Breaking : Duty On New And Used Vehicles (Tokunbo) Now 20% – Customs

Breaking : Nigeria Customs Service (NCS) says duty on brand new and used vehicles (Tokunbo) now 20%.

It follows its migration from the old version of the ECOWAS Common External Tariff (CET) to the new version.

NCS retained a duty rate of 20% for used vehicles as was transmitted by ECOWAS with a NAC levy of 15%.

New vehicles will also pay a duty of 20% with a NAC levy of 20% as directed in Federal Ministry of Finance.

Bonafide Assemblers importing CKD and SKD will enjoy a concession of 0% and 10% Duty rate respectively.

Within ECOWAS, duty rate for CKD and SKD are 5 percent and 10 percent respectively.

The Nigeria Customs Service (NCS) has announced a reduction of duty payable on imported brand new cars and used vehicles (Tokunbo) from 35 per cent to 20 per cent, following its migration from the old version of the ECOWAS Common External Tariff (CET) (2017- 2021) to the new version (2022- 2026).

In a press release signed by DC Timi Bomodi on Monday, the Nigeria Customs Service said implementing the current CET takes immediate effect.

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Part of the release, captioned with “ECOWAS COMMON EXTERNAL TARIFF (2022-2026)”, reads :

“The contracting parties are expected to adopt the review based on regional considerations and national economic policy. The nation has adopted all tariff lines with few adjustments in the extant CET.

“As allowed for in Annex II of the 2022-2026 CET edition, and in line with the Finance Act and the National Automotive policy, NCS has retained a duty rate of 20% for used vehicles as was transmitted by ECOWAS with a NAC levy of 15%.

“New vehicles will also pay a duty of 20% with a NAC levy of 20% as directed in Federal Ministry of Finance letter ref. no. HMF BNP/NCS/CET/4/2022 of 7th April 2022.

“In Chapter 98 of the current CET – Bonafide Assemblers importing Completely Knocked Down (CKD) and Semi Knocked Down (SKD) are to enjoy a concession of 0% and 10% Duty rate respectively. While within ECOWAS, duty rate for same items are 5% and 10% respectively.”

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