Customs Agents Condemn Imposition of 15% CET Levy on Motor Vehicle by NCS

Eromosele Abiodun

Customs agents in the country have condemned the imposition of 15 per cent Common External Tariff (CET) levy on motor vehicles by the Nigeria Customs Service (NCS) stressing the levy contravenes the 2020 finance act and other domestic laws on duties and levies collection.

The agents in a petition to President Muhammadu Buhari, the agents stated that as a result of the development, many vehicles are now abandoned at the port, accumulating demurrage and rents, which creates serious bottleneck to revenue collection and impediment to trade.

National President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), the umbrella body of customs agents in Nigeria, Lucky Amiwero, in the petition, called on the federal government to quickly reverse the policy to save the trading community.

According to the agents, “We wish to bring to the attention of the federal government  on the imposition of common External Tariff  levy of 15 per cent on Motor vehicles that is not backed by any law or approved in the Finance Act of 2020 and 2021  and not provided in any  law of the land and  assessed on Motor Vehicles by Nigeria Customs Service.

“There is no such thing as Common External Tariff levy of 15 per cent either on motor vehicles or goods, the only approval is on ECOWAS trade liberalization levy (ETLS) of 0.5%, the introduction of CET levy is strange to our domestic law and the ECOWAS convention on Import duties and levies assessment and collection.”

They added, “the levy approved in the Finance Act 2020 approved for motor vehicles specifically state as follows: Amendment of the first Schedule to the Act is amended by inserting and replacing as the case may be the following duties and levies: Duty on Tractors (Heading 8701) From 35 per cent to 5 per cent, duty on motor vehicles for the Transportation of more than ten persons (HS Heading 8702) From 35 per cent to 10 per cent, levy on motor vehicles for transportation of persons (Cars) (HS Headings 8703) from 35 per cent to 5 per cent  and duty for motor vehicles for transportation of Goods (HS Heading 8704) From 35 per cent to 10 per cent.

The Finance Act, Amiwero stressed, provides for 5 per cent levy for motor vehicles adding that there is no provision for CET levy of 15 per cent in either 2020 and 2021 Finance Act passed by the National Assembly and signed in to law.

“The shifting from National Automotive Council (NAC) levy  of 15  per cent to Common External Tariff  levy  of 15 per cent, by the Nigeria Customs Service  contravenes the principle of World Customs Organization WCO, kyoto convention on the simplification and harmonization of  Customs procedure , the World Trade Organization  under the Agreement on Trade facilitation Agreement (ATF) which core principle is predictability, consistency and transparency on trade  information, fees and charges Imposed on in connection with importation and exportation, which create confusion and impediments, “he stated.