Business

Reps gives conditions customs will meet or risk suspension of duty system on imported vehicles

Let Abejide, House Committe Chairman on Customs

….Says VIN issues reduced vehicles import, revenue generation

By Ezurike Ugochukwu

The much talked about Vehicle Identification Number(VIN) valuation system of the Nigeria Customs Service (NCS) has drawn the ire of the House of Representatives Committee on Customs and Excise as it has insisted on certain procedures to meet.

The Honourable members directed NCS to strengthen it’s Vehicle Identification Number (VIN) valuation system or risk the suspension of the exercise.

Ali inspecting guard of honour

The Committee members drew this as part of the recommendations contained in a report it presented to the Comptroller General of the Nigeria Customs Service (NCS), Col. Hameed Ali (Rtd), in Abuja on Monday.

The controversial VIN that has drawn NCS and freight Forwarders against each other over time now is the system used by customs to collect duty on vehicles imported into the country, based on their year of manufacture.

The Chairman of the house committee, Leke Abejide, said it’s report was based on observations and interactions with customs officers under Zone A, Lagos, during oversight visits to the various commands in the zone.

The lawmaker while Presenting the report stated that the committee had observed how the impasse over VIN valuation was pitching customs against importers, licence agents and other stakeholders operating at the nation’s ports.

The committee particularly lamented how the issue was affecting revenue generation at Tin Can Island Port, Lagos which depends more on vehicles imports revenues.

The report reads in parts: “Revenue of the command is fluctuating due to VIN Valuation that is said to be of two types: standard and non-standard.

“This creates problems for operators of the command being an automobile port as importers abandoned their vehicles while some diverted to other neighbouring countries.

“Some refused to ship. The command may face dwindling revenue in a short while. If the VIN can’t be streamlined into one within this week, the committee will recommend for its suspension pending (the time) it works as one system.”