Post by Ismail AbdulAzeez on Dec 1, 2021 15:46:49 GMT 1
All You Need To Know About Used Japanese Car Import Regulations, Import Duties and Taxes In Nigeria
For some time now we have been discussing about the importation of used Japanese cars into the country. We have seen what you are required to do to get those fantastic used Japanese cars into this country; now is the time to look at the import duty you need to pay and other regulations you need to be aware of before going into the business.
It is funny some times as many people will want to go into some businesses without bordering to check out the laws and other regulations guiding the business. That is why we are bringing this to you today. Take your time and digest the following regulations put down by the government to cover the business of importing Japanese used cars into the country.
The first is the shipping ports:
The Nigerian import regulations state that Apapa and Lagos ports are the ports through which all used Japanese cars are imported into the country.
Year of Restriction:
The Federal Government of Nigeria cannot allow unscrupulous importers to bring all sorts of junks into the country in the name of used Japanese cars; therefore the authorities had to put restrictions in form age in order to control such abuse.
Officially no one is allowed to import used vehicles of more than 15 years of age from the date of manufacture into the country.
Remember that the cars you want to bring into Nigeria officially will be Left Hand Drive. Though occasionally you can see Right Hand Drive vehicles on our roads, where they came from and how they passed through our ports and borders are yet to be known by yours truly.
Please you should not take the risk as you may not be as lucky as them. Sometimes they claim that they find such cars cheaper to buy; how that is true yours truly does not know.
Documents you require in order to claim your goods from Nigerian ports:
The following are documents you require in order to officially claim your goods from the government agency – Customs and Excise Department.
Bill of Lading: This is a legal document between the shipper of used car from Japan and the carrier specifying the type, quantity and destination of the cars being carried in his vessel. The Bill of lading serves three important purposes too: (1) it serves as a receipt of shipment when the car is delivered to the port of destination. (2) It serves as evidence for the contract of carriage. (3) It serves also as a document of ownership by the shipper.
Bill of Entry: A Bill of entry is a legal document that is filed by customs clearance agents or importers themselves directly on or before the arrival of the imported goods. This document is usually submitted to the customs as part of the clearance procedure. The bill of entry will contain several details about the used Japanese cars. They will include: Port Code and licence number, customs house agent code, vessel’s name, port of shipment, country of origin, details of goods and value, etc.
Marine Insurance Policy (issued by a Nigerian insurance firm)
Evidence of payment of VAT.
Approved Form M: Anybody importing used cars into the country must process a Form M through any authorized Bank. It is the responsibility of the authorized bank to submit the Form M to the appropriate inspection agent’s liaison office in Nigeria.
Taxes and Duties:
Below are the taxes and customs duties currently applicable on the vehicles:
Cars: 30% Customs Duty
Buses: 15% Customs Duty
Trucks: 30% Customs Duty
CKD (Completely Knocked Down Vehicles): 5% Customs Duty.
Taxes applicable to the importation of used Japanese cars into Nigeria:
CISS (Comprehensive Import Supervision Scheme): 1% Tax
NAC (National Automotive Council): 2% Tax
VAT (Value Added Tax): 5% Tax
ETLS (Ecowas Trade Liberalization Scheme): 0.5%
Stay with us for more on importation of used cars into the country.
For some time now we have been discussing about the importation of used Japanese cars into the country. We have seen what you are required to do to get those fantastic used Japanese cars into this country; now is the time to look at the import duty you need to pay and other regulations you need to be aware of before going into the business.
It is funny some times as many people will want to go into some businesses without bordering to check out the laws and other regulations guiding the business. That is why we are bringing this to you today. Take your time and digest the following regulations put down by the government to cover the business of importing Japanese used cars into the country.
The first is the shipping ports:
The Nigerian import regulations state that Apapa and Lagos ports are the ports through which all used Japanese cars are imported into the country.
Year of Restriction:
The Federal Government of Nigeria cannot allow unscrupulous importers to bring all sorts of junks into the country in the name of used Japanese cars; therefore the authorities had to put restrictions in form age in order to control such abuse.
Officially no one is allowed to import used vehicles of more than 15 years of age from the date of manufacture into the country.
Remember that the cars you want to bring into Nigeria officially will be Left Hand Drive. Though occasionally you can see Right Hand Drive vehicles on our roads, where they came from and how they passed through our ports and borders are yet to be known by yours truly.
Please you should not take the risk as you may not be as lucky as them. Sometimes they claim that they find such cars cheaper to buy; how that is true yours truly does not know.
Documents you require in order to claim your goods from Nigerian ports:
The following are documents you require in order to officially claim your goods from the government agency – Customs and Excise Department.
Bill of Lading: This is a legal document between the shipper of used car from Japan and the carrier specifying the type, quantity and destination of the cars being carried in his vessel. The Bill of lading serves three important purposes too: (1) it serves as a receipt of shipment when the car is delivered to the port of destination. (2) It serves as evidence for the contract of carriage. (3) It serves also as a document of ownership by the shipper.
Bill of Entry: A Bill of entry is a legal document that is filed by customs clearance agents or importers themselves directly on or before the arrival of the imported goods. This document is usually submitted to the customs as part of the clearance procedure. The bill of entry will contain several details about the used Japanese cars. They will include: Port Code and licence number, customs house agent code, vessel’s name, port of shipment, country of origin, details of goods and value, etc.
Marine Insurance Policy (issued by a Nigerian insurance firm)
Evidence of payment of VAT.
Approved Form M: Anybody importing used cars into the country must process a Form M through any authorized Bank. It is the responsibility of the authorized bank to submit the Form M to the appropriate inspection agent’s liaison office in Nigeria.
Taxes and Duties:
Below are the taxes and customs duties currently applicable on the vehicles:
Cars: 30% Customs Duty
Buses: 15% Customs Duty
Trucks: 30% Customs Duty
CKD (Completely Knocked Down Vehicles): 5% Customs Duty.
Taxes applicable to the importation of used Japanese cars into Nigeria:
CISS (Comprehensive Import Supervision Scheme): 1% Tax
NAC (National Automotive Council): 2% Tax
VAT (Value Added Tax): 5% Tax
ETLS (Ecowas Trade Liberalization Scheme): 0.5%
Stay with us for more on importation of used cars into the country.