Following the ban on importation of vehicles through land borders as announced by the Nigeria Customs Service (NCS) on Monday, terminal operators have called for the review of import duty payable on imported vehicles to help the new policy realise its set objectives of discouraging smuggling.
The terminal operators, who spoke under the aegis of the Seaport Terminal Operators of Nigeria (STOAN), commended President Muhammadu Buhari for the ban, and also appealed to the President to return the import duties on vehicles to 20 percent from the prohibitive 70 percent tariff imposed by the former administration of President Goodluck Jonathan in 2013.
“The reversal will serve as an incentive for Nigerians to import legitimately through the seaports and make appropriate payments to government. This will boost revenue collection by the Customs and also lead to the return of lost jobs at the affected ports,” Vicky Haastrup, chairman of STOAN, said.
Haastrup also said the new policy, if well implemented, would reduce the smuggling of vehicles into the country and revive the operations of Roll-on-Roll-off (RORO) terminals that handle all types of vehicles, some of which were at the verge of shutting down since the implementation of the current auto policy that raised the duty paid on imported vehicles from 20 percent to 70 percent.
“We are confident of the ability of Mr. President to turn the economy around. The earlier ban on importation of rice through land border and now of vehicles is a welcome development. We are happy that the President has listened to our appeal to reverse incongruous policies inherited by his government from the former administration, and which have deprived Nigerian ports of cargoes to the advantage of the ports of neighbouring countries,” she said.
She appealed “to NCS officials at the border posts to support the Federal Government by ensuring that no smuggled vehicle finds its way into Nigerian market from January 1, 2017, when the new policy is expected to come into effect.
“Since the high tariff was introduced, importers have resorted to landing their vehicles at the ports of neighbouring countries and smuggling them into Nigeria without paying appropriate duties to government. This amounted to huge revenue loss to Customs and loss of more than 5,000 direct and indirect jobs at the affected port.”
Asconio Russo, managing director of PTML, Nigeria’s notable RORO, said his company was in full support of the new policy, which according to him, would increase the revenue of vehicle handling terminals and that of the Federal Government.
Russo however expressed hope for downward review of the duty payable on imported vehicles to spur Nigerians to import through the seaports.
Jonathan Nicole, president, Shippers Association of Lagos State, who noted that since 2014 when the current auto policy that brought about 70 percent hike in the tariff of imported vehicles came into effect, said Nigeria had lost 80 percent of its vehicles to ports in neighbouring countries of Benin Republic and Togo, therefore losing over N600 million annually to the policy.
Nicole further commended the ban in importation through land border, even as he added his voice to request from the Federal Government a slash in the current import duty to increase volume.
