Tokunbo vehicles: Dealers, clearing agents win as Customs suspend VIN automation

The suspension by the Nigeria Customs Service of the implementation of the Vehicle Identification Number valuation policy recently introduced on imported used vehicles (Tokunbo) has provided some respite for dealers and customs agents.

According to a circular dated March 7, 2022, titled, ‘Approval of grace period to clear backlog of vehicles’, the suspension took effect from Tuesday, March 8, 2022.

Under this policy, importers would be able to auto-generate tariffs on imported cars — a move which had led to weeks of demonstration and the shutdown of port activities by licensed customs agents.

The Association of Motor Dealers of Nigeria through its national president, Metche Nnadiekwe, had threatened a legal action if the policy was not suspended.

He said the Vehicle Identification Number system could increase the number of illegally imported cars into the nation.

But the Customs in the latest communique said it had approved one-month window of opportunity to enable the clearing agents to clear the backlog of vehicles held up at the port due to the strike action.

It also directed importers to ensure a uniform application of rebate for all vehicles using the correct value for their assessment.

“The VIN-valuation protocol is still in operation as reviews and updates are being captured in our system to reflect these adjustments,” it stated.

The circular also directed the affected area controllers to monitor the transition period, while ensuring manual assessment in compliance with extant laws of the land within the one-month period.