EXCLUSIVE: Anxiety As Customs Slams 15% NAC Levy On Vehicle Importation

Col Hameed Ali, Customs Comptroller General

By DAPO OLAWUNI

Barely one week after it cuts down the import duty on vehicles from 35% to 20%, the Nigeria Customs Service has slammed a fresh levy of 15% National Automotive Council (NAC levy) on vehicles imported into Nigeria.

The policy which was effected on Saturday 9th of April 2022 has however generated negative reactions from freight forwarders and importers who have vowed not to pay the controversial levy.

The freight forwarders described the NAC levy as an attempt by customs to arm-twist importers, in order for customs to meet its yearly revenue target of N3Trillion for 2022.

The implication of this new imposition, according to them, is that Nigerians would have to pay more in buying of vehicles because clearing costs would have to be increased at the port.

DAILY TREND gathered that the NAC levy was supposed to be collected on new vehicle imports at 35% in order to encourage local vehicle manufacturers and industries in Nigeria.

The policy was later reviewed by Comptroller General of Nigeria Customs Service last year 2021.

The vehicle affected are HS Code 87032120,87032220, 87032400 both for Diesel and Gasoline/Fuel Vehicles.

Meanwhile, the Association of Nigerian Licensed Customs Agents (ANLCA) has urged its members not to pay the NAC 15% levy.

National Vice President of ANLCA, Dr Kayode Farinto in a post on a social media platform monitored by DAILY TREND on Saturday urged members to jettison the policy which according to him is oppressive.

“National Automotive council was a levy impose by virtue of “NATIONAL AUTOMOTIVE DESIGN AND DEVELOPMENT COUNCIL ACT NO6 of 2014” which was enacted to encourage Locally manufacture vehiclesin oder to encourage Nigerians to go for Nigerian assembled vehicles and to protect our locally manufacture ones.

“Sect 10 of the Act states that “the Council shall establish a fund which shall consist of two percent Cost,Insurance and Freight (CIF), value of all imported automotive Fully Built Units (FBU) and automotive components Spares and Semi -Knocked down (SKD) units.

“This simply applied to those importing new vehicles and new spare parts.

“Professional Colleagues, please do not pay any NAC levy on imported used vehicle as there is no law that compels you to do so.

“Let us collectively resist this, should you see any NAC levy whenever you want to make your declaration, do not asses this declaration. it is another attempt to swindle innocent Nigerians and force them to pay by some fifth Columnist. Please Resist from Monday” he said

In his reaction also Secretary of ANLCA Tin Can chapter, Barrister Micheal Ovien said that with the earlier reduction of duty from 35% to 20% last week, Customs was implementing the Newly approved CET (Common External Tariff) on Vehicle 8703 that was general agreed by ECOWAS, Customs and Licenced Agents in 2021 at a General Agreement on Trade and Tariff (GATT) meeting.

He said the changes was to be interjected into the Extant Law of CET from 1st January 2022 which hold effect in Nigeria from 1st April, 2022.

“But the NCS did not find this comfortable because they “NCS” thought this would bring down the target imposed on the organization by the Federal Govt to collect a total revenue of N3Trillion, that was distributed/shared across all the various Custom Command, under the supreme supervision of the Custom HQ”

“9 Days later, the NCS at the hours of 12midnight, without a proper circulars or communications from the Ministry of Finance and Nigeria Custom Service Management Board, which we have believe has failed the entire country in the area of leadership and management style of behaviour within the Ministry of Finance & Ministry of Transportation in propelling the industry into limelight”

1 thought on “EXCLUSIVE: Anxiety As Customs Slams 15% NAC Levy On Vehicle Importation

  1. This bihari regim is make life difficult to his citizens and masses but almighty Allah would deliver us from them ,most us of that we’re working at port are more than 5m people now ,if Nigeria government told Nigeria custom service to make implementation on importation duty ,now if importers refuse to bring goods or vehicles to Nigeria where did they want to us to make our daily bread, because they did not even think about the citizens that working as an agent in the port but only their selfish interest.please Nigeria government help us to reduce inflation on importation because that’s the only way we Know to survive ,I call president of Nigeria to intervain in our matter . because we don’t have anywhere to go πŸ™πŸ™πŸ™πŸ™πŸ™ I used this time month time of Ramadan pleading who ever want to make life difficult for us in the Nigeria port system to stop all this drama of implementation on importation so that our life can be meaningful.

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