Readonee35L:
This country is so disorganized
Is there any real way to calculate custom duty on cars in this nigeria?, because i keep getting different quotes from different agents, I don't know if i'm Paying the actual duty , or i'm getting cheated on or even underpaying the duty.

2nd issue.
what's the real calculation of the duty is it 35% or what

The custom duty quotes is very high and crazy and i tell you it's even above the cost price and shipping of the car.
Example
a clean title 2015 camry starts from $10,000
found one for 10,891
car cost - $10,891
shipping - $1100
total arrival at Lagos port is $11,991 . 11991 x 367(dollar rate) = #4,400,697
Imagine me getting a custom duty quote of 3million naira.
Which is almost 85% value of purchase and shipping of the car
Does this even make any sense??

And this is for clean title.

the salvage of this 015 Camry with little dent on bumper or broken light is sold between $5500-8000
and can be brought in as low as 2.7million,
will i still pay 3 million duty on this car, .
Duty is already above the cost and shipping of the whole car.

I feel there should be different quotes for each cars, calculated by the cost of purchase and other charges of the car....

Few auto enthusiasts and dealers i can mention.
Calculusx , femmy2010 , kingreign , gazzuzz, saintjoel, oliverjiad e.t.c

Readonee35L:
This country is so disorganized
Is there any real way to calculate custom duty on cars in this nigeria?, because i keep getting different quotes from different agents, I don't know if i'm Paying the actual duty , or i'm getting cheated on or even underpaying the duty.

Few auto enthusiasts and dealers i can mention.
Calculusx , femmy2010 , kingreign , gazzuzz, saintjoel, oliverjiad e.t.c

Readonee35L:
This country is so disorganized
Is there any real way to calculate custom duty on cars in this nigeria?, because i keep getting different quotes from different agents, I don't know if i'm Paying the actual duty , or i'm getting cheated on or even underpaying the duty.

2nd issue.
what's the real calculation of the duty is it 35% or what

The custom duty quotes is very high and crazy and i tell you it's even above the cost price and shipping of the car.
Example
a clean title 2015 camry starts from $10,000
found one for 10,891
car cost - $10,891
shipping - $1100
total arrival at Lagos port is $11,991 . 11991 x 367(dollar rate) = #4,400,697
Imagine me getting a custom duty quote of 3million naira.
Which is almost 85% value of purchase and shipping of the car
Does this even make any sense??

And this is for clean title.

the salvage of this 015 Camry with little dent on bumper or broken light is sold between $5500-8000
and can be brought in as low as 2.7million,
will i still pay 3 million duty on this car, .
Duty is already above the cost and shipping of the whole car.

I feel there should be different quotes for each cars, calculated by the cost of purchase and other charges of the car....

Few auto enthusiasts and dealers i can mention.
Calculusx , femmy2010 , kingreign , gazzuzz, saintjoel, oliverjiad e.t.c

saintjoel:




IF YOU ASK ME, NA WHO I GO ASK.

i've been operating at tincan and port for several years and the issue of duty is one that even our association has been unable to trash things out with customs.

Federal Ministry of Finance churns out the tariff and customs hand it over to us through the valuation unit . If you want me to be sincere with you, how they arrive at what we call the dollar value is even unknown to us as agents.

The day Dikko made GEJ's government know that there was free money to be made through import duty at the ports and borders was the day that they started increasing duty anyhow and it's so unfortunate that this present government is still using the same template.

If you can afford to pay it, ship it. Buy from Nigerian dealers if you can't.

calculusx:


This is the pain we go through year in year out. Some NLers are so quick to abuse and call us Names for inflating Car Prices. Just assume you want to resell this Car and make profit, who will buy it for N7m?

This is the more reason why it's hard to see Clean Title of any latest Car wt legitimate full custom duty paid on it

I drive a salvage 2012 Camry that cost less than $5000 to Lagos, it cost me N1.5m to Clear it. Cost of clearing is more than cost of Purchase. So, if you ask me, na who i go ask??

@OP, Pls take heart, that is what we go through. Change we seek, Chain we see, let's enjoyed it while it last. PDP isn't any better

oliverjiad:
boss nice write up,in fact we need importer/ shipper platform to fight along with agent against this because we can't do it alone u guys pay the money while agent suffer the whole problemand customs go home and enjoy the money

Boss my advice is if ure not sure of the quote u getting either here or out here please kindly inform ur agent to take u to the customs valuation unit and get the real duty to avoid embarrassment so as to be rest assured

These all I can say for the now

Jaid

Readonee35L:

Thank you for your swift response my Jaid.
Infact the whole setup of this duty is confusing.
If I may ask .
How do you agents arrive at your quotes .
Do you give random figures? Because you find different quote from diff agents

Readonee35L:
This country is so disorganized
Is there any real way to calculate custom duty on cars in this nigeria?, because i keep getting different quotes from different agents, I don't know if i'm Paying the actual duty , or i'm getting cheated on or even underpaying the duty.

2nd issue.
what's the real calculation of the duty is it 35% or what

The custom duty quotes is very high and crazy and i tell you it's even above the cost price and shipping of the car.
Example
a clean title 2015 camry starts from $10,000
found one for 10,891
car cost - $10,891
shipping - $1100
total arrival at Lagos port is $11,991 . 11991 x 367(dollar rate) = #4,400,697
Imagine me getting a custom duty quote of 3million naira.
Which is almost 85% value of purchase and shipping of the car
Does this even make any sense??

And this is for clean title.

the salvage of this 015 Camry with little dent on bumper or broken light is sold between $5500-8000
and can be brought in as low as 2.7million,
will i still pay 3 million duty on this car, .
Duty is already above the cost and shipping of the whole car.

I feel there should be different quotes for each cars, calculated by the cost of purchase and other charges of the car....

Few auto enthusiasts and dealers i can mention.
Calculusx , femmy2010 , kingreign , gazzuzz, saintjoel, oliverjiad e.t.c

synergybj:
To calculate custom duty, your duty is calculated based on summing up surface duty (% of CIF), surcharge, administrative charge (CISS), ECOWAS Trade Liberalization Scheme (ETLS), and 5% VAT.

In your case, FOB + Freight and Insurance cost = CIF which is #4,400,000 in your case.

Surface duty @35% is 1,540,000
Surcharge @7% of surface is 107,800
ETLS @ 0.5% of CIF is 22,000
CISS @1% of FOB ($10,000) is 36,700
VAT @5% of all above is 85,325
Total duty payable is 1,791,825.

I hope this helps u.

sheffyUTD:
Well, chairman so much questions on everybody's lips, too little answer.

first, you can never get same quote from agents because there's no fixed duty. What you have is range of values. Though there's a published Tariff to refer to, the quotation you get depends on what customs and your agent consider save minimum value to pay without giving headache to the end user.

Second, Nigeria Customs don't care how much you bought your vehicle . They use useless algorithm; called ex factory price. How can vehicle of 10yrs old be valued based factory price

Less fault with Customs, much blame on Ministry of finance and customs board.

Readonee35L:

Thank you for your swift response my Jaid.
Infact the whole setup of this duty is confusing.
If I may ask .
How do you agents arrive at your quotes .
Do you give random figures? Because you find different quote from diff agents

saintjoel:


Many people think it's actually the agent's or customs fault. We're all working according to a template drawn by the ministry of finance because they now believe that money generated from custom duties can be used to service the budget and other expenses,money that can never cease as long as there are ports and borders to get it from.

We can only blame customs for been greedy by collecting what we call their "table money". You want to pay N1.3m into bank for a car and customs will collect almost N650,000 or more for table money before you get the papers out.

Alhaji Shittu and other excos of ANLCA ,our parent body have been fighting it out with customs and the ministry of finance for years with no result, they've kept going to Abuja to plead for reductions in duty but it seems their plea keeps going into deaf ears. Dikko is a major culprit and I hope he lands in jail, he was the one that made politicians realise that there was money to be made from duties and when Alli resumed, he started seeing commands remiting billions to the government's pocket every month, he and adeosun decided to go on with the same template.

dokiOloye:
The issue

sheffyUTD:


I recognize their efforts, but truth sir is that, ANLCA alone can not win the battle.

synergybj:
To calculate custom duty, your duty is calculated based on summing up surface duty (% of CIF), surcharge, administrative charge (CISS), ECOWAS Trade Liberalization Scheme (ETLS), and 5% VAT.

In your case, FOB + Freight and Insurance cost = CIF which is #4,400,000 in your case.

Surface duty @35% is 1,540,000
Surcharge @7% of surface is 107,800
ETLS @ 0.5% of CIF is 22,000
CISS @1% of FOB ($10,000) is 36,700
VAT @5% of all above is 85,325
Total duty payable is 1,791,825.

I hope this helps u.

saintjoel:


We agents already know this but how do you explain in n to a layman without confusing them?

dokiOloye:
The issue of payment of different amounts on d same car is d what I would've wanted this Alli man to sort out first not useless policies like harrasing car owners for duty evasion and underpayment carried out by some unscrupulous agents in collaboration with the same customs officials.
For a start,he could liberalise d payment procedures,publish d prices online so that importers themselves can have access to what it takes and possibly do some of the processes themselves instead of going thru agents,just like drivers' licence etc are done.
I guess we're still in for a long night in this country.

oliverjiad:
sir all I can say his every importation have their own customs tariff,and every customs agent know how to go about compromise with customs all because we're trying to please client and a good service

To round it up an agent can charge for 1.5m for a Camry 012 while another would charge for #1.3m,all depends on agent rappour with the customs officer and customs command also matters,to be honest when it comes to giving out quote to u importers no steady and permanent quote,because even if u pay full duty customs would still request for endorsement fee

So the systems are corrupt


Jaid

sultaan:
My fellow users and Importers it been lo g overdue that we should basically stop importing for the next one year, if we decide to boycott our ports because of the corrupt practices of government officials and hostile policies things will change, but as long as you keep feeding the monster it only gets stronger and bigger

Readonee35L:

Mr Joel.
You're not confusing anybody.
You have to explain to your client. If they don't understand its their wish.
Just the way synergybj explained with the duty formula which is the standard for the duty.
If I decide to pay 1,791,825 duty on the car, as against the 2.8-3.2m quoted by agents, Am I free from the fúck customs on the road ?

dokiOloye:
The issue of payment of different amounts on d same car is d what I would've wanted this Alli man to sort out first not useless policies like harrasing car owners for duty evasion and underpayment carried out by some unscrupulous agents in collaboration with the same customs officials.
For a start,he could liberalise d payment procedures,publish d prices online so that importers themselves can have access to what it takes and possibly do some of the processes themselves instead of going thru agents,just like drivers' licence etc are done.
I guess we're still in for a long night in this country.