The Nigeria Customs Service (NCS) has commenced the implementation of the Federal Government’s reduction in import duties for vehicles.
The Comptroller General of Nigeria Customs Service (NCS), Hameed Ali, in a circular issued on 18th of February directed all area commands and Federal Operations Units (FOU) to commence the implementation of the new duty regime.
The circular, signed by Deputy Comptroller-General of Customs Tariff and Trade, DCG Isa Talatu, said the HS codes for the affected categories of vehicles are now to change with immediate effect.
With this, the imported vehicles are now to pay five per cent levy as against 35 per cent import duties on vehicles for agricultural purpose including tractors, and others are to pay 5 per cent duty against 35 per cent they pay before.
The Customs also directed that all registered airlines operating in Nigeria should be allowed to import aircraft engines or spare parts free of charge.
The circular reads in part: “According to the assent by Mr. President, to the Finance Act 2020 to support the implementation of the 2021 Budget of Economic Recovery and Resilience, certain changes to the fiscal framework regarding the importation of specific automotive vehicles into Nigeria have been introduced.
“These reforms are designed to reduce the applicable levies and duties on the vehicle, mitigate rising transport costs, boost road transportation and mass transit industry.
“Arising from aforestated, Section 38 of Finance Act, 2020 modified the First Schedule to the ECOWAS Common External Tariff (CET) among others (Consolidation) Act by amending applicable duties and levies as follows:
“Reduction of import duty on a fully built unit (FBU) of agricultural tractors (HS Headings 8701) from 35 per cent to 5 per cent as applicable.
“Reduction of import duty on fully built units (FBU) on motor vehicles for the transport of more than ten persons (HS Headings 8702) from 35 per cent to 10 per cent as applicable.
“Reduction of levy on a fully built unit (FBU) of the motor vehicle for transport of persons (cars) (HS Headings 8703) from 35 per cent to 5 per cent as applicable.
“Reduction of import duty on a fully built unit (FBU) of motor vehicles for transportation of goods (HS Headings 8704) from 35 per cent to 10 per cent as applicable.
“Furthermore, the Act also introduces fiscal incentives for the Aviation Sector. For the avoidance of doubts, airlines registered in Nigeria, which provide commercial air transport services by owning or leasing aircraft are to enjoy free importation of aircraft, engines, spare parts and other components.”
