Strike Looms As Customs Re-introduce NAC Levy On Used Vehicles

BREAKING: Clearing Agents Suspend Planned Strike

Clearing agents operating in the nation’s maritime sector may soon embark on strike, as the Nigeria Customs Service (NCS) re-introduced a 15% National Automotive Council (NAC) levy on imported used vehicles.

It would be recalled that NAC in 2011, proposed 35% duty differentials between imported fully-built units and locally assembled cars. The proposal reportedly failed later.

But years after the introduction of the levy, the Customs on Saturday, April 9, 2022, reintroduced a 15% NAC levy on used imported vehicles.

Displeased with this development, the Chairman of the National Council of Managing Directors of Licensed Customs Agents, Ports & Terminal Multipurpose Limited chapter, Abayomi Duyile said the move could have an adverse effect on the sector.

“As I speak to you now, the NCS has reintroduced the NAC levy, which is a 15% payment on used imported vehicles. That is a major issue; it means an additional 15% on the duty we are paying currently.

“We will meet and when we do, we will make our views known to the government. What we have in Nigeria are assembly plants, it is not as if we produce any vehicles completely in Nigeria. I am surprised now that towards the second quarter of 2022, the Customs is coming back again with the NAC levy.

“Why should the NAC levy be on used vehicles? I don’t know why they are coming up with the NAC levy again now. The Customs didn’t inform us, so we have been advised to stop the process of duty payment until this is sorted out. This is everywhere for now and anywhere you are clearing used vehicles, you will face the same problem,” he added.

Also speaking, the Chairman of the National Association of Government Approved Freight Forwarders, PTML Chapter, George Okafor, said the outcome of the association’s meeting with its members will determine whether the agents would embark on the proposed strike or not.