Following the 28.7 per cent increase in Nigeria Customs Service (NCS)’s duty from $422.30 to $589.49, import- ers will pay a total of N508 million ($677, 350) on 1,150 units of used vehicles laden in four vessels between this month and July.
Findings revealed that the new charges represent a difference of $167.70 or 28.7 percent from the old rate of $422.30. The Nigerian Ports Authority (NPA)’s shipping position revealed that the four vessels, which arrived the Port and Terminal Multiservices, Limited (PTML) this month with used vehicles are Grand Mercury with 300 units; Silver Sky, 250 units; Grande Togo, 300 units and Grande Cameroon, 300 units.
It was learnt that on Saturday, the service increased the official exchange rate it uses to calculate import duties barely nine months it increased the tariff was jerked up from $409 to $422.3, an increment of $13.3.
The Secretary of Association of Nigerian Licensed Customs Agents (ANLCA), Tin Can Island Port chapter, Barr Ovien Imonitie, explained that the new customs exchange rate effectively implied that there would be an increase in prices of goods and vehicles coming into the country through the seaports and land borders.
According to him, with the new rate, duty payable on a Toyota Camry, which was N901,000 has been increased to N1.27 million, while Venza was increased from N1.63 million to N2.28 million, stressing that duties on a Toyota Corolla which was N786,000 has been raised to N 1.097 million. Imonite advised all clearing agents to adjust their Custom duty payment on all imported goods.
Also, the Public Relations Officer of the association, Comrade Omome Monije, confirmed that importers and customs agents would pay more duties because of the increment. She explained that the increase would affect vehicle clearance, advising that agents should engage their clients to forestall disagreement.
Monije added: “The Federal Government has increased the dollar exchange rate from N422.30 to N589.45 to a dollar. What it implies in simple terms is that, if clearing agents have a Debit Note as at Friday last week which has not been paid on the system or Pre-Arrival Assessment Results (PAAR) or they have given you the value and you have not captured, it has affected you directly on Monday.
“Once there is a change in the portal, there is nothing anybody can do about it. But if you have captured or access your work, you are good to go and your consignment would be released for you if you don’t have any infraction.
“Whether you have collected your value, whether you have a PAAR, if you have not done your assessment as of now, you can’t capture with that old rate. Especially for the Roll-on Roll- off (RoRo) or those that are doing PAAR door to door. It is a Federal Government policy. We stakeholders can’t do anything for now.”
She added that it was the prerogative of the Federal Government to intervene and stabilize the foreign exchange market. Also speaking, a Cargo consolidator, Jayeola Ogamode explained that it would heighten vehicle smuggling at the various borders.
He added that the essence of restriction on vehicle imports through the land border would be defeated, saying that Customs had no technology to track smuggling at the borders. Ogamode said that the duties charged by Benin Customs were cheaper, saying that the Nigeria had the market to absorb their imports.
It would be recalled that before the closure of land border, more than 5,000 vehicled were smuggled through the land borders around Kpobe, Idiroko, Ijowu in Ogun State; Seme, Lagos State; Shaki, Oyo State; Daura, Katsina State and Baga, Borno State among others.
