Customs reviews VIN valuation policy, commences implementation Saturday

The Nigeria Customs Service (NCS) said it has reviewed the controversial Vehicle Identification Number (VIN) valuation policy as it announced commencement of implementation with effect from Saturday May 20.

The policy, according to the Service has been amended to address some concerns earlier raised by clearing agents on accidented vehicles and hike in duties payable on imported vehicles among other challenges.

Speaking at a stakeholders’ meeting for the relaunch of the VIN valuation in Lagos on Thursday, Controller, Apapa Customs Command, Comptroller Yusuf Malanta, said the Service remained committed to the VIN valuation policy as Nigeria cannot afford to be left behind in embracing automation for facilitation of trade.

Noting that the importance of automation on Customs processes cannot be overemphasised, Malanta said with the implementation of VIN valuation, agents can sit in the comfort of their offices and process 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 their office and process 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.”

Comptroller Malanta assured that there will be continuous engagement with agents on the policy adding that a help desk would also be created to help address any challenge that could arise in the course of the deployment.

“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.

Controller in charge of Valuation at the Customs headquarters in Abuja, Comptroller Anthony Udeze, said the implementation of VIN valuation will not only facilitate trade but create a uniform value and simplify clearance of vehicles.

According to him, the Service has applied a human face to the values and have considered all options including accidented and salvage vehicles in the amended VIN valuation.

He assured that with the implementation of VIN valuation, cases of incessant alert and arrest of cleared vehicles from the port by operatives of the Federal Operations Unit on the road will be reduced to its barest minimum.

“VIN valuation is to facilitate trade. Right now, we have cases where values given by various commands are different, the cry for unification of value from the valuation unit made the Service deemed it fit to listen to this cry that value gotten from Apapa is different from TinCan and that of PTML and other commands. This is why the Service deemed it fit to deploy a system where the values will now be unified and simplified and thus its deployment will facilitate trade.

“Remember two months ago we deployed this valuation and there was outcry. The CGC in his magnanimity listened to the cry and set up a committee to review the process and the committee worked day and night to come up with something that would be acceptable by all. We drew up officers from various commands valuation units and today we can tell you that what we will present today will be acceptable globally.

“We have given a human face to the values, we have considered all options, accidented vehicles and salvage vehicles were all built-in. What we are presenting today is a uniformity and unification of values from all the area commands. The committee looked at various issues and at the end of one month we called stakeholders to a meeting in Abuja and showed them what we have done, they pointed out some areas in which we went back to work and put everything in place. We also invited the members of the House of Representatives to look at what we have done and they gave us a nod that we are good to go. And today, we are here to showcase and sensitise all stakeholders that VIN valuation has come to stay and after this, we are rolling out VIN valuation over the weekend. By Monday, if you are capturing on Saturday, you are going to apply the VIN valuation.

“I assure you that you will be surprised and happy to see what you will get. We have considered all the variants, all series of vehicles. What you get today will be more favourable to what you have been getting before,” he said.

Controller PTML Command, Comptroller Festus Okun while highlighting the benefits of the policy to both clearing agents and Customs said the Service through the VIN valuation has built into its processes the principles of taxation which include uniformity, predictability and convenience thereby 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 basics principles of taxation. We have always been talking about trade facilitation and this means the application 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 do as a case of 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 a beneficiary,” he said.

In his contribution, Controller, Tin Can Command, Comptroller Adekunle Oloyede appealed to clearing agents to be transparent saying that, “This is beyond Customs. Its benefits, if rightly implemented, will give us accurate statistics for national use, make integration easy between customs and other MDA’s including you, stakeholders. it will enhance ease of doing business and it will facilitate legitimate trade,” he said.

Responding on behalf of the agents, Acting President, Association of Nigerian Licensed Customs Agents (ANLCA), Kayode Farinto, stressed the need for clearing agents to increase their level of compliance.

This, according to him, will enable Customs grant their request for auto release of vehicles, which he argued is the right of agents.

He urged Customs to also do the needful in the area of professionalism noting that the increase in the value of the Pre-Arrival Assessment Report (PAAR) is unprofessional.

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 but was resisted by clearing agents.

This led to protests that had the ports and activities around it shut down for about two weeks, which created a backlog of un-cleared goods at the ports, thereby forcing the NCS to suspend the policy for 30 days.