The Nigeria Customs Service (NCS) has thrown its weight behind importation of accidented vehicles into the country. It added that although the practice is making the service to lose revenue, it is however creating thousands of indirect jobs for auto mechanics and other artisans.
Available data indicate that, in 2020 alone, Nigeria imported used vehicles and motor cycles valued at N1.28 trillion. There are insinuations that, a large chunk of these numbers are salvage or accidented, which requires auto mechanics, panel beaters, rewires, painters and other artisans to refit and make them ready for sale in the country.
The Customs was reacting to a story published in Shipping Position Daily last Monday about how the Federal Government was losing billions of naira yearly through the slash of 50% on revenue collectable on imported accidented vehicles.
Its position was conveyed by the Public Relations Officer of the Nigeria Customs Service at Tin Can port, Uche Ejesieme who told our correspondent that, although service does not make policies, but only follows the directives of the Federal Government.
He nevertheless, argued that the directive to allow accidented vehicles into the country has created thousands of indirect jobs for auto mechanics and other artisans who work on the accidented vehicles after they are imported into the country.
Ejesieme explained that although it seems as if the federal government was losing from one end, but it is actually gaining from the other end, through creation of jobs.
According to him, “we as Customs only follow policies of the government and in this wise, Customs has no control over what anybody imports, if you bring accidented vehicles, the law is very clear on how to deal with accidented vehicle’; they must enjoy 50% rebate, if it’s not accidented you pay full duty. So for now pending when we have a circular to that effect, we will continue to treat them as such.
“If you are losing from this end, there is tendency for you to gain from the other end as far as the trade value chain is concerned”
“You know the assumption is that government could be losing as a result of the fact that most vehicles come in as accidented and I will disagree, because if you are losing from this end, there is tendency for you to gain from the other end; as far as the trade value chain is concerned.
“We are concerned about the role of the auto mechanics and other artisans that are working on these vehicles. I can imagine the volume of work that has been created along the value chain and these ones are benefiting”
So if you look at all these, even though it looks as though you are losing from one end, on the other end it also seems to be gaining seriously”
“The auto mechanics, the panel beaters and other artisans who work on these vehicles for their daily bread also generate employment, even though they are not in the formal sector”, he stated.
He explained that there are factors the Customs consider before a vehicle is declared accidented.
“There are two major factors we look at before we can treat a vehicle as accidented; first and foremost there must be a salvage certificate from the country of export; a salvage certificate declaring as such and also on physical examination we must see very clearly that the chassis must be seen to be affected and also beyond that the airbag, but we don’t actually place too much emphasis on the airbag, because we know with any small force the airbag can come out, so we don’t compromised standard” he said .
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