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Tag: imported vehicles

  • Worldwide outcry as Trump imposes 25% tarrifs on imported vehicles

    Worldwide outcry as Trump imposes 25% tarrifs on imported vehicles

     

    World powers on Thursday slammed US President Donald Trump’s steep tariffs on imports of vehicles and car parts, vowing retaliation as a widening trade war intensifies.

    Major car exporter Germany called for a firm response from the EU, while Japan said it “will consider all options.”

    Stock markets across Asia and Europe skidded into the red as auto manufacturers from Toyota to Hyundai and Mercedes led the plunge.

    The US duties will take effect at 12:01 am (0401 GMT) on April 3 and impact foreign-made cars and light trucks. Key automobile parts will also be hit within the month.

    “What we’re going to be doing is a 25 percent tariff on all cars that are not made in the United States. If they’re made in the United States, it is absolutely no tariff,” Trump said at the White House.

    condemned the “hostility,” saying that the “only solution for the European Union will be to raise tariffs on American products in response.”

    Canada’s Prime Minister Mark Carney said he had convened a meeting Thursday to “discuss our trade options.”

    As Washington’s major trading partners warned of retaliatory action, Trump ramped up his threats.

    “If the European Union works with Canada in order to do economic harm to the USA, large scale Tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had!” Trump posted on his TruthSocial network.

    But Trump’s levies rattled domestic manufacturers too, with his top ally and Tesla boss Elon Musk admitting his company would not be spared the pain.

    “To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial,” Musk wrote on X.

    The association of American Automakers warned in a statement that the tariffs must be implemented in a way that “avoids raising prices for consumers” and preserves the industry’s competitiveness.

  • GOOD NEWS! Customs suspends 25% penalty on improperly imported vehicles

    GOOD NEWS! Customs suspends 25% penalty on improperly imported vehicles

    The Nigeria Customs Service (NCS) has announced the suspension of the 25 per cent import duty penalty on improperly imported vehicles.

    The directive for the suspension came from the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and is said to be part of strategies to help rejuvenate the economy and ensure compliance.

    The National Public Relations Officer of the Nigeria Customs Service, Abdullahi Maiwada, made this known in a statement on Friday.

    “The Nigeria Customs Service (NCS), under the directives of the Honourable Minister of Finance and Coordinating Minister of the Economy, has initiated a 90-day window, effective from 4th March 2024 to 5th July 2024, for the regularisation of import duties on specific categories of vehicles.

    “To ease economic hardship and encourage compliance, the Honourable Minister and Coordinating Minister of the Economy has approved the suspension of the 25% penalty previously imposed in addition to import duty on improperly imported vehicles,” the official said.

    Thousands of vehicles are improperly imported into Nigeria, often from land borders with neighbouring countries such as Benin and Niger. Many of such cars do not undergo proper documentation at the customs, including payment of levies, leading to the imposition of the 25 per cent penalty when the owners of such vehicles eventually decide to register them.

    It is that penalty that has now been suspended.

    The customs spokesperson stated that concerned persons have a 90-day window from 4 March to 5 July, to regularise import duty payments.

    “Stakeholders, including vehicle owners, importers, and agents, are encouraged to seize this opportunity to regularise import duty payments within the designated 90-day timeframe,” he added.

    The latest announcement adds to the efforts of the customs to address the demands of Nigerians amidst a cost of living crisis in the country.

    Earlier in the month, in response to concerns regarding inconsistent import duty assessment levies, the Central Bank of Nigeria (CBN) issued a directive advising the Nigeria Customs Service to adopt the closing foreign exchange rate in the official window for import duty calculations.

    Amidst the recent liberalisation of the forex market, importers have faced uncertainties in the pricing of goods and services.

    The irregular changes in import duty by the customs have further compounded these challenges, resulting in disruption in pricing and overall business operations.

    To provide clarity and reduce business uncertainty, the central bank through a circular signed by Hassan Mahmud, director of trade and exchange department, advised that the closing FX rate on the date of opening Form M for importation should be used for duty assessment.

    “The Central Bank of Nigeria wishes to advise that the Nigeria Custom Service and other related parties adopt the closing FX rate on the date of opening Form M for the importation of goods, as the FX rate to be used for Import Duty Assessment.

    “This rate remains valid until the date of termination of the importation and clearance of goods by importers,” the bank said.

  • Customs gives update on vehicle identification number valuation

    Customs gives update on vehicle identification number valuation

    The Nigeria Customs Service (NCS) says the suspended Vehicle Identification Number (VIN) Valuation on imported vehicles to be deployed on Friday has been imputed with human face values.

    The Controller Valuation of NCS headquarters, Comptroller Anthony Udenze, made this known at a sensitisation programme ahead of the relaunch of VIN valaution on Thursday in Lagos.

    The News Agency of Nigeria reports that the NCS in February introduced the VIN-Valuation policy on imported vehicle but it was rejected by customs agents .

    However, the clearing agents, vehicle importers and the NCS at the end of the sensitisation programme agreed that the suspended VIN valuation policy should be deployed on Friday.

    The policy was suspended to give room for adjustments in the values imputed in the system.

    Udenze said that the VIN valuation policy would facilitate trade when deployed.

    He said that customs had given a human face to the values imputed in the system adding that accidented vehicles and salvage vehicles were considered.

    “What we are presenting today is a uniformity and unification of values from all the area commands.

    “The committee looked at various issues and at the end of one month, we called stakeholders to a meeting in Abuja and showed them what we have done, they pointed out some areas which we have put in place,” he said.

    Udenze noted that House of Representatives members were invited to look at what was done and they were happy with the concept.

    “And today, we are here to showcase and sensitise all stakeholders that VIN- valuation has come to stay and after this, we are rolling out VIN valuation over the weekend.

    “By Monday, if you are capturing on Saturday, you are going to apply the VIN- Valuation.

    “I assure you that you will be surprised and happy to see what you will get. We have considered all the variants, all series of vehicles have been considered. What you get today will be more favourable to what you have been getting before,” he said.

    Also speaking, Comptroller Malanta Yusuf said that the world was evolving and customs would not remain static in the moving world.

    Yusuf said that a lot of control had been imputed for checks and balances, stressing that any mistake made would be discovered.

    “Automation of customs process is very essential and valuation of vehicles is not out of place. Now, some agents can sit down in their bedroom, and process clearance of their cargoes.

    “The new digital Pre-Arrival Assessment Report (PAAR) is another good development. Nigeria is not going to stay behind watching people take advantage of digital technology for business facilitation.

    “If there is anything we need to adjust, let us know. We will adjust it, but their is no going back on the VIN valuation,” he said.

    In his contribution, Comptroller Festus Okun of the PTML Command, noted that with Vin valuation, there would be uniformity and predictability and convenience.

    “We have always been talking about trade facilitation and this means applications of modern techniques into processes and at the same time improve on the quality of control in a harmonised manner.

    “I employ everyone to be on the same page. We should work together to see that this thing works in an environment that will promote trade and everybody will be beneficiaries,” he said.

    Also, Comptroller Adekunle Oloyede of TinCan Island Command, said that VIN Valuation implementation would help the country to tackle security challenges due to integration of system with security agencies.

    “I appeal to stakeholders to be transparent because this is beyond customs.

    “Its benefits if rightly implemented will give us accurate statistics for national use, make integration easy between customs and other MDA’s including you stakeholders, it will enhance easy of doing business and it will facilitate legitimate trade,” he said.

    Dr Kayode Farinto, the Acting President, Association of Nigerian Licensed Customs Agents (ANLCA), urged agents on the need for compliance to enable customs give them auto-release for vehicles.

    According to Farinto, auto-release is the agents right and so customs should also do the needful to ensure seamless process.

    He noted that the way customs were increasing the value of PAAR was not professional, stressing that it would make stakeholders to circumvent the process.

  • Customs to commence reduction on imported vehicles’ duties next week

    Customs to commence reduction on imported vehicles’ duties next week

    The reduction in the duties on vehicles and tractors from 35 to about 10 per cent may take off next week, the Nigeria Customs Service said on Tuesday.

    Comptroller-General of Customs, Hameed Ali, who disclosed this to journalists in Abuja, said the management of the service was expecting an official communication from the finance ministry on the matter any moment from now.

    He said the vehicle tariff reduction, as contained in the 2020 Finance Act, was initiated by the NCS to ease the cost of transportation in Nigeria.

    He said, “We are the proponents of the new tariff. I’ve been torn apart by many people criticising it, saying I used my connection to get it done. But it is in the overall interest of Nigeria.

    “Now, it has become a law. We are now waiting for the finance minister to give us a formal conveyance of that Act. Once we receive it, we commence implementation immediately and inform our commands.

    “We are hoping that latest by next week, it will become operational.”

    On the African Continental Free Trade Agreement, Ali said all aspects that concerned the NCS had been adhered to.

    He, however, noted that the service would need certain inputs from the AfCFTA secretariat, such rules of origin, as this should not be left to chambers of commerce alone, adding that the NCS should part of the team.