Despite lamenting the arbitrary charges by shipping companies and terminal operators, coupled with the supposedly high customs duty on imported vehicles and the needless delay in the clearing process, stakeholders in the nation’s seaport have said that vehicles cleared from Nigeria are fair better than that cleared from neighbouring ports in Benin Republic and Togo.
This verdict was made last week in Lagos by importers, fairly used auto dealers and freight forwarders who are involved in the auto business.
Despite lamenting the arbitrary charges by shipping companies and terminal operators, coupled with the supposedly high customs duty on imported vehicles and the needless delay in the clearing process, stakeholders in the nation’s seaport have said that vehicles cleared from Nigeria are fair better than that cleared from neighbouring ports in Benin Republic and Togo.
This verdict was made last week in Lagos by importers, fairly used auto dealers and freight forwarders who are involved in the auto business.
Though vehicles that are cleared at ports of the neighbouring countries are relatively cheaper, but the risk involved is very high even when the necessary customs duties are paid.
An Importer, Chief Andy Okorie, disclosed to Auto Port weekly, that since the reduction of age limit of vehicles from 10 to 15 years by the federal government, he has stopped importing vehicles through the neighbouring ports.
Okorie said that government’s initiative towards the reduction of age limit on vehicles imported into the country has made stakeholders to embrace Nigerian seaports which in turn is boosting Customs revenue collection to the federal government.
He said that with the policy, smuggling of vehicles into the country has reduced when compared to the years when age limit used to be 10 years.
According to him, even with the lower customs duty that is paid when vehicles are cleared from Cotonou or Lome ports, the risk involved is high and most time, such vehicles are damaged while on transit, which will in turn negatively affect the final price.
He said, ‘’the federal government has been fair enough to ensure that vehicle importation in the country meet the age requirement in order not to be impounded by Customs and it has helped everybody in the business and I must confess that clearing of vehicles from Tin Can port is better than that of our neighbouring ports in West Africa’’.
Corroborating this, a freight forwarder, Chidozie Mba explained that even though there are challenges in the RORO port of the country, but it is better to do business in Tin Can port than go to Cotonou to buy or to clear.
Giving a vivid explanation about the dangers involved in the clearing of vehicles from other ports outside Nigeria, Mba said that the vehicle can be confiscated by Customs and other agencies of the government, adding that such vehicles can also lose their value as a result of scratches and other damages that may occur on its way to Nigeria.
According to him, the price of a Tin Can Island port-cleared Nissan Pathfinder 2003 compared to that of other neighbouring port is quite different, stressing that the profit of Cotonou- cleared vehicle is higher after it might have been sold to buyers, but if you prefer to clear from Tin Can port, you have with rest of mind.
He also added that the RORO port in Nigeria has improved over the last few years, even with the increase in charges by the shipping companies and terminal operators.
Mba stated that some of risk associated with trans-border clearing include; snatching of the vehicle at gun point, seizure by the Customs when duty is not paid, loss of lives on the part of the driver and injuries.
In terms of delay, the agent said that the clearing process at Nigerian port is still considerable than that of neighbouring ports, saying it is Nigerians who are used to the system, but called for improvement from the terminal operators in Nigeria ports.
Similarly, Director of Sunrise Motor, Pastor Uzor Andrew said smuggling of vehicles into the automobile market has drastically reduced stressing that the policy has made stakeholders to cultivate the habit of doing business in the nation’s ports.
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