Motor Dealers Urges FG to Suspend Automated Custom Duty on Vehicles

Hammed Shittu

The President of the Association of Motor Dealers of Nigeria  Kwara state chapter, Alhaji Abdulhamid Dare Abdul  has appealed to the Nigeria Customs Service and the Federal Government to suspend the VIN valuation automated custom duty on vehicles. 

The federal government through the Nigeria Customs Service (NCS) had recently announced a 31-day suspension of the electronic valuation system for imported vehicles, which came two weeks after clearing agent associations at Lagos ports embarked on an indefinite strike, over what they described as frustrations occasioned by the implementation of the e-valuation system or VIN by the Customs.

The development however led to thousands of imported vehicles to become trapped at the Lagos ports due to the withdrawal of services by the striking clearing agent unions.

Among other issues, clearing agents alleged that the Customs had used the e-valuation system to hike duties on imported vehicles arbitrarily.

However, speaking on the state of the nation, the President, Association of Motor Dealers in Nigeria, Kwara state chapter,  Alhaji Abdul. said that, “the policy is capable of pushing many car dealers into smuggling which might destroy the gains recorded in the automobile market”.

He said that, “the new system runs afoul of the enabling law which the Nigeria Custom is using in its implementation, and as such calls for its suspension pending review and involvement of all stakeholders which the motor dealers is also part of.”

According to him “Base on the aftermath effects on our businesses, especially the intended car buyers, the implementation of this policy will automatically lead to geometrically hike in purchase of vehicles, which will grossly destabilize the gains already recorded in the automobile business. 

“In view of this, the Association of Motor Dealer therefore call on the federal government and the Nigeria Customs Service to for the sake of Nigeria citizens, suspend this policy and liase appropriately with all relevant stakeholders to arrive at an acceptable value.  We wish to reiterate that what the law mandates the customs to collect is some percentage on the purchasing price of vehicles and not depreciating cost of vehicles,” he said.