The Chairman, Senate Committee on Customs, Excise and Tariffs, Senator Hope Uzodinma, has urged Federal Government to review its Automotive Policy to check irregularities by vehicle manufacturers in the country.
Uzodinma made the call when he visited Kewalram Chanrai Group Automobiles in Lagos last week.
He said that review of the policy would enhance the industry’s contribution to the national economy, especially in transportation of people and goods.
The lawmaker said that the visit was part of the committee’s investigation of activities of automobile firms to find out whether the policy was implemented or not.
He explained that the essence of the policy was to subsidise production activities in Nigeria to encourage local manufacturing of products.
“Suddenly, people are taking advantage of that good intention of government and have abused the policy,” he said.
He decried that the automobile company was more of “an empty warehouse” rather than an assembly plant.
“They are bringing these goods as either Semi-Knocked Down (SKD) or Completely-Knocked Down (CKD).
“The little revenue that government would have collected through Customs is lost by these practices,” he said.
On his part, Assistant Comptroller of Customs, Zone A, Lagos, Mr Aminu Dahiru, said that the duty of Customs was to implement import and export policies and not the automotive policy.
“Our follow-up on the implementation of the automotive policy is very limited,” Dahiru said.
Meanwhile, the committee is blaming the Nigeria Customs Service for granting assembly plant owners zero duty on new imported vehicles.
Chairman of the Committee said during its oversight visit to the customs in Tin Can Island Port, Lagos that the practice had resulted in over N5 billion revenue leakages.
“The major vehicle import comes from Tin Can Island. Government approved the automobile policy to encourage local assembly plants in the country.
“Apart from the Chinese branding in Nnewi, Anambra by Innoson Motors, 90 per cent of vehicle importers enjoying the status of assembly plants are traders.
“They bring in most of these new vehicles into Nigeria through Tin Can Island in the name of Complete Knocked Down (CKD) parts.
“These vehicles are cleared by you, that is, the customs. And they are cleared at zero duty tariffs,’’ he said.
He noted that some shipping companies and authorities outside the country had confirmed that such vehicles were fully built vehicles.
“We want you to place on hold such containers, invite the owners to open them so that for once, we can confront those behind this illicit act,” Uzodinma.
He added that genuine vehicle importers, who were levied 35 per cent duty, were forced to import vehicles through Cotonou port.
The lawmaker said that the Lagos port was very important and critical to the nation’s economy as it concerned some of the fiscal policies of government.
He explained that these policies, which were meant to facilitate trade and stimulate the economy, had become “drain pipes” due to the illegal practices.
“This situation is greatly unacceptable to government,” Uzodinma said.
In his remarks, Customs Area Comptroller at the Port, Musa Abdullahi, said the port lacked basic infrastructure such as scanners, regular electricity, examination bays and warehouse facilities, among others.
He noted that the port had recorded continuous drop in revenue over the past two years.
According to him, the port collected N256 billion in 2016 which was below its N275 billion target, while it received N287 billion in 2017, lower than the N310 billion expected.
“About N51 billion was collected from January to February this year out of the target of N354 billion proposed,’’ he said.
Abdullahi said the port seized 108 containers of prohibited goods, drugs and vehicles in the past two years.
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