There are indications that the Nigeria Customs Service may have in creased duty that is paid on all imported second hand vehicles in a new regime of graduation of payable duty based on ex- factory price and age of such vehicles.
Already, a circular conveying the decision has been forwarded to all customs zonal coordinators, area controllers and all valuation officers at the various Customs formations throughout the country.
There is a subsisting government policy which allows used vehicles that are not more than 10 years old to be imported into the country.
Titled “Forwarding of motor vehicles ex-factory price (in USD) for customs duty collection”, the new circular disclosed that henceforth, importers of tokunboh vehicles of four years and above will pay a duty of 50 per cent, while those of three years, but not more than four years will pay 40 per cent.
Similarly, vehicles that are not above three years old will henceforth pay a duty of 30 per cent, the same applies between one year and two which will attract a duty of 20 per cent. But fairly new vehicles which are above three months, but not more than one year or with odometer of not more than 3000 miles will attract only 10 per cent.
The circular which was made available to Shipping Position Weekly and which was signed by one Shehu Umar also directed that importers should also produce documents to confirm the model and the cubic capacity of the vehicles from the sellers.
Prior to the new dispensation, individual Customs commands collected different duty on used vehicles imported into the country through their commands, a situation which the Customs high command declares as no longer acceptable as it does not allow for uniformity in revenue collected on used vehicles.
But Customs public relations officer, Mr Wale Adeniyi that the new directives do not necessarily translate to higher duty, but that it was just ensure that there will be uniform application of duty at all entry point.
He confirmed that previously different ex-factory prices were being used at different ports and that it was longer tenable.
He also confirmed that the circular means that older vehicles should henceforth attract higher duty. “It means that duty on a 2007 car will be higher than duty on a car of 2006”.
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