Medicine

Customs issues licences for bonded vehicle

The Nigeria Customs Service says vehicle dealers in the country will now enjoy clearing of their cars from the ports and pay duty later, going by a new policy approved by government

This comes on the heels of the Customs service plan to issue licenses for establishment of Inland bonded vehicle terminals across Nigeria.

Economic boost

The plan is to create ease in the automobile business and increase commercial activities by giving a boost to the economy.

Customs is set to commence issuance of licenses to interested auto dealers or any person who intends to operate bonded vehicle terminals.

According to Customs spokesman, Joseph Attah “Customs will consider ownership of fenced landed space with designated building for Customs outpost within the terminals and a N50 million bank bond, after detailed study of the company’s profile before issuing licenses to applicants.”

The new regime of car holding which is coming after the ban on the importation of vehicles through the land borders will boost auto businesses, strengthen national economy and security.

Apart from removing the burden of duty payment at the ports of discharge from the Operator, there will be many positive multiplier effects like spare part shops, mechanic villages, food vendors and springing up commercial bank branches around such terminals.

‘No compromise’

Full customs functions of examination, assessment for value and prevention of smuggling through any form of concealment in vehicles will not be compromised under the new regime.

Operators will be allowed to take delivery of their vehicles to their terminals under customs escort and pay duty as the cars are bought within 28-day grace period.

Customs will only approach the dealers for duty payment at the expiration of the 28 days period as Operators now make sales from imported cars before duty payment at their bonded terminals.

For ease of duty collection and security, the Customs will maintain presence inside the terminals.

Bills of laden will indicate actual terminals where the imported vehicles will be transferred to and will make for easy evacuation from the ports to the designated terminals.

‘Seamless transfer’

Unlike previous methods of collecting duties on vehicles before they exit the port, the new regime will feature a seamless transfer of cars from the ports to bonded terminals.

“Interested businesspersons and car dealers are expected to apply to the Controller General of Customs through the Area Controllers of the place the terminal is to be sited.”

“There will be chains of legitimate job opportunities for banks, auto mechanics, spare part dealers, vulcanizing service providers and other ancillary vehicle related businesses and jobs.”

“Whatever job loss was associated with the ban on vehicle importation through the land borders will be covered as the economy will be better for it,” Attah said.

Only unsold vehicles that are left in the terminals after the period will attract Customs immediate demand for duty payments from the Operator.

This will eliminate the stresses associated with importers and agents desperately looking for funds to clear their vehicles away from the ports or risk losing them as overtime cargoes.

Source: Voice of Nigeria