At Last, Customs Officially Commence Implementation of Import Duty Slash On Vehicles
By DAPO OLAWUNI
The Comptroller General of Nigeria Customs Service, Col Hameed Ali (rtd) has communicated officially to all area commands and Federal Operations Units to commence officially, the implementation of the Federal Government’s reduction in import duties for vehicles.
In a circular issued on 18th of February with numbers NCS/T&T/DCG/HQ/S.52/Vol 2 signed by the Deputy Comptroller General of Customs Tariff and Trade, DCG Isa Talatu, the HS codes for the affected categories of vehicles are now to change with immediate effect at all area commands.
With this, imported vehicles are now to pay 5% levy as against 35%, import duties on vehicles for agricultural purposes including Tractors and others, are to pay 5% duty against 35% they pay before.
The Customs also directed that all registered airlines operating in Nigeria should be allowed to import aircraft, engines or spareparts free of any charges.
The circular reads in part “Pursuant to the assent by Mr. President, to the Finance Act 2020 to support the implementation of the 2021 Budget of Economic Recovery and Resilience, certain changes to the fiscal framework regarding the importation of specific automotive vehicles into Nigeria have been introduced.
“These reforms are designed to reduce the applicable levies and duties on vehicles, mitigate rising transport costs, boost road transportation and mass transit industry.
“Arising from aforestated, Section 38 of the Finance Act, 2020 modified the First Schedule to the ECOWAS Common Exrernal Tarlf (CET), Etc. (Consolidation) Act by amending applicable duties and levies, as fallows:
“Reduction of lmport Duty on Fully Built Unit (FBU) of Agricultural Tractors (HS Headings 8701) from 35% to 5% as applicable
“Reduction of Import Duly on Fully Built Unit (FBU) of Motor Vehicles for the transport of more than ten persons (HS Headings 8702) from 35% to 10% as applicable
“Reduction of Levy on Fully Built Unit {FBU} of MoIor Vehicles for the transport of persons (cars) (HS Headings 8703) from 35% to 5% as applicable; and
(I) Reduction of Import Duly on fully Built Unit (FBU) of motor vehicles for the Tramportation of Goods (HS Headings 8704) from 35% lo 10%, as applicable.
“Furthermore, the Act also introduces fiscal incenlives for the Avialion Sector. For the avoidance of doubts, airlines registered in Nigeria, which provide commercial air transport services by owning or leasing aircraft are to enjoy free Importation of aircrafts, engines, spare parts and other components” it states
