-- fj / Tariff & Trade, Import & Export, Headquarters, Wuse Zone 3, Abuja. NCS{T&TjI&EjO12jS.13jVOL.II 20 th March, 2014 To: All DCGs, All ACGs, All Zonal Coordi ators, AI CACs & All Heads of Units. CIRCULAR NO. 008/2014 RE: REVISED FISCAL POLICY MEASURES FOR THE AUTOMOTIVE INDUSTRY I am directed to forward herewith copy of the National Automotive Council letter Ref. No. NAC.993jS.174/IV{T/1 dated 14 th March, 2014 conveying the list of the automotive assembly plants that will benefit from Section (v), (vi) and (Vii) of the Federal Ministry of Finance Circular No.BDjFPjDOj09jIj224 dated 28 th February, 2014. 2. You are to ensure wide circulation and strict complian ,please. A I, .1., DEPUTY COMPTROLLER-GENERAL (T & T), FOR: COMPTRQLLER-GENERAL OF CUSTOMS
To: All DCGs, All ACGs, All Zonal Coordi ators, AI CACs & All Heads of Units.
CIRCULAR NO. 008/2014 RE: REVISED FISCAL POLICY MEASURES FOR
THE AUTOMOTIVE INDUSTRY
I am directed to forward herewith copy of the National Automotive Council letter Ref. No. NAC.993jS.174/IV{T/1 dated 14th March, 2014 conveying the list of the automotive assembly plants that will benefit from Section (v), (vi) and (Vii) of the Federal Ministry of Finance Circular No.BDjFPjDOj09jIj224 dated 28th February, 2014.
2. You are to ensure wide circulation and strict complian ,please.
A I, .1., DEPUTY COMPTROLLER-GENERAL (T & T),
FOR: COMPTRQLLER-GENERAL OF CUSTOMS
/,1\ ~ NATIONAL AUTOMOTIVE COUNCIL ~.~ (FEDERAL MINISTRY OF INDUSTRY, TRADE AND INVESTMENT)
" No 23, Parakou Street, Wuse II, P,M,B, 320, Garki Abuja, Nigeria, . . Tel: 09-2913781-3 E-mail: [email protected],ng, www.nac.org,ng
(• .... t ,~ .. NAC.993/S.174/IV/T/1 14 March 2014
The Comptroller-Generai, .)~:.-;Nigeria Customs Service,
,,/ .... II "','Customs House ) ) L. f! ~ " /
' .. Wuse Zone 3,
Abuja. __ • •..• J
. J0111'\ .,•• ,. . ........ IRe: Revised Fiscal Policy Measures for the Automotive Industry - -_ ....
With reference to the revised fiscal policy measures for the automotive industry issued via
circular no. BD/FP/DO/09/I/224 dated 28 February 2014 (attached), I hereby present the list of the automotive assembly plants that will benefit from sections (v), (vi) and (vii) of the circular,
, This IS to confirm that Mr. President has granted approval for the follovving fiscal policy measures in the Automotive industry as enumerated
hereunder:j. VVith effect from 1si January, 2014:
(i) Fu!ly Built Unit (FBU) Cars falling under H.S. Code 87:03
shall attract a duty of 35% and 35% levy. All FBU imports
(except used vehicles) vvith Bill of Lading dated not later than 31 St March, 2014 and al"rival date not later tilan 301
t"! June, 2014
will pay tho oi duty r~'te, irrespective of the dates of the opening
of Form 'M' and the lettel- of CI-edit Used vehicles \vill be
imported at 35% duty without levy till 30~ June, 2014,
renewable as required by the f'V1inistry/Na~jonai Automotive
Councii (NAC) to manage market conditions;
ni) -u!iy BUilt Unit (FBU) Commercial Vehicles fa!IIIlO under
H. S. Code 87.02, 87.04, 87.05, 8706, 87.07, 8716 shall
attract 35% duty without levy;
(iii) Fully B lilt Unit (FBU) Tractors under H S. Cod~ 870'1 shcJH attract 0% duty without levy, untl! local ca "acity IS
ascertained by National .Autamotive Council (NAC);
-- -- - -- -------
(iv) Green Cars (Electric cmd Hybl-id with lectric illotor drive and petwl or diesel engine) shall be imported at 35% duty without
levy;
(v) Local Assembly Plants shall import their:
(8) Complete!y Knocked DUNn (Gr<:D) at 0% duty
(b) Semi Knocked Down (SKD I) at 5% duty
(c) Setr~ I-nocked DovlIn (SKO II) at 10% duty.
(vi) All Machinery alld EqUip,! 'nt imported for t e purpo-e of
vehicle assembly shall attract zero percent (0%) Import
duty and VAT free; and
(vii) Local Assembly Plants shali import Fuily Built Unit (FEU)
Cars at 35% duty and 20% duty for commercial vehicles
\ivithout levy respectively !n numbers equal to twice their
imported CKD/SKD kits.
Tj~e above measures are to create an environment tC5upport existing
assembly plants and attract other Original Equipment Manufacturers who
['9\ie expressed interest in Nigeria
2, In order to revive tile Tyre Industry, the fOllow'ng measures have been
appmved with effect from 15t January, 2014.
J (2) Duty paYc~hle on lyres is now harmonized as belov"l-
Pioneer status is hereby given to all tyre piants; and
I (i) Cartyr-es rl S Code4011.1000.00 - 20% duty 5% VAT
(ii) !_orry/8us tyres H, S Code 4011.2000.00 - 20% duty 5°/
I (b)
V,bIT.
!mpo tation of machinery nd equipnient for tyre production IS nov\! duty and VA.T free;
J
I (c)
(d) Local tyre manufacturing plants are to impoli tyres at 5% duty in
numbers equal to l\ vice their production for two years from the
date of commeilcement of proc!uctlon
3 To control under declaration of vehicle value to reduce duty paid:
(a) The Nigeria Customs Service (NCS) shall publish the price of new
vehicles annually; c:nd
(b) To pmvide a transparellt benchmark to determine the value of used vehicles, the Nigeria Customs Service (NCS) shall use the value of a new ve1iicle depreciated by '10% per annum implying a
ten (1 0) ye~r peried fer cars and bV 7% per annum implying a fifteen (15) year .Jeriod fo!" commercial vehicles In either case,
depreciation should never be below 30% of the value of the new
vehicle equivalent
4. To effectively combat smuggling, monnonng and control of used and
91-ey vehicle imports and to also facilitate the resolution of consumer
complaints; al! vehicle dealers and imporiers for sale to the public shail be
licensed by the National Automotive Council (NAC) of Nigeria.
5. This superceeds our earlier Circular Ref. No. BD/FP/DO/09/1/189 dated
14th ~ovember, 2013 on the above subject I
6. : Piease ensure strict compliance
,- . ,-,. ,--' --",-""
r. gozi Okonjo-lweala Co-ordinating Minister for the Economy ancJ
