As Shut Down Of Businesses Enters 4th Week, National Association Of Automobile Marketers Highlights Economic Losses & Constitutional Breaches By Nigeria Customs Service

The National Association of Automobile Marketers (NAAM)has spoken out against the arbitrary closure of the businesses of its members by men of the Nigeria Customs Service.

NAAM in a statement signed by secretary Joseph Iriah highlights the economic and legal implications of action carried by Nigeria Customs Service without notice – and the counter action it may be forced to take in the bid to redress the situation.
The statement by NAAM reads…

On Saturday the 28th day of September,2019, men of the Nigeria Customs Service carried out a wholesale clamp down on automobile dealerships nationwide with the sealing of all our members Premises.It is very important to note that before the said sealing, no Court Order was obtained, neither was any Notice issued to us nor did we receive any communication or correspondence from the said Custom Service informing us of the reasons behind the said sealing of our members premises.

When some of our members engaged the Customs Services, they were informed that the exercise was carried out with a view to ascertain if smuggled vehicles were in the respective premises and that within a few days the issue would be resolved after the verification of the importation documents of the automobiles in the sealed premises. As we speak the siege has entered its fourth week, thereby occasioning untold financial loses and severe hardship for not just us, the auto dealers but for the thousands of Nigerians employed in our businesses.

We have noted over time that the Comptroller-General of Customs appears to be zealously committed to improving the revenue generating capacity of the service. We, however, have grave reservations as to the legality of this present action. While we have in the last three weeks been engaged in dialogue with the customs service authorities, we have noted that our reputation as responsible corporate citizens of this country is being impugned and scandalized, no thanks to the prolonged closure of our business premises. Thus, the public is left with the impression that we are all economic saboteurs and smugglers.

We are therefore constrained to make our position known to the public and emphatically state as follows: -.

None of our members is involved in the act of smuggling nor do we stock in our premises any smuggled vehicles whatsoever.

The sealing up of our premises was not sanctioned or backed by an order of Court.

The Customs and Excise Management Act does not empower the Customs Service to seal a business premises without first identifying contraband goods within the premises.

We as bona fide businessmen and corporate citizens lawfully engaged in the business of importation, sales and service of automobiles do not have the license and or authority to personally clear automobiles directly from the ports as that duty statutorily belongs to Customs Licensed Clearing Agents. Therefore, any discrepancy in the documentation of any automobile imported through a Nigerian Sea Port should be placed at the doorsteps of the Customs Licensed Clearing Agents and the Customs Service.

Consequently, we are at a loss as to why we should bear the brunt of this draconian, ill-conceived and drastic blanket action. Even though we have been groaning under a cocktail of duties, multiple levies, taxes and terminal charges that have made the landing cost of automobiles into Nigeria the most expensive in the world. We are particularly burdened by the 35% automotive industry levy payable after the stipulated 35% import duty. A fact not lost on the Comptroller General of Customs who has had cause to complain about it recently.

As patriotic Nigerians, we stand with Nigerian Customs Service in their drive for increased revenue and their determination to curb smuggling. Even as we commend the determination of Col. Hammed Ali (Rtd), the Comptroller General of Customs to introduce international best practices in the process of clearing goods at our ports in the face of the chaotic state of affairs, we believe that due process should be followed without jeopardizing the businesses of thousands of law abiding automobile dealers by this brazen and blanket clampdown.

To be sure, the effect of this unfortunate action on the part of the Customs Service has far reaching negative consequences on the reputation of Nigeria as a safe haven for investors and corresponding effect on Foreign Direct Investments. It stifles economic growth and negates this administration’s stated resolve to create employment because at the moment this unlawful action is threatening the job security of hundreds of thousands of Nigerians employed by us.

By this statement, we are making an urgent appeal to the President Muhammadu Buhari to prevail on the Nigerian Customs Service to rescind and desist from carrying out such unlawful and draconian actions in the future.

We are also conscious and well aware of our rights at law and should our premises continue to remain shut, we shall be constrained to enforce our rights and seek legal redress by commencing legal proceedings against the Nigeria Customs Services which would naturally come with damages for the huge amount of losses we have suffered.

In conclusion, we make a clarion call on the President of the Federal Republic of Nigeria and the distinguished President of the Senate of the Federal Republic of Nigeria to prevail on the Nigeria Customs Service to cause an immediate unsealing of the premises of all the automobile dealers without any further delay.

Long live the Federal Republic of Nigeria

JOSEPH IRIAH Esq.
(Secretary)