• New Cars Attracts 20% Duty
The Nigeria Customs Service has said that it is not shifting grounds on the implementation of its 35% duty collection on imported fairly used vehicles as part of implementation of the new automotive policy.
• New Cars Attracts 20% Duty
The Nigeria Customs Service has said that it is not shifting grounds on the implementation of its 35% duty collection on imported fairly used vehicles as part of implementation of the new automotive policy.
Public Relations Officer of the PTML command of the service, Mr. Steve Okonmah told Shipping Position Daily in his office yesterday that this policy ought to have started since January 1, 2014, but added that the Comptroller General of Customs, Abdullahi Dikko Inde had been magnanimous enough to give freight forwarders a little time.
Quoting a document titled "Revised Policy Measure For Automotive Policy" Okonmah said that new vehicles imported is expected to pay 20% duty, while new trucks attract 10% as against the 35% duty collected on all used vehicles, including trucks and buses.
This new policy according to him, has already been uploaded on all customs systems. The customs has also insisted that the 35% levy will come on by July 2014.
The circular reads in part "With effect from 1st January 2014, used vehicles will be imported at 35% without levy till 30th June 2014, renewable as required by the Ministry and the National Automotive Council to manage market conditions"
The document is renewable by the Minister of Finance and the National Automotive Council by June 2014.
According to Okonmah, there was no circular to freight forwarders that customs will only begin implementation of the policy by July 2014.
He said that the essence of the new auto policy is to discourage importation of rickety cars on Nigerian roads.
Okonmah said that the policy is also to encourage manufacturers to build vehicle assembly plants in Nigeria, which according to him is gradually taking roots.
Speaking in the same vein, Public Relations Officer of Tin Can Island Customs Command, Mr. Chris Osunkwo said that the 35% duty on used vehicles is also applicable at Tin Can and all custom formations.
Osunkwo debunked reports that Tin Can port was not collecting 35% duty on used vehicles. According to him, it is a Federal Government policy that is implemented at all commands.
But, the Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA) at Tin Can Port, Mr. David Chuks Kanikwu however said that most agents were not ready to pay the duties.
He also stated that the protest which took place on Monday has not abated. "The protest is still on subtly because it only involves valuation issues, so most people are not going to collect the value, people are just nosing around to find out what it will transcend to, with a view of telling their importers what is on ground, they might collect this value without even paying it"
He also added that, “because of the sudden implementation, most clearing agents had run into debt because there is usually a contractual agreement between an importer and the agent.
“The clearing agents had already entered into this agreement with the hope that the implementation of the tariff will start on July 1.
“If an agent returns to the importer to ask for additional money, the agent will become a liar and this is not good for business,’’ Kanikwu said.
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