Used vehicles import crashes 40% with customs’ valuation scheme

Importation of used vehicles dropped by 40 per cent in 2022 following the implementation of the Vehicle Identification Number (VIN) valuation system by the Nigeria Customs Service (NCS).

In February, 2022, there was a disruption in commercial activities at the Tin-Can Island Port, Lagos, as freight forwarders protested the implementation of the VIN by customs. The service then suspended the implementation of the scheme.

The importers were then given a grace period to clear the backlog of vehicles grounded during the protest.

Speaking at a press conference to review the activities of the Port and Terminal Multipurpose Limited (PTML), acting Assistant Comptroller General of Customs (ACG), Suleman Bomoi, explained that importation of used vehicles through the terminal dropped by 40 per cent because of government trade policies such as VIN.

He said revenue of the command dropped especially from the PTML terminal where most vehicles were imported.

Bomoi further said that despite this, the command was able to collect N229.5bn revenue from the importation of vehicles from January to December, 2022.

According to him, the achievement was made through dialogue and engagement with clearing agents and their importers.

He explained that, “The figure is a 96 per cent revenue target of N238.3bn set for the command in the review period. The revenue collected is N5bn higher than the N224.5bn revenue collected in the corresponding period of 2021.”

He added that in the year under review, about 80 per cent of the cargo handled in the terminal were vehicles, noting that six suspects were arrested in connection with seizures and had been granted administrative bail.