By Joshua Yousouph
Findings by Shipping Position Daily have revealed that Customs duty on imported vehicles at Lagos ports has been increased by almost 30 percent. This is even as clearing agents say they enjoy a 50 percent waiver of duty since the reversal of the controversial Vehicle Identification Number (VIN) Valuation policy by the Nigeria Customs Service (NCS).
Recall that the NCS officially announced the suspension of the implementation of VIN valuation policy that was recently introduced on imported used vehicles. However, there have been insinuations by some clearing agents that despite the reversal of the VIN policy, there is still a hike in the duty payable on the imported vehicle clearance.
The Financial Secretary of the Association of Registered Freight Forwarders of Nigeria (AREFFN) Rev. Alex Nwokedi said that as against the previous duty, there have been some adjustments with about N10, 000 differences. He said according to the Customs platform, the basic duty for an upgraded Toyota Corolla 2007 model is N266,000 while 2010 models pay up to N420,000 as basic duty. Vehicles like the 2010 model of Lexus EX 330 will pay not more than N436, 000.
Nwokedi also noted that Mercedes and Lexus vehicles are rated very high. According to him, Customs charge higher duty on such brands with about N200,000 differences from the previous duty.
“This is not the former price, there is just a little money added to it. There are some adjustments like about N10,000 difference. But those vehicles from 2011 upwards, especially Lexus and Mercedes are the ones upgraded. If you were paying N500,000 before, you now pay N700,000” Nwokedi noted
On his part Mr. Pius Ujubuonu, a clearing agent at Tin Can Island Port, noted that with the reversal of the VIN policy by Customs, there has not been much difference in the duty for imported vehicles. He noted that duty for vehicles from 2011 models downwards is still ‘regular’, but models from 2014 upwards have a marginal difference of about 28 to 30 percent increase, which it is based on Nigerian market value and not international market value.
Ujubuonu also disclosed that vehicles from 2014 upwards are the ones having higher duty. But the value is still a subjective value. He said this is because any vehicle that is more than five years old does not have any international value anymore.
In his words: “With this reversal, there hasn’t been any much difference than what caused the disagreement with the Customs and clearing agents. The issue still remains that even VIN Valuation is in total disagreement with what Customs Legal Notices stipulate. A Toyota Corolla 2014 model is around One million naira, the difference between what it was and now is not much. There is not much difference. Before the reversal, to clear a 2011 model would have been above N2 million but they have reversed it and it has come back into the status quo.
“Vehicles from 2014 upwards are the ones having higher duty. But the value is still a subjective value. This is because any consignment that is more than five years old does not have any international value anymore. Some countries don’t even allow vehicles beyond five years.
“After the reversal, the duty for vehicles from 2011 models downwards is regular, but from 2014 models upwards there is a marginal difference of about 28 to 30 percent increase and it is based on Nigerian market value not international market value” Ujubuonu said.
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Also speaking, the Chairman of the National Association of Government Approved Freight Forwarders (NAGAFF); PTML Chapter, Mr. George Okafor noted that clearing agents now enjoy 50 percent waiver of the duty. He noted that there is a chart provided by customs where each duty to be paid is specified according to vehicle type and year of manufacture.
“Customs has made it in a way that when you get to the chart, you will know what you are to pay. You will be asked to pay with a 50 percent waiver. There is a chart that contains every vehicle, its year, and type, with a specific dollar amount. When you convert the dollar to naira then you get 35 percent of the amount and minus 60 percent from it to get the remaining one.
“Formerly, we were not dealing with percentage. You can remove 30 percent and a Customs officer can still use his own personal consideration to give you value. But now, it is based on a personal description. The description is 30-50 percent”, Okafor said.
An importer at PTML, Mr. Wole Obe noted that there was a compromise earlier but after the reversal, agents now pay the same amount at Tin Can and Apapa ports for duty. He noted that agents are being asked to pay 50 percent of what is on the Customs database.
“The duty is not the same as before, if anyone tells you it is the same, then the person is telling a lie. When you check Customs data, we are being asked to pay 50 percent of what is on the Database” Obey said.
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