The cost of clearing cars in Nigeria will be determined and made explicit in order for you to make well informed decisions that will minimize your risk and give you value upon execution of your desires.
Bringing a car into Nigeria can be a fulfilling experience that can turn it into a valued asset and a dependable means of transportation. However, understanding the associated costs is crucial to ensuring a smooth and financially sound process. I will delve into the various factors that influence the cost of clearing cars in Nigeria, offering you a comprehensive overview to make informed decisions.
The cost and freight (C&F) incoterms value at origin (USA or other countries) is not applicable as a basis for paying duty and other taxes in favour of the Federal government of Nigeria through Nigeria Custom Service. This component is not reflected in the cost of clearing cars in Nigeria.
Upon arrival of your used vehicle in Nigeria, Ronish Nigeria Limited – Clearing Agent in Lagos “Hereafter” called Clearing Agent in Lagos will apply for Customs valuation on your behalf with Nigeria Custom Service to get the exact and correct value of the vehicle in United States Dollars (USD) currency. The Customs valuation is determined principally by the model and age of the vehicle.
The USD currency value is multiplied by the exchange rate based on the prevailing economic parameters subject to foreign exchange rate fluctuations to get the Nigeria Naira value. This Naira value will form the basis on which the duty and taxes will be paid accordingly. The computed duty and taxes based on Customs valuation will form part of the cost of clearing cars in Nigeria
The percentage of duty to be paid for most vehicles in CET tariff under the appropriate H.S. Code heading (8703) is 35% while other taxes are:
- 7% Surcharge is on duty computed
- 1% Comprehensive Import Supervision Scheme (CISS) on FOB value
- 0.5% ECOWAS Trade Liberalization Scheme (ETLS) on cost, insurance, and freight (CIF)
- 7.5% VAT is on duty computed, items (1) to (3) above, and CIF value.
You will observe that the VAT base is quite large and this has significant effect on the cost of clearing cars in Nigeria.
However, there is an exception. If the vehicle in question is less than 1(one) year old with a mileage of less than 3,000(three thousand), an additional levy of 35% on the CIF value will be applicable. The levy is equivalent to the duty computed. This information is to enable you do a cost / benefit analysis for completeness, accuracy, and validity to ascertain its effect on the cost of clearing cars in Nigeria.
The duty and taxes are paid in favour of the Federal government of Nigeria through Nigeria Custom Service at the designated bank reflected on the Customs valuation.
The shipping company and terminal handling charges which forms part of the cost of clearing cars in Nigeria varies as the vehicle may arrived containerized either 20ft or 40ft container or onboard. In addition, these charges are not same with all the shipping companies as it also varies from shipping company to shipping company.
While Agency fee is negotiable with Clearing Agent in Lagos. This is quite flexible in determining the cost of clearing cars in Nigeria as various variables will be put into consideration in order to have value for your funds and be satisfied with the service level that will be provided.
The total cost of clearing cars in Nigeria will be the aggregate or summation of duty and taxes, shipping and terminal charges, and Agency fee of Clearing Agent in Lagos.
On another note, motor vehicles above fifteen (15) years from the year of manufacture – H.S. Code 8703.10.0000 – 8703.90.0000 falls under the import prohibition list of Nigeria Custom Service.
While clearing a car in Nigeria comes with unavoidable costs, there are several ways to minimize the financial burden:
a) Proper Documentation
Ensure that all required documentation, including the bill of lading, invoice, and car title, are accurate and complete. Missing or incorrect documents can result in delays and additional fees.
b) Work with a Reputable Agent
Hiring an experienced and trusted clearing agent can save you time and money. A good agent knows how to expedite the process and avoid unnecessary delays or mistakes that could incur extra costs.
c) Clear Your Car Promptly
The longer your car stays at the port, the higher the demurrage fees will be. Aim to complete the clearance process as quickly as possible to avoid paying excessive storage fees.
d) Verify Customs Valuation
Sometimes customs officials may overvalue your vehicle, leading to higher import duties. Ensure that the customs valuation of your vehicle matches its true market value to avoid overpaying.
Conclusion
Clearing a car in Nigeria involves a variety of costs, including import duties, VAT, levies, and administrative fees. These costs are largely determined by the vehicle’s value, age, and origin. Understanding the different components of these costs and working with experienced clearing agents can help ensure a smooth and cost-effective clearance process.
Before importing a vehicle into Nigeria, it is advisable to research thoroughly and plan your budget accordingly. By being proactive and informed, you can avoid surprises and ensure your vehicle enters Nigeria legally and efficiently.
For hassle-free car clearing, consider working with Ronish Nigeria Limited. Our team of logistics professionals offers transparent, competitive rates and seamless service to ensure your vehicle is cleared without delay.
Please, kindly contact us to ascertain the cost implications and other issues that might put you on inquiry. In addition, we can handle your Customs clearance at all Nigeria airports, seaports, project logistics, oil & gas support services, and ship’s agency. We shall be glad to be of assistance in a capacity of clearing Agent in Lagos.
We look forward to provide you with cost-effective passionate logistics solutions for your future inbound used vehicles from various countries of origins and provide you with the cost of clearing cars in Nigeria that will be final and conclusive.
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