Customs clearing agents in Apapa, Tin Can and PTML commands ON Monday staged a peaceful protest against what they called the hasty implementation of the Federal Government’s policy on used vehicles, which basically states that 35 percent flat duty rate plus a levy of 35 percent will be charged for all vehicles imported into Nigeria.
Attempt by the Nigeria Customs Service to commence the total implementation earlier this year, was resisted by Customs clearing agents, with the full support of importers. This resistance prompted the government to suspend the policy, only for it to subtly resurface in March 2014. However, the 35 percent levy aspect of the policy was suspended until 1st of July, 2014 when it is expected that the full policy will fully come on stream.
The sudden introduction of the flat rate 35 percent duty rate across board by the Nigerian Customs Service, coupled with the jerking up of the Ex-factory price, got the agents infuriated and they decided to take their destiny in their own hands. The protest was specifically against the valuation units of Apapa, Tin Can and PTML Commands, in the first instance.
The action of the protesters forced the valuation units heads to hold an emergency meeting on how to handle the situation, such that it will be acceptable to both sides of the divide.
It was basically understood that the Federal Government introduced the policy and Nigerian Customs were under obligation to implement the policy. However, a solution had to be found in such a way that revenue due to government is not completely lost.
With this view, leaders of ANLCA had to dialogue with the command’s management, in order to resolve the crises of confidence between the Agents and Customs. Importantly, the policy by the Federal Government, it was emphasized, was introduced without carrying the agents/importers along. If that has been done, a smooth implementation would have been a fait accompli.
An amicable resolution, it seems, from the dialogue sessions, is in sight. Hopefully, this shifting of positions will ensure that normalcy returns to the Ports soonest. Whilst the protest against the valuation units was on, activities in the Ports grounded to halt, as no transaction took place during the period.
A total reversal of the policy may be the most sensible thing expected of the Federal Government on the automobile policy. Else what happened on Monday portends far reaching implication, as we approach the July 1st 2014, the expected full implementation date.
