Monday, April 29, 2024

Unveiling Tomorrow's Cameroon Through Today's News

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In a memo dated March 28, 2024, Fongod Edwin Nuvaga, Director General of Customs, has reiterated the prohibition on customs clearance of third-party goods under the private vehicle warehouse regime.

Nuvaga expressed concern over the observed customs clearance of non-vehicle goods in warehouses designated exclusively for vehicles. This practice, according to the Director General, not only distorts the regulations governing customs operations but also results in budgetary losses and could lead to illicit practices.

Customs authorities have highlighted the challenge of quantifying the financial losses caused by this practice. To address this issue, they are considering conducting surprise inspections of vehicle warehouses to ensure compliance with regulations. Additionally, penalties are outlined for violations of these regulations.

The origins of this issue trace back to the 2018 finance law. Under this legislation, large importers have been permitted to import vehicles into Cameroon and store them in designated warehouses until potential buyers are found. Importers then clear these vehicles through customs on behalf of their customers, effectively deferring payment of customs duties and taxes until the vehicles are sold.

Guy Innocent Diffouo, head of the legislation unit at the general customs directorate, explained that the private vehicle warehouse regime was established to combat smuggling and revenue loss. However, over time, authorities have observed a concerning trend where non-vehicle goods, such as washing machines and mattresses, are being stored in vehicle containers within these designated warehouses. This practice is explicitly prohibited by regulations.

The misuse of the private vehicle warehouse regime not only undermines customs regulations but also poses significant challenges for revenue collection and enforcement. Customs authorities are taking steps to address this issue and enforce compliance with regulations to prevent further financial losses.