The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has kicked against the introduction and collection of the National Automotive Council (NAC) levy on use vehicles by the Nigeria Customs Service, maintaining that such a levy should be limited to new vehicles.
APFFLON asked how the money collected from the levy would be appropriated, noting that the former minister of finance Dr. Ngozi Okonjo Iweala had removed the NAC levy which was 2% then and wondering why the sudden imposition of 15% and 20% NAC levy on Nigerians again by the government.
Otunba Frank Ogunojemite, President of APFFLON, said that members of the association were taken aback by the inability of the Nigeria Customs Service to maintain a firm stance on the auto policy as its inconsistency has further hindered the ease of doing business in the ports.
The statement reads in full thus: We, members of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria- APFFLON are shocked by the inability of the Nigeria Customs Service to maintain a firm stance on auto policy.
In a press release emanated from the desk of the National Public Relations Officer of the Nigeria Customs Service, Timi Bomodi, the organization notified the general public of its migration from the old version of the Economic of West African States (ECOWAS) Common External Tariff (2017-2021) to the new version (2022-2026) with effect from Friday, April 1, 2022, in line with the World Customs Organization (WCO) five years of the nomenclature.
In a statement on Monday, the National Public Relations Officer said the contracting parties were expected to adopt the new review based on regional considerations and national economic policy.
According to Bomodi, “As allowed in Annex 11 of the 2022-2026 Common External Tariff (CET) edition and in line with the Finance Act and the National Automotive Policy, NCS has retained a duty rate of 20% with a NAC levy of 15%. New vehicles will also pay a duty of 35% with a NAC levy of 20% as directed in the Federal Ministry of Finance letter ref.No.HMF BNP/NCS/CET/4/2022 of 7th April 2022”.
APFFLON is saying that by the new development the Nigeria Customs has shown a high level of inconsistency capable of betraying the existing trust and undermining the cordial working relationships with freight forwarders and importers.
Two weeks ago on Traffic Radio, the NPRO disclosed that there would be a Townhall meeting again to harmonize issues bordering on auto policy which did not hold and just the other day, they came up with a controversial NAC levy again.
What is Customs trying to do, the agitation against VIN Valuation has barely settled and there they go again with the NAC levy?
The protest against VIN Valuation was not because it was introduced in bad fate but because it jerked up the duties paid on vehicles.
APFFLON is strongly against the collection of the NAC levy on used vehicles, it should be limited to brand new vehicles only and we demand to know why used vehicles should pay the NAC levy, and how the money will be appropriated.
Dr. Ngozi Okonjo Iweala during her time removed the NAC levy which was 2% then, why the sudden imposition of 15% and 20% NAC levy on Nigerians?
We are of the opinion that they engage stakeholders to clarify more on the new price which did not consider Essential Service Vehicles like Ambulances, Commercial buses and firefighters.
Why are they always coming out with policies without sensitization and Stakeholders’ input, why are they less concerned about carrying stakeholders along.
As far as it is a monetary issue their decisions are not sacrosanct, they should bear in mind that policies are subject to review unless they want to tell us that we are not practicing democracy.
However, APFFLON is demanding for a unified tariff on vehicles but NOT an astronomical rise in duty that will reduce the purchasing power of the citizens and accelerate inflation in the country.
We expect circulars on major changes by Customs Management and not only press releases on social media platforms to avoid industrial actions which shipping companies and terminal operators leverage on to demand additional charges.
Nigerian importers lost over 300billion Naira in demurrage in the last protest caused by the increased target given to the NCS by the Federal Government.
It is high time Customs commenced constant interface with critical stakeholders on revenue policies to forestall crises in Nigerian Ports.
On how to resolve the logjam, Ogunojemite said “APFFLON is using this opportunity to appeal to all freight forwarders not to embark on yet another round of protest but peacefully demand for explanation on the NAC levy slammed on used vehicles.
The Federal Government and policymakers should realize that Nigerians are struggling to survive in the present harsh economic situation.
“We urge the Nigeria Customs Service and the Federal Ministry of Finance to always handle issues like this with utmost care to avoid unnecessary crises.”
