Customs implements new auto policy ahead of January deadline

Ahead of the January 2015 for the implementation of the new auto policy, the Nigeria Customs Service has begun the collection of additional 70 percent on new vehicles and thirty five percent on fairly used ones.

The introduction of the new rate on new vehicles also pitched Customs agents against officers at the Port Terminal and Multi-purpose Service Limited, PTML, when agents withdrew their services to protest the introduction of the new rate on new vehicles.



Customs Area Controller (CAC) of the command; Comptroller Folorunsho Adegoke told newsmen yesterday that his command is only collecting 35 per cent on used vehicles.

He also confirmed release of HS Codes for imported used vehicles and advised licensed customs agents to use the appropriately.

“Note that the new levy is NOT applicable for now until 31/12/2014”, he said in a message.

According to the CAC, HS Code for used passenger vehicles are: 8702. 1020.20, 8702. 1020.29 and 8702. 9020.97. He added that the HS Code for cars/ Four Wheel Drive vehicles are: 8703.2422.00, 8703.2429.00 and 8703.3121.00.

Comptroller Adegoke also gave the HS Code for Dumpers/Lorries as: 8704.2125.00, 8704.2219.28 and 8704.2320.00.

He told our correspondent that, once this HS Code is used, it would be impossible for any officer to classify the used vehicles as new, even as he added that these HS Codes are well known to the clearing agents.

He also confirmed that he had personally sent the same message to the leadership of the freight forwarding associations, a claim that was later confirmed when it was forwarded to Vanguard .
It will berecalled that, on Tuesday, the PTML Command allegedly began the collection of 35% duty and 35% levy on imported vehicles.

The action made the freight forwarders operating at the terminal to withdraw their services.
But the CAC explained yesterday that, it was not true that the command had began collection of 35 % levy on used vehicles, adding that there must have been a mix-up.

Speaking withreporters, the ANLCA Chairman at PTML; Prince Bola Adesokan had said that stakeholders are not comfortable with the 35% levy demanded by the customs.

He demanded full explanation of the new HS Code of vehicle importation that was recently released by the customs. The image maker of PTML Customs command, Steve Okonmah had also clarified that the 35 % levy is only collectable on new vehicles.