VIN valuation: Agents protest, cripple ports economy
…Protesting agents are hypocrites — Customs
…No going back — Agents
By Seun Ibiyemi
Clearing agents crippled economic activities at the Lagos ports with protest at the Tin Can Island Port and PTML Terminal over the anomalies in the Vehicle Identification Number (VIN) valuation system policy introduced by the Nigeria Customs Service (NCS) for imported vehicles.
This is even as the agents however failed in their bid to extend the protest to Apapa Ports, Nigeria’s busiest seaport.
As at 4 p.m. on Tuesday, placard-carrying agents were seen refusing to go for cargo valuation exercises at the PTML and Tin-Can ports axis, singing solidarity songs to drive home their agitation against the VIN policy of the Federal Government.
The Association of Licensed Customs Agents (ANLCA) says it is not backing down on its protest over the Vehicle Identification Number (VIN) policy, until the Nigeria Customs Service (NCS) heeds its requests.
Alhaji Rilwan Amuni, the Task Force Chairman of ANLCA, made the assertion in an interview with journalists in Lagos on Tuesday, as their protest entered the second day.
“Today, Tuesday, is our second day of protest and we will continue the protest until the NCS authorities tell us what we want to hear from them.
“We are not saying that the policy is bad, but the implementation is our problem. A vehicle duty that we pay N200, 000 before, we now pay N1 million because of the policy, that is not right, they should go back to the status quo,” Amuni said.
Chairman, PTML chapter of Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Comrade Jude Darrick Ige told journalists that plans are ongoing to also cripple operational activities at Kirikiri Lighter Terminals (KLT) on Wednesday adding that the associations have agreed to shut down port operations.
According to him, the peaceful protest will be systematic in approach adding that the protest may likely extend to Harvey Road, Yaba, Lagos.
But the National Public Relations Officer, Nigeria Customs Service, DC Timi Bomodi while reacting to the protest by agents on VIN valuation in a statement late on Monday, accused clearing agents of hypocrisy in the demand for uniform value on imported vehicles.
“In recent times the consensus among clearing agents on the valuation of used vehicles appear to favour a harmonised value system that is consistent across all Customs platforms in Nigeria.
“They insisted that the same make, and model of cars should be made to pay the same amount of duty. These agents also demanded the discontinuation of the discounted value method which allowed for the subjective considerations of officers in the Customs Valuation Unit who rely mainly on the book value of vehicles discounted at a fixed rate over time.
“They demand standardisation but prefer randomised values. They demand simplification of trade processes but prefer a little complication here and there. This lot, the contradictions in their demands make sense so long as it translates to the payment of the least tax to the government. Their propensity to give advice but not to take it smacks of hypocrisy and should be called out by well-meaning Nigerians,” the Customs National Spokesman said.
According to Bomodi, before the introduction of the VIN policy, a town hall meeting was held across the country about the benefits, adding that the service was confident that the innovation in its clearing process will satisfy the desires of agents clamouring for change.
“Before the introduction of this tool, town hall meetings were held across the country stating its benefits, one of the greatest being trade facilitation. Following the demands of agents for a simplified system that recognises standard values, NCS was confident that this innovation in its clearing process will satisfy the desires of agents clamouring for change.
“The resistance to VIN-Valuation, therefore, comes as a surprise seeing that it was deliberately designed to meet their demands. It also compels us to investigate further the intentions of those protesting its use. When our Valuation officers gave out ex-factory prices for duty assessment they were accused of collecting monetary inducements to give lower values.” Bomadi explained.