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Duty hike: Used vehicle imports fall by 40%

The Ports & Terminal Multipurpose Limited Command of the Nigeria Customs Service has reported that the introduction of the Vehicles […]

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The Ports & Terminal Multipurpose Limited Command of the Nigeria Customs Service has reported that the introduction of the Vehicles Identification Number (VIN) for clearing imported vehicles resulted in a 40 percent decrease in the number of imported vehicles in 2022. The outgoing Controller of the command, Acting Assistant Comptroller General Suleiman Bomai, shared this information on Tuesday while briefing journalists about the command’s activities over the past year. He noted that the command generated N229 billion in revenue for the Federal Government in 2022, which accounted for 96 percent of the N238 billion revenue target set for that period. This figure also represented an increase of N5 billion compared to the N224 billion collected during the same period in 2021.

Bomai acknowledged the significant drop in roll-on-roll-off importation, stating that shipping lines could confirm this trend. Despite the decline, he emphasized that the revenue generated remained substantial. He attributed the decrease in automobile imports to government policies, particularly the implementation of the VIN. He highlighted that approximately 80 percent of the cargo handled by the terminal consisted of vehicles. To address the challenges posed by the VIN valuation, the customs command engaged in dialogue with strategic stakeholders to foster understanding and cooperation. Additionally, Bomai mentioned the strengthening of relationships with sister government agencies and ongoing collaboration with private sector stakeholders in line with established standard operating procedures.

One of the major challenges faced by the command in 2022 was the absence of functional scanners, which hindered the efficiency of cargo examination. Bomai explained that this situation necessitated 100 percent physical examination of containerized cargo. He expressed hope that as the customs modernization project progresses, scanners would be acquired to facilitate faster cargo inspections. He also noted that the limited available space within the command was being managed, with expectations that PTML management and bonded warehouse operators would expand operational spaces in the future.

In terms of exports, the command handled commodities such as cocoa, sesame seeds, palm oil, and other food items, totaling 178 metric tonnes with a free on board (FOB) value of $249 million in 2022. This was an increase from 2021, when the command recorded approximately 147 metric tonnes with a total FOB value of $1.4 billion. Bomai reiterated that the command’s total revenue for 2022 was N229 billion, representing about 96 percent of the revenue target of N238 billion set for 2021 and reflecting a 2.2 percent increase compared to the previous year. He noted that despite challenges such as agent strikes and difficulties faced by some importers in clearing their vehicles, the command was able to surpass its revenue collection from 2021.

Furthermore, Bomai highlighted the command’s diligence in conducting thorough cargo examinations and utilizing intelligence to uncover attempts to smuggle arms and ammunition concealed within imported vehicles. During the review period, four seizures were made, which included a 40-foot container containing three vehicles used to hide two firearms, a used Ford Edge containing a firearm and 30 rounds of live cartridges, a used Toyota Sienna with a firearm, and a used Toyota Corolla containing 90 rounds of live ammunition. Six suspects were arrested in connection with these seizures and were granted administrative bail, with a total duty paid amounting to N36 million.

Ifunanya

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