Nigeria’s Motor Dealers Association's president Kwara state chapter, Alhaji Abdulhamid Dare Abdul, has pleaded to Nigerian Customs authorities and the federal government to suspend the VIN valuation system for imported vehicles.
The Nigeria Customs Service (NCS) has recently announced the electronic valuation system’s suspension for thirty-one days. The notification was issued due to an indefinite strike announced by the clearing agent association, which termed the VIN system as unjust and frustrating. The federal government and the concerned authorities have imposed the VIN to maintain a ‘ smooth and transparent transaction of custom duties from the imported cars.
Meanwhile, Several vehicles were stranded at the port at Lagos because the striking clearance agent union refused to provide services. Clearing agents claimed, among other things, that Customs had unfairly raised tariffs on imported vehicles using the e-valuation system. According to the agents, the VIN value system increased the duty payable on imported automobiles by about 300 percent, making it impossible to process their vehicles' clearance from the seaport.
Approximately 12000 imported automobiles have already been stranded at seaports as agents continue to strike in protest of the policy. Daily demurrages of roughly N600 million are levied on the stranded vehicles. According to Lucky Amiwero, President of the National Council of Managing Directors of Licensed Customs Agents, the new valuation system violates the Customs and Excise Management Act 20 of 2003, based on the transaction value method.
However, Alhaji Abdul, the President of the Nigerian Motor Dealers Association, feared that the VIN system would severely damage the Nigerian economy and the country’s automobile sector because it would force the car dealers to smuggle the vehicles. Alhaji Abdulhamid said that the VIN system contradicts the current customs laws of the country and that it needs to be suspended immediately before it creates havoc in the country’s automotive sector. He suggested that the federal government take all stakeholders on board before imposing any new duties and implementing any new tax collection system on imported vehicles.
Talking to the local media, Alhaji Abdulhamid said that the new system would hamper the automobile industry's growth, as most businesses thrive on imported vehicles. According to him, a raise in duty will automatically raise the prices of vehicles, which, in turn, will decrease their demand in the local market.
He, on behalf of the Association of Motor Dealers, calls on the Nigerian Customs and the federal government to immediately suspend the VIN policy for the greater good of the Nigerian economy and population. He also called the legislation unfair, citing reasons it adds the depreciation value of vehicles in custom duty, which is unjust. According to Alhaji, one cannot find such precedent anywhere worldwide.
