Auto Policy: Customs Express Worry As ‘Accidented’ Cars Flood Lagos Port

There are indications that importers of used vehicles and car dealers may have fashioned a new way of short changing the Federal Government on payment of 70% duty on new imported cars as stipulated in the automotive policy of 2014.
Investigations by Shipping Position Daily have revealed that many of them now import ‘accidented’ vehicles for the simple fact that it pays about 20% less duty of what a ‘clean’ car will pay.‎
The Federal Government had in 2014 introduced the Auto Policy which stipulates that imported new vehicles must pay 70% duty, a policy which operators vehemently kicked against.
Shipping Position Daily can however report exclusively that the popular car park 'C' at the Tin Can Customs is now filled with accidented vehicles‎, even as customs sources confirmed to our correspondent who visited the park last week that the Controller of the Tin Can Customs, Bashir Yussuf is alarmed at the influx of such badly-damaged vehicles into the command.
The source said that government is currently losing huge revenue as a result of the trend.
‎He alleged that some of the importers deliberately go for such cars abroad because "it is ridiculously cheap"
"If you buy one that is okay on the stand, it is the same price they will buy the accidented car, and government is losing huge revenue, so who is a fool? Why won't they make profit for themselves" the source said.
The situation is also prevalent at the PTML Command and other RoRo vehicle terminals across the port.
Public Relations Officer of the Tin Can Command of Customs; Mr Chris Osunkwo ‎confirmed to our correspondent‎ in a telephone chat over the weekend,‎ that the present economic situation has driven importers into the act. He said accidented vehicles enjoy duty rebate.
He said the cars pay less duty according to their year of manufacture.
"There are parameters in our vehicle data base that are applied according to the law"
"Every brand new vehicle must come with a Pre-arrival Assessment Report (PAAR) while used cars and accidented don't come with PAAR"
"We know that the accidented cars are quite cheaper abroad, some of them are sold as scraps, we customs are even trying, because some of the importers would want to bulldoze their way through the port saying the car is accidented, but we insist they pay because there are rules guiding it and the rule must apply" Osunkwo said.
A car dealer at one of the Auto Shops at Berger Yard along Apapa expressway, Osita Agim explained why importers now prefer to import accidented cars. He said the car is cheaper abroad, and it pays less duty at the Nigerian ports unlike a complete car.
He however said in Nigeria, "the accidented car is often sold at the same price with new ones at car shops, you can barely notice it, you can only find out if you are experienced in detecting the spraying colour and the pattern" he said.
"We buy it from abroad because it is cheaper and it pays lesser duty here. The 20% off the duty is even too low compared to other countries, but at least we now have a way of recouping", he said.
Also confirming the‎ trend to our correspondent, a frontline clearing agent and Vice Chairman of Tin Can Island Chapter of Association of Nigeria Licensed Customs Agent (ANLCA); Mrs Ada Akpunonu said a lot of accidented cars are now flooding the port because importers can no longer afford to buy clean cars‎.
She said they would rather come back to Nigeria and repair and sell the accidented vehicle.
She however argued that "when you are going to buy a car and  you see an accidented car that has been repaired you will definitely know"
‎"Definitely you will know an accidented car that has been sprayed,  it would not be the same, the spraying is not the same, but it is only an experienced person that will know" she said