VIN Valuation: Customs Indicts Officers Over Revenue Losses on Imported Used Vehicles


Comptroller General of Customs, Wale Adeniyi


The Nigeria Customs Service has once again raised an alarm on the loss of revenue on imported used vehicles through Nigerian ports, even as it has indicted its examination and valuation officers at various commands for not complying with the procedure for examination, valuation and release of used vehicles.

To this end, the service has directed that all used vehicles after examination are to be referred to the Valuation seat to verify the ‘trim’ of the imported vehicle and assign the appropriate value, instead of applying the ‘base’ value.

This was contained in a circular with number; NCS/T&T/2023/014 signed by the Assistant Comptroller General, Tariff and Trade, C.K Niagwan, dated 24th of August 2023 which was sighted by DAILY TREND.

“It has been observed with great concern that examination and valuation Officers are not complying with the procedure for examination, valuation and release of used vehicles.

“For the avoidance of doubt, all used vehicles after examination are to be referred to the Valuation seat to verify the trim of the imported vehicle and assign the appropriate value, instead of applying the base value.

“Pursuant to the above, you are requested to re-orient all examination and valuation Officers of this procedure to prevent further loss of revenue” the circular stated

In a follow-up press statement to further clarify the Customs position, the National Public Relations Officer of Customs, Abdullahi Maiwada explained that the mentioned circular specifically pertains to imported used vehicles equipped with ‘trim’ numbers.

He said “These trim numbers are critical in identifying distinct versions or tiers within a specific car model. They delineate varying configurations, features, and levels of equipment associated with the model.

“Furthermore, different trim levels offer diverse technological advancements, interior and exterior features, and, occasionally, distinct engine options.

“For instance, a car model could feature trim levels such as “Base,” “Sport,” “Luxury,” and “Premium.” Each of these trim levels might present differing combinations of attributes, such as premium leather seats, advanced infotainment systems, upgraded wheels, and enhanced safety features, among other enhancements. This results in an elevated value for the vehicle compared to the base model.

“To ensure fairness and accuracy, the NCS mandates that imported used vehicles with trim numbers undergo valuation at the Valuation Seat after a thorough examination. This process aims to establish the vehicle’s appropriate and precise Customs value”

Meanwhile, the Association of Nigerian Licensed Customs Agents (ANLCA) has condemned the directive, saying that the Customs service is about to compromise the VIN valuation compliance procedure.

The Sole Administrator of ANLCA National Secretariat, Alhaji Babatunde Mukaila in a chat with DAILY TREND raised an alarm, saying “Custom management is about to compromise VIN valuation compliance procedure code-4100 regime by this directives to return to manual Valuation”

Recall that the Customs Service had first raised an alarm recently, over serial infractions by importers and clearing agents in the payment of duty on imported used vehicles also known as Tokunbo vehicles.

According to a Memorandum which emanated from the office of the former Assistant Comptroller General of Customs, Tariff and Trade, ACG Musa MBA dated 17th July 2023, a copy of which was sited by our correspondent, some of the clearing agents were alleged to have been shortchanging the Federal Government.

The memo is titled ‘Value Cut on Extended Procedure Code 846’

According to the Customs “A new trend of infraction has been discovered where the value approved on the assessment slip for the extended procedure code 846 is not completely utilized.

“The CAC should take immediate action to stop the infractions and also liase with the DC Revenue, DC Valuation and DC PCA and ensure recovery of lost revenue.

“Attached in Annex A is the list of some C numbers with such infractions. Other C numbers will be forwarded in due course as the profiling is a continous process. Ensure strict compliance, please” it reads

11 thoughts on “VIN Valuation: Customs Indicts Officers Over Revenue Losses on Imported Used Vehicles

  1. VIN is the finest policy ever introduced but it took money away from the pockets of customs high ranking officers whom through corruption behave like they own Nigeria. Now they must reverse back to manual assessment so their fat chopping can return. A country that will make one step forward and 100 backward. The president should insist VIN stays so everyone is aware of the tariff of each vehicle. They want to return in short changing government heavily and it should not be allow to stand. I wonder what the president is waiting for to stop them from collecting custom duty payment on behalf of the federal government and instead hand such responsibility to the FIRS. I will be very dissapionted with PBAT should he allow these people return to manual assessment for valuation.

    1. The issue of collecting revenue duties from customs n handing it to FIRS is not the problem, but for national security can FIRS understand the rudiment of the job?.what i expect u to say is for the president to exists of no going back on the VIN..
      Customs is more than revenue collection..National security and protection of local industries is equally important.

    2. Can Nigeria never be a better nation with all this corruption act by government officers, return backwards by applying manual I stead of VIN the movement is only to make he high ranks custome officers be richer, I believe PBAT is a wise man that can’t allow such move to stay

  2. This is a point where it is obvious that the Nigeria customs is the most corrupt federal government revenue agency, and the wealth of Nigeria is totally unsafe with the Nigeria customs. It is now been clear without any doubt that the Nigeria customs is ineffective and incapable of collecting or handling importation duty generally in Nigeria, rather it is just an agency influenced with high corrupted personels. We thereby implore the Federal government of Notre under PBAT to totally withdraw importation duty collection from the Nigeria customs and hand over to a reliable FG agency that we all can trust.

    Every other Ecowas countries are collecting importation duty through the VIN valuation system for years and there has been no reverse on it in any country. Only in Nigeria with corrupt customs officers. This is a useless and helpless agency that will create a policy it can not handle or manage, and therefore come back again to reverse in ten folds. What a useless sense in the Nigeria customs.

  3. Dear ACG

    We need a well detailed procedings for clearing used vehicles , this unstable Policy is killing the economy. , Consider importers and other stake holders , lets stop this hardship on the is the Government of the people and not autocracy.

  4. Why are we always dancing like a masquerade who has missed it’s steps. Instead of improving on the platform we are trying to take it down forgetting that tax payers money was spent to develop it. We can not continue in this wasteful manner and make meaningful progress

  5. Going back to Manual Value we give rooms for the custom to thief money as there are doing b4, what I expect from federal government is to reduce the Tariff or cut the 7.5 Tax back to 2.5 that we are paying b4, so that many people we go back to the business..if they go back to Manual Value that doesn’t change the high value, and FOU we still be disturbing anyone that bring out there consignment out from Port. VIN Value is the best way, but the high 7.5 VAT and tariff need to be cut immediately coz of the exchange rate.. thanks

    1. The truth is that we rush into something and rush out. How can u say u are giving E valuation to imported vehicles some vehicle will be accepted while some will not ? If u bring in vehicle from America, system will give u value and call it standard but if the car come from Europe, system will not accept it and call it non standard. U bring Mercedes Benz , system will not give u value but can give other make . So if u check u will see the we have no knowledge of E valuation they need proper training. The some thing with so called paar we need to call COTECNA and SGS back and cut off all customs seat to have access to SGDs , it will reduce the corruption in the system

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