Imported Vehicles: Stakeholders react to 90-days clearance grace

BY GBOGBOWA GBOWA

Industry stakeholders have commended the federal government announcing a 90-day window for regularizing import duties on specific categories of vehicles with the Nigeria Customs Service.

The initiative which was announced by the Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edu has been described by the Nigeria Customs Service as a proactive move to enhance compliance and streamline import processes.

According to the directive of by the federal finance ministry, this initiative applies solely to vehicles imported into Nigeria where the requisite customs duty has not been fulfilled or vehicles detained due to undervaluation.

Making clarifications on the directive, the NCS Spokesman, Abdullahi Maiwada in a statement had explained that seizures that have been forfeited to the federal government is not entitled to the relief.

“While we strive for inclusivity, it is important to clarify that vehicles seized and condemned will not be released under this arrangement and shall be forfeited to the Federal Government in accordance with extant regulations.

“All vehicle owners, Importers/Agents seeking to regularize import duties on their vehicles are required to apply to the Zonal Coordinators (Zones A, B, C, D) and CAC FCT Command. They must submit the necessary available documents and process Vreg in line with the Federal Ministry of Finance directives for the registration of imported motor vehicles.

“Valuation and assessment of the vehicles will be carried out using the VIN valuation method. Import Duty and a 25% penalty shall be paid in tandem with the import guidelines, procedures, and documentation requirements for used vehicles under the Destination Inspection Scheme in Nigeria (2013) and the Nigeria Customs Service Act 2023. Also, duty payments must be made using the Procedure Code specifically created for this exercise”, adding:

“This initiative reflects our unwavering commitment to facilitating compliance. We encourage all stakeholders to capitalize on this opportunity within the stipulated timeframe.”

Reacting to the development, the leadership of the Association of Nigerian Licensed Customs Agent, ANLCA commended the federal government and urged Nigerians to take advantage of the kind gesture.

The gesture according to ANLA Vice President, Prince Segun Oduntan is nationalistic and robust, even as he urged citizens to see the development as a second chance at fulfilling civic responsibility.

“This is not about our association but about every Nigerian, and for us, we received the news with a mixed feeling, because we are largely very obstinate. If Nigerians can listen to the voice of reason and make efforts to go and pay the better, because there is nothing good in smuggling. It is sad that some people think that they are smart and can run, you see, no matter how fast you can run, the long arm of the law can still catch up with you.

“If we are law abiding, we can only live at peace, you know that before, you cannot take vehicle through Sagamu axis…they will stop you on the road and be asking of customs papers. It is embarrassing, nobody does that in a law abiding environment. So, we are supposed to have gone beyond that stage and the customs is telling us that they have gone past that and want citizens to do same.”

Prince Oduntan argues that the redeeming exercise will further deepen the sense of quiet and safe driving culture on pour rods and highways; by eliminating conflicts and attempts to escape through rough driving that puts the lives of other road users at risk.

“It’s just like not stopping you on the road but that does not mean that you should speed more than necessary to avoid being caught. In the advanced world, police don’t chase after people like mad, there are inbuilt security systems that will bring you out. There you know where to run 30kilometers, 40 kilometres and sixty kilometers per hour; if you exceed the speed limit, the law will catch up with you. So, we should make effort to embrace this olive branch being offered by government.

“Why l said it is with mixed feelings, you know people always think they have escaped, that is the thinking of the typical Nigerian, we don’t like to do the needful. This is a second chance for everyone that had his vehicle cleared and released through illegal means, to come out and redeem whatever they have done wrong. Anything that is wrong is wrong.”

Also commenting on the development, a Port Harcourt based registered freight forwarder, Chidi Anthony Opara, FIIM, CDOA reacting to the development applauded the federal government gesture but faulted the 25percent penalty, saying the penalty may discourage those willing to step out from doing so.

“The 90-day grace period is a commendable respite, but why a 25% penalty?  Why giving a respite and at the same time penalizing?”

The cerebral freight forwarder argued that often delays associated with clearance is outside the control of the importers, and adviced the government to review the issue of penalty.

“Most of those vehicles have been at the points of offloading for sometime without the importers being able to take delivery of them, which is a kind of punishment. Demurrages, etc would have to be paid and so adding a 25% penalty would amount to double punishment.

“Like I said earlier, it is a commendable respite and the government should just collect its import duties and other relevant charges and forget the idea of a 25% penalty.”