Customs e-Valuation Policy Fuelling Smuggling, Motor Dealers Cry Out

The e-valuation policy of the Nigeria Customs Service (NCS) has been described as suffocating and retrogressive to both the vehicle dealers and the Nigerian economy.

President, Association of Motor Dealers of Nigeria (AMDON), Prince Ajibola Adedoyin, who made this known during a media briefing  at the weekend, said the new e-valuation policy had jacked up the prices of vehicles by close to a 100 per cent arising from the hurtful duty computations embedded in the policy.

According to him, the e-valuation remains the classic example of government’s insensitivity to the plight of Nigerians, as foreign-used vehicles are now outside the reach of the majority of Nigerians who are already battling poverty, insecurity, inflation and other challenges.

Adedoyin explained that the policy simply means that the Customs duty of any imported vehicle, regardless of the year of manufacture, will be computed based on the template of a 10-year vehicle.

“For instance, if you import a 2007 Toyota Corolla, you’ll pay the duty equivalent to that of the 2012 model, which is 10-years-old being the maximum age any imported should be, according to the new arrangement. “Even individuals who managed to save up to buy personal vehicles that hitherto sold for N2 million or a little above that will now have to cough out about N4 million in an already distressed economy. So, what good purpose does that serve?” he queried.

Adedoyin further stated that the policy had taken a heavy toll on the association, as over 350 vehicle importing and sales companies were on the verge of closing shop because they can no longer function under the asphyxiating circumstances occasioned by e-valuation.

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“That figure is just for the companies themselves. Now, look at the bigger picture in terms of workers employed in these companies that would be thrown into the already saturated job market. We’re increasing unemployment in a country already battling insurgency and other deadly crimes caused by a large army of unemployed youths.

“So, to be frank, the e-valuation system is giving us a lot of issues.

If you remember when they first started, they were using brand new cars to do the ratings before we went on air and did a press conference and said no, we’re not accepting that, before it was reviewed downwards.

“And then after the review, which we equally came to terms with, we have seen that the way they’re going about it is not what the association accepts, neither will it augur well for the economy of this nation, especially the transportation sector, which is one of the economic pillars of the nation.

“How many transporters and Nigerians generally can afford 10-year old vehicles? Vehicles are necessities because they’re economic drivers and a means of livelihood for those in the transportation sector. Without an efficient transportation sector, the economy suffers and we are already seeing it. Let’s be honest here.

“So, in view of this, we call on the government to see what they can do in that regard because it is quite unfortunate that the larger proportion of vehicles used for our day to day life’s activities fall outside the 10 years maximum age that was set by the Nigeria Customs Service and this has caused lots of issues”, the AMDON president explained.

Adedoyin also picked holes in the revenue generation philosophy behind the introduction of the e-valuation policy, saying it was a poorly-conceived programme that would ultimately rob the federal government of huge funds because the initiative naturally encourages massive smuggling of vehicles with its concomitant security implications.

He said the authorities are simply creating business for neighbouring countries because the vehicles meant for the Nigerian market would be shipped there and then smuggled into Nigeria by road without paying customs duties, taxes and other charges.