• Friday, April 26, 2024
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BusinessDay

Vehicle dealers slam Customs for losses suffered over business shutdown

cars

Vehicle dealers across Lagos State have condemned the Nigeria Customs Service (NCS) for shutting down their businesses in search of cars smuggled through the land borders.

Affected dealers including Elizade Motors-Toyota Nigeria Limited, Stalion, Coscharis and Globe Motors, described the action as harassment and an attempt by Customs to label them as smugglers.

While bemoaning the massive losses suffered since the action by Customs, the dealers said that as responsible citizens, they contribute to economic growth through job creation and payment of taxes and duties worth over N20 billion to the Federal Government on annual basis.

They however wondered why Customs only focused on dealers in southern part of Nigeria when smugglers, who contribute next to nothing to the economy are having a field-day in the northern part of the country.

For instance, to clear recent models of cars like Toyota Corolla, it costs over N3 million duty; Toyota Prado SUV, costs over N9 million; one Land Cruiser costs over N15 million as import duty; one Lexus SUV takes N18 million as duty; and G-Wagon cost about N21 million as duty.

Therefore, a dealer that has about 70 cars pay an average of N10 million per car, which is about N700 million.

Willie Anumudu, chairman of Globe Motors, who stated they were taken aback by Customs’ action, said they are yet to have clearer view of what is happening.

He said Customs used to come to their offices to take inventory of their stock, and check chassis numbers but this time was to seal their shops.

Speaking on the issue, an official of Coscharis Group, who pleaded anonymity, said Customs action will be counterproductive to government’s foreign investment drive.

The official said Coscharis represents international companies of repute that would not be involved in smuggling of vehicles.

“As a responsible entity, we do cooperate with all agencies of government. If Customs needs any information about our business, they should have asked rather than sealing our showrooms before calling us for a meeting,” the official said.

Another dealer, who sells luxurious cars in Ikeja, who also spoke on condition of anonymity said cars are smuggled into Nigeria with connivance of corrupt Customs officers.

According to him, “We are not smugglers, we bring in our cars through the ports and pay duties. We add to the economy by creating direct and indirect employment. In my office alone, I have over 20 staff. Clearing agents, mechanic, licensing agents all depend on us for survival,” the dealer said.

He said genuine businessmen cannot continue to suffer because of corruption and inefficiency in Customs.

“Customs has not told us why they locked our shops. We have complied 95 percent with the rules guiding importation of cars through land borders. Nobody is bringing cars through Cotonou anymore because we all know what the rules are,” the dealer said.

 

AMAKA ANAGOR-EWUZIE