...ANLCA Urges Members To Study Tariff Carefully
...Customs Boss; Dikko Expected In Lagos Today
Fresh indications have emerged that the Federal Government may have indirectly begun the implementation of its policy on importation of vehicles into Nigeria, even as the newly approved ECOWAS Common External Tariff (CET) shows that 70% duty has been introduced on all imported used and new vehicles.
A copy of the ECOWAS Common External Tariff which was obtained exclusively by Shipping Position Daily showed that the ECOWAS tariff recommended 20% on vehicle import, but the Federal Government has slammed an additional 50% called Import Adjustment Tax (IAT)
With this development, importers of fully built vehicles may be in for a tough time as the 70% duty is not yet inclusive of levy.The Federal Government through the Ministry of Finance has equally directed that the policy should commence with immediate effect at all customs commands.
Also, the Comptroller General of the Nigeria Customs Service, Abdullahi Dikko inde is expected to arrive in Lagos today (Thursday). Sources at the various commands in Lagos told our correspondent that the CG's visit might not be unconnected with the new CET and import procedures.
A breakdown of the tariff structure shows that: "fully built units, used passenger motor vehicle under the 2008-2012 CET (As extended) is 70%, while 2015-2019 CET has it as duty 20% and IAT is 50% totaling 70%"
"Others, including fully built units of a cylinder capacity exceeding 1000cc but not exceeding 1500cc. New passenger motor vehicle-four wheel drive vehicle, the duty is 20% and IAT is 50%"
On the other hand, "motor vehicle for the transport of 10 or more persons including the driver" the duty 10%, while Federal Government has decided to put a tax of 25%.
However, some of the policy remains favorable as household items such as milk, butter, malt extract, tomatoes, and other consumables which hitherto attracted a 10% duty has been reduced to 5% duty without tax or levy.
These are products around the market which people naturally will want to smuggle, but government decided to bring it down without tax.
A further breakdown of the CET showed that, "electrical transformers, static converters (for example, rectifiers) and inductors, having a power handling capacity exceeding 650KVA but not exceeding 5,000KVA" under ECOWAS CET has 5% duty, with additional 35% tax, totalling 40% without levy.
The CET also showed electricity Meters will pay 10% duty in other ECOWAS countries while government has added 35% tax, a development which analysts has said will not help the energy distribution in Nigeria.
A customs analyst who pleaded anonymity told our correspondent that the implication of the new ECOWAS Common External Tariff is that smuggling will be on the rise in Nigeria.
Speaking, the source said: “I heard that some people are jubilating and saying that CET is going to help importers, it is because they have not seen the CET, when they see it, they will know that yes we are using ECOWAS tariff but each country is also allowed to adjust the tariff according to their need"
"There are some tariff headings that are 10% in ECOWAS countries, but by the time you add Nigerian tariff to it and tax of 20% then it becomes 30%. The tax is the additional duty you have to pay, each country has to protect its national and economic interests, it is embodied in the new CET and it is very explanatory" he said.
He said that with this, government has commenced the 70% auto policy and that it might even be more than what Nigerians bargained for under the auto policy.
"The NAC was only used to drive the policy of the government, and for political reasons government decided to suspend the 35%, but now that it is leaving, it has given us a gift, with immediate effect"
"This means that if a vehicle is imported through Cotonou port, it attracts 20%, but coming to Nigeria, additional 50% is added, this is still without levy"
"It has not helped because at the end of the day, people will go to the local end and smuggle it in. CET may not reduce smuggling except those essential items whose duty has gone up"
The duty on lorries according to the new CET still remains on 35%.
Meanwhile, the Association of Nigeria Licensed Customs Agents (ANLCA) has urged her members to take time and study the CET in order for them to know how it affects their business.
National President of the association, Prince Olayiwola Shittu in an exclusive chat with Shipping Position Daily gave this charge in Lagos.
Shittu confirmed that the new CET is going to bring about additional duties and levies, especially as it concerns luxury goods which have been increased to 70%.
The ANLCA president urged his members to study the CET properly, saying that, "in this our profession, people specialize in different areas, some specialize in iron rods, chemicals and so on, they should study the CET and understand how it affects their business".http://shippingposition.com.ng/article/%E2%80%8Eecowas-cet-fg-slams-smuggles-70-duty-tax-on%E2%80%8E-used-new-vehicles
...Customs Boss; Dikko Expected In Lagos Today
Fresh indications have emerged that the Federal Government may have indirectly begun the implementation of its policy on importation of vehicles into Nigeria, even as the newly approved ECOWAS Common External Tariff (CET) shows that 70% duty has been introduced on all imported used and new vehicles.
A copy of the ECOWAS Common External Tariff which was obtained exclusively by Shipping Position Daily showed that the ECOWAS tariff recommended 20% on vehicle import, but the Federal Government has slammed an additional 50% called Import Adjustment Tax (IAT)
With this development, importers of fully built vehicles may be in for a tough time as the 70% duty is not yet inclusive of levy.The Federal Government through the Ministry of Finance has equally directed that the policy should commence with immediate effect at all customs commands.
Also, the Comptroller General of the Nigeria Customs Service, Abdullahi Dikko inde is expected to arrive in Lagos today (Thursday). Sources at the various commands in Lagos told our correspondent that the CG's visit might not be unconnected with the new CET and import procedures.
A breakdown of the tariff structure shows that: "fully built units, used passenger motor vehicle under the 2008-2012 CET (As extended) is 70%, while 2015-2019 CET has it as duty 20% and IAT is 50% totaling 70%"
"Others, including fully built units of a cylinder capacity exceeding 1000cc but not exceeding 1500cc. New passenger motor vehicle-four wheel drive vehicle, the duty is 20% and IAT is 50%"
On the other hand, "motor vehicle for the transport of 10 or more persons including the driver" the duty 10%, while Federal Government has decided to put a tax of 25%.
However, some of the policy remains favorable as household items such as milk, butter, malt extract, tomatoes, and other consumables which hitherto attracted a 10% duty has been reduced to 5% duty without tax or levy.
These are products around the market which people naturally will want to smuggle, but government decided to bring it down without tax.
A further breakdown of the CET showed that, "electrical transformers, static converters (for example, rectifiers) and inductors, having a power handling capacity exceeding 650KVA but not exceeding 5,000KVA" under ECOWAS CET has 5% duty, with additional 35% tax, totalling 40% without levy.
The CET also showed electricity Meters will pay 10% duty in other ECOWAS countries while government has added 35% tax, a development which analysts has said will not help the energy distribution in Nigeria.
A customs analyst who pleaded anonymity told our correspondent that the implication of the new ECOWAS Common External Tariff is that smuggling will be on the rise in Nigeria.
Speaking, the source said: “I heard that some people are jubilating and saying that CET is going to help importers, it is because they have not seen the CET, when they see it, they will know that yes we are using ECOWAS tariff but each country is also allowed to adjust the tariff according to their need"
"There are some tariff headings that are 10% in ECOWAS countries, but by the time you add Nigerian tariff to it and tax of 20% then it becomes 30%. The tax is the additional duty you have to pay, each country has to protect its national and economic interests, it is embodied in the new CET and it is very explanatory" he said.
He said that with this, government has commenced the 70% auto policy and that it might even be more than what Nigerians bargained for under the auto policy.
"The NAC was only used to drive the policy of the government, and for political reasons government decided to suspend the 35%, but now that it is leaving, it has given us a gift, with immediate effect"
"This means that if a vehicle is imported through Cotonou port, it attracts 20%, but coming to Nigeria, additional 50% is added, this is still without levy"
"It has not helped because at the end of the day, people will go to the local end and smuggle it in. CET may not reduce smuggling except those essential items whose duty has gone up"
The duty on lorries according to the new CET still remains on 35%.
Meanwhile, the Association of Nigeria Licensed Customs Agents (ANLCA) has urged her members to take time and study the CET in order for them to know how it affects their business.
National President of the association, Prince Olayiwola Shittu in an exclusive chat with Shipping Position Daily gave this charge in Lagos.
Shittu confirmed that the new CET is going to bring about additional duties and levies, especially as it concerns luxury goods which have been increased to 70%.
The ANLCA president urged his members to study the CET properly, saying that, "in this our profession, people specialize in different areas, some specialize in iron rods, chemicals and so on, they should study the CET and understand how it affects their business".http://shippingposition.com.ng/article/%E2%80%8Eecowas-cet-fg-slams-smuggles-70-duty-tax-on%E2%80%8E-used-new-vehicles
No comments:
Post a Comment