In compliance to the new fiscal policy on imported vehicles as directed by the Federal Government, the Nigeria Customs Service (NCS) has commenced full implementation of the 70 percent tariff on imported vehicles.
Consequently, importers and car dealers, who formerly paid 20 percent duty and two percent levy on new cars, are expected to pay 35 percent duty and another 35 percent levy bringing the total tariff to 70 percent as contained in the new automotive policy.
BusinessDay gathered that the management of Customs recently issued a directive via circular to all Customs commands to commence without delay the implementation of the new tariff regime.
Chris Osunkwo, public relations officer of Tin-Can Island Port Command of NCS, confirmed that the circular from Customs headquarters authorised the command to begin implementation of the new auto-policy with immediate effect.
According to him, the valuation unit of the command is expected to start implementation after the command must have made clarification from headquarters if the new tariff will affect both used and new cars, owing to the fact that the circular says fully built cars without clarification on whether the same applies to imported used vehicles.
“Customs has commenced full implementation of the new automotive policy as directed by the Federal Government, and it’s generating a lot of controversies as regard to clearing of vehicles”, said Tony Anakebe, a clearing
forwarding practitioner in a telephone chat with BusinessDay.
Eugene Nweke, president of National Association of Government Approved Freight Forwarders (NAGAFF), who expressed dissatisfaction with the development, said that the sudden implementation is counterproductive given that the policy is still being reviewed by the Federal Government.
While urging the Ministry of Finance to call for the immediate suspension of the implementation, he observed that there exist communication gap between Customs and Federal Ministry of Finance owing to the earlier discussions that said that the policy should be suspended until June.
Meanwhile, business activities at the Tin-Can Island Port in Lagos were on Thursday paralysed as clearing agents staged a protest over the implementation of the new tariff on imported used vehicles.
The agents barricaded the APM terminal at the Tin-Can Island Port and barred people from going in and out of the port.
The agents, under the aegis of Association of Nigerian Licensed Customs Agents (ANLCA), said that they wanted the government to reverse to the old tariff.
Emmauel Onyeme, the publicity secretary of ANLCA, said that the protest was not only in the interest of importers, but of the entire population.
“We appeal to the government to look into the tariff in the interest of the country. We are not protesting for our interest alone, but for the 170 million Nigerians.
“We want the tariff reversed. The duty they are asking us to pay is too much. We will continue this protest tomorrow,” Onyeme said.
AMAKA ANAGOR
