Regulatory Alerts2014-01-20 | TED/FEM/FPC/GEN/01/003Re: Fiscal Policy Measures For Automotive Industry
The Nigerian Federal Government has introduced new Fiscal Policy Measures effective from October 9, 2013 for the Automotive and Tyre Industries. For Motor Vehicles, a 35% duty is applied to Fully Built Unit (FBU) Cars under HS Code 87.03 along with a 35% levy. Commercial Vehicles also attract a 35% duty without any levy. Local Assembly Plants enjoy 0% duty for imported Completely Knocked Down (CKD) and Semi-Knocked Down One (SKD). In the Tyre Industry, duties payable on car tyres (HS Code 4011.1000.00) have been harmonised at 20% duty and 5% VAT. Lorry/Bus tyres under HS Code 4011.2000.00 also incur a 20% duty and 5% VAT. The importation of machinery and equipment for tyre production is now duty-free, and Pioneer status has been granted to all Tyre Plants. For the control of under-declaration of vehicle values, Nigeria Customs Service (NCS) will publish the price of new vehicles annually and use a depreciation method to determine the value of used vehicles. To combat smuggling and resolve consumer complaints, all Vehicle Dealers and Importers for sale to the public require licensing by the National Automotive Council of Nigeria. These fiscal policy measures must be strictly complied with."