The cost of clearing imported cars in Nigeria varies from car to car, and change every year. Clearance fees are paid to the Nigerian Customs (NCS), the terminal of offloading, the carrier, which is either an airline or a shipping company, and the clearing agent.
The NCS receives duty for the imported vehicle which is usually determined by its year of manufacture, size, and the capacity. Newer vehicles manufacture from 2016 onwards attracted import duty at 35% and a levy charge at 35% making it 70% in total, while the older vehicles attract 35% duty charge only.
Carrier charged paid to the airline or shipping company is determined by the size and weight of the imported vehicle. Larger vehicles like Trucks and SUVs attract higher carrier fees compared to smaller ones like saloon cars.
Imported goods, including vehicles, are valued by CIF (Cost, Insurance, and Freight). This means the entire shipping value determines the duty and taxes of imported goods. Similarly, all imported goods are subject to other described taxes for specific goods, such as automotive levy, excise duty, sugar levy, rice levy, etc., which add to the total import duty. Duty rates range from 0% to 35%, with an average of 16.96%. While some products are charged 35% import duty, others are charged 0%, like books.
A sales tax is also subjected to imported goods in Nigeria. VAT is charged at a standard rate of 5% on the total of CIF value, excise, duty, and other taxes where applicable.
Currently, the cost of clearing cars in Nigeria is charged at an exchange rate of $1 to N306. However, the rate of exchange is subject to change at intervals which depends on the strength of the Naira. The NCS has a fixed dollar value for all imported vehicles, but this is usually affected by the exchange rate as explained earlier.
The clearing agent fee is usually negotiable depending on the working agreement. It includes the fee of handling, delivery (if agreed upon), and the type and year of manufacture of the car. Ensure to ask for a receipt of payment from the clearing agent.
