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Confusion persists as Customs confirms vehicle import duty now 20%

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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.

 

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Appeal court takes over NURTW case as NIC withdraws

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Appeal court takes over NURTW case as NIC withdraws

The National Industrial Court has withdrawn from a case involving Alhaji Najeem Usman Yasin, Board of Trustees chairman of the National Union of Road Transport Workers (NURTW), and Alhaji Tajudeen Ibikunle Baruwa’s ambition to return as president of the union over lack of jurisdiction.

The industrial court’s decision was made to avoid conflict with the Court of Appeal, where the matter is already being heard.

Before the NIC announced its decision to hands-off the case, the defendants’ counsel, Mr. O.I. Olorundare SAN, had informed the court that the matter is currently before the Court of Appeal, Abuja division, and that the industrial court could not continue to adjudicate on the same matter.

The counsel cited authorities to support his claim, adding that the National Industrial Court does not have concurrent jurisdiction with the Court of Appeal.

The presiding judge, O.O. Oyewunmi, struck out the case, stating that the Appeal Court had taken over the matter and that the Industrial Court must respect the hierarchy of courts.

Alhaji Yasin and six others took the case to the Appeal Court, challenging the decision of the industrial court recognising a delegates’ conference held on May 24, 2023, where Baruwa was proclaimed as President of the union for a second term in office.

With the latest NIC judgement, both parties will now proceed to defend their positions at the Court of Appeal and await the final judgement.

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19 passengers burnt to death in Okene Bypass accident, FRSC blames traffic violation

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FRSC blames traffic violation as 19 passengers burnt to death in Okene Bypass accident

A total of 19 people were burnt to death in a tanker-bus collision on Sunday April 28 on Okene-Lokoja highway in Kogi State.

The collision that specifically occurred on Okene Bypass reportedly led to an explosion, trapping a total of 22 passengers in the inferno.

The Federal Road Safety Corps (FRSC) in a statement which gave these details said the crash was largely caused by traffic rules violation.

It added that its emergency rescue team deployed in the area battled the situation for three hours.

Part of statement read, “The crash investigation report revealed that the crash involved two vehicles comprising a Dangote truck bearing the following registration details NSH680YJ, and a Toyota Hiace Bus with registration number KMC455ZE.

“The Toyota Hiace bus loaded from Kano was on its lane on the highway when the Dangote truck driver who drove all the way from Port Harcourt wrongfully overtook a vehicle and collided head-on with the bus.

“The impact of the collision resulted in a fire inferno that burnt the victims to death.

According to the report, the crash which was caused by route violation ‘One-way’ and wrongful overtaking, involved 22 people all male.

“Unfortunately, 19 people out of the 22 victims were killed and one injured.

“The remaining two victims who got rescued by the FRSC operatives without injuries survived the crash because they complied with traffic regulations on compulsory use of seatbelt.

“The corpses of the dead victims have been deposited at Okene General Hospital.

The statement signed by the FRSC spokesman, Jonas Agwu, an Assistant Corps Marshal, recalled that the Corps Marshal of the commission, Dauda Biu, at a press conference last week Thursday “warned against traffic violations citing instances where they resulted in avoidable crashes with fire outbreak, leading to wanton loss of precious lives and destruction to properties.

“As a result of that he had earlier emphasised on the need for maximum penalty for these drivers.

Dauda Biu reaffirmed the resolution of the Corps to continue its ongoing prosecution of drivers who by their actions cause road traffic crashes in Nigeria, noting that the driver of the truck involved in the Okene crash will not be an exception.

“As such, he called on the judiciary, leadership of transport unions and other relevant stakeholders in the road transportation sector to join hands with the Corps towards restoring sanity through speedy and effective prosecution.”

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Chery celebrates automobile excellence, creativity at Lagos roadshow

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Chery celebrates automobile excellence, creativity at Lagos roadshow

Chery Nigeria on Friday held many Lagos fans of elegant new vehicles spellbound during its spectacular roadshow.

The event featured a captivating procession from the Carloha showroom to The Palms in VI passing through scenic routes such as the Third Mainland Bridge, Ikoyi and Victoria Island, ending with a celebration at the iconic shopping mall.

The roadshow not only showcased Chery’s exceptional vehicles but also celebrated the spirit of creativity and community.

The event provided a platform for guests to savour and enjoy the unique display of new work of art and automotive excellence.

The roadshow extravaganza, as the organisers called it, was revealed Chery’s commitment to engaging experiences, showcasing the brand’s latest masterpiece, the Tiggo 8 Pro,Tiggo 4 Pro and Arrizo 5, in an unforgettable way.
The highlight of the event was a unique “Sip and Paint” session led by a notable artist, who skilfully captured the essence of the Tiggo 8 Pro on canvas.

Guests were invited to unleash their creativity as they painted their own interpretations of the iconic Chery logo, adding personal touch.
The climax of the evening came with a breathtaking moment as Eben, renowned for his impressionistic prowess, unveiled his masterpiece – a stunning portrayal of the Chery Tiggo 8 Pro.
The artwork, met with awe and admiration from attendees, encapsulated the essence of Chery’s dedication to innovation, style, and sophistication.
Representative of Chery brand in Nigeria, Carloha, says it will continue to provide automotive solutions to  customers with its six-year free service and six-year warranty or 200,000km, whichever comes first.

Meanwhile, Chery has expressed its gratitude to all attendees, partners and supporters who contributed to the success of this extraordinary event.
“As the brand continues its journey of innovation and inspiration, it remains dedicated to delivering exceptional experiences that captivate hearts and minds,” the firm said in a statement on Saturday.

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