• Saturday, April 20, 2024
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Customs reviews import duties on vehicles, spare parts

The Nigeria Customs Service (NCS) said it has migrated from the old version of the ECOWAS Common External Tariff (CET) 2017- 2021 to the new version of CET 2022- 2026.

With the migration, Customs has retained an import duty rate of 20 percent on used vehicles as was transmitted by ECOWAS with a National Automotive Council (NAC) levy of 15 percent, amounting to 35 percent duty.

Also, importers of new vehicles will going forward pay a duty of 20 percent with a NAC levy of 20 percent, amounting to 40 percent duty as directed in the federal ministry of finance letter ref. no. HMF BNP/NCS/CET/4/2022 of 7th April 2022.

According to a statement by Timi Bomodi, public relations officer of the Customs, the migration has enabled the nation to adopt all tariff lines with few adjustments in the extant CET.

Bomodi stated that the new tariff migration, which took effect on Friday, April 1, 2022, is in line with the World Customs Organisation (WCO) five years review of tariff nomenclature that allows contracting parties to adopt the review based on regional considerations and national economic policy.

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“It is instructive to note that domestic fiscal policy on the importation of motor vehicles and other items is targeted at growing the local economy in these sectors. The focus of NCS is on implementation of these policies in the hope that it achieves its desired objectives in line with National Automotive Policy and other fiscal policies of the government,” he explained.

Bomodi stated that Customs has also activated the use of Chapters 98 and 99 of the CET to promote industrialisation through creating sector-driven incentives for members targeted at economic growth, enhancement of security and minimised consumption of harmful goods.

Bomodi stated that in line with Chapter 98 of the current CET, bonafide assemblers importing Completely Knocked Down (CKD) and Semi Knocked Down (SKD) vehicle spare parts are to enjoy a concession of zero percent and 10 percent duty rate respectively.

He said within ECOWAS, the duty rate for the same items are 5 percent and 10 percent respectively.

According to him, this would enable the automotive industry, bonafide assemblers, manufacturers of auto spare parts and other local manufacturers to enhance technology transfer, skill acquisition, job creation and increase per capita income.

“Incentivising the efforts of players in the automotive industry through policy interventions guarantees a win-win situation for the nation in the long run,” he added.