Clearing agents operating in the nation’s maritime industry have blamed the high import duty placed on vehicles for irregularities observed in the importation process.
This assertion comes in light of the recent 90-day window provided by the Nigeria Customs Service to regularize import duty payment on specific categories of vehicles imported into Nigeria.
The clearing agents called for the suspension of the National Automotive Council (NAC) levy on used vehicles, attributing the irregularities in importation to the high NAC levy imposed on used vehicles.
They argued that the levy imposed on imported vehicles, has failed to achieve its purpose and has only burdened importers without adding any benefit to the automotive industry. They also lamented that the levy has added to the financial strain on Nigerians.
Recall that the Federal Government had initially introduced a two per cent NAC levy on imported vehicles to bolster indigenous car assembly plants and enhance local capacity.
But, the Nigeria Customs Service (NCS) in April 2022, announced an increase in the NAC levy to 15 per cent, a development which further added to the already-high cost of clearing vehicles in the country.
In a recent chat with our correspondent, Prince Segun Oduntan, Vice President of the Association of Nigerian Licensed Customs Agents (ANLCA), emphasized the need to scrap the 15% NAC levy, stating that its removal would significantly reduce the cost of vehicles. He highlighted the burden faced by importers due to high levies, urging the government to consider its impact on stakeholders.
Speaking specifically to the recent 90-day grace, he said: “Customs have asked those who did not pay duty to come and regularize their papers. Before, all the embarrassment where they stop people on the road and seize their vehicles, Customs don’t want to go back to that era again. So they said if you know you are not doing proper documentation, come and go and do it within 90 days. But we are appealing that the 25% levy on these vehicles should be scrapped. Once that one is scrapped, the duty of the vehicle will come down”
Also speaking, Mr Adeyinka Bakare, President of the National Association of Freight Forwarders and Consolidators (NAFFAC), echoed Oduntan’s sentiments, condemning the NAC levy and its role in inflating the cost of vehicles. He emphasized the importance of policy adjustments to ease financial strains on importers and facilitate smoother trade operations.
Also speaking with our correspondent, Ayokunle Sulaimon a member of ANLCA expressed dissatisfaction with the NAC levy, noting that it has not contributed positively to the automobile industry.
“We have not seen any difference that it has made. Initially, we were talking about reduction. But having deep analysis, we discovered that it plays no important role. So, it should be scrapped. I stand to be corrected, let the government and its agencies come out and tell us what the NAC levy has achieved. The people collecting the money need to be investigated because no one has been able to convince us that this money has been utilised judiciously. We are the ones paying the money. I won’t call it a scam until an investigation proves that,” he said.
Meanwhile, when our correspondent contacted Abdullahi Maiwada, the National Public Relations Officer of the Nigeria Customs Service, regarding the exchange rate to be used in calculating import duty during the 90-day window, he stated that duty calculations would be based on the prevailing market exchange rate. Maiwada emphasized compliance with the Nigeria Custom Service Act 2023, Section 627, subsection 1A, underscoring the importance of transparent and standardized customs processes.
