As the nation eagerly awaits the March take-off of the new automotive policy, the National Automotive Council (NAC) has said buyers of smuggled vehicles will not be able to register or license them for use with effect from June.
This was contained in a statement issued on Thursday in Abuja by the Director, Policy and Planning, Mr Luqman Mamudu, on behalf of the Director General of NAC, Mr Aminu Jalal.
The measure, according to the statement, is part of provisions in the new National Automotive Industry Development Plan (NAIDP) aimed at curbing vehicle smuggling in the country.
The NAC was reacting to reports of looming crisis in the auto sector following concerns raised by some stakeholders.
For example, a freight forwarding association was quoted as saying that the policy would stem the inflow of used vehicles into the country with dire consequences.
The association said that besides denying freight forwarders their main source of income, the policy would cause massive lay-off of its workers.
It listed factors that would stem inflows to include 150 per cent hike in tariff on used vehicles, smuggling and possible diversion of second-hand vehicles to neighbouring ports, among others.
But NAC, which is implementing the NAIDP, allayed the association’s fears, saying that the policy ``was well thought out with all the concerns raised in full focus’’.
``Smuggled vehicles will sooner or later become unattractive because those who buy them will certainly no longer be able to obtain registration numbers from the Federal Road Safety Corps (FRSC).
``They will not also be able to obtain vehicle license from various state vehicle registration offices. The policy has an in-built program to pursue this course,’’ the statement said.
When contacted for explanation, Mr Bello Rasheed, the Principal Executive Officer (Information) in NAC, said that the council was collaborating with the Nigeria Customs Service and other agencies.
``The policy requires the Nigeria Customs Service to build a data base of all vehicles that are legally imported into the country.
``The FRSC, vehicle inspection officers and state vehicle license offices will be given access to the customs data base.
``So, if any vehicle is brought for licensing or number plate registration, the relevant agency will first check the list of legally imported vehicles in the customs data base.
``Any vehicle not listed there is deemed smuggled and will not only be denied registration, but will also be impounded and the owner arrested,’’ Rasheed said.
The NAC statement debunked claims by the freight forwarders that the policy would lead to a 150 per cent hike in tariff on used vehicles.
``By the way, the tariff is not 150 per cent.
``All used vehicles will be imported, but valued as new ones and depreciated by 10 per cent annually for cars and 20 per cent annually for commercial vehicles.
``It is the residual value that is subject to 35 per cent duty and 35 per cent levy.
``Both new and used vehicles will continue to flow into Nigeria in form of semi-knocked-down (SKD) and completely knocked (CKD) down parts.
``Who else will clear them if not members of the association? What has simply changed is the type of cargo.
``The local manufacturers will still import fully built units twice the number of SKD and CKD and all will be cleared by the association members,’’ it said. http://shippingposition.com.ng/article/shocker-automotive-council-says-no-registration-smuggled-vehicles
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