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…Custom denies the review

The Nigeria Customs Service, NCS, has reviewed the duty rate applicable on Common External Tariff, CET, trade portal on vehicles under HS Code 8703 to 20% Duty rate.

Freight forwarders expressed shock that the service does not communicate such change to the users of the service.

According to them, the command officers were not aware of such development until freight agents called their attention to it.

In a statement by the National Vice President of the Association of Nigeria Licensed Customs Agents, ANLCA, Kayode Collins Farinto to the members, he said, “The proper HS Code for used vehicles before now is 8733320 @ 35%, meanwhile this negates the CET tariffs where it was agreed that all member states should allow vehicle @ 20% untill we reported to the ECOWAS.

“I have noticed that some agents have been capturing vehicles under Hs code 87033319 (which is reserved for other Fully Built units FBU, for assemblers) since morning.

“NCS must make a categorical statement between now and Monday to inform people to continue to capture on 87033320 which has been reduced to 20% rate of duty.

“In view of this development, we urge our members not to force themselves to capture on 35% rate of duty for vehicles get it at the back of your mind that henceforth, vehicles will be on 20%

The National Secretary of ANLCA, Babatunde Mukaila Azeez told the members to be calm saying the change was not an error but the extant regime.

For failure to communicate the change to importers and agents, he submitted that the communication gap between the service and the trading community is still at its lowest ebb.

“Dear Professional Colleagues! It has been observed that Nigeria Customs service, NCS,  has reviewed the duty rate applicable on Common External Tariff, CET, trade portal on vehicles under HSCode 8703 to 20% Duty rate.

“Members are enjoined to remain calm as this is not an error but the extant regime.

“This has gone a long way to buttress ANLCA position that information and communication gap between NCS and General trading community is still at the lowest ebb.

“We shall continue to abreast members of this development real time.”

The Public Relations Officer of ANLCA, Tincan Island chapter, Onome Monije, also called on stakeholders and freight Forwarders to be calm saying the association is on top of the situation.

She however called on the management of the NCS to as a matter of importance bridge the gap of communication between it and the stakeholders

For the reduction in the tariff, Monije said it was a welcome development but added that the service ought to have informed the agents not that the agents would wake up to discover such important development in the customs regime.

Reacting to this development, the Nigeria Customs Service, NCS, has debunked speculation that it has reduced duty on vehicles from 35 percent to 20 percent.

Clarifying the situation, the Deputy Comptroller of Customs and the National Public Relations Officer of the Service, Timi Bomodi, stated that the alleged 20 percent Duty rate was “just a mix-up”, adding that the 35 per cent Duty stands.

Some clearing agents had earlier raised concerns that duty rate applicable on Common External Tariff, CET, trade portal on vehicles under HS Code 8703 was on Friday reduced to 20 percent, a situation which created confusion among the agents.

But Bomodi discarded the speculations, saying: “There is no reduction in the duty of vehicles, It was just a mix-up. All of that will be sorted up by Monday”

He stated that anyone who made payment based on the error on the portal would be made to pay the difference.

The National Vice President of Association of Nigerian Licensed Customs Agents, ANLCA, Kayode Farinto, had earlier said the proper HS Code for used vehicles before now is 8733320 at 35 percent.

Farinto however said that this negates the CET tariffs where it was agreed that all member states should allow vehicles to be cleared at 20 percent until Nigerians reported the rip-off by the Nigeria Customs Service to the ECOWAS.

“I have noticed that some agents have been capturing vehicles under Hs code 87033319 (which is reserved for other Fully Built Units, FBU, for assemblers).

“NCS must make a categorical statement between now and Monday to inform people to continue to capture on 87033320 which has been reduced to 20 percent rate of duty”

“In view of this development, we urge our members not to force themselves to capture on 35 percent rate of duty for vehicles. Get it at the back of your mind that henceforth, vehicles will be on 20 percent”, he said.