Freight Monitor
Customs brokers adamant on VIN policy
The Shippers’Council boss further assured to escalate the matter to the Ministry of Transportation and management of the NCS for understanding and amicable resolution by all relevant parties.
To help the NSC fast-track a resolution, Jime also constituted a committee comprising members of freight forwarding associations and members of the NSC, with the mandate to list the unions’ grouses against the VIN policy and their demands.
At the meeting, the associations, which also insisted on their preference for the automated system, had told the NSC management that the NCS’ outrageous duty on imported used vehicles based on the recently introduced VIN valuation policy rather than transaction value, was unacceptable and mischievous.
The National Secretary of the Association of Nigerian Licensed Customs Agents(ANLCA), Abdullazeez Babatunde expressed concern that contrary to the globally accepted and rational practice, the policy deliberately ignores the wear and tear and depreciation value of the vehicles in generating duties.
Similarly, the NAGAFF Deputy National President, Dr. Segun Musa, expressed dismay that rather than encourage trade facilitation, “vehicle smuggling will increase and the government will have to channel its limited resources to combating smuggling.
“If this isn’t nipped in the bud, there is also the tendency for customs to come up with similar approaches for other goods.
“This will push importers away, companies will shut down and jobs would be lost, while the government uses the limited resources to buy guns to fight smugglers.”
Babatunde disclosed that the NCS leadership had a week earlier assured the agents that it would suspend the VIN valuation system but reneged on that.
According to him, “we met the customs and conveyed these concerns. We also appealed to the Comptroller-General of Customs in subsequent letters.
“It is important to note that 70-90 percent of vehicles are imported through Tin Can and PTML. Customs agreed that the VIN valuation design neglected the extant laws on wear and tear as well as the 10 percent depression in the value of used cars.
“Less than 10 percent of the vehicles at the ports were able to access the customs portal for the duties. There are several issues that we observed and we asked them to revert to a manual process while these issues are resolved.
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