NAC Says, Auto Policy Being Wrongly Interpreted

… Clears air on implementation
Apparently referring to recent uproar at the PTML command of the Nigeria Customs Service over collection of duty and levy on imported vehicles, the National Automotive Council (NAC) has thrown more light on the implementation date of the policy, saying that January 1, 2014 was sacrosanct.
The Director-General of NAC; Mr. Aminu Jalal, said, on Tuesday that the implementation of the Nigerian Automotive Industry Development Plan (NAIDP)  is progressing as planned and that there is no intention to tamper with its implementation.
Specifically, the NAC dissociated itself from speculations about possible reversal of the commencement date on account of recent actions of the Customs, even as it stated that the application of the levy exemption was only being misinterpreted.

According to NAG DG, “Government had already shifted the implementation of the full tariff on new vehicles from January 10, 2014 to July 1, 2014 to enable importers to clear the vehicles they had ordered at the old duty rates. Government only extended the concession on the importation of used vehicles only by another six months till December 31, 2014.
“This was because up to three out of four imported cars are used and time needs to be given to the assembly plants to produce affordable vehicles to replace the imported used ones. Unfortunately, this levy on new cars was misinterpreted to mean that all vehicles, including new FBU imports, were exempt from levies until December 31, 2014.”
He added, “This could not have been the case because existing and new entrants into the assembling process under the NAIDP have started to roll out new products at competitive rates. As a result of continuous inflow of new FBUs without restriction occasioned by this misinterpretation, assemblers began to cut down on orders for assembly kits, and this has the potential to derail the policy.
“Action taken was, therefore, urgent. The government decided to clear this misinterpretation. Given this clarification, the Nigerian Custom Service has been thus guided in their operations. Council wishes to reassure Nigerians that new vehicles have been stockpiled under the NAIDP awaiting buyers, and there is, therefore, no need to fear adverse rise in prices.”

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