China sets to flood Nigerian Ports with Used Vehicles … as damaged vehicle statistics rise at Nigerian Ports

By Dapo Olawuni |

The Chinese Ministry of Commerce has said that it has concluded plans to flood Nigeria and other West African countries, as well as Europe and Asia with used vehicles.

The ministry revealed that the first batch of 300 cars are ready for export.

This is even as sources have confirmed to our correspondent that the statistics of imported damaged vehicles at Nigerian ports have now risen to about 90%.

Investigations by our correspondent revealed that Nigerian importers are more attracted to accidented and salvaged vehicles which attract lesser import duty.

According to the Ministry, the export of 300 used cars is an important move geared towards deepening implementation of the Belt and Road Initiative (BRI) and promoting the stable growth of foreign trade.

It stated that the BRI is a global development strategy which the Chinese government adopted, involving infrastructure development and investments in 152 countries and international organizations in Africa, Asia, Europe the Middle East and the Americas.

It said that the first batch of the 300 exported used cars, with a total value of $2.5 million, comprised Land Rover, Toyota, Hyundai, Volkswagen, Trumpchi, King Long, Yutong, Zhongtong and WOHO brands and they are being taken to destinations that include the Lagos port (Nigeria), Sihanoukville Autonomous port (Cambodia), Rangoon Port (Myanmar) and Vorsino and Saint-Petersburg ports (Russia).

A statement obtained from China’s Ministry of Commerce, said, “Although trade in new cars in China last year almost doubled the 13.82 million used cars figure, trading volume of used cars in developed countries, in comparison, was about two times that of new car sales.

“China is hoping to key into this yawning advantage lying beyond its borders. It is estimated that used car exports may fetch about 60 billion Yuan for China in export value if the market is fully opened up. It is also expected the trade would generate higher auto parts and maintenance service exports.

“With all processes done, the first used cars export business in China finally sailed at Nansha Port, Guangzhou, on July 17, 2019 marking a new milestone and economic significance for China’s automobile industry,” the statement added.

Investigations carried out at the two major vehicle terminals in Lagos, Port and Terminal Multiservices Limited (PTML) and Five Star Terminals showed that accidented vehicles are on the rise.

Clearing Agents who spoke with our correspondent alleged that Nigeria Customs officers, especially those at the Car park ‘C’ at Tin Can Port, are now taking advantage of the loophole in the government fiscal policy and are now enriching themselves.

Under the Auto Policy of government, vehicles are expected to pay 70% tariff on vehicles; 35% duty and 35% levy.

In a recent chat with our correspondent, Chief Supretendent of Customs Uche Ejesieme explained that for any vehicle to enjoy rebate as accidented, physical examination is conducted by Customs authorities to ascertain the level of damage.

Ejesieme who is the image maker of Tin Can Island Port Command of Nigeria Customs Service said “We have discovered that often time, people tend to misconstrue the concept of accidented and dented vehicles.

In Customs parlance, before any vehicle can be classified as accidented, there are some factors that must be looked into; first of all, that accident must be seen to have affected the chassis, secondly, the impact of the accident should also have the tendency of popping out the airbag, but what is more crucial is the chassis, once an accident happens and it affects the chassis, in Customs parlance it is regarded as accidented”

“You can also Google the chassis number of the vehicle if you are doubting any abnormality, some of the American vehicles, if you google their chassis number, you are also going to get the history of the vehicle, the type of accident and so on”

“Dented vehicles on the other hand are vehicles with small bashes around the bumper, fenders, doors, without any serious impact that could affect the chassis. These kind of cars do not merit any kind of rebate from Customs, but the ones that are accidented, they pay half of the duty accruable on the fully built cars, but before we grant that concession, there must be physical examination to ascertain that the vehicle actually qualifies”

“When you are getting the ex-factory price from valuation unit, they must go for physical examination to also ascertain that you are qualified for it”