When Calculating Car Import Duty In Nigeria, understanding the standards set by the Nigerian Customs Service (NCS) for 2024 is crucial. These standards offer a comprehensive guide for importers, beginning with determining the car’s value. Importing a vehicle into Nigeria requires a solid understanding of how much the customs duty for cars is. The NCS uses a sophisticated automated system to evaluate the car’s value, which subsequently informs the calculation of the applicable duty rates. If you’re interested in learning about the estimated cost of clearing a vehicle and how to calculate duty in Nigeria, continue reading for more information.

How To Calculate Custom Duty For Cars In Nigeria

This process further entails classifying the vehicle based on factors like make, model, and year, allowing the system to calculate the car import duty in Nigeria.

Calculating Car Import Duty In Nigeria And Vehicle Importation

Buckle up as we ride together! First, look at the recent update on import duty in Nigeria.

How Much Is Customs Duty For Cars In Nigeria – Other Factors

It’s crucial to consider additional factors like engine capacity, age, and whether the vehicle is new or used in the duty valuation. These variables can significantly impact importers’ customs duties when bringing a car from overseas. Awareness of these factors can help importers accurately estimate and prepare for customs duties to enable an agent to deliver a better service.

This guide is designed to assist you in calculating car taxes and duties in Nigeriausing the Nigerian custom tariff book for vehicles as a reference. This book provides a comprehensive guide, providing the regulations and rates set by the relevant authorities regarding imported vehicles. It contains information on different car types, classifications, and applicable rates, making it an invaluable resource for importers. 

Regardless of your car importation background, whether you’re an experienced importer, a first-timer, or a curious observer, this guide is here to simplify the intricacies involved in the importation process. It focuses explicitly on determining car duties and rates in Nigeria, aiming to relieve you of any potential stress or confusion.

Calculating car duty 2024 in Nigeria

Here are factors to look at when determining car import duty using the Nigerian Custom Tariff Book:

Find Out The US Dollar Value Of Your Vehicle

In Nigeria, the dollar value of a car is an essential factor when calculating car duty. This is typically the market value of your vehicle in dollars. This can be obtained online or by consulting car valuation experts. 

The customs determine this dollar value using the Vehicle Identification Number (a number peculiar to each vehicle). The calculation is done on a computer automatically, and the price generated is what you will pay to import the car.

Exchange rate

Convert the dollar value of the car to naira at the exchange rate set by the Central bank. The rate is scarcely stable; it changes depending on the strength of the naira at the said time. As of this writing, the customs exchange rate is 1251.20 Naira per US dollar.

Applicable duty rate

Nigerian custom tariff book provides valid information on taxes and duties that apply to the various categories of vehicles. The rates vary depending on the vehicle’s make, model, age, or condition. Here are the relevant duties to be paid:

Customs authority import duty levy used new vehicles

Import Duty

The customs authority has import duty fixed at 20%, accompanied by a 15% levy on new and old vehicles. However, it’s important to note that calculations can vary based on the specific rules and regulations of the NCS. Custom duty for cars in Nigeria fluctuates, so you need to be updated to know when things change.

It’s always a good idea to consult a customs broker or agent to ensure accurate information. This reassurance should instill confidence in importers, knowing that resources are available to guide them through the process.

Other Levies to be paid

 In addition to import duty, there are different charges, such as

  • 7.5% VAT (Value Added Tax), 
  • 7.0% SUR (Surcharge) and
  • 0.5% ETL (ECOWAS Tax Liberalization)

Consider Vehicle Depreciation And Condition

While the Nigeria Customs Tariff Book provides duty rates for different types of vehicles, the actual value of a used car may vary due to depreciation and factors such as the vehicle’s condition, mileage, and maintenance history. Customs officials may assess the vehicle’s condition during inspection to determine its value for duty assessment purposes.

Formula For Calculating Car Duties

The formula you need to calculate customs duty in Nigerian:

  1. Dollar value of your car x Customs exchange rate x Duty percentage =Import duty
  2. Dollar value of your vehicle x Customs exchange rate x Levy percentage = Levy
  3. Calculated import duty in naira x SUR Percentage = Surcharge
  4.  The dollar value of your vehicle x Customs exchange rate x ETL Percentage = ETL
  5. Dollar value of your car x Customs exchange rate + import duty + Levy + Surcharge + ETL = Total x VAT percentage = VAT

The total custom duty to be paid is the summation of all the charges above; that is 

Import duty + Levy + SUR + ETL + VAT = Total custom duty payable.

Here is a practical example of what Nigerian custom duty valuation looks like:

TOYOTA CAMRY2000 – 2014$ 4,5681,143,0962,695,849
TOYOTA CAMRY2015$ 5,3421,336,7823,152,633
TOYOTA CAMRY2016$ 6,2481,563,4993,687,318
TOYOTA CAMRY2017$ 7,3081,828,7534,312,887
An example of what NCS duty valuation looks like.

Car Duty Valuation Breakdown

The figures in the table were obtained using the formula we talked about earlier. We will use the Toyota Camry 2000 -2014 to show how it is calculated.

  1. Rate, as seen in the table, refers to the dollar value of the car
  2. Surface duty is another term for import duty
  3. Total duty is the summation of all the duties (Import duty, Levy, SUR, VAT, and ETL)
  4. The exchange rate used is the current rate on the platform of the Nigerian customs service (1,251.20 Naira)

Let Do The Workings:

ItemCalculationAmount in Naira
Surface duty$4,568 x 1,251.20 x 20%1,143,096.32
Levy$4,568 x 1,251.20 x 15%857,322.24
SUR1,143,096.32 x 7.0%80,016.74
ETL$4,568 x 1,251.20 x 0.5%28,577.408
VAT($4,568 x 1,251.20 + 1,143,096.32 + 857,322.24 + 80,016.74 + 28,577.408) x 7.5%586,837.07
Total duty2,695,849.78
Workings the calculation

Unstable exchange rates prevent duties payable for vehicles from remaining constant. Importers should use the current exchange rate to recalculate the customs duty owed when necessary. They can obtain the current rate in use from the Nigerian Customs Service website.

The file below captures other cars and their corresponding duties payable at the present rates.

[DOWNLOAD LINK]-Coming soon!

Other Areas That Can Influence The Cost of Vehicle Importation

How to Clear Your Vehicle at the Ports

After your shipping company lands your vehicle at the port, you need a clearing agency to complete the process. If you are done learning how to calculate customs duty for cars in Nigeria, now is the time to proceed to the actual customs clearance.

While there are steps that you can undertake on your own, it might be beneficial to engage the services of a licensed clearing agent for the majority of the process. The following are the essential steps and documents required:

Bill of Lading

A Bill of lading is a document that contains all information such as model, year, VIN/chassis number, weight, and name of conveying vessel, the port of origin and discharge, and also details of the consignee to receive the vehicle in Nigeria.

You should receive this document from your shipping company before the arrival of your car. You can obtain it through express courier or email, which you’ll need to print.

Application for Duty Valuation

This application has to be written by a licensed customs clearing agency. It accompanies a copy of the BOL (Bill of Loading) and addresses the Nigerian Custom Office, e.g., Tincan, Apapa, and Onne.

In response to this application, the customs office will provide your clearing agent with your vehicle’s duty valuation in dollars. This dollar value will calculate your vehicle’s 20% surface duty. An additional 15% levy is charged alongside other taxes, which brings the total clearing cost to 50%.

There may be other minor charges that could arise during the processing. Please verify them with your customs clearance agent.

Print DTI

Your clearing agency will obtain a Direct Trader Input, also called Assessment Notice or Single Goods Declaration Form, upon submitting the duty valuation obtained from above. This document will describe the transaction, such as vehicle type, terminal location, approved duty amount, and vehicle contents (if any).

This step, commonly called “punching,” is significant among all the steps involved in importing cars to Nigeria. It merely means to input the car’s details and the Nigerian Customs server’s duty valuation. They need the consignee’s TIN (Tax Identification Number) to process the DTI.

Import Duty Payment

Proceed to the bank with the above assessment notice to pay your import duty. You get a receipt upon payment.

Collate All Documents

Put together the bank’s duty payment receipt, assessment notice, valuation copy, and bill of lading. Submit all to the customs office, where the vehicle will be registered and scheduled for physical examination upon confirmation that the correct duty amount has been paid.

Otherwise, the car will be alerted until the owner makes the proper duty payment. If things are accurate, the releasing officer receives a report to release the vehicle. One more thing you should know about outside how to calculate customs duty for cars in Nigeria is releasing your vehicle.

Release at Shipping Company

You must assemble your vehicle’s original signed bill of lading, SGD, and signed copies of the consignee’s ID and submit it to your shipping company. The following are acceptable for the consignee’s ID: driver’s license, international passport, national ID, or certificate of incorporation for a company.

You’ll also need a copy of Form C30 (Custom documents that license custom agencies to operate) and a letter of authorization from your clearing agency. In return, your shipping company will give you an assessment to pay any outstanding shipping and terminal charges, and upon payment, you get an exit copy.

Clearing at Customs Gate Office

You are almost free to go at this point, but only partially. You’ll submit your shipping company’s customs release document and exit copy to the customs gate office. Upon verification, your documents will be stamped and signed. You get a terminal delivery order with your shipping company’s payment receipt and a copy of the signed gate document.

Final Custom Check

With the TDO (Terminal Delivery Order) issued from above, your vehicle can now be released to the open floor in readiness to cross the exit gate out of the port, albeit with a final custom check.

Contact Information of Nigerian Customs Authority

We have the Nigerian Customs Service’s contact number and email handy below. You can also contact the Nigeria Customs Service for inquiries related to importation.

Nigeria Customs Service Website

Last But Not Least, Vehicle Importation To Nigeria

The processes involved in buying, shipping, and clearing vehicles overseas can seem very strenuous for a beginner. But if you follow the information in this guide on how to import cars to Nigeria in 2024, you will have a good plan and achieve success.

You can always hire a company or agent to act on your behalf between buying, shipping, and clearing processes.

We recommend that buyers who feel overwhelmed by the process use a car broker. A car broker checks the brand and model of the car you wish to buy. They ensure the car has the specifications you requested before proceeding with payment on your behalf.

Most car broker services also arrange to ship and sometimes clear as part of their service. If you want a free consultation with us to import your vehicle, click the button below to schedule a one-on-one consultation.

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