Why Customs is Insisting on PAAR, Form M to Clear 2020 Tokunbo Vehicles



The Nigeria Customs Service has said that every 2020 vehicles must pay 35% duty and 35 levy, even as the importers must open a Form M and have his Pre Arrival Assessment Report (PAAR) before such vehicles would be attended to.

Our correspondent gathered that Nigerian importers now flood the port with damaged vehicles from abroad in order for them to enjoy duty rebate from Customs. Some of the importers deliberately remove part of the vehicle to make it appear as damaged.

Speaking with DAILY TREND NEWS on Wednesday, spokesman of the Tin Can Island Command of Customs, one of the largest vehicle port in Nigeria, Mr Uche Ejesieme said that there is no such duty rebate consideration for 2020 Tokunbo vehicles.

Uche said that “Any vehicle that is 2020, no matter the dents, nobody would treat it as accidented vehicle, except for certain exemptions like if it came with a salvage paper, on most 2020 vehicles, the standard law is that you must pay 35% duty and 35% levy”

“The standard practice for now, and there is a circular to back it up from Tariff and Trade Department, is that every 2020 vehicle must come with form M and PAAR, if you see anyone that does not come with these two, hold them down anywhere you see them. It is a very serious issue and infraction, immediately you input it into the system, the headquarters is alerted automatically”

“You must have special clearance from headquarters before anybody can attend to your 2020 vehicle, the important thing for us is the year” he said

Ejesieme said that a vehicle can only be considered as accidented if the chassis of the car is affected and the airbag also must be affected.
He added that examination is also conducted on the vehicles by Eagle eyed, and experienced officers.

“Sometimes, some of the importers try to be smart by half, if the accident does not affect the chassis, which means that the impact was very serious, the valuation refers it to the T&T ”

“We were told that sometimes, some of these guys tamper with the odometer of the vehicle just to present it as if it old car” he said

This clarification is coming less than one month after the Association of Nigerian Licensed Customs Agents (ANLCA) accused the Nigeria Customs Service of refusal to clear accidented 2020 vehicles, except the importer obtains a Pre Arrival Assessment Report (PAAR)
The clearing agents raised an alarm that a lot of 2020 vehicles which are accidented and are used, but that customs have refused to clear them as used vehicles.

The group had also written to the Federal Ministry of Finance for intervention on the matter.

Also speaking exclusively with DAILY TREND NEWS , a member of ANLCA, Mr Ojo Akintoye lamented that agents are currently having problems with customs over the clearance of used 2020 vehicles, saying that some of these vehicles are even accidented, and customs is insisting on PAAR.

“Any vehicle that is new, customs says you should go and get PAAR, but for used vehicle you don’t need it.
On the 2020 used vehicles, we are having problems with customs because there are some 2020 vehicles that have been produced since last year, abroad, some of the vehicles have been bought, driven and are even accidented, I have a Toyota Corolla that is accidented, but they are still insisting on getting PAAR on it, this is not what the law says”

“We are trying to call their attention to this, but they are resisting.
If there is evidence that the car is used and accidented, they should give us value and we pay to clear the car. The ex factory price is there as an alternative, why cant they allow the agent to pay this and get his vehicle” Akintoye wondered.

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