By Anthony Nwachukwu
In line with the five-year review of nomenclature by the World Customs Organisation (WCO), the Nigeria Customs Service (NCS) has migrated to the new version (2022- 2026) of the ECOWAS Common External Tariff (CET).
Following the migration from the old version (2017- 2021), which took effect on April 1, 2022, Nigeria has adopted all tariff lines with few adjustments in the extant CET, as contracting parties are expected to adopt the review based on regional considerations and national economic policy.
“As allowed for in Annex II of the 2022-2026 CET edition, and in line with the Finance Act and the National Automotive Policy, the NCS has retained a duty rate of 20 per cent for used vehicles as was transmitted by ECOWAS, with a NAC levy of 15 per cent,” a statement from the NCS Public Relations Officer, Timi Bomodi, read.
“New vehicles will also pay a duty of 20 per cent with a NAC levy of 20 per cent as directed in Federal Ministry of Finance letter ref. no. HMF BNP/NCS/CET/4/2022 of 7th April, 2022.”
The agency noted that “domestic fiscal policy on the importation of motor vehicles and other items is targeted at growing the local economy in these sectors.”
On its part, the NCS said it is focussed “on implementation of these policies in the hope that it achieves its desired objectives in line with National Automotive Policy and other fiscal policies of government.
“The NCS has also activated the use of chapters 98 and 99 of the CET, in accordance with WCO recommendation for national use by contracting parties, which in our case promotes industrialisation through sectoral and sub-sectoral incentives for members, targeted at economic growth, enhancement of security and minimized consumption of unwholesome goods.”
Also, it is noteworthy that “the automotive industry, bonafide assemblers, manufacturers of auto spare parts and other local manufacturers enhance technology transfer and skill acquisition, create jobs and increase per capita income.
“In chapter 98 of the current CET, bonafide assemblers importing Completely Knocked Down (CKD) and Semi-Knocked Down (SKD) (vehicles) are to enjoy a concession of 0 per cent and 10 per cent duty rate respectively, while within ECOWAS, duty rate for same items are 5 per cent and 10 per cent respectively.“
Incentivising their efforts through policy interventions guarantees a win-win situation for the nation in the long run.”