Why clearing agents are against VIN Valuation – Customs 

The Nigeria Customs Service (NCS) has reacted to the outburst by clearing agents over the introduction of Vehicle Identification Number (VIN) Valuation for clearance of imported vehicles at the nation’s ports.

Clearing agents had on Monday protested against the new policy, grounding operations at PTML terminals and the popular Car Park C at the Tin Can Island port.

According to the agents, the VIN valuation system had raised the duty payable on imported vehicles by almost 300 percent, making it difficult for them to process clearance of their vehicles from the port.

But in a statement by the Customs Public Relations Officer, Deputy Comptroller Timi Bomodi, the Customs stated that the clearing agents protesting the introduction of VIN Valuation do not care about automation, simplification, harmonisation or even transparency in the system.

According to him, all the agents care about are the personal benefits accruable from milking the system with little import duty payment.

Bomodi said the resistance to VIN-Valuation by clearing agents is surprising as the policy was deliberately designed to meet their demands for a harmonized value system on imported vehicles and automation of Customs processes.

“In recent times the consensus among clearing agents on the valuation of used vehicles appears to favour a harmonized value system that is consistent across all Customs platforms in Nigeria. They insisted that the same make, and model of cars should be made to pay the same amount of duty. These agents also demanded the discontinuation of the discounted value method which allowed for the subjective considerations of officers in the Customs Valuation Unit who rely mainly on the book value of vehicles discounted at a fixed rate over time.

“In 2022 their prayers have been answered. NCS introduced VIN- Valuation as a fully automated tool devoid of human interference, capable of aggregating values from countries of export, consistent in make and model of cars for the purpose of assessing duty. This system uses Artificial Intelligence (AI) to pull together trade data representing a range of values consistent for each car make and model using the Vehicle Identity Number (VIN). It is totally devoid of human inputs by NCS officers, and enables easy and fast assessments necessary to process duty payments. In deed time motion studies confirm a maximum of 6 hours between automated assessments and release of cars using VIN-Valuation.

“Before the introduction of this tool, town hall meetings were held across the country stating its benefits, one of the greatest being trade facilitation. Following the demands of agents for a simplified system which recognises standard values, NCS was confident that this innovation in its clearing process will satisfy the desires of agents clamoring for change. The resistance to VIN-Valuation therefore comes as a surprise seeing that it was deliberately designed to meet their demands. It also compels us to investigate further the intentions of those protesting its use. When our Valuation officers gave out ex-factory prices for duty assessment, they were accused of collecting monetary inducements to give lower values. It will be interesting to know what these same agents/importers will accuse the machines of. Maybe this time it will be machine discrimination, or discrimination based on non-digital considerations.

“The truth is that most of the individuals protesting the introduction of VIN-Valuation do not care about automation, simplification, harmonisation or even transparency in the system. They do not care about the wellbeing of the country or the industry they claim to represent. All they care about are the personal benefits accruable from milking the system. They want to pay as little import duty as possible and keep the chunk of the money for themselves. These persons advocate chaos rather than order. They thrive in wheeling, dealing environments where the price of everything is negotiable,” the statement said.

While urging well -meaning Nigerians to embrace the electronic services that are being put at their disposal, the NCS said importers with valid Tax Identity Numbers (TIN) can do self-assessment and pay duty by themselves.

The Service also implore licensed Customs agents to always make honest declarations as it will go a long way in expediting the release of their goods out of Customs control.

“NCS under the able leadership of Col. Hameed Ibrahim Ali (Rtd) is poised to rewrite history by reinventing Customs operations in its entirety. The vision of this administration is to create environments conducive for facilitating trade that is consistent and predictable with little to non- human interference. VIN-Valuation is only one in a series of innovations designed for this purpose. The earlier agents and importers come to terms with this reality the better it will be for everyone,” the statement said.