TOKUMBO! FG backtracks on vehicle tariff hike

The federal government has directed the Nigeria Customs Service (NCS) to end the new tariff regime for automobile imports and revert to the old one, following protest by clearing agents and their refusal to clear any auto import at the new duty and levy rates.
As part of the country’s national automotive policy, the federal government in November last year raised duty and levies on imported cars by 50 per cent from 20 per cent to discourage importation of cars. The duty on buses was also raised by 10 per cent. With the implementation of the new regime, car importers are to pay up to 70 per cent of the cost of the car.
Under the old regime, it would cost about N280,000 to clear a Toyota Camry 2002 model. The cost goes up as high as N840,000 under the new regime. The new regime is part of the plan by the government to discourage importation of cars and businesses to create a robust market for local auto makers.

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The NCS began enforcement of the new rates, but clearing agents at Lagos ports went into protest and withdrew their services from the port, forcing the federal government to revert to the old regime yesterday, till July.
Informing his members on the position of the federal government, the special assistant to the president of the Association of Nigeria Licenced Customs Agents (ANLCA), Mr Joe Sanni, said due to the peaceful protest by Customs agents against the new automotive import rate, as directed by ANLCA’s national president, Prince Olayiwola Shittu, the federal government has been forced to revert to the old tariff on used cars.
“This was conveyed to the national president from the Presidency. Members are directed to return to work, only if Customs implements the directive,” Sanni said in a message to clearing agents.
However, Public Relations Officer, Tin Can Island Port Command of NCS, Chris Osunkwo, said that the suspension order had not been communicated to the Command as at Friday.
The protest took place barely three days after Customs management issued a circular dated February 28th with 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 all Unit heads to with immediate effect commence implementation of the policy.
These developments would be unwelcome to the ears of car assembly owners who had been assured by the Minister of Industry, Trade and Investment, Olusegun Aganga, at a run down of automotive policy in January; said that the government would raise the  tariff on importation of such vehicles to discourage influx of used cars into the country and encourage local manufacturers to enhance capacity utilisation in the local industry.

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