Motor dealers urge Customs boss to probe ‘short payment’ practice
By Efe Onodjae
Association of Motor Dealers of Nigeria (AMDON) has called on the Comptroller-General of the Nigeria Customs Service, Adewale Adeniyi, to investigate alleged corrupt practices within its highway enforcement units, in relation to the controversial “short payment” on imported vehicles.
National President of AMDON, Ajibola Adedoyin, warned that the practice, which involves stopping already-cleared vehicles on transit corridors over alleged duty discrepancies, is fueling extortion, increasing transaction costs, and worsening the burden on auto importers and end users across the country.
Speaking with Vanguard, Adedoyin described the practice as a major burden on vehicle dealers and importers, alleging that Customs operatives routinely stop vehicles in transit and accuse owners of underpayment of import duty despite the vehicles having valid Customs clearance documents duly endorsed at the ports.
According to him, importers rely on licensed Customs agents to process cargo clearance, duty assessment and release procedures, with all relevant Customs officers signing off on the documentation before the vehicles exit the port.
He explained that after the release process has been completed, enforcement officers on the highways often impound or delay such vehicles on allegations of “short payment” of duty.
“Customs officers will stop you on the road and tell you that the vehicle was short-paid. For instance, they may claim a vehicle that was cleared with N7 million ought to have attracted N10 million duty.
“Importers have no direct role in determining Customs valuation or duty computation since such responsibilities fall within the operational jurisdiction of licensed Customs agents and the Nigeria Customs Service.
“The practice has opened a channel for corruption and illegal collection of money from vehicle dealers transporting automobiles across the country. In most cases, they end up extorting money from you because they know you do not want delays on the road. Sometimes, depending on the journey, dealers lose as much as N800,000 on a single vehicle.”
The AMDON president further alleged that despite the introduction of a Customs verification portal designed to authenticate duty payments through Vehicle Identification Number, VIN, checks, many field officers allegedly refuse to honour the digital confirmation system.
According to him, the platform was launched to allow importers verify duty status and generate printouts confirming that the appropriate duty had been paid, thereby eliminating unnecessary road interceptions.
“But despite that system, officers on the road still insist on stopping vehicles and demanding money. Many of them are not interested in checking the portal because they already know what they want.
“The continuous enforcement of the “short payment” regime is increasing the cost of vehicles in the country as dealers transfer the additional burden to end users”.
When contacted the Spokesperson for the Nigeria Customs Service, Chief Superintendent of Customs CSC, Abdullahi Maiwada said that short payment or underpayment refers to the deficiency arising from the payment of Customs duty and other charges below the correct assessable amount due to the government. His words; “ I can tell you that where importers or agents submit honest declarations without compromise, once the consignment exits the port, it is final, but where the process is compromised, then the provisions of law will take precedence, and every kobo will be accounted for.
“Therefore, I can say that, where compromise is established, clearance and exit from the port cannot be considered final.”
Speaking on extortion the PRO added “I always encourage stakeholders and members of the public to promptly report any case of misconduct or extortion involving officers of the Service. The Service remains a responsive and responsible institution that will not shield any erring officer found engaging in such unwholesome acts.“
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