Confusion persists as Customs confirms vehicle import duty now 20% – Newstrends
Connect with us

Auto

Confusion persists as Customs confirms vehicle import duty now 20%

Published

on

Importers of new and used vehicles are now paying 20 per cent as duty to the coffers of the government, the Nigeria Customs Service has said.

The confirmation came on Monday after importers and clearing agents had cried out that they were still paying the old rate of 35 per cent as import duty even when the NCS had announced the slash.

In a statement signed by spokesman for the Customs, Timi Bomodi, the agency said that the 20 per cent duty was for both used and new imported vehicles.

In a statement signed by spokesman for the Customs, Timi Bomodi, the agency said that the 20 per cent duty is for both used and new imported vehicles.
The statement read in part, “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 the World Customs Organisation (WCO) five years review of the nomenclature. 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 per cent for used vehicles as was transmitted by ECOWAS with a NAC levy of 15 per cent. New vehicles will also pay a duty of 20 per cent with a NAC levy of 20 per cent as directed in the Federal Ministry of Finance letter ref. no. HMF BNP/NCS/CET/4/2022 of 7th April 2022.
“It is instructive to note that domestic fiscal policy on the importation of motor vehicles and other items is targeted at growing the local economy in these sectors. The focus of NCS is on the implementation of these policies in the hope that it achieves its desired objectives in line with the National Automotive Policy and other fiscal policies of the government.
“The NCS has also activated the use of Chapters 98 and 99 of the CET, in accordance with WCO recommendation for national use by contracting parties, which in our case promotes industrialisation through sectoral and sub-sectoral incentives for members targeted at economic growth, enhancement of security and minimized consumption of unwholesome goods.
“It should also be noted that the automotive industry, bonafide assemblers, manufacturers of auto spare parts and other local manufacturers enhance technology transfer and skill acquisition, create jobs and increase per capita income.
“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 the same items are five per cent and 10 per cent respectively.”
But the Federal Government in the draft 2020 Finance Bill had proposed a reduction in duties on tractors and vehicles for transportation of goods from 35 per cent to 10 per cent while the duties on vehicles for transportation of persons (cars) were reduced from 35 to five per cent.

This led to was an uproar from investors in the nation’s auto manufacturing sector.

Vice President Yemi dismissed the fear, saying the decision to slash duty on imported vehicles was not an attempt by the government to kill the nation’s automobile manufacturing industry but to reduce the cost of transportation in the face of growing economic challenges.

He also stressed that it was to meet the huge vehicle need of the country, put at an annual demand of 720,000 against 14,000 local production capacities.

 

Auto

Ore extols ex-NURTW President Yasin’s virtues at 68

Published

on

Ore extols ex-NURTW President Yasin’s virtues at 68

Acting President of the National Union of Road Transport Workers (NURTW), Alhaji Aliyu Issa Ore, has described the former president of the union, Alhaji Najeem Usman Yasin, as a trade unionist per excellence with worthy administrative experience.
He stated this in his goodwill message on the 68th birthday of Alhaji Yasin
Ore, a former chairman of the Kwara State council of the union, said the achievements he recorded while in Kwara were as a result of quality advice and guidance from Yasin.
Ore explained that Yasin’s tenure as president of the union witnessed tremendous development and growth of the NURTW.
“His tenure as president of the union recorded first-class growth.
“He took the union to the global stage. For the first time, our union became a strong member of International Transport Federation (ITF).
“Apart from getting international recognition, he also built zonal council offices for all the zones. Before he came in, our zonal councils usually operated from rented apartment but his administration acquired land and built befitting zonal offices for all our zonal councils.
“Again, Alhaji Yasin ensured that the national headquarters of the union assisted many state councils to build their own councils secretariat. Through his guidance, most state councils now operate from their own state councils.”
He recalled the peace enjoyed by members of the union under Yasin, saying this ensured that the body had perfect transition arrangements devoid of thuggery and shedding of blood.
“Before he came into office, our election or change of leadership was usually bloody. But he put a system in place that put an end to thuggery and other violence in the union,” he said.
Ore also said Yasin’s tenure boosted the education of members and workers by ensuring that the union secured partnership with National Open University of Nigeria (NOUN) which enabled members to acquire university education.
“Members of staff also enjoyed opportunities to go for training and workshops to boost their knowledge,” Ore stated.
He prayed that Almighty Allah would continue to preserve him to witness more years in good health.

Continue Reading

Auto

Innoson: Nnewi plant is active, we’re committed to producing top quality vehicles

Published

on

Innoson: Nnewi plant is active, we’re committed to producing top quality vehicles

 

Nigeria’s first indigenous auto plant, Innoson Vehicle Manufacturing Company Ltd (IVM), based in Nnewi, Anambra State, has restated its commitment to continuous investment in the production of top quality vehicles for the Nigerian market and other African countries.

The company also said that rather than soft-pedal on this vision, it had in the past few years upscaled its production technology, in addition to embarking on a plant expansion and establishment of a new production facility in Nsukka, and CNG conversion factory in Owerri.

The Innoson management was reacting to a recent publication in a national daily which claimed that all the auto assembly plants in Nigeria are in ruins, and that about N500 billion investment made since the Nigerian Automotive Industry Development Plan (NAIDP) took effect in 2014 had not made any impact on the industry.

A press statement by the Head of Communications at Innoson Vehicles, Mr. Cornel Osigwe, said, ”Since our plant commenced vehicle manufacturing more than 13 years ago with a pledge to keep providing affordable vehicles to Nigerians without compromising on quality, we have gone beyond the initial mini buses and pick-ups, to add different models of sedans, SUVs, family vehicles, fire trucks, as well as city and inter-city buses of various sizes.

“We are always busy manufacturing these vehicles based on the demands from the government and the private sector.

“We also feel the pulse of users of our vehicles as well as the market generally, and the feedback so obtained helps us to enhance the quality of our products. It also helps us to determine what the market needs.

“About two years ago, we made history by becoming the first, and so far the only manufacturer of CNG/LNG-powered vehicles in Nigeria, for which we have earned many recognitions, including awards from The Sun Publishing, Silverbird and the Nigeria Auto Journalists Association (NAJA), all in 2023.

“Moreover, the presentation of Quality Management Certificate and the MANCAP Certificate by the Standards Organisation of Nigeria (SON) to Innoson in 2023 is a confirmation of our adherence to high international quality standards in the manufacture of our range of vehicles.

“So, with all these production activities and sustained investments, Innoson Vehicle Manufacturing Co, Nnewi, cannot be described as an assembly plant in ruins.”

The firm further disclosed that it upgraded its factory operations from manual production to semi-automation, and then to standard automation, resulting in the production capacity, increasing from 10,000 vehicles to 60,000 vehicles per annum.

“In line with the foresight of its Chairman, Dr. Innocent Chukwuma, CON, Innoson Vehicles has embarked on an ambitious multi-billion naira plant expansion project at Umuezena part of Umudim, Nnewi, which when completed in the next couple of months, will be dedicated to the manufacture of a wide range of the CNG/LNG-powered vehicles and heavy duty trucks.

“Innoson is also investing in the University of Nigeria Nsukka (UNN) where it is partnering with the institution to establish a plant that will be manufacturing units of 20HP Agricultural Tractor with the brand name Lion IVM,” it stated.

It also said, “Apart from the Umuezena and UNN projects, Innoson Vehicles is currently setting up an IVM CNG conversion centre at Naze, Owerri, Imo State.

“The state-of-the-art facility is for the conversion and retrofitting of fuel/diesel powered vehicles to CNG/LNG powered vehicles.”

The statement also gave insight into the company’s partnership with the Military, saying, “Innoson Vehicles has been collaborating with the Nigerian Air Force for the development and promotion of joint activities to sustain the maintenance of the Nigerian Air Force Air Asset and other associated Aerospace Ground Equipment, AGE.

“We are equally in partnership with the Nigerian Army for the modification of some of its equipment, local production of armoured fighting and utility vehicles.

“Recall that the Nnewi auto plant has in the past few years exported IVM vehicles to some African countries, including Sierra Leone, Niger, Congo, Ghana, Mali, Côte d’Ivoire and Burkina Faso.

“This has culminated in the company concluding plans with the government of Sierra Leone to establish an assembly plant in Freetown.

“Innoson Vehicles is on a mission to be a giant vehicle manufacturing company in Africa in order to serve Africa vehicle needs by its current expansion efforts.

“The range of products from the stable of IVM are affordable and within the reach of the Nigerian investing public who are in the transportation business, corporate organisations, government and its agencies at various levels, as well as individuals who desire the products, satisfactory service and exciting driving experience.”

The company, however, disclosed that there had been challenges in the industry which the founder, Chief Innocent Chukwuma, was hopeful the Federal Government would earnestly address through the new Automotive Policy.

Part of the statement also read, “The Innoson Group founder has since applauded the recent efforts by the Minister of Industry Trade & Investments Minister, Dr. Doris Nkiruka Uzoka-Anite, and the Director General of the National Automotive Design and Development Council (NADDC), Mr. Joseph Osanipin, towards effective implementation of the new Automotive Policy (NAIDP 2023).

“The recent inauguration of the NAIDP 2023 implementation committee in Abuja is a testament to the Federal Government’s commitment to making the new policy work.

“We are hopeful the new policy will be well implemented, and we support the efforts being made by the government and the NADDC in that direction.”

Continue Reading

Auto

End of Ramadan: Celebrate with caution, NURTW scribe advises Nigerians 

Published

on

End of Ramadan: Celebrate with caution, NURTW scribe advises Nigerians 

The Acting General Secretary of the National Union of Road Transport Workers (NURTW), Comrade Kayode Agbeyangi, has advised Nigerians, especially members of the union who are commercial drivers to celebrate with caution and in moderation during the end of Ramadan celebration.

He stated this in his goodwill message to members of the union.

Agbeyangi in a statement said, “I will implore our members to be moderate in everything they do while celebrating. They should know that excess of everything is bad.

“As drivers, they should always have it in mind that over-speeding kills and it should be avoided. Drivers should obey speed limit regulations.

“Apart from that, they should have it in mind that overloading their vehicles is equally dangerous and they should obey all traffic rules in order to arrive at their destinations safely.”

The NURTW scribe also used the occasion to call on drivers, especially those plying inter-state routes to ensure that their vehicles documents are up-to-date to avoid any confrontation with law enforcement agencies.

Part of the statement read, “Make sure all your papers like vehicle licence, insurance papers, road worthiness papers are in order so as not have any problems with police, FRSC men and other law enforcement agencies.

“Also, drivers should ensure that their vehicles are in good conditions to avoid any unpleasant situation while travelling. Check your tyres, your braking system, your wipers and lightning system. Make sure they are all in perfect working condition.

“And lastly, drivers especially those on inter-state routes should try as much as possible to avoid night travelling. Make sure you set out on time to avoid all the dangers and problems associated with night travelling.”

Continue Reading

Trending

Skip to content