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Automobile kicks against 15% levy on used imported cars  

The Association of Nigerian Licensed Customs Agents (ANLCA) on Tuesday said that striking over 15 per cent National Automobile Commission (NAC) levy introduced on used imported vehicles would not solve the issue.  

Dr Kayode Farinto, National Vice President, ANLCA, stated this in Lagos while discussing issues in the port with journalists.  

Farinto said that the levy was recently introduced by the Nigeria Customs Service (NCS).  

According to Farinto, striking is injurious to the economy and, secondly, the various terminal operators and shipping companies will not waive off demurrage because it is not their fault.  

“So, it is rule of engagement and dialogue that we will be embarking on and we have started doing so.  

“NAC itself is a policy that was actually formulated to protect our local assemblers, thinking that by now, we will be able to produce Nigeria-made vehicles.  

“It is supposed to be 2 per cent of Cost Insurance and Freight on new vehicles or spare parts, but imposing NAC on used vehicles is an aberration and we will make sure we fight it from here to Abuja,” he said.  

He added that the Ministry of Finance instructed customs to implement the levy and so they would be meeting them to discuss the issue.  

On the Vehicles Identification Number (VIN) Valuation policy, Farinto noted that the agents association had met with customs and fine-tuned the grey areas, such as rebate, and urged them to factor in ‘accidented’ and salvaged vehicles.  

“We have legal notices that talk about rebate or usable and the notice is so explicit that it gives 10 per cent rebate per year as per usable.  

“This VIN Valuation policy is a lofty idea from us and we sold the idea to customs so as to have a uniform value across all terminals but unfortunately, customs input outrageous internet values.  

“In a normal clime, the over N700milion storages that Nigerians paid should have been paid by the service or they be dragged to court, but Nigerians are not litigious, everything is about God,” he said.  

He said during the meeting with customs, they urged them after fine-tunning the VIN, to test run in Lagos terminal for two weeks.  

On the Standard Organisation of Nigeria (SON) coming back to the port, the ANLCA boss said that it would help the fight against sub-standard goods in the country.  

According to him, if SON is allowed back in the port, the issue of them intercepting cargoes at Mile 2 or Area B in a commando-style most especially at odd hours like 1.00 a.m. will stop.  

He said that all these are impediments to trade, adding that SON, being part of the examination at the port, would address all these barriers, especially the issue of sub-standard goods.

ANLCA

Agents faults Customs’ 30-day window on vehicle evacuation  

The Association of Nigerian Licensed Customs Agents (ANLCA), on Wednesday, lamented the poor start to the 30-day window for the evacuation of vehicles trapped in the ports, issued by the Customs service.  

The vehicles were trapped due to the agitation of the agents against the Vehicle Identification Number (VIN) Valuation policy introduced by the NCS.  

Mr Michael Imonitie, Secretary, ANLCA TinCan chapter, said that the vehicle evacuation exercise did not start smoothly as it was faced with some challenges.  

According to Imonitie, the Customs did not give the directive on the modus of payment concerning values to be used for the evacuation.  

“It is unfortunate that the Customs do not follow the rule of law. Before the VIN valuation commenced, we were requesting an extension of time of 90 days to allow us to evacuate those vehicles, due to improper sensitisation by the Customs.  

“After the town hall meeting, it took the Customs almost one week to come up with the resolution based on the meeting and when they finally met on March 7, they decided to give 8th for vehicle evacuation to commence.  

“From that very day, the Customs were having challenges of having a uniform value to be used by all commands starting from Apapa, TinCan and Port and the Terminal Multi-services Ltd. (PTML) and extending to all the bonded terminals like Classic, Clarion.  

“Now, it took the additional two-days for them to meet, not until March 10 that they started issuance of valuation,” he said.  

Imonitie said that Five Stars Logistics Terminal gave concession that those vehicles that were already released and trapped had agents written the Terminal Delivery Order (TDO) to just take their consignments and leave.  

He said that those that had not written TDO would collect debit notes that had a 70 per cent waiver.  

Imonitie added that even with the commencement of the exercise, they noticed that the Customs did not go back to the status quo as some vehicles had an added value ranging from N20,000, N50,000 and above.  

“This new development is just to cause chaos within the system again. They are telling us that they have not still arrived at a benchmark on what value should be issued.  

“We are now asking them, why don’t they go back to status quo and all commands to come together and use the same template,” he asked.  

He said that agents had been taking their delivery, adding that the impression from the Customs was that they would be working on Saturdays and Sundays to help meet the deadline.  

“But, we believe that by the time normalcy returns let’s say in two weeks’ time, and see how far we have gone, I believe that there will be nothing stopping us from going for an additional extension of days.  

“We have to see that people comply first, key into it before we start any form of agitation on the date and timing given.  

“We all know that 30 days is not enough for more than 12,000 vehicles trapped in the terminal. Even now PTML alone has up to about 16,000 vehicles for us to talk about TinCan and Apapa,” he said.  

Mr Peter Akintoye, an ANLCA member, noted that vehicles trapped at the terminals were coming out gradually, only that they were faced with challenges of shipping lines not wanting to give waivers.  

He added that on the 30-day window given by customs, they are waiting patiently to see improvement in evacuation.  

He said that if by the next 20 days they see that it could not be feasible, they would meet the Customs in that regard.  

Akintoye noted that it was unfortunate that the issue being debated upon had to do with vehicle values not conforming to the expectations of the value of the vehicles in question.  

“When it comes to issues of price, there is provision, guidelines. The condition of the vehicle will determine the price that is how it is.  

“The prices cannot be the same and that is why we are saying that the Nigeria Customs should put professionalism in what they do.  

“Before now, we use to have an evaluation officer and it is that officer that will give the condition of these vehicles and say the actual value and that value should not be queried by anybody.  

“But, what we see this day is that the value will be given to you and the person giving it out cannot defend what is given out. And that is why we are seeing all these things,” he said.  

He decried targets given to customs by the federal government, stating that it would make them meet that target through any means which may not be favourable to agents.  

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Licensed customs agents vow to continue protest  

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The Association of Nigerian Licensed Customs Agents (ANLCA) on Thursday said its protest against Vehicle Identification Number (VIN) valuation policy would continue until resolution by the Nigeria Customs Service (NCS).  

The association began the protest on Monday.  

ANLCA’s Task Force Chairman, Alhaji Rilwan Amuni, made this known in Lagos.  

More than 6,000 vehicles have been trapped at the Roll-On-Roll-Off (RORO) Terminal, Port and Terminal Multiservice Ltd. (PTML) and Five Star Logistics Terminal, at the Tin-Can Island Port Complex.  

According to Nigerian Ports Authority’s Shipping Position, four vessels with over 8,000 vehicles are expected to berth at the Tin Can Island Port and the Apapa Port from  Feb. 24 to Feb. 28.  

Amuni said that the association was also discussing container demurrage matters with PTML and Five Star Logistics Terminal with a view to improving services.  

“We are not going back, the protest continues. They have not yielded to our demands and we are not ready to shift ground.  

“On the issue of demurrage on vehicles that are with the PTML and Five Stars Logistics, our leaders are in talks with them.  

“With this protest, we are trying to change a lot of anomalies; if the implementation of the policy remains, these terminals will go out of business.  

“If they don’t go out of business, there will be a sharp drop in the volume of consignment because you don’t expect an importer to buy something that he cannot sell or something he will sell at a loss,” he said.  

Amuni said that the outcome of the  protest would also favour the terminals.  

“Let’s talk of a Camry of 2007 model now, the clearing cost is going to over two million Naira.  

“How much will it be sold in the market? This is clearing alone, then you put the price that you bought the car, you are talking about five million Naira.  

“Who will buy the car and who will even dare to do such a business at a loss?” he asked.  

The official said that the situation would result in decrease in importation of vehicles and  could  push many Nigerians out of business.  

“it will not be good for terminals also; so, there is the need for them to reason with us.”  

“When we finish with customs, we will worry about the terminals and the demurrage. When we get the river, we will cross the bridge,” he said.  

“We started this protest from PTML since Monday, Tin-Can just joined. Media men were present, and all found out that we were orderly,”  Amuni said.  

Cargopix

ANLCA flays increase in custom rates for cargo clearing

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The Association of Nigerian Licensed Customs Agent (ANLCA) says the increase of customs exchange rate for cargo clearance by the Central Bank of Nigeria’s (CBN) is coming at a wrong time.

Mr Ojo Akintoye, the Chairman of Tincan Island Chapter of ANLCA said in Lagos on Wednesday that there is an already tensed atmosphere in the nation, coupled with the rising insecurity and the increase in cargo clearance rate will put more pressure on the already tensed situation.

CBN recently increased the exchange rate for cargo clearance from N381 to N404.97 per dollar.

He added that it would also lead to a hike in prices of goods in the market.

“To the best of my knowledge in cargo clearance, this increase will increase everything about cargo clearance in the country and in the long run, impact negatively on the prices of goods in the market.

“Government should understand that 30 per cent of cargo brought into the country are meant for commercial purpose and so the need to look inwards concerning the increase.

“We are still experiencing economic set back from the COVID-19 impact and this increase will add more hardship to the society.

“This is just not the right time for Government to go ahead and increase exchange rate for cargo clearance because presently, there is an increase  in  everything that Nigerians buy today,” he said.

Akintoye pointed out that 90 per cent of what was being used in the country was imported as the country did not produce anything, adding that there should be an alternative for what we do in the country.

He urged government to go back to the previous rate, adding that if the economy stabilises, they could increase and people would understand and not agitate much.