Ex-Factory Price On Imported Vehicles is a Fraud by Customs, Stakeholder Alleges

By Dapo Olawuni |

Frontline maritime stakeholder, Mr Wale Odu has urged the Nigeria Customs Service to abolish the use of ex-factory price in determining the actual value of imported vehicles and duty payable.

Speaking with our correspondent, Wale Odu who is an executive of Talod Oceanair Freight Limited lamented that importers are paying so much duty on imported vehicles because the Nigeria Customs Service has refused to make public, the uniform value payable on vehicles.

He said that Customs officers deliberately refuse to make the ex-factory price a public knowledge, so as to keep soliciting bribe from importers and licensed clearing agents.

Wale Odu also alleged that the Nigerian Ports Authority (NPA) was part of government agencies causing traffic chaos in Apapa port. He said that after port concession, the NPA has no right to continue mounting his officials at port gates since the ports are now controlled by terminal operators.

Speaking with our correspondent, he said “The greatest fraud at the port now is the ex factory price being placed on cars.
The ex factory price issued by Customs is a fraud to an extent”

“Normally, you ought to open your form M, but they will tell you not to open form M, rather you would give me ex factory price or should use your invoice

“Giving you ex factory price is for them to be able to negotiate with you so that you can bribe them”

“Why are we paying so much duty on vehicles? We are deceiving ourselves on the auto policy because there is no factory here”

According to him, the Federal Government needs to make a new policy on vehicle imports and abolish the use of ex factory price.

He also said that imported vehicles should be allowed to pay their duties according to the invoice they used to purchase the car.

Speaking on the activities of NPA security officials at port entrance gates in Apapa and Tin Can Island Port, he alleged that container deposits paid by importers are being eroded because they cannot gain access to the the port and offload containers.

According to him, “Three people are responsible for traffic problems in Apapa; shipping companies, terminal operators, and NPA”

“The NPA no longer has any port to control, so why are they at the gate, what are they controlling”

“They are causing traffic and not allowing cargoes to go into the port, they are disturbing the shipping companies, terminal operators, the ports are getting congested, while shipping companies are charging us containers deposit”

“The corruption at our port system is too high” he said