FG Increases Tariff On Imported Vehicles

•    Operatives, Others Keep Mum
Even though there is no official confirmation from Customs yet, the much-expected take-off of Federal Government’s new automobile policy may have taken-off, following a circular for a review of tariffs and levies payable on some categories of imported vehicles.

•    Operatives, Others Keep Mum
Even though there is no official confirmation from Customs yet, the much-expected take-off of Federal Government’s new automobile policy may have taken-off, following a circular for a review of tariffs and levies payable on some categories of imported vehicles.
Sources at the Customs headquarters confirmed to our correspondent yesterday that, indeed there is a circular from the Minister of Finance ordering an upward review of revenue payable on imported ‘fully built unit’ (FBU) cars.
The sources however hinted that the circular, has not immediacy attached to it. They told our correspondent yesterday that, it may not take effect until January and that it is probably to serve as an advice for importers who want to open new Letters of Credit.
It is however silent on duty and levy that would be paid on imported used vehicles.
Our correspondent gathered that, under the emerging dispensation, such vehicles shall now attract a charge of 70 per cent, broken down to 35 per cent duty and 35 per cent levy.
However, while the tariff review discourages importation, it favours local automobile manufacturers, which will now enjoy a zero duty/levy regime on all Completely Knocked Down (CKD) imports.
In the circular part of which was dictated to our correspondent yesterday, semi-Knocked Down components for the assembly plants will attract only five per cent duty.

But there has been no communication of the circular to the commands in Lagos. Our correspondent was told by the public relations officer (PRO) of the PTML command; Mr Steve Okonmah that the command had not received any such circular.
Similarly, the spokesperson for one of the destination inspection agents told our correspondent that, ‘it is possible, but you know such things don’t come out immediately, adding that, “I am sure that the circular didn’t say it with immediate effect”.