VIN valuation will increase transparency, revenue, business-friendly environment – PTML Customs Command
The Nigeria Customs Service, Port Terminal Multiservices Limited (PTML Command) has expressed confidence that implementation of the Vehicle Identification Number (VIN) valuation mode would increase transparency, raise revenue collection and stimulate certainty in business operations.
A statement on Thursday by the Command, said the Customs Area Controller (CAC), Comptroller Festus Okun, described the improved mode of duty collection on vehicular cargo as one in line with modernisation of the service processes, just as it would ensure uniformity of value across all customs commands in the country.
Okun said that the new development would eradicate human contacts, remove discretionary duty value borne out of sentiments and address the problem of having variations in value of same vehicle model and age in various commands of the NCS.
While urging importers, licensed customs agents and freight forwarders to open up their minds to the new reality, Okun said it would not only increase collection, but would also facilitate trade by saving time.
His words: “I will now relate VIN to some of the core principles of trade facilitation. Like, you can look at the trade facilitation agreement and the Kyoto Convention; what are they all saying?
“It’s about processes and procedures that need to be simplified, to have harmonization, to put integrity into the system for uniformity, predictability and all these this VIN system does .
“By using it to generate appropriate duties and taxes to be paid, it means that it is predictable and there is harmonization between all ports and terminals across the country.
“The human interface will be removed, and this brings integrity into the system.
“More revenue is expected; also, when there is predictability in the system, people will be encouraged to trade more, leading to more revenue.
“When there is uniformity, there will be peace, because people will know that whatever is obtainable here is the same as all over and when something is predictable, it means that route is made more user friendly and people will rather come and make their transactions than go elsewhere. “
He advised licenced customs agents not to be caught on the wrong side of the law as the robust audit system in the service would unveil infractions and demand for revenue evaded
The CAC also advised the agents to embrace the change as efforts have begun to enlighten them on the VIN.
He said that a recent stakeholders’ meeting held with the port users at PTML on Tuesday was targeted at keeping them abreast with the new policy on valuation for imported vehicles into Nigeria.
“I appeal to them to continue engaging in the area of misconceptions and understanding, to let us know things that are confusing to them. Our doors are wide open, and they can always walk into any of these offices to get clarification on any of the issues. And when they have any legitimate complaint, probably from a declaration, they can just come forward,” Comptroller Okun added.