Vehicle prices may rise again as Customs increases exchange rate

Indication that prices of imported vehicles may go up has emerged as the Nigeria Customs Service (NCS) has increased its official exchange rate for cargo importation from $409 to $422.3.

The exchange rate is what the Customs uses in calculating its duties and levies on imported vehicles and other goods.

The Nation reports that the NCS collects 20 per cent duty and 15 per cent levy on every imported vehicle. That makes the amount payable to the government as 35 per cent of the cost of the vehicle from abroad.

Before now, an exchage rate of $409 was used by Customs to calculate the 35 per cent cost of buying a vehicle as amount to be paid by an importer.

But that calculation has changed to $422.3 ×35 per cent. This is outside other charges to be paid to the government, terminal operators and shipping firms before an imported vehicle can exit the port.

The Nation quoted stakeholders as saying they were concerned because it would lead to geometric increase in the cost of clearing vehicles and other goods at the nation’s seaports.

Although findings have shown that the new exchange rate has reflected on the Customs portal, the National Public Relations Officer (PRO) of the Service, Mr Timi Bomodi, told The Nation on phone that the he did not know that the rate had been increased.

“I don’t know the rate has been increased. I don’t know. You are just informing me. I will confirm tomorrow,” he said.

A former President, Association of Nigeria Licensed Customs Agents (ANCLA), Prince Olayiwola Shitu, however said there was noise in the port over the sudden increase.

“We are hearing today that Customs has increased its exchange rate from $409 to $422.3. And you will not know until you put in your documents and it will calibrate.

“There is hullabaloo in the port. People are talking about it since morning. People are not happy because they said the Customs took them unawares.”