Home News NCS Migrates to New Version of ECOWAS Common External Tariff.

NCS Migrates to New Version of ECOWAS Common External Tariff.

by timenews
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…… retains 20% duty rate on used vehicles.

 

 

Nigeria Customs Service(NCS) says it has migrated from the old version of the ECOWAS Common External Tariff(2017-2021) to the new version (2022-2026) with effect from Friday, 1st April, 2022.

This is in line with WCO five years review of the nomenclature.

A statement signed by the Public Relations Officer DC Timi Bomodi for Comptroller General of Customs said the contacting parties are expected to adopt the review based on regional considerations and national economic policy.

It further explained that domestic fiscal policy on the importation of motor vehicles and other items is targeted at growing the local economy in these sectors.

According to the Service, the nation has adopted all tariff lines with few adjustments in the extant CET, “as allowed for in Annex II of the 2022-2026 CET edition, and in line with the Finance Act and the National Automotive policy, NCS has retained a duty rate of 20% for used vehicles as was transmitted by ECOWAS with a NAC levy of 15%.

“New vehicles will also pay a duty of 20% with a NAC levy of 20% as directed in Federal Ministry of Finance letter ref. no. HMF BNP/NCS/CET/4/2022 of 7th April 2022

“The focus of NCS is on implementation of these policies in the hope that it achieves its desired objectives in line with National Automotive Policy and other fiscal policies of government,” it added.

 

It further hints that, “The NCS, has also activated the use of Chapters 98 and 99 of the CET, in accordance with WCO recommendation for national use by contracting parties, which in our case promotes industrialization
through sectoral and sub-sectoral incentives for members targeted at economic growth, enhancement of security and minimized consumption of unwholesome goods.

“It should also be noted that the Automotive industry, bonafide assemblers, manufacturers of auto spare parts and other local manufacturers enhance technology transfer and skill acquisition, create jobs and increase per capita income.

“In Chapter 98 of the current CET – Bonafide Assemblers importing Completely Knocked Down (CKD) and Semi Knocked Down (SKD) are to enjoy a concession of 0% and 10% Duty rate respectively. While within ECOWAS, duty rate for same items are 5% and 10% respectively.

“Incentivizing their efforts through policy interventions guarantees a win-win situation for the nation in the long run.

“Implementing the current CET takes immediate effect”, it opined.

 

 

Photo:.  Col Hammed Ali (Rtd),CG NCS

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