Openbusiness's Posts
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222Martins:Glad you have resolved it sir. Congratulations and have a safe trip. |
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Nyamiri:Sir, let me tell you what you don't seem to see. With Nigerian customs, for duty payment or clearance of your goods, you have 3 categories which I call: 1) Full duty (full duty paid) 2) Acceptable duty (more than half full duty paid, less settlements) 3) Non - acceptable duty (less than half full duty paid, more settlements) Both number 2 and 3 are short payments but it is those that do number 3 who will have problems with customs FOU. I'm talking about importation in all industries, not just cars alone. In my earlier comment, I said maybe only about 1% importers pay number 1 (full duty) because they will run of out business in a short time if they do. So in the customs clearing system, the norm with customs in Nigeria is for people to pay number 2. Number 2 for example is, if full duty is N400m, the person might be allowed to pay like N200m (or more) and settle N50m. Then his goods are duly released with genuine papers. When FOU crosses him on the road and they check his clearing documents, they re-evaluate or re-assess what his duty should be. They might calculate N420m and then they see that he paid N200m, they know he would have settled their people nothing less than maybe N40m, so they calculate that he must have paid around N250 total for his goods to be released, then they will tell him, find something for us, or anything for your guys. He might tip them like 20k and they will let him go with their blessings. As far as they are concerned, even though he didn't pay number 1 (full duty), he paid number 2 (acceptable duty), so they will let him go. But assuming they stopped him and then they checked and saw he paid N80m as duty for something that should have been around N400m, then they will seize his goods and take it to their command or demand a high bribe from him like N100m, before they will let him pass, because the duty he paid falls into category number 3 (non- acceptable duty). Now as it relates to cars, most car importers or clearing agents pay acceptable duty, maybe 98% of them. Hardly will you see any car with full duty, what they pay is acceptable duty that customs will check and not disturb and let the car go. Assuming for this case now, the agent paid maybe duty of N3.5m (acceptable duty), no customs would have impounded the car, they will just collect roger of like 2k and let him go. But paying N1.9m duty out of N2.750m for a 2014 Gx460 is non - acceptable duty. FOU Customs will always disturb on that car. But I'm not discussing this matter again, before people here that have nothing meaningful to contribute except insults direct their frustration at me. This matter is not my business. The OP and his agent will settle themselves. I wish OP the best resolution. And your GX460 is a very solid beautiful ride, congrats and best wishes to you sir! |
ShenTeh:I see your point sir and I don't dispute anything you said. This is where the problem began from, not doing what he agreed to do with the customer. The reason why I said it's not fraud is because from what the OP narrated, his agent did pay duty, even though short payment because he did back door clearing (clearing with part duty and settlements). Assuming he didn't pay duty at all, then that is fraud. That's why I used the word "TECHNICALLY" in my statement. I'm not defending the agent, nor do I support his action. He has himself to blame for this problem that could have been avoided if he followed his customer's wishes. |
ElRazur:You're very correct sir, this is the main problem I see with the OP's agent. His agreement with customer was to clear car with full duty and this is what he charged for. Then why did he clear through the back door? I know someone that paid 4m duty for his 2015 Corolla last year, total clearing costs around 4.7m, because he said he doesn't want customs wahala as he was going to be travelling with the car to Benin from Lagos on a regular basis. How can it now be that a 2014 GX460 would be cleared for N2.750m? That's the magic I want to learn about in this thread and waiting for the OP agent to explain himself. N2.750m can only be back door clearing or undervaluation clearing. The OP has no fault at all in this matter. The clearing agent has a lot of explaining to do as to why he chose to clear through back door when your customer already said he wants full duty clearing. That is a breach of agreement and trust, and ended up creating problems for himself. Customs are not smiling under this new CG Ali. They have been so bold and daring like going to expensive hotels to seize cars, shutting down car dealerships to check their papers for correct duty, and even closing the borders. Even big men are hiding from customs now And ember months are here, where customs start to show their power on expensive cars they see on the highways. |
ElRazur:Well sir, what I mean is by current laws, full duty is 70%. But in reality, maybe only 1% people ever pay that, because it's too expensive, even for the wealthy. Remember the GEJ government implemented the laws to discourage car importation and encourage local manufacturing or car assembly plants by these foreign manufacturers. But these foreign car manufacturers didn't come, but unfortunately the 70% duty law remained in effect. But in practice, most clearing agents still clear with the old clearing charges, then grease a few palms, and car is released. This is the general system that even customs themselves allow behind the scenes. And that's why their bosses then setup FOU taxforces to close the loopholes and generate revenue, and also do eye service to the presidency that they are working. It is like the case of VIO, many un-roadworthy vehicles have roadworthiness certificates that they got direct from VIO themselves, they just paid money and got certificate, no vehicle inspection done by VIO before certification. But then VIO will still go on the road and such unroadworthy vehicles will be impounded when caught. More money for the government. Money 1 from issuing certificate to the un-roadworthy vehicle and Money 2, revenue from impounded cars before it is released. So in a way, it is a corrupt government system of like government selling guns to the thieves, then the same government will arrest the thieves for armed robbery and collect the guns back . But let me draw the line that I'm not speaking for the agent here, I don't know him, I don't know the OP and I'm not in anyway involved in this matter. I'm just talking in general terms based on my own understanding. But I'm waiting for the experts to come in and shed more light on this matter. |
ShenTeh:Technically, the agent didn't defraud him. He tried to beat the system, but it backfired. Even if he paid complete N2.750m as duty alone, that amount is still not up to full duty for a 2014 GX460, unless maybe the car is the accidental type and bought cheap or they undervalued it in the assessment. |
A dealership sold 2014 GX460 should cost maybe around from $21,000 upwards depending on specs. So, surface duty alone is estimated around 21,000 * 306 * 0.35 That's approximately N2.250m surface duty alone, then plus the second 35% levy, which doubles it. Which means genuine full duty in a 2014 GX460 ( based on this estimate purchase price) is around 5m, then not to talk of terminal fees, clearing charges. You will need like 5m to 6m (or more) to clear it with genuine full duty. The agent wanted to beat the system because that's the Nigerian way that most people do but unfortunately it backfired this time. Most agents if they tell you the correct full duty price, the customer will run away and find someone that will charge less and this cheaper agent will still clear it the 9ja way because that's how come he can do it cheaper. But if the guy should have paid like 3.5m or 4m duty, the customs won't disturb with that figure. But how can he pay 3.5m or 4m duty when he collected 2.75m. This is the great puzzle only a magician can solve. But don't take my word for it, I may be wrong or right, who knows. Car dealers and customs people should enlighten us more on this matter please. I want to learn. |
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