FG introduces uniform duty rate on vehicles
Business Jul 16, 2009 By Godwin Oritse
THE Federal Government (NCS) has introduced a uniform import duty rate on imported vehicles based on ex-factory price. This development has taken effect in all Customs commands, a development that now eliminates the indiscriminate imposition of duties.


President Yar Adua
The duty rate before the newly introduced ex-factory rate was between 10-35 per cent depending on the age of the vehicle which limit the customs had pegged at ten years.

The value of vehicles before now were also calculated indiscriminately by customs officers carrying out examination.

In a Memorandum with reference no NCS/T$T/I&E/067S.4/VOL. X, addressed to all Zonal Coordinators, all Area Comptrollers, and all Valuation officers, the government directed that all commands are to comply with the newly introduced ex-factory price for Customs duty collection.

Confirming the development, the Service spokesman, Mr Wale Adeniyi told Vanguard that the idea behind the memo is to ensure that duties on vehicles are uniform in every ports.

“The Memo is to ensure the enthronement of a uniform duty regime on vehicles in all ports, Customs commands, and this is because there has been a variance in the calculation of duty on vehicles,” he stated.

The Memo also contained a progressive reduction of import duty on vehicles of various age – ranging from three months to four years and above.

Vehicles above three months with Odometer reading above 3,000 miles but not above one year will attract a ten per cent duty rate, while vehicles more than one year but not above two years will equally attract a duty rate of 20 per cent.

Vehicles more than two years old, but not above three years will have Customs duty calculated at 30 per cent, and 40 per cent for vehicles more than three years but not more than four years old, while vehicles more than four years old and above will attract a duty rate of 50 per cent.

Part of the Memo reads “Consequent upon directive/approval given, I am directed to forward herewith motor vehicle Ex-factory Price (In United State Dollar) for Customs Duties Collection.

“You are required to take note of allowance for age of vehicles.“The Importers of used Vehicles must produce documentary evidence showing model and cubic capacity vehicles which should be obtained from the vendor.

“You are hereby directed to comply forthwith to avoid indiscriminate collection of duties on motor vehicles. This supercede the earlier one sent”. It would be recalled that Nigeria signed the international convention on agreement of Customs Valuation which is the general agreement on Trade and Tariff.

The convention is the treatment of Customs valuation which is based on the principle of Transaction value, Identical value method, Computed value method or Sale value, Similar value method, and Deductive value method.
The principles of arriving at import duty of vehicles includes the country of manufacture, cubic capacity, age rebate, wear and tear of vehicle percentage duty and ex-factory price.



http://www.vanguardngr.com/2009/07/16/fg-introduces-uniform-duty-rate-on-vehicles/

Which means the older the vehicle the higher the custom duty. Na wa for this Yaradua government.

Na wao, but let wait and see

How do u hope to charge 50% duty for and older vehicle?

I guess everyone has to buy new ones then.

Let's wait and see where this will lead us to as it will now be better to buy brand new cars.

What's the need buying a 5 year old car worth N1.6 million and paying 50% custom duty (800K) making it about N2.4 million.

It's then better to buy a "Tear Rubber"

In my humble opinion, This is stupid to say the least.
40%, 50%, like wat the heck?

The whole idea is to encourage people to buy new cars, which in my opinion I don't see anything wrong with!

Have they ever made a lasting policy that is actually people friendly? The whole thing is alway about how to fill their fat pockets.
How is this poicy going to make the average Nigerians live a better life.
If anyone can't come up with one that benefits all Nigerians, please we'll like to know what the rational was.

even in overseas how many people buy brand new car
kia,

i hereby call for 1 wk protest!!

sit don de look hmmm not this time

yaradull cant be serious

No confusion, when the gov official from Cotonou came to complain about low patronage by Nigerians they worked out a deal. Some money must have changed hands with promise of more to come. So seat back and watch the game you just have to pay heavily.

I trust my Naija guys. Just buy 5 year old car at 10000 USD but let the invoice bear that it costs 2000 USD. The 50% customs duty will then be 1000 USD. Who then loses, federal government as usual.

reality4us:

I trust my Naija guys. Just buy 5 year old car at 10000 USD but let the invoice bear that it costs 2000 USD. The 50% customs duty will then be 1000 USD. Who then loses, federal government as usual.

They actually apply fair mkt value when they value the import duty. Regardless of how much you buy it. There is a uniform "blue book value" for car prices here in the US.

Does this harmonised duty apply to ALL vehicles ie trucks ??
Does 10 year age limit apply to trucks ??

Thanks

Iain

Another business-unfriendly move by the federal government. This is what happens when you fill the whole cadre of the customs with poorly qualified people based on tribal and ethnic sentiments. Nigeria is one of the few places in the World where the customs is not importer/customer friendly.
It just looks like they have northern customs officers everywhere harrassing southern importers, and making it impossible to do genuine business in the country.

kule

They actually apply fair mkt value when they value the import duty. Regardless of how much you buy it. There is a uniform "blue book value" for car prices here in the US.

i mean what is this!!

people like u are killing nigeria, they talk like they know, when they dnt, US and Nigeria wey naija de chase, wetin bi this, i mean people like u makes me sick, oga yes ir

u see there was a time people in UK in the 90s travel to  Japan to buy cars cuz it was cheaper and economics sound, then Uk cars dearers started to lose out, here comes the government set up some emm charges which when added up, then u might as well buy from Uk

so plz dnt talk about uS

yarabrainless is killin nigeria barely breathin with one nose

That slowpoke need to check himselves


DECIDED

sultaan:

No confusion, when the gov official from Cotonou came to complain about low patronage by Nigerians they worked out a deal. Some money must have changed hands with promise of more to come. So seat back and watch the game you just have to pay heavily.

Quite correct, more business from Cotonou.

naijaking1:

Another business-unfriendly move by the federal government. This is what happens when you fill the whole cadre of the customs with poorly qualified people based on tribal and ethnic sentiments. Nigeria is one of the few places in the World where the customs is not importer/customer friendly.
It just looks like they have northern customs officers everywhere harrassing southern importers, and making it impossible to do genuine business in the country.

Shame on you naijaking.
Armchair expert, hissssss.
I pity people like you who see nothing beyond tribalism and ethnicism.

The whole idea of harmonising the import tarrifs is to ensure that newer vehicles come in to the country at cheaper rates.
It is unfortunate that Nigerians are the highest importers of accident vehicles from the US.
The same people that criticise such policies are the ones that will import an accident vehicle (almost for free) and sell it at a dear price(tokunbo) to Nigerians.
You can never satisfy the average Nigerian.

prosperup:

Shame on you naijaking.
Armchair expert, hissssss.
I pity people like you who see nothing beyond tribalism and ethnicism.

The whole idea of harmonising the import tarrifs is to ensure that newer vehicles come in to the country at cheaper rates.
It is unfortunate that Nigerians are the highest importers of accident vehicles from the US.
The same people that criticise such policies are the ones that will import an accident vehicle (almost for free) and sell it at a dear price(tokunbo) to Nigerians.
You can never satisfy the average Nigerian.

Apart from hipping abuses, I see you have no way of denying the points in question.
Fact: Nigerian customs is very business unfriendly.
Fact: Most of the senior cadre of customs are Hausa people, right from Independence.
Fact: customs policies have never been business or even people friendly. And you still want to talk?
FYI: Nigeria is not the highest importer of damaged and accident vehicles from US, it Albania/ Kosovo, and the former Chek. republics.

Shame on you naijaking.
Armchair expert, hissssss.
I pity people like you who see nothing beyond tribalism and ethnicism.

The whole idea of harmonising the import tarrifs is to ensure that newer vehicles come in to the country at cheaper rates.
It is unfortunate that Nigerians are the highest importers of accident vehicles from the US.
The same people that criticise such policies are the ones that will import an accident vehicle (almost for free) and sell it at a dear price(tokunbo) to Nigerians.
You can never satisfy the average Nigerian.

right this is how we gona do this

before this should be allowed to go on all federal gov roads should be done to last in the next 20 yrs

mind u, we thats lives in the west know, not many people buy new cars nigeria

why do people talk of what they dnt know

these policy should be applied when nigeria have good standard of living

with all the federal road done

i mean from east-south-north-west

im sorry

yarafool is an idots

bloooooooooooooooooooooooody idot

Shame on you naijaking.
Armchair expert, hissssss.
I pity people like you who see nothing beyond tribalism and ethnicism.

The whole idea of harmonising the import tarrifs is to ensure that newer vehicles come in to the country at cheaper rates.
It is unfortunate that Nigerians are the highest importers of accident vehicles from the US.
The same people that criticise such policies are the ones that will import an accident vehicle (almost for free) and sell it at a dear price(tokunbo) to Nigerians.
You can never satisfy the average Nigerian.

are u a nigerian

or are u a looterian

Naijaking, where did you get your statistics that Nigeria is the highest importer of accident vehicles in the world?

The whole hysteria about new cars is hollow. In America - the bellwether of automotive industry - used cars are a hot cake because it makes economic sense.

Why must Nigerians be forced to use new cars?

I am not surprised by the new policy. Yaradua's government like successive governments acts before thinking. After all it was Dangote-led panel that recommended to Obasanjo the ban on vehicle above 8 years old.

And how does imposing higher tariff on old vehicles make sense in a country where over 80% of the people live below poverty level and where there' is no half-functional public transportation to insulate citizens from sky-high vehicle prices

---

Uche K. Oparah
Founder & Chief Customer Evangelist
AutoParadise Services Limited

P.S. Win $15,000, 5-Return Tickets & 5-Year Free Service in AutoParadise Drive & Smile Autocare Bonanza
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Ikeyman which part of the wests do you live in and to which kind of 'class' do you belong.
Certainly if you live among those that only buy tokunbo cars then you will hardly ever notice that people buy new cars.

How in the name of God did GM become the highest manufacture of cars in the world (before the recession) and 65% of the cars are sold in the US alone.
I'm sure you know that GM or ford do not manufacture tokunbo vehicles.

This is democrazy for God's sake.
People should have choices of buying used or new ones.
I still feel very comfy buying a used vehicle from the states than all those Europe and Dubai brands we have all over here.
You can't compare a USA toyota corolla with the Europe/Dubai Corrola, the difference is clear.
The same applies to other brands.
another prob is the availability of parts.
Now they are going to make hell of a life for the spare parts dealers who charge lesser than all those appointed dealer stores where you pay high cost of labour and also may have to wait for components or parts to be shipped in from abroad( whereas you can quickly get that at ladipo at an affordable price);
there should be an open market and a fair one,
we have diff opinions and that also affects our choices.

If they really want to scrap this.
they should allow all individuals access to the new cars scheme, and made to pay 10% and no hazzles of bank policies to get cars.

Nigeria needs to tackle the major problems and not this ones,


we are not a developed country yet.

Wao. God save us indeed.

@@@@

most people in this thread graduated from The Nigeria Police College

cuz the reason like them animals

in a country 70% of its people lives under #200.15kobo, una de yan like this

when over 70% of cars in uk are over three or four year

while half might even be like 8 yrs and over

kia!!! sometimes i feel like feed asshole rock abuja rat posion, cuz i don tire

all una do is copy copy copy!!! peopel still drive cars like honda halla here oo!! the only reason u see Uk govermnet imposin heavy duties on cars from oversea is emm they just dnt understand the reason people buy cars from abroad, hence the Uk dealers are closin buiznesses so they came up with that, in the sense emm by the time u pay all that etc, then the car will be qualifeid for rigisteration, u wouldnt even think to dare cross the border

how can i get rat posion to abuja national assembley and presidential villa

plz can someone advise me

very urgent
hahhaha