Confusion has continued to trail the 20 per cent reduction in import duty on fairly used vehicles by the Nigeria
Customs Service (NCS).
This follows as importers and agents abandoned releasing their vehicles at the RoRo Port, while seeking Customs explanation on the confusion in the different commands over the implementation of the duty reduction.
The Customs had last week adjusted the ECOWAS Common External Tariff (CET) trade portal on vehicles under HS Code 8703 and reduced it to 20 per cent duty rate without any official communication to the stakeholders.
The Trumpet learnt that the Customs area comptrollers and some senior officers at various commands were also in a state of confusion as no communication was passed to them from customs headquarters.
Contrary to statement issued by the National Public Relations Officer of the Customs, Timi Bomodi, that there was no reduction in duty rate for vehicles, findings at the Tin Can Island Port showed that the system was still
reflecting 20 per cent in duty payment.
Since last Friday, clearing agents to importers have refused to release vehicles, even though some of them have paid duty based on 20 per cent.
The customs valuation officers were reported to be issuing 35 per cent to clearing agents to play safe, but on the other hand, they urged the agents to pay according to the 20 per cent on the system.
Chairman of one of the freight forwarding associations, who pleaded anonymity, said: “Those that have been paying duties based on 20 per cent since last week Friday, none of them have released their vehicles, they are still at the port. Some of the bonded terminals like Classic Bonded Terminal are already putting alerts on the job.
“Nobody has been able to define what the 20 per cent reduction is all about, the customs failed to communicate with us, we don’t know if the reduction on the system has come to stay or not, for now, nobody knows what is going on. Even the Customs Area Controllers cannot say exactly what is going on, so it is difficult to reach a conclusion.”
But Vice President of Association of Nigerian Licensed Customs Agents (ANLCA), Dr. Kayode Farinto, has advised all freight forwarders not to capture their vehicle with 35 per cent duty rate.
According to him, the changes in the customs system and subsequent reduction in duty to 20 per cent was never done in an error as claimed by the customs spokesman.
“The true position is that the rate of duty on used vehicles with HS code 87033320 is now 20 per cent. Hence, we advice all freight forwarders not to capture with 35 per cent again.
“Secondly, even the HS code of Fully Built vehicles that agents used last week (HS 87033319 has been changed on the system to 20 per cent this morning.
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“It is obvious that the management of NCS has flouted WCO’s directives to always inform stakeholders and carry them along on issues of operations, basically because it wants to meet its targets by pretending ignorance that the trading community deserve to be informed of any changes on it.
“We have advised and urged the Federal Ministry of Finance, to always put the freight forwarding associations on notice on changes as regards operational matter and policy issues since the present management had failed to do so.
“The trading community has the legitimate rights to know of such changes. We thank you for your patient, while we await the Customs to issue a formal circular in this regards,” he said.
