Clearing agents at Nigerian ports have unanimously kicked against the imposition of a 15% levy on imported vehicles by the Nigeria Customs Service (NCS).
BizWatch Nigeria had reported that the Customs introduced a 15% National Automobile Commission (NAC) levy on used imported vehicles, a decision which didn’t go down well with the clearing agents.
In a statement by the National Public Relations Officer of Customs, Timi Bomodi, it was disclosed there-in that the move is in compliance with the Economic Community of West Africa Common External Tariff.
“On Friday the 1st of April 2022, the Nigeria Customs Service migrated from the old version of the ECOWAS Common External Tariff (2017- 2021) to the new version (2022- 2026). This is in-line with World Customs Organization five years review of the nomenclature. The contracting parties are expected to adopt the review based on regional considerations and national economic policy,” the statement read partly.
However, reacting to the development, the President of the African Association of Professional Freight Forwarders and Logistics (APFFLON), Frank Ogunojemite said that the service had no reason for that increment.
“They don’t have any reason for the increment, they only said that they have reduced the duty to 20%. The Customs does not have the legal right to increase that. This new levy will increase inflation, it will make the products out of reach of the common man,” he said.
Also speaking, the President of the National Association of Government Approved Freight Forwarders (NAGAFF), Toochukwu Ezisi clarified that the service had no right to impose a levy on imported used vehicles.
“Before, it was NAC, but now they have changed it to levy. We have not agreed to that as we are still going back. The levy has no name because they can’t achieve NAC. They pushed it to levy and you can’t achieve levy on used items. We will be meeting for the second time when they call us.
“For now, we will go by it because you can’t get everything at once to avoid demurrage,” he added.