In the bid to ensure that its revenue target is not badly affected by the currency devaluation which has caused the exchange rate to stand at about US$1 to N190, the Nigeria Customs Service has adjusted the exchange rate it uses in calculating payable duty on vehicles and other commodities.
Investigations carried out by Shipping Position Daily at major commands of Customs in Lagos on Monday showed that the exchange rate used for the purpose of import has risen to N165 as against the N155 that was hitherto in the customs system.
In the bid to ensure that its revenue target is not badly affected by the currency devaluation which has caused the exchange rate to stand at about US$1 to N190, the Nigeria Customs Service has adjusted the exchange rate it uses in calculating payable duty on vehicles and other commodities.
Investigations carried out by Shipping Position Daily at major commands of Customs in Lagos on Monday showed that the exchange rate used for the purpose of import has risen to N165 as against the N155 that was hitherto in the customs system.
Meanwhile the development has started generating reactions from importers and freight forwarders who have said that the increase in exchange rate has suddenly caused an increase in duty payable on cargoes, as well as the values issued by the customs.
Vice Chairman of the Board of Trustees of Association of Nigeria Licensed Customs Agents (ANLCA) Aare Sanni Shittu told our correspondent that, as a result of the current Naira devaluation, there has been tension in the port system. He said that the increase in exchange rate by the customs is a clear indication that the government does not want its revenue to be affected.
"There is tension all over the place, and the devaluation will be better managed than the austerity measure they are trying to introduce, the naira has been devalued, Nigerians are now made to suffer, how about the money they made when the economy was booming, how did Nigerians benefit", he pointed out.
Stressing the implication on the economy, he said it is what importers buy that they will sell, this according to him, "will affect the generality of Nigerians, it is very unfortunate because it will lead to increase in duty and more revenue to government, it is like robbing peter to pay Paul" he said.
Also, a chieftain of the National Association of Government Approved Freight Forwarders (NAGAFF) who pleaded anonymity confirmed to our correspondent that Customs has increased the exchange rate on its system and that it is now collecting N165 to US$1.
He condemned the action, saying that customs is not supposed to use the prevailing exchange rate in its commercial transactions.
The NAGAFF chieftain who operates at the PTML Chapter, the biggest vehicle importing terminal in the country, lamented that with the exchange rate now, the duty on cars have become very high.
"Are we supposed to be using what the exchange rate is saying against our commercial multiplication? It is the same customs officer that gives you value of your cargo to pay that turns around to query you in the system, he will raise debit note for you to go and pay another money, the one you paid before is gone"
"They are duping us, murdering people and saying that they are giving us value" he lamented.
Also speaking, Public Relations Officer of the ANLCA at PTML Chapter, Mr. Gani Adeola pointed out that even though the 35% duty of customs still remains, the money used in clearing of cargoes will increase because it is the exchange rate that is used to calculate the duty through the Cost Insurance and Freight (CIF).
"It is the exchange rate that is used to calculate the CIF to get the duty", Adeola said.
He added that "it is the fault of the Federal Government, this means that cost of cars will continue to increase at the market".
But, in a chat with Shipping Position Daily however, Chief Superintendent of Customs and Image Maker of PTML Command of Customs, Mr. Steve Okonmah said that the exchange rate is supposed to be determined daily based on the international indices.
He however said that customs had magnanimously decided not to use the accurate figure of N190 in other not to strangulate importers. He said that the service decided to increase the exchange rate in other to cover the gap that has been created in the figures due to daily fluctuations.
"By right, exchange rate is supposed to be determined everyday in the system, but we felt we should stick to a figure that has a face and that was why we have been working on N151, but by right, the exchange rate changes everyday and we are supposed to use it"
"Customs is not applying it because if importers are given the normal exchange rate they cannot stand it, but now that dollar has gone up to N190 there is a slight shift to N165 which I think is still normal" he said.
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