The Nigeria Customs Service (NCS) says it has retained a duty rate of 20 per cent for used vehicles as transmitted by the Economic Community of West African States (ECOWAS).
It has also announced 15 per cent as National Automotive Council (NAC) levy.
According to a statement issued on Tuesday by Deputy Comptroller Timi Bomodi, NCS Public Relation Officer, the implementation of the current Common External Tariff (CET) was with immediate effect.
This he said was in line with the Finance Act and the national automotive policy.
He said new vehicles will also pay a duty of 20 per cent with a NAC levy of 20 per cent as directed in Federal Ministry of Finance letter with reference number, HMF BNP/NCS/CET/4/2022 of 7th April 2022.
Bomodi said the focus of NCS was on implementation of the policies, hoping to achieve its desired objectives in line with national automotive policy and other fiscal policies of government.
“On April 1, the Nigeria Customs Service migrated from the old version of the ECOWAS Common External Tariff (CET 2017- 2021) to the new version (2022- 2026).
“This is in line with World Customs Organisation’s five years review of the nomenclature. The contracting parties are expected to adopt the review based on regional considerations and national economic policy.
” It is instructive to note that domestic fiscal policy on the importation of motor vehicles and other items is targeted at growing the local economy in these sectors, ” he said.
He said NCS has also activated the use of Chapters 98 and 99 of the CET, to promote industrialization through sectoral and sub-sectoral incentives for members.
He further said it’s targeted at economic growth, enhancement of security and minimized consumption of unwholesome goods.
“In Chapter 98 of the current CET – Bonafide Assemblers importing Completely Knocked Down (CKD) and Semi Knocked Down (SKD) are to enjoy a concession of zero per cent and 10 per cent duty rate respectively.
“While within ECOWAS, duty rate for same items are 5 per cent and 10 per cent respectively.
“It should also be noted that the automotive industry, bonafide assemblers, manufacturers of auto spare parts and other local manufacturers enhance technology transfer and skill acquisition, create jobs and increase per capital income,” he said.
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