Freight forwarders have highlighted why imported fairly-used vehicles are commonly cleared from seaports and even land borders in Nigeria, than any other cargo.
A cross section of practitioners revealed that clearing of vehicles, most especially used ones are less-cumbersome when compared to items like general cargoes, bulk cargoes, containers and even wet cargoes.
Although, when used or new vehicles are containerised, it takes more days to clear when compared to conventional Roll on Roll off (RORO) items.
Freight forwarders have highlighted why imported fairly-used vehicles are commonly cleared from seaports and even land borders in Nigeria, than any other cargo.
A cross section of practitioners revealed that clearing of vehicles, most especially used ones are less-cumbersome when compared to items like general cargoes, bulk cargoes, containers and even wet cargoes.
Although, when used or new vehicles are containerised, it takes more days to clear when compared to conventional Roll on Roll off (RORO) items.
According to the freight agents, who spoke with Auto Port Weekly, many practitioners are involved in clearing of used vehicles because it is the easiest and fastest way to make money, as far as the vehicles’ declaration is genuine.
One of the common challenges faced in the process of clearing used vehicles from the ports and land borders is under declaration; whereby an importer would want to reduce the year of manufacture of the imported vehicle.
For example: an importer might choice to document a Toyota Camry model of 2006 for 2002 which according to the Customs Excise Management Act (CEMA) is illegal, thus creating problems for the freight agent.
However, new vehicles imported into the country undergo longer procedures when compared with fairly used cars because PAAR documentation is required for new vehicles.
Freight agents disclosed to Auto Port Weekly that even though 48 hours clearance of cargoes in the Nigeria ports is not achievable yet, imported used cars takes just three days to clear from most terminals, especially PTML.
While other cargoes like containerised, general cargoes and others are cleared from the ports with millions of Naira, used cars can exit the ports or land borders with less than half a million Naira.
Operations Manager, Virtues Marine and Freight Services Limited; Mr. Okafor Chukwuma confirmed that clearing of vehicles from the ports is faster because it enhances customs examination at the terminal.
He said fairly-used vehicles can be cleared from the port and borders because of the relatively transparent nature of the transaction.
Okafor explained that vehicles with personal effects attract additional customs duty, adding that it is not a barrier in the process of clearing.
He further maintained that containerised cars spend more days at the ports and more money are payable on such vehicles as well.
Okafor explained that there is no booking for imported used vehicles, stressing that booking for examination is determined and arranged by the customs.
The operation manager reiterated that, "I charge N350,000 to clear a Toyota Camry of 1999 with surface duty of N140,000, shipping company and terminal operator put together will collect at least N40,000 ,coupled with other miscellaneous after that your vehicle is out of the port under three days."
"The clearing of cars is less cumbersome than both wet and dry cargoes respectively, "he stated.
On his part, Honey Wealth, Manager, Mr. Olawale Adebayo said that document required to clear a used vehicle is not much, when compared to imported new vehicles and other consignments.
According to him, there is less stress in clearing vehicles than other consignments and that is the reason behind the large number of practitioners who limit themselves to vehicle clearance.
He noted that the difference between clearance of cars and other consignment is wide, stressing that cars are less stressful to clear.
The manager added that, "due to the introduction of PAAR, new vehicles can take one week before exiting the port, while used cars can take only three days".
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