Buying a car in Nigeria is a necessity, so when importing cars like a car dealer, the question of how much does it cost to clear a car arises. What you would do is to visit any car-related websites or forums online in search of answers.
Nevertheless, you must still be aware of the cost of clearing certain car models. This is vital as you would want your customers to know the latest clearing cost.
The same goes for the buyer bringing in a vehicle from any foreign country, he too must know the cost of clearing the car.
There are many reasons for wanting your own personal car, maybe due to the decline in the Nigerian public transport system which makes moving from one place to another difficult.
It might also be that buying the car abroad is better in terms of reliability, the sound engine, body parts, etc, than when you buy directly from a Nigerian dealer online or offline.
The Nigerian Customs Service
It is good to know that the Nigerian Customs Service (NCS) is the body responsible for the clearing of vehicles after which they are allowed within the country.
Things have quite changed as the method used in determining the cost of clearing a car in Nigeria today is no more based on the size and year of manufacture of the vehicle.
The new tariff system for determining the cost of clearing vehicles is what the NCS has been using for the past 4 years.
According to the Customs website, “a 35% duty is charged on the cost of your car, with an additional 35% levy which sums up the total clearing cost at 70% of the initial cost of the vehicle.”
Nigerian Customs Tariff Plan for Cars 2022
In a move to make Nigerians patronize locally manufactured vehicles, the Nigerian Government raised the tariff on imported cars. This was done in 2014 with the aim of creating employment and a wide range of technologically advanced manufacturing opportunities.
In the old tariff, the factor that was used to determine the import duty tax was based on the year in which the car was manufactured.
For example, a car that was manufactured in 2016 would attract a higher tariff than a car that was manufactured in 2008.
How to Calculate the Nigerian Customs Tariff Plan for Cars 2022
To know how to calculate customs duty for cars, using the Nigeria customs tariff book or Nigeria customs valuation for cars below, there are values to be considered:
The Dollar Value of Your Car
First of all, these values are generated by Nigerian customs, it is a generated fixed cost price of the car you intend to clear.
These values seldom change or do not change at all. If any change occurs in the coming times, trust us, The Clearing Agent will give you updated values always.
The Exchange Rate (which is currently ₦365 and is subject to change at intervals)
Furthermore, this value is subject to change. While this exchange rate is subject to change at intervals, (depending on the strength of ₦) we will keep you informed of any change in exchange rate thus, affecting the cost of clearing cars in Nigeria.
The Percentage of Duty to be Paid (usually 35% duty for vehicles)
In addition, these are fixed values for cars and vehicles, other industrial vehicles may attract lower CET. You can know more about this info here https://www.customs.gov.ng/hscode/resulthscode.php?TYPE=KEY&HSCODE=8703.
The 128 Trigger, to Get the Total Amount Due to be Paid to the Nigeria Customs
Hence, the 128 trigger is a Shortcode that helps us calculate other values of the total duty, values like, VAT….
Furthermore, points 1 to 4 will give you the total value of your car due to be paid to the Nigeria Customs at any designated bank. In addition, you may want to know how much it will cost you to clear a car or other vehicle.
Shipping and Terminal Charges
Furthermore, shipping and terminal charges vary. Cars, SUVs, and Trucks approximated cost is ₦50,000 ₦60,000 ₦70,000 Respectively.
Agency fee or Clearing Charges
In addition, this may be fixed or Negotiable depending on the clearing agency you are dealing with.
Hence, be rest assured The Clearing Agent will give you the best prices for the cost of clearing cars and other container cargo, as we are cost-effective and want to make you happy.
Summary of the Nigerian Customs Tariff Plan for Cars 2022
1. Find the Dollar value of your car.
2. Multiply it by the current exchange rate used by the customs (₦306). *(Nigeria Customs Tariff Book)
3. Then, multiply it by the percentage of duty to be paid (35%).
Most noteworthy, the first step should give you the duty of your vehicle, this is called the surface duty. Hence, to get the total duty which includes VAT, here’s where the 128 trigger comes in
4. Multiply the total of Surface duty by 128.
In addition, this will give you the total duty you will pay to the customs via designated banks in Nigeria. Furthermore, to know the total cost of clearing your car, do this below.
5. Add it up with shipping and terminal charges.
While shipping and terminal charges vary. Cars, SUVs, and Trucks approximated cos is ₦50,000 ₦60,000 ₦70,000 respectively.
6. Add the Agent fee or Clearing Charges which is usually negotiable. (₦100,000 to ₦150,000 for older cars, and higher charge for newer cars).
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