With the implementation of VIN valuation, agents can sit in the comfort of their offices and process the clearance of their vehicles.
By Uzor Odigbo
Clearing agents, vehicle importers and the Nigeria Customs Service (NCS), on Thursday, unanimously agreed to the redeployment of the suspended Vehicle Identification Number (VIN), Valuation policy on Saturday.
In a sensitisation programme on the re-launch of VIN Valuation by the Nigeria Customs Service (NCS), in Lagos, the clearing agents under the aegis of the Association of Nigeria Licensed Customs Agents (ANLCA), National Association of Government Approved Freight Forwarders (NAGAFF) and National Council of Managing Director of Licensed Customs Agents (NCMDLCA) among others agreed that the platform which will facilitate the quick clearance of vehicles from the seaports should be redeployed by the weekend after grey areas have been solved.
The VIN valuation policy, which was first introduced in January 2022, hiked the duties payable on fairly-used vehicles by more than 200 per cent and was resisted by clearing agents.
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This led to protests that had the ports and activities around it shut down for about two weeks and created a backlog of uncleared vehicles at the PTML and Tin-Can Island ports, thereby forcing the NCS to suspend the policy for 30 days.
However, speaking on the redeployment, the Apapa Customs Controller, Comptroller Yusuf Malanta, who said the Service remained committed to the VIN valuation policy, however, assured that all areas of concern would be addressed as implementation commences.
Noting that the importance of automation in Customs processes cannot be overemphasized, Malanta said with the implementation of VIN valuation, agents can sit in the comfort of their offices and process the clearance of their vehicles.
He said, “Automation of Customs process is very essential and valuation of vehicles is not out of place. Now agents can sit in the comfort of the office and process the clearance of their cargoes. The world is going digital and Nigeria cannot afford to stay behind watching people take advantage of digital technology for business facilitation. If there is anything we need to adjust, let us know. We will adjust it but there is no going back on the VIN Valuation.”
“Teething problems are expected when there is a new deployment. But I can tell you there is an improvement from where we are before and now. It is a transitional process so measures have been put in place to create a help desk to address any challenge, particularly the issue of auto-release and request for the hard copy of valuation assessment for agents,” he said.
On his part, Controller PTML Command, Comptroller Festus Okun, while highlighting the benefits of the policy to both clearing agents and Customs said with the VIN valuation, there will be uniformity of value, predictability and convenience creating a win-win situation for both parties.
“The Customs Service has just built into our processes and procedures the basic principles of taxation which entails uniformity, fairness, predictability and all host of others. With this VIN valuation, there would be uniformity and predictability. There will be certainty and convenience, convenience in the sense that you don’t need to queue in front of anybody before you will get your value, you can do that in the comfort of your house and these are the basic principles of taxation. We have always been talking about trade facilitation and this means of applications of modern techniques into processes and at the same time improve on the quality of control in a harmonised manner.
“I employ everyone not to see what we are going to as a case of a win and pay, we should be on the same page. We should work together to see that this thing works in an environment that would promote trade and everybody will be beneficiary,” he said.
In his remarks, the acting national president, ANLCA, Dr Kayode Farinto, said the introduction of the platform will enhance unified valuation for clearance of vehicles in the nation’s seaports.
He, however, charged clearing agents to be Compliant saying increased compliance by clearing agents will lead to the Introduction of auto release by the service.
He said, “this is a welcome development and it will lead to the unification of customs duty on imported vehicles, but we also need to be Compliant because it is when we are compliant that customs will move to auto-release. We must increase our level of compliance to get auto-release which happened to be our right.
Also speaking, the Public Relations Officer, ANLCA, Port and Terminal Multiservices Limited (PTML), Suleiman Ayo, said though there will be a teething problem during the deployment, the service should create an Alternative Dispute Resolution (ADR) and help desk to help resolve the issues.
According to him, the deployment of the VIN Valuation policy will stop the interception of already cleared vehicles on the road by other Customs Ad-hoc units such as the Federal Operations Unit, Comptroller General of Customs, Strike Force Unit and Customs police.
He said, “They can deploy the policy over the weekend as agreed, but all our complaints should be looked into properly. ADR and help desk should be created but with the VIN Valuation platform, Customs and clearing agents will now be on the same page as under the table dealings will stop, Customs FOU, CGC Strike Force as well as Customs Police harassment if vehicle owners as there will be uniformity in Customs valuation and duty payment. Suleiman, however, warned against server breakdown, a situation he advised the service to guard against.
“There should be a backup mechanism. They should look into system collapse because the system is technology-driven,” he said.