Following the decision of Nigeria Customs Service’s to increase customs duty on imported vehicles by 10 per cent, the freight forwarders have hinted that there may be congestion of imported vehicles at the Nigeria seaports
The agents, who spoke to newsmen in Lagos on Sunday, kicked against the decision of the customs service, stressing that they are quick to effect the10 per cent increase in duty but failed to apply the 10 per cent yearly depreciation value on the imported used vehicles
Nnadi Ugochukwu, the Deputy President of the National Association of Government Approved Freight Forwarders, said, “Importers have to pay based on 2014 model even if the vehicle is a 2008 model. So, It is true the NCS has raised duty to 2014, normally their new calendar is supposed to start by March.
“This has made imported vehicles to become trapped at the port, Customs increased duty by 10 per cent, but refused to implement the 10 per cent annual depreciation.
“So, if you look at it now, you have to pay 10 percent more. It refuses to implement the 10 per cent annual depreciation value on imported used vehicles; they are now making a 10 per cent increase every year.”
Nnadi expressed fear that the move would lead to a drop in vehicle imports.
Geoffrey Nwosu, Chairman of the Port & Terminal Multipurpose Limited chapter of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria, also speaking on the development, said “The Customs has hiked their duty to 2014 baseline starting this January. Even when we wanted to clear 2008 we were paying for 2013. The depreciation on it should be automatic.”
Meanwhile, Mr Timothy Adebowale, a licensed Customs agent, wondered while the service failed to effect depreciation value rate on 2014 vehicles, saying the service was meant to effect yearly depreciation value on vehicles.
Timi Bomodi, the National Public Relations Officer, NCS, while reacting to the development said the decision was based on government fiscal policy on age limit.
“Nothing has changed fundamentally from the age limit policy of the Federal Government. I don’t think it is necessary, these people know the rules. We don’t need to start this year like that, people are trying to see that things work out the way it should and if we are trying to see that things work out the way it should, we don’t need to be hitting ourselves over the head, we don’t need all those things. We just need to do our work and at the end of the day if it favors some people fine and if it doesn’t then they should know what the proper thing is,” he concluded.
