VIN valuation in Nigeria

VIN VALUATION IN NIGERIA; CUSTOMS REINSTATES PROCESS

VIN valuation in NigeriaVIN valuation in Nigeria to continue? What exactly is VIN valuation in Nigeria? When did VIN valuation come to effect in Nigeria? Why suspend the valuation in the first place? I am quite sure you like to get answers to these questions and more in one page. Answers to these question is what inspired the putting together of these pieces of information on this page. Thus, we especially want to desire to inform our ardent readers and the public.

WHAT IS VIN VALUATION IN NIGERIA

VIN valuation in Nigeria is electronic vehicle identification number valuation system introduced by Nigeria Customs in February 2022. The purpose is to allow importers to auto-generate tariffs on imported cars across Nigeria borders. Introduction of VIN valuation in Nigeria sparked a lot of protest from car Importers, Customs Brokers and other stakeholders.

Read Also: NIGERIA CUSTOMS DUTY REDUCED; FIND OUT HOW

WHY VIN VALUATION?

Generating Vehicle Identification Number VIN is from the process of National Vehicle Registry (VREG). VREG is a regulation by the Federal Ministry of Finance, Budget, and National Planning. The purpose of VREG is:

  • Firstly, to reduce Customs Duty evasion
  • Also, the VREG system will help curb vehicle theft and other vehicle related crimes
  • Again, reduction of human interface, thus eliminate paper works in manual vehicle registry
  • Identification of ineffective vehicle insurance coverage
  • Equally, create a centralized national vehicular information and database
  • Lastly, like every electronic system, make the process of vehicle number generation easy.

To register for VIN, Importers or designated Agency will go to the VREG website and input required information. The basic information required to do VIN is the Tax Identification Number (TIN) of the consignee.

WHY SUSPEND VIN VALUATION?

VIN valuation in Nigeria was with lots of resistance. Customs Brokers, Importers and all stakeholders in the industry complain bitterly on the pains inflicted by the system. Agents took to the street, to protest what they called 200% increase in clearance cost caused by VIN valuation. The strike by Clearing Agents lasted for two weeks, causing a lot of congestion at Tin can Island Port Lagos. Consequently, the Customs allowed a thirty days window for revisit of VIN valuation, allowing Agents to use old system.

The customs said that the hold in implementation of the policy for one month is due to the following reasons

  • Allow Clearing Agents to clear the backlog of vehicles at the seaports due to the strike by Agents
  • The suspense allows for stakeholders participation and inclusion.

The stakeholders are Association of Nigerian Licensed Customs Agents (ANLCA), the National Association of Government Approved Freight Forwarders (NAGAFF). Others are the Association of Registered Freight Forwarders of Nigeria (AREFFN), and the African Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON).

VIN VALUATION IN NIGERIA; CUSTOMS REINSTATES PROCESS

Customs to reinstate VIN Valuation after reaching agreement with stakeholders. The Nigeria Customs Service said the VIN Valuation process is set to be fully operate in the month of May 2022. They are assuring that stakeholders will be satisfied with the incorporated ideas and suggestions from their end. The Nigeria Customs Service made this known in a stakeholders’ meeting held at Customs headquarters in Abuja.

REVIEWD VERSION OF VIN VALUATION SYSTEM

Stakeholders from ANLCA, NAGAFF, Association of Auto Dealers of Nigeria and others were to get a first-hand look at the reviewed version of the VIN VALUATION process. Thus, the new VIN incorporates all their observations and reflects discounted values consistent with the make and models of all vehicles in the system.

Recall, at the launch of VIN Valuation in February, a good number of stakeholders voiced their displeasure about its objectivity while pointing out that the values used did not accurately factor in annual depreciation as required for used vehicles.

Following complaints, and in line with Article 2 of the WTO Trade Facilitation Agreement, the Comptroller General of Customs, Col. Hameed Ali (RTD) deemed it necessary to send a delegation comprising two members of management, Assistant Comptroller General of Customs, Hamza Gumi and, Saidu Galadima to engage stakeholders in a town hall meeting in Lagos. This occasion provided stakeholders with the opportunity for stating their grievances and the articulation of possible solutions that will meet the expectations of all parties.

The outcome of the town hall meeting held in Lagos led to an approval for a 30-day moratorium by the Comptroller General of Customs. This gave room for a review of the VIN VALUATION protocol, aimed at incorporating all their observations while allowing for the manual release of vehicles in the interim.

CUSTOMS AGREES WITH STAKEHOLDERS ON IMPROVED ON IMPROVED SYSTEM

During the meeting at the Customs Headquarters, Comptrollers Import/Export Musa MBA and Valuation Anthony Udenze stressed the importance of transparency and honesty in declarations made by agents and importers. They appreciated the efforts of the associations in articulating the concerns of their members. Therefore the Customs authority stressed the need to inform them of the progress made so far.

Meanwhile, Customs National Public Relations Officer, Deputy Comptroller Timi Bomodi also stated that the Service is interested in the enhancement of the user experiences of all its stakeholders and the improvements in the VIN Valuation protocol.

While responding to Bomodi, a representative of one of the associations Mr. Kayode Farinto expressed delight as to the result of the review. He appealed for constant engagement between NCS and stakeholders to reduce the likelihood of conflicts in future.

CONCLUSION

VIN valuation in Nigeria although suspended, is still in force. The Nigeria Customs informs that the process is well reformed, and will remain. All stakeholders are therefore required to come to terms with the fact that VIN has come to stay. Finally, contact us today for hassle-free car and other cargo clearance. More so, thank you for reading this piece, feel free to make your suggestions to us.

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