FG bows, moves implementation of 70% tariff on imported vehicles till July

Following the controversies trailing the introduction of 70 percent tariff on imported vehicles, the Nigeria Customs Service (NCS) has suspended with immediate effect, the implementation of new automotive policy, which started earlier this week.

The immediate reversal was coming just few days after the management of Nigeria Customs Service issued a circular dated 28 February, with a number 004/2014 titled, ‘Re- Fiscal Policy Measures for the Automotive Industry’, and directed to all deputy comptroller generals, assistant comptroller generals, zonal coordinator, area controllers and unit heads to start the implementation of new the policy with immediate effect.

With the new policy of 35 percent duty and 35 percent levy, a Toyota Camry of 2000 model which was previously cleared with about N100, 000 using 20 percent duty, now takes over N300, 000 as import duty under the new automotive policy of 70 percent.

BD Sunday gathered that the Federal Government was forced to revert to the old tariff on imported cars after a peaceful demonstration was conducted by Customs licensed agents against the introduction of the new automotive policy of 70 percent.

Confirming this to BD Sunday, Chris Osunkwo, public relations officer of Tin-Can Island Customs Command, the Nigeria’s leading RORO seaport, disclosed to our correspondent via a telephone chat that the implementation of the new automotive policy has been shifted to commence from 1 July, this year.

According to him, government has not reverse the policy as people wrong say but has suspended the implementation, to recommence on July.

Also, Tony Anakebe, a clearing and forwarding practitioner told our correspondent that freight forwarders have gone back to the port to continue their day-to-day clearing owing to the reversal of the policy by management of Customs, which he said is also evidence in the duty that Customs now issues to importers.

 Olayiwole Shittu, national president of Association of Nigerian License Customs Agents (ANLCA), who was contacted from Abuja to calm his protesting members, disclosed that Customs commands have been directed from Abuja to maintain status quo in the interest of peace, and to suspend implementation of new policy till June.

It would be recalled that the Federal Government earlier in 2013 changed automotive policy on imported cars, which increased the duty paid on imported cars from 20 to 70 percent with aim to grow local production.

UZOAMAKA ANAGOR