Licensed Customs Agents Kick Against New Valuation System for Imported Vehicles

…Says N4.1Trillion Revenue Target Unrealistic


Licensed Customs Agents operating at Nigerian ports under the aegis of Association of Nigerian Licensed Customs Agents (ANLCA) Tin Can Island Port Chapter has kicked against the newly Introduced Vehicle Identification Number (VIN) Valuation system by the customs.

In an exclusive interview with source  at his office on Tuesday, Chairman of ANLCA at Tin Can Port Chapter, Alhaji Muhammed Mojeed kicked that the new VIN Valuation is not acceptable to the agents.

The VIN Valuation is a system that uses artificial intelligence to allocate appropriate values and taxes by using Vehicle Identification Number, VIN at the trader’s zone.

Even though he said that customs is yet to commence implementation of the new valuation system, he stated that the scheme was test-run at Brawal Terminal at Kirikiri and the result was not acceptable.

Speaking, Alhaji Mojeed said the 2022 revenue target of N4.1trillion given to the customs service is unrealistic because importation at the port have already dropped to 40percent.

On the new valuation system, he said “The VIN Valuation has not started yet, but few months ago, they tried to put it into the system as Brawal, from what we saw, it is not going to be palatable of they work it that way”

“What we need from the Nigeria customs is that, we have the former way by which they issue us valuations, they should be giving is the old value, not to go and exaggerate the price in the system such that we won’t be able to afford it”

“On 2007 vehicles, before now we were taking N250,000 as surface value, but with this new valuation system, surface value is now about N900,000 in the system. How many people can afford clearing such vehicle? It means you would be using N1.7million to clear a vehicle of 2007 which is not palatable and unacceptable.

“The only thing they can do is go to their old system, get the former ex-factory price input it into the system, this is what we have been paying before, by so doing, government would generate more money.

“Second hand vehicles do not have value, by CEMA, there is 10% yearly depreciation value on the vehicle, if a vehicle of 15years is now given N200,000 as surface value, it is a plus for the government. But customs is trying to come up with what we won’t be able to afford”

The ANLCA Chairman lamented that the N2.2Trilliom revenue target realised by customs in 2021 was realised through the blood of most importers and agents.

As a result of the armtwisting, he said many importers could no longer travel abroad to make importation again due to this high revenue target.

Now they are targeting another N4.1Trillion for 2022, where does government expect them to get that money? Already, importation has reduced to about 40% now, I don’t know where they want to get that N4.1trillion

“Any attempt to increase the value we are paying on these vehicles, we would not accept it.

“By government policy, vehicles older than 15-years are not allowed to come into Nigeria.
If the government should reduce the clearing cost of new vehicles, nobody wants to buy old vehicles, you cannot buy a vehicle for 1,000$ abroad and be clearing it here with 2,000$

“In cotonou, the newer the vehicle you are importing, the lower the revenue. Our government cannot be slamming high duty on our ports and expect people to patronise us.

“Many importers have even abandoned the vehicle business, there are so many cars out there now and nobody is buying them” he said

Source reported last week that the Nigeria Customs Service introduced the VIN Valuation in order to automatically determine the payable duty value of imported cars.

What customs need from the trader or his agent is to input the VIN number and the system will automatically access based on the available data across the world. it will bring out all data regarding the vehicle; the make, the year.

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