If you are considering buying a car from abroad to use in Nigeria, the import duty process is probably your most dreaded part of it because of everything you might have heard so far. In this blog post, we will help you understand what import duty is, its purpose, and how to get the import duty for cars in Nigeria.
Import duty is a tax imposed by a government on goods that are imported into a country. The import duty for cars is dependent on the country it is being imported into. The Nigeria Customs Service (NCS) is responsible for setting import duties in Nigeria. Also, the import policies in Nigeria are quite flexible so they change frequently.
In Nigeria, import duties for cars depend on factors like age and vehicle type. It is usually inclusive of the basic duty, surcharge, and other taxes.
Some of the main reasons for import duties on vehicles in Nigeria and other countries in the world are:
- To generate revenue for the government.
- To protect the country’s local automobile industry and encourage the purchase/use of cars made locally.
- To control of importation of vehicles and balance the automobile market in the country.
- To manage foreign exchange reserves and control the outflow of foreign currency.
- To aid the government’s economic goals for the nation as they arise e.g. inflation reduction.
The following are the steps to take to get the import duty for a car in Nigeria:
- Register with the Nigeria Customs Service (NCS)
Register with the Nigeria Customs Service (NCS) as an importer. This requires a Tax Identification Number (TIN) and registration with the NCS.
- Valuation of the Vehicle
The Nigeria Customs Service will assess the value of the vehicle for duty calculation. This valuation includes the cost of the vehicle, freight, insurance, and other charges.
- Payment of Import Duty
Once the valuation is done, you need to pay the import duty you are given. The duty is a combination of basic duty, surcharge, and other taxes.
- Customs Documentation
Ensure that you complete the necessary customs documentation. This includes details about the vehicle, the importation process, and other relevant information.
- Vehicle Inspection
The Nigeria Customs Service may conduct a physical inspection of the vehicle to verify its condition and conformity with the declared specifications.
- Clearance
After you pay the import duty and do a successful inspection, you can go ahead to clear the vehicle from the port. You need to have a customs clearance certificate for this.
- Payment of Other Charges
In addition to import duty, there may be other charges like port charges, terminal fees, and more that need to be paid.
- Vehicle Registration
After clearing the car, you need to register it with the appropriate road traffic authorities in Nigeria.
The import duty process can be less daunting if you do it under the close supervision of customs agents who are familiar with the process. They will assist you with the paperwork, help you stay compliant, and facilitate the clearance process.
Remember to download Whistle on the Google Play Store and use the Quick License Check feature to verify your vehicle particulars.
