Believe it or not, many clearing agents in Lagos are now complaining that the cost of clearing old Tokunbo vehicles is now up to ₦1million. The clearing agents claim that the increased vehicle clearance cost is caused by the policies being imposed by the Federal government. Many of the clearing agents at Lagos seaports are now calling on the government to make a downward review of duties paid on imported Tokunbo (used) cars.
Clearing agents in Lagos seaports are lamenting that the cost of clearing old Tokunbo cars is now up to ₦1million
Kayode Farinto, the acting president of Nigerian clearing Agents association (ANLCA), said that they now pay as high as ₦1million to clear overaged imported vehicles. He revealed that the federal government mandates agents to pay the same customs duty on vehicles older than 12 years. This simply means that imported used cars that are over 15 years are cleared with a similar amount to that of newer models. The resultant effect of this policy is the fact that clearing agents now pay up to ₦1million Customs duty on a 15years old vehicle.
>>> In other news, Commercial bus drivers increase T.fares in Lagos amidst fuel scarcity crisis
The acting president of clearing agents in Nigeria also gave a clearer illustration of how customs duty on imported used cars isn’t balanced. He said that agents now pay more than ₦1million to clear a 2009 model vehicle because of the Federal government’s VIN valuation system. This same amount of money is actually the charge for a 2011 model year of the same car. The reason is that the Federal government policy only covers 12-year-old vehicles and not 15-years. Similarly, the government policy also imposes a 15% duty charge which clearing agents are pleading for its downward review to 5%. All these factors are currently being feared to later cause a huge increase in the prices of Tokunbo (used) vehicles in Nigeria.