documentation and the cargo can be verified. If the authorities investigate the shipment and examine the relevant customs records, they will be able to determine whether the materials were lawfully imported under a duty exemption and whether the conditions attached to that exemption were complied with," the source added, emphasizing the need for official intervention.
Industry Context and Official Response
The article reviewed cargo and shipping records concerning steel coils and associated accessories transported aboard the MV ANUNNAKI, forming the basis of these serious allegations. At the time of publication, efforts were made to obtain official responses from Sonoco Sierra Leone and the National Revenue Authority regarding the alleged diversion. The lack of immediate official comment from these entities leaves many questions unanswered and shows the urgency for a full investigation. Industry stakeholders acknowledge that duty exemptions serve as a government policy tool, intended to encourage investment and foster development within Sierra Leone, particularly in critical sectors. These exemptions are designed to stimulate economic growth by reducing the cost of essential imports for approved projects.
However, these stakeholders also caution that any abuse of such concessions could lead to substantial revenue losses for the government and distort fair market competition. The integrity of the duty exemption system relies on strict adherence to the stipulated conditions and diligent oversight from regulatory bodies. If duty-free goods are diverted to the commercial market, it not only deprives the government of much-needed revenue but also creates an uneven playing field for businesses that comply with all tax obligations, potentially stifling legitimate trade and investment. The Calabash Newspaper, established in 2017, has been following developments related to these allegations, noting the ongoing public interest and the need for accountability in this matter. The call for investigation by the National Revenue Authority (NRA), Sierra Leone Standards Bureau (SLSB), and other agencies is critical to uphold the rule of law and ensure economic fairness.