The Nigeria Customs Service (NCS) has said it is retaining a duty rate of 20 per cent for used vehicles as was transmitted by ECOWAS with a NAC levy of 15 per cent. Instead of adopting the new version of ECOWAS Common External Tariff (2022- 2026) the service said it was retaining the duty on imported vehicles in line with the 2021 Finance Act of the federal government.

On Friday April 1, 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 WCO five years review of the nomenclature. The contracting parties are expected to adopt the review based on regional considerations and national economic policy.

Nigeria 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 Federal Ministry of Finance letter ref. no. HMF BNP/NCS/CET 4/2022 of April 7, 2022," Customs said in a statement that was issued by its public relations officer, Timi Bomodi yesterday.

Nigeria's domestic fiscal policy on the importation of motor vehicles and other items is targeted at growing the local economy in these sectors. Bomodi saod the focus of the service is on implementation of the policies in the hope that it achieves the desired objectives in line with national automotive policy and other fiscal policies of 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 industrialization through sectoral and sub-sectoral incentives for members targeted at economic growth, enhancement of security and minimised consumption of unwholesome goods.