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Betw Jan-Nov 2023, Customs Seized 533 Smuggled Cars Worth N2.9b, Car Dealers Blame High Duty
Nigeria Customs Service (NCS) have seized 533 smuggled vehicles worth N2.9b between January and November 2023.
Car dealers blame the development on the high duty rate for clearing imported vehicles, introduced by the FG through CBN.
The CBN had in November, adjusted the exchange rate to N783.174/$1, which represents a 17.8 per cent increase.
As at July this, the exchange rate was N770.88/$1 (from N589/$1 in June) before being adjusted to N783.174/$1 in November.
The Nigeria Customs Service (NCS) have reportedly seized about 533 vehicles with Duty Paid Value (DPV) of N2.92 billion that were smuggled into the country between January and November 2023.
In a recent interview with Punch Ng, Car dealers blamed the development on the high duty rate for clearing imported goods, including vehicles, introduced by the Federal Government through the Central Bank of Nigeria (CBN).
Recall that the CBN had in July, adjusted the exchange rate from N589/$1 to N770.88/$1 and to N783.174/$1 in November, before being adjusted to N952/$1 in December, which represents a 17.8 per cent increase.
Giving an update on vehicle importation in the country, the National Public Relations Officer of the NCS, Abdullahi Maiwada, said that 533 vehicles were seized between January and December 2023.
“The number of vehicles seized from January to November 2023 was 533 units and the duty paid value stood at N2,919bn,” Maiwada said.
Reacting to the development, the Secretary-General of Lagos State Motor Dealers Association, Tai Olaniran, blamed the high duty rate for imported vehicles on the increase in smuggling of vehicles.
“The government is not serious, and why I said that is because they are supposed to bring down the duties for clearing of goods including cars like what is obtained in other countries.
“If you pay lesser duties it would discourage smuggling or bringing the vehicles through unapproved routes and the government would also make more money,”
“If the duties are high, it would encourage smuggling and this would continue. NCS can’t fight smuggling. The duties keep going higher, you have to buy dollars at a higher rate to bring in these goods and you are also clearing at a higher rate.
“We dealers have resolved to buy Nigerian-used vehicles; we no longer buy direct tokunbo. The duty should come down because everyone needs transport, which would help the government make more money. If the duties are low, people would not smuggle, even if they do, it would be minimal,” he said.
Also speaking, a car dealer with Mezie Motors at the popular Berger Automobile Market, Mr Chinonso Amariwu, said :
“The impression that high duty rate has increased smuggling is true. One of our colleagues here has fallen victim to that. He was deceived… His car was not cleared properly, so his car was intercepted by officers of the NCS on his way to Abuja.
“So, the hike in duty rate has encouraged a lot of people to bring in vehicles through unapproved routes. So, this is the major reason they seize these cars,” he argued.
