CUSTOM DUTY ON OLD CARS ON THE NIGERIAN ROAD


CUSTOM DUTY ON OLD CARS ON THE NIGERIAN ROAD



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Custom duties are paid on cars at the point of entry into the country. Back-duty charges on old and already in-use cars is a new phenomenon.

CUSTOM DUTY ON VEHICLES:

Customs Duty is said to be a tariff or tax imposed on goods when transported across international borders; which could be land, sea or air. The purpose of Customs Duty is to protect each country's economy, residents, jobs, environment, raise revenue etc., by controlling the flow of goods, especially restrictive and prohibited goods, into and out of the country.

CUSTOM DUTY ON OLD CARS ON THE NIGERIAN ROAD

CUSTOM DUTY ON OLD CARS ON THE NIGERIAN ROAD

NIGERIA CUSTOMS SERVICES:

This responsibility in Nigeria falls on the Nigeria Customs Service whose visions are:

1. To excel in the efficient and timely collection of and accounting for revenue.
2. Implementation of and advise on Governmental trade and fiscal policies;
3. Promotion of trade facilitation;
4. Protection of Nigerian society, generation of accurate and precise statistical data by developing a professional, transparent administration that implements international best practices and obligations.

By every indication from the customs current actions in their decision to begin to custom-duty-wise re-validate all vehicles being used in Nigeria

NCS AND SENATE FACE-OFF:

Now A face-off may be brewing between the Senate and the Nigerian Customs Service (NCS), following the directive issued Thursday by the Senate that the Comptroller-General of the Nigerian Customs Service (NCS), Col. Hammeed Ali (rtd.), must appear unfailingly in full uniform to explain the decision by the Customs Service to stay the course on the ultimatum given to car owners nationwide to pay duties on their vehicles between March 13 and April 12, 2019, or risk having their cars impounded.

The NCS last week gave a one-month long grace period to car owners to visit payment points across the country to verify the status of their vehicles and pay duties if this had not been done.

            CUSTOM DUTY ON OLD CARS ON THE NIGERIAN ROAD

NIGERIAN LABOUR CONGRESS OPPOSES:

The Nigerian Labour Congress, through its President, Mr Ayuba Wabba, on Sunday in Abuja opposed the new directive by the Nigeria Customs Service, asking Nigerians to verify whether duties have been paid on their vehicles and pay if not already done.
Wabba, in a letter to the Comptroller General of Customs, Hameed Ali, said that the directive was unrealistic.

WEDNESDAY APRIL 12, 2017 DEADLINE:

The directive, which was published by Mr Joseph Attah, acting Public Relations Officer on behalf of the Comptroller-General asked motor dealers and private owners of vehicles “whose customs duty has not been paid to do so” between Monday, March 13 and Wednesday, April 12.

“There will be an aggressive anti-smuggling operation to seize as well as prosecute owners of such smuggled vehicles after the deadline of Wednesday, April 12, 2017,” Attah said.
Wabba said the NLC strongly opposed the directive.

“We are opposed to this new policy because it will create unimaginable chaos and suffering for innocent end-users of vehicles.
Wabba said a stage for all manner of endless verification and re-certification was being created in the country.
“It is self-serving and will, in the end, enrich unscrupulous Customs personnel who contributed, in no small measure, to the present situation through act of commission or omission and will amount to rewarding their complicity.
“It is common knowledge that duties on imported vehicles are payable at the points of entry.
“Subjecting end-users of vehicles to this kind of trauma, most of whom have no hand in the importation of their vehicles, is unfair and unacceptable.
“There is no information on the vehicles to be excluded from this exercise.
“This presupposes that the owner of a Morris Minor or a Peugeot 404 brought into this country in the 70’s is similarly affected.’’

              CUSTOM DUTY ON OLD CARS ON THE NIGERIAN ROAD



He said that vehicle owners were even directed to Customs offices in Lagos, Kaduna, Port Harcourt and Bauchi zones to certify if customs duty had been paid on their vehicles.
Wabba said a stage for all manner of endless verification and re-certification was being created in the country.

The NLC president said it was morally wrong to inflict on the citizenry this kind of discomfort.
He, therefore, advised the Nigeria Customs Service to shelve the plan.
“Lessons ought to have been learnt from the violent outcome of the brutal raids of Ota market, the ambushing and extorting of money from vehicle-owners on the high way at Yuletide.
“Porous borders, as customs claims, are no justification for these actions or proposed policy action.
“Accordingly, in place of this unpopular policy which has received condemnation from all sectors of the economy, the Nigeria Customs Service should devise a coherent response that will deal with these challenges.

“We believe such a response should focus on capacity building, modernising operations, using technology and eliminating massive corruption in the system.”
He said that officers and men should be inspired and incentivised in order for them to deliver on their mandate as well as meeting annual targets.

      CUSTOM DUTY ON OLD CARS ON THE NIGERIAN ROAD


NLC VIEW:

Wabba said that NLC was aware that one of the statutory functions of the Nigerian Customs Service was to collect tax on behalf of the government, often times in the form of duty on imports.
“As part of the civic and commercial responsibilities of both corporate and non-corporate citizenry, they are expected to pay appropriate duties on their vehicles as stipulated by law.
“Sadly, out of irresponsibility or sheer criminality, some devise ways to evade this responsibility; for instance, some take measures as desperate as `flying’ their vehicles into the country, thus denying government the needed revenue.

“We strongly hold the view that those who break the law or seek to break the law should be sanctioned to serve as a deterrent to others.
“The need to enforce tax laws in our country is all the more necessary because of social justice and dwindling revenue sources.
“Our support for the Nigeria Customs Service is not in doubt; if anything, the service should be encouraged to do its work well,” he said.

Wabba urged the Comptroller-general of Customs to have a rethink on the directive.

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