Vehicle Dealers To Make Payments After Clearance Of Goods – FG


*Customs  to issue licenses for establishment of Inland  Bonded Vehicle Terminals

Vehicles dealers in the country are now in for a new lease of life with the  Customs Service, as the federal government has approved a new policy that makes them pay duty after clearance of their goods from the ports.
With the new policy in operation, vehicle dealers in the country will now enjoy clearing their cars from the ports and pay duty later to the Nigeria Customs Service.
This is as Customs is set to issue licenses for establishment of Inland  Bonded Vehicle Terminals across the country.
This according to the service spokesman, Joseph Attah, is to create ease in the automobile business and increase commercial activities by giving a boost to the economy.
Attah said  Customs is set to commence issuance of licenses to interested auto dealers or any person  who intends  to  operate  bonded  Vehicle  terminals.
The Customs according to him, will consider ownership of fenced landed space with  designated building for  customs outpost within the terminals and a N50m bank bond after detailed study of the company’s profile before issuing licenses to applicants.
Attah said 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 many more.
Springing up commercial bank branches around such terminals.
He added that 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 a 28 days 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.
Unlike  previous methods of collecting duties on vehicles before they exit the ports which poses  risks of congestion and possibility of being declared as overtime cargo due to lack of immediate funds to clear, the new regime will feature a seamless transfer of cars from the ports to bonded terminals.
Attah said ”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” Attah said.
”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” he added.
The new method is a departure from the previous regimes which only provided licenses for container terminals.
Operators  who make fast sales of their vehicles  consignments within 28 days will pay little or no duty as buyers would pay duty for what they bought before driving out of the terminals.
Only unsold vehicles that are left in the terminals after the period will attract customs immediate demand for duty payments from the operator.
This  eliminates the stress associated with importers and agents desperately looking for funds to clear their vehicles away from the ports or risk losing them as overtime cargoes.


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