Despite suspension of VIN, cost of clearing vehicle still high, motor dealers, freight forwarders lament
Motor dealers and freight forwarders have lamented the high cost of clearing vehicles at the Tin Can and PTML Ports despite the suspension of the controversial Vehicle Identification Number (VIN).
They expressed fear that the cost of purchasing vehicles may double by next month if the Nigeria Customs Service (NCS) decides to commence calculation of duty based on the VIN.
Recall that the NCS had announced 30 days’ suspension of the VIN valuation policy, following an outcry and strike action embarked upon by clearing agents and motor dealers in some parts of the country.
In a chat with our correspondent, the President Association of Motor Dealers of Nigeria, Mr. Metche Nnadiekwe, said that if the NCS fails to permanently suspend the VIN valuation, the cost of purchasing imported vehicles will double.
Nnadiekwe informed that despite the suspension, a Toyota Corolla that is usually cleared for N800,000 before the introduction of the VIN policy at Tin Can port is now being cleared for N1.4 million, he described the situation as worrisome.
He said, “I don’t really know what our government enjoys in seeing Nigerians in tears, I believe before introducing certain policies they should involve the stakeholders; where we will come and make our input known, not after they have gone inside to plan, they now come outside to begin to implement it and after seeing the reaction of the people, they now begin to call for stakeholders meeting, which is very wrong. The VIN is a monster because I don’t know the kind of money that we want to make because Nigerians are the ones who will suffer for it.
“If you force the dealers to pay a certain amount of money, you will find out that whatever amount is spent to bring in that vehicle, they will transfer it, so the buyers will suffer it. The best thing is to suspend the VIN completely and not for 30 days because if they fail, prices of vehicles will double, let them suspend it completely, because there is tension in the land. If you go to Tin Can now a different thing is happening there, a car that is supposed to be cleared for N800, 000 is now being cleared for N1.4 million.”
On his part, the General Secretary of the Car Dealers Association, Mr Theo Olaniran, informed that the NCS has promised to come up with new guidelines on the VIN valuation, he said the guidelines will determine the cost of vehicles in months to come.
He added that vehicles are now difficult to get for the middle class while urging the federal government to consider guidelines that will be favourable to the masses.
Meanwhile, freight forwarders who spoke to our correspondent also confirmed that despite the VIN suspension, the cost of clearing vehicles has not abated.
Speaking with our correspondent, factional Chairman of ANLCA Tin Can chapter Alhaji Mohammed Mojeed noted that what clearing agents pay now is about N60,000 higher than what they used to pay, that is before the introduction of VIN.
“Ordinarily, before the VIN Valuation was introduced, we have been kicking against the value Customs has been giving, because we don’t actually know where they got those value. The transaction value always varies. Customs has data and they use that data to give us a value. But if we are to key into the new value being given by the Customs, it will create a very serious headache for us. That is why we are saying we are not kicking against the VIN Valuation, but they should use transaction value. So that at the end of the day, we would know that what we are paying for is not different from what you are buying.
“People are trying to comply with what the Customs is giving us now, in order not to lose their goods. We currently have a variation of about N50,000 to N60,000 higher than the one we are paying before,” he said.
However, on his part Rev. Alex Nwokedi; the Financial Secretary Association of Registered Freight Forwarders of Nigeria (ARFFN) told our correspondent that vehicles below the year 2011 now pay lesser duty, stating that 2011 vehicles and above are the ones that still have a higher duty when compared to what they were paying before the introduction of VIN.
He said a 2004 vehicle with a duty paid value of N274,000 before the introduction of VIN now has a lesser value, stating that it cost only about N250,000 to clear the same vehicle now.
