The Association of Motor Dealers of Nigeria (AMDON) has rejected the new VIN valuation automated system for payment of vehicles’ Customs duty.
The association submitted that the use of the system runs afoul of the enabling law which Nigeria Customs Service is using in its implementation.
President of the association, Prince Ajibola Adedoyin, in a press statement made available to Blueprint, Sunday, said the policy should be suspended pending the review and involvement of all stakeholders.
He said since its members are part of the stakeholders, the option left is for its temporary suspension pending when all views are collated and acceptable to all.
“Based on its aftermath effects on our businesses, especially the intended car buyers, the implementation of this policy will automatically lead to geometrical hike in purchase of vehicles, which will grossly destabilise the gains already recorded in the transportation sector,” the statement said.
AMDON therefore called on the federal government and the Nigerian Customs Service to, the sake of the citizens, suspend this policy and liaise appropriately with all stakeholders in this field.
According to the press statement, what the law mandates the Customs to collect is purchasing and not depreciating cost of a vehicle.
In the same vein, the chairman of the Federal Capital Territory, FCT chapter of AMDON, Alhaji Adamu Damisa, said for peace to reign, the valuation system should be suspended and those acting outside the law should be brought to book.
Damisa, who led members of the association in protest to the zonal office of the Nigeria Customs Service in Gwagwalada, a suburb of Abuja, said if the Customs insists, AMDON will have no option but to seek legal redress.
The peaceful protest by the FCT chapter of AMDON was part of the nationwide protest by motor dealers to show their displeasure against the arbitrary increase on payment on all vehicles being imported into the country.
The chairman enjoined the government to make reference to the Customs and Excise Act 20 of 2003 which talks about purchasing value.
‘We are not against the use of VIN-Valuation System but it should be redesigned according to the Customs and Excise Act,” he said.