NCS Begins VIN Valuation on Vehicles After Harmonization of Grey Areas

After months jof suspension of the Vehicle Identification Number (VIN) valuation policy on imported vehicles and subsequent harmonization of grey areas including depreciation value . The Nigeria Customs Service is deploying the controversial policy with immediate effect.

The Service disclosed this on Thursday during a stakeholders sensitization workshop to showcase the procedures and workability of the harmonized VIN policy.

This has come after weeks of stakeholders at different at sensitization meetings at both the Nigeria Customs Service (NCS) headquarters in Abuja, Zones and Command levels.

The updated version which tends to capture Salvage and accidented vehicles, depreciation in value and other values earlier identified by freight forwarders has began on Friday, May 20th, 2022.

The NCS Comptroller in-charge of Valuation at the Customs Headquarters, Comptroller Anthony Udenze revealed this while addressing stakeholders in Apapa at the sensitization workshop on Thursday, he  noted that the implementation of the new VIN valuation system will commence effectively without delay. According to Udenze, the VIN valuation system is aimed at facilitating trade and the new values have been unified and simplified.

His words: “Right now, we have cases where values given by various commands are different. There has been cry for unification of values from the valuation Unit and the Service deemed it fit to listen to this cry; "Remember that two months ago we deployed this valuation and there were outcries The Comptroller-General of Customs, Col. Hameed Ali (Rtd) in his magnanimity listened to the cry of stakeholders and set up a committee to review the process and the committee worked assiduously to come up with something that would be acceptable by all. We drew up officers from various Command’s Valuation Unit and today we can tell you that what we present will be acceptable globally". 

He noted that the new VIN Valuation system considered all options, including, accidented and savage vehicles were all built-in, even as uniformity in values from all the Area Commands has also been achieved.

In his remarks, the Customs Area Controller of Apapa Command, Comptroller Malanta Yusuf described the VIN Valuation Policy as a testament that Customs will not stay static as the world evolves with automation.

Malanta said, “the world is going digital, we cannot afford to stay behind. We have done a lot of checks and control on VIN. Automation of Customs processes is very essential and valuation of vehicles is not out of place. Today, agents can sit down in their bedroom and process clearance of their cargoes. The new digital PAAR is another good development. Nigeria is not going to stay behind watching people take advantage of digital technology for business facilitation". he said.

He, however, noted that if there is anything in need of adjustment, the NCS is also willing to make the necessary adjustment on the VIN valuation.

Also speaking, Comptroller Festus Okun of the PTML Command enumerated the basic principles of the VIN to include uniformity, fairness, predictability and to create certainty and convenience giving the expected value and that Importers and their agents can do it at the comfort of their offices or homes. Okun advice the freight forwarders not to see the policy as “we and them”, but to facilitate and promote trade where everybody is a beneficiary.

On his part, the Area Controller of the Tin Can Island Customs Command, Comptroller Kunle Oloyode said the VIN valuation policy will help the country to keep accurate data of imported vehicles coming into the country with the benefits of accurate statistics, enhanced business, facilitation of trade and integration between the NCS and other Government Agencies.

Speaking on behalf of freight forwarders, Acting President of the Association of Nigeria Licensed Customs Agents (ANLCA), Dr Collins Kayode Farinto, stressed the need for compliance by freight forwarders.

He also condemned the Customs approach of arbitrarily increasing the value of Pre-Arrival Assessment Report (PAAR) as it isn’t professional and it encourages stakeholders to attempt to circumvent the process.

The meeting saw a practical demonstration of the VIN using various vehicles manufacturing dates to determine the value and most freight forwarders were satisfied with the process urging it to kick -off.