VIN: Hard time ahead as importers seem set to transfer N650m on Nigerians

Hard times seems to be awaiting Nigeria in the coming weeks as importers are ready to transfer over N650 million demurrage which they (importers) have incurred on vehicles that are trapped at the seaports and terminals as a result of the controversy over the implementation of the Vehicle Identification Number (VIN) valuation system by the […]

Hard times seems to be awaiting Nigeria in the coming weeks as importers are ready to transfer over N650 million demurrage which they (importers) have incurred on vehicles that are trapped at the seaports and terminals as a result of the controversy over the implementation of the Vehicle Identification Number (VIN) valuation system by the Nigeria Customs Service.

Daily Trust reliably learnt that the number of vehicles currently trapped at Tin-Can Island Port and PTML are well over 13,000. 

Freight forwarders had embarked on strike action penultimate Monday over the implementation of VIN valuation system.

The Service back-tracked about a week later as it held a stakeholders’ meeting in Lagos to address the grievances of the freight forwarders. The meeting however ended in deadlock.

But Daily Trust observed that the ongoing strike is now having a toll on the nation’s economy owing to the about 13,000 vehicles currently trapped at the country’s second largest and busiest seaport.

Daily Trust reliably learnt that the trapped vehicles have incurred over N650m demurrage which the importers have vowed to transfer to Nigerians if government refuses to ask terminal operators to waive off the accumulated demurrage.

They blamed the Nigeria Customs Service for the ongoing crisis, noting that the VIN valuation system is tailored to extort more money from Nigerians.

They also said that the service has violated its act by increasing values on cargo, which they claim is not within the mandate of the Customs management team.

Public Relations Officer of the Association of Nigerian Licensed Clearing Agents (ANLCA), Tin-Can Island chapter, Onome Monije, said the duty of the Service is to collect duty as recommend by government and not increase duty on import.

“The Customs act is very clear on this issue. The management team of the Service has violated its on act. They should halt the implementation of VIN in the interest of the nation.

“The strike will continue until they (Customs) listen to the voice of reasoning,” she added.

Also, some importers under the aegis of NdigboAmaka Progressive Association, Southeast Lagos, in collaboration with the Shippers Association of Lagos State (SALS) on Wednesday, said about 12,000 imported vehicles are now trapped at the different terminals in Lagos due to the ongoing strike action.

The importers said the trapped vehicles have already incurred N600m in demurrages and other charges.

Speaking during a joint media briefing organised by NdigboAmaka Progressive Association and Shippers Association of Lagos State (SALS) on Wednesday in Lagos, Chairman SALS, Reverend Jonathan Nicol, expressed dissatisfaction over the haste at which the VIN policy was implemented.

“The VIN regime must be discarded and be suspended immediately. They must make sure that all the trapped vehicles are given accelerated clearance from the ports without major demurrages because the challenge was not created by importers.

“These 12,000 vehicles attract daily demurrages and shipping line charges and that is quite enormous by the time you quantify how much importers are paying for demurrages; it is amounting to over N600m. We cannot continue to accommodate such expenses anymore.

“Never in history has the Nigeria Customs Service (NCS) made over N1trn as Customs duty and now they are making N2trn. Is that not enough for them? The VIN policy is pathetic and we think enough is enough,” he added.

On his part, the President of NdigboAmaka, Dr Jude Ringo Okeke, said colleagues in the Freight Forwarding business have been having running battle with the Nigeria Customs Service and other government agencies in the clearing of their consignments, noting that the barrage of complaints has reached its pinnacle as they cannot bear it any further.

“We are not with them (Customs) in this VIN regime. We want to be consulted in major decisions affecting our businesses. We shall not hesitate to shut down the markets if decisions like this involving the traders, importers and majorly the public is done without our input as critical stakeholders,” he threatened.