Customs, NAC Square Up Over Fiscal Implementation Of Auto Policy

·   How Customs Circular Rattled NAC   
Last week, the National Automotive Council (NAC) was jolted by media reports that the Nigeria Customs Service had fast-forwarded the implementation date of the auto policy; it hurriedly offered fresh assurances that the National Automotive policy was on course and that its full implementation will commence on January, 2105.
However, the clarification was an apparent response to the report that, Customs had commenced collection of 35% levy on all imported used vehicles, in violation of the policy implementation timeline.
Shipping Position Daily confirmed last week that a circular was actually issued on September 19, 2014 and signed by the Assistant Comptroller-General, Tariff and Trade department of the Nigeria Customs Service, Mrs G.O Adeyemo.
 The circular, in clarifying relevant provisions of the Customs and Excise Notices No.30 on imported new and used fully built motor cars and motor vehicles for revenue purpose, was reportedly misinterpreted by some command and officers who took it to mean that collection of 35% levy on use vehicles had commenced well ahead of the January 2105 date.
Upon the wrong signal that the controversial circular generated, the NAC was reported to have expressed embarrassment at the Customs action and began immediate moves to correct what it called ‘apparent misinformation’.
The NAC explained that, “the government decided to clear this misinterpretation, given this clarification, the Nigerian Custom Service has been thus guided in their operations.”
Shipping Position Daily investigations revealed that, there was indeed a circular to all Customs formation on levy and duty collection on imported vehicles; it came barely one week after the Service began the hurried collection of 35% levy and 35% duty on vehicles, purportedly in line with the the Federal Government's Auto Policy.
In the controversial circular, the Comptroller General Customs, Alhaji Inde Dikko Abdullahi threatened to impose grave sanctions on defaulters, which includes imprisonment.
A copy of the circular was obtained by Shipping Position Daily last week.

The document with reference number: NSC. T&T/VAL/HQ/008/s.536 and 035/2014 titled 'Clarification of Imported New and Used Fully Built Motor Cars and Motor Vehicles For Revenue Purpose' is dated 19th September, 2014

Adeyemo said that the Customs CG has directed that all Customs Intelligence Units (CIU) and Federal Operations Unit (FOU) officers should ensure strict monitoring of the new process and ensure that nobody circumvents the new vehicle tariff regime.

"The Comptroller General has further directed the CIU and FOU to ensure strict monitoring for compliance with this directives as the provisions of Section 46 and 47 of the CEMA Cap 45, Laws of the Federation of Nigeria 2004 shall be strictly applied as sanctions to defaulting officers and stakeholders" she said.

She stated that the document seeks to clarify the implementation of the revised fiscal policy measures for automotive industry of 1st July 2014 which classified used vehicles under HS Code 8703 at 35% without levy till 31st of December 2014.

The customs clarified that a used vehicle simply means any vehicle that has been purchased new and used by the owner abroad or purchased second hand and subsequently imported into Nigeria.

The statement also drew attention of officers and port stakeholders to the Customs and Excise Notices No. 30 which also described used vehicles as ones that are above three months with odometer reading above 3,000 miles/4,828 but not above one year.

Meanwhile, Section 46 and 47 of the CEMA laws reads in part that "any imported goods concealed or packed in any manner appearing to be intended to deceive an officer or found before or after delivery not to correspond with the entry made thereof"

"Any goods chargeable with a duty which has not been paid...if he does so with intent to evade any such duty or any prohibition, he shall be sentenced to imprisonment for five years without option of fine"

Adeyemo added that in compliance with provisions of part 2 of the Revised Fiscal Policy Measures for Automotive Industry (ref; BD/FP/DO/09/1/230 dated 18th June 2014 as it relates to the importation of brand new fully built units of cars, the policy should be accorded absolute implementation status as it states:

"With effect from 1st July 2014, the importation of Brand New Fully Built Units of Motor Cars and other Motor Vehicles classified under heading 87.03 shall attract 35% duty and 35% levy"
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