How importers grounded ports over new Customs vehicle duty platform
Motor dealers may pass cost to Nigerians
Members of the Port City of Apapa woke up on Monday to witness a disruption of commercial activities at the Tin-Can Island Port, Lagos.
The sudden halt of commercial activities was caused by some freight forwarders who were protesting the implementation of the Vehicle Identification Number (VIN) valuation system by officials of the Nigeria Customs Service.
The freight forwarders were demanding among other things the suspension of the Vehicle Identification Number valuation system.
The freight forwarders said that the VIN valuation system was not only outrageous but not within the mandate of the Service, noting that the act establishing the Nigeria Customs Service mandates the Service to collect certain percentage as duty on the price of goods and nothing more, and that anything outside this is fraudulent and unconstitutional.
The Service had two weeks ago, revealed its intension to commence the implementation of VIN at Tin-Can Island and PTML Commands, Lagos.
But the freight forwarders rose from an emergency general meeting of all the different freight forwarding association and issued a 72 hours strike notice to the Service. The notice expired last Monday.
Following the expiration of the 72-hour strike notice, the freight forwarders stormed the Seaports and grounded commercial activities.
The placard carrying agents blocked the entrance into the Tin-Can Island Port, chanting solidarity songs.
The protest forced the Customs Controller, Tin-Can Island Port, Adekunle Oloyede, to call for an emergency stakeholders meeting.
At the meeting, the controller tried to highlight the gains of VIN, but a visibly angry freight forwarder urged their members not to relent as the policy was meant to displace them from work.
The ongoing protest may assume a frightening dimensions from Monday if their demands are not met as members of the Association of Motor Dealers of Nigeria (AMDIN) on Friday vowed to join the protest if the Service fails to halt the implementation of VIN.
As at Monday when the protest entered day three, over 6,000 vehicles that were due for clearing are currently trapped inside the Port as commercial activities were completely grounded as a result of the action of the freight forwarders.
President of AMDON, Ajibola Adedoyin, at a joint press conference organized by AMDON and the Tin-Can Island Chapter of the Association of Nigeria Licensed Clearing Agents (ANLCA) on Friday in Lagos, demanded among other things for the immediate suspension of the VIN valuation automated system designed by the Nigeria Customs Service and review of same in consideration of the Nigeria Customs Act.
According to Adedoyin, the implementation of the VIN Valuation would also make life unbearable for Nigerians, thereby destroying the gains recorded in the transportation sector.
The AMDON National President also said that using the VIN Valuation in summary contravenes the Customs and Excise Management Act 20 of 2003, which talks about transaction value (purchase price), which is the price agreed by the seller and buyer, adding that Customs has no right to impose value, which is not in line with the Customs and Excise act.
He noted that it is not possible for vehicles that come from different countries and arrive at the ports to have the same value considering the different commercial level and freight costs.
“We, therefore, demand the immediate suspension of the VIN valuation system designed by Customs and review of same in consideration of the Nigeria Customs act. We also demand investigation and prosecution of those involved in this fraud, which has caused panic and destabilization of businesses at the Nigerian ports.
“The NCS is witness to the fact that members of AMDON have been supportive of all government policies that would eradicate smuggling of used vehicles, as we have demonstrated in all our meetings with the Customs management and we have always pledged our support to the NCS in every area that would bring development to the country,” he said.
He, therefore, debunked
Customs claims that the decision of implementing VIN valuation was taken in conjunction with the stakeholders, adding that motor dealers and customs licensed agents who are the umbrella bodies of persons involved in the importation of vehicles were not aware of any stakeholders’ engagements on the issue.
On his part, the chairman of Association of Registered Freight Forwarders Nigeria of Nigeria (AREFFN) PTML chapter, Chief Emmanuel Ohambele, also said VIN will encourage smuggling of vehicles through the land borders.
He also said that the policy if not well factored by the Nigerian Customs, would lead to job losses, especially among Nigerian youths.
Ohambele stated this in a chat with journalists in Lagos on Friday, saying that importers would now start using the port of neighbouring countries again.
Going down memory lane, he said that a similar policy was introduced by the Customs in 1995 and this was what amplified smuggling of goods through the land borders.
According to him, within a short space of time, the Cotonou economy was on high increase.
The AREFFN Chairman expressed worries that the revenue that supposed to be generated into the government coffers would be going to other neighbouring countries.
Reacting to the call for strike notice by agents, the Comptroller Festus Okun, Customs Area Controller (CAC) of Port Terminal Multiservice Limited (PTML) Command in Lagos, described the Vehicle Identification Number (VIN) valuation mode being implemented as one that will increase transparency, raise revenue collection and engender predictability.
Comptroller Okun, who described the improved mode of duty collection on vehicular cargo as being in line with modernisation of the service processes, also said it will bring about uniformity of value across all customs commands in Nigeria
According to him, it will eradicate human contacts, remove discretionary duty value borne out of sentiments and address the problem of having variations in value of same vehicle model and age in various commands of the NCS.
While urging importers, licensed customs agents and freight forwarders to open up their minds to the new reality, Okun said it will not only increase collection as it will facilitate trade by saving time.
The freight forwarders said that the VIN valuation system was not only outrageous but not within the mandate of the Service, noting that the act establishing the Nigeria Customs Service mandates the Service to collect certain percentage as duty on the price of goods and nothing more, and that anything outside this is fraudulent and unconstitutional