Customs raise import car charge, and the agents complain.

Following the Nigeria Customs Service’s decision to increase duty on imported automobiles by 10%, freight forwarders have warned that there may be a backlog of imported vehicles at the country’s seaports.

The agents charged the service of enacting a 10% duty hike but failing to apply the 10% yearly depreciation value on imported old vehicles in an exclusive conversation with our correspondent in Lagos on Sunday.

Nnadi Ugochukwu, the vice president of the National Association of Government Approved Freight Forwarders, questioned why the NCS began a new fiscal year in January when it was supposed to do so in April.

He stated: “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 voiced concern that the action might result in a decline in car imports.

Geoffrey Nwosu, the head of the Nigerian chapter of the Africa Association of Professional Freight Forwarders and Logistics, also spoke, he stated:

“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, a licensed Customs agent, Mr Timothy Adebowale, queried while the service failed to effect depreciation value rate on 2014 vehicles.

According to him, the service was created to reduce the value of automobiles’ yearly depreciation.

Timi Bomodi, the National Public Relations Officer for NCS, responded by stating that the government’s fiscal policy on age limits was the basis for the development.

He said, “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.