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Car dealers, freight forwarders lament high cost of clearing

Blessing Oziwo by Blessing Oziwo
July 5, 2022
in Business
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Vehicle dealers and freight forwarders have lamented the high cost of clearing goods at the Tin-Can and PTML Ports despite the suspension of the vehicle identification number (VIN) valuation policy.

They expressed concern that the cost of purchasing vehicles might double in the coming months if the Nigeria Customs Service (NCS) remained keen on calculating duty based on the VIN.

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The Trumpet recalled that the NCS had announced a 30-day suspension of the VIN valuation policy, following protests and strike embarked upon by clearing agents and vehicle dealers. P

resident of the Association of Motor Dealers of Nigeria, Metche Nnadiekwe, warned that if the Customs failed to permanently cancel VIN valuation, the cost of purchasing imported vehicles would more than double.

Nnadiekwe said despite the suspension, a Toyota Corolla that is usually cleared for N800,000 before the introduction of the VIN policy at the Tin-Can port is now being cleared for N1.4 million, describing the situation as worrisome.

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“I don’t know what our government enjoys in seeing Nigerians suffer. If you force dealers to pay a certain amount, they will transfer the cost to the buyers. The best thing is to cancel VIN valuation completely rather than suspending it for 30 days,” he said.

On his part, General Secretary of the association, Theo Olaniran, said the middle-class now finds it difficult to afford vehicles, while urging the Federal Government to consider guidelines that would be favourable to the Nigerian masses.

Freight forwarders have confirmed that despite VIN suspension, the cost of clearing vehicles has not abated. Factional Chairman of the Association of National Licensed Customs Agents (ANLCA), Tin-Can chapter, Mohammed Mojeed, said clearing agents now pay about N60, 000 higher than what they used to pay before the introduction of VIN.

“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 N60,000,” he said.

Tags: Vehicle dealers and freight forwarders have lamented the high cost of clearing goods
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