Sunny Ugorji, a stakeholder at PTML Terminal in Lagos, who specialises in clearing imported vehicles, said that the Customs policy has led to a reduction in the volume of vehicles imported into the country.
According to him, Customs Vehicle Identification Number (VIN) policy, which requires cars from the 2013 model down to 2000 to pay the same import duty, has automatically resulted in a reduction in bringing used vehicles into the country.
“Accidented cars that used to enjoy about 50 percent rebate in the past now pay the same import duty with cars that are in good condition. The money used in clearing vehicles is now costlier than the money used in buying the Tokunbo car oversea. I am currently processing a Volkswagen Golf that Customs gave an import duty of over N700,000. This was the same car that dealers used to clear with just N300,000.
“These were cars dealers used to buy with $1,500 and when the cost of shipment is added, it will amount to about $2,000, which was why a 2005 and below models of Toyota Camry that used to go for N1.6 million before, now cost about N3.5 million today,” Ugorji said.
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Pointing out that dealers are leaving the car importation business because of unfavourable government policies, he said that before the VIN policy, importers of accidented vehicles used to get between 40 to 50 percent rebate.
Citing an example, he said that an importer of a car with N500, 000 import duty would almost get a rebate of N250,000 if proven to be an accidented but the new policy has made it compulsory for everybody to pay the 2013 duty.
“This is why volume is declining as ships go to Cotonou Port to discharge about 4,000 vehicles only for the same ship to come to Nigeria with only about 80 units of cars but close to 90 percent of the 4,000 units of cars in Cotonou Port would still find their way to Nigeria despite the ban on the importation of cars through the land borders.
“This is the middle of October, which is about two months to Christmas and the volume of imports remains low. This goes to show a lull in business activities at the port. In the past, this is the time dealers bring in a lot of used cars for buyers who are waiting for Christmas.
“Presently, over 20,000 units of cars are currently trapped at the port since the new Customs Policy, and the government is planning to auction them at ridiculous prices,” he said.
While saying that the government is tightening the knot in such a way that the importation business is suffering, he urged the government to look into the complaints of importers by making policies that are business-friendly.
“Instead of auctioning the over 20,000 vehicles abandoned in the port for over six months that the new Customs policy started, the government can give the importers a special window to pay affordable duties,” he said.
