Nigeria Customs suspends 25% penalty on improperly imported vehicles

Nigeria Customs Service (NCS), under the directives of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun has suspended the 25 per cent penalty previously imposed in addition to the import duty on improperly imported vehicles.

The service has also initiated a 90-day window, effective from 4th March 2024 to 5th July 2024 for the regularisation of import duties on specific categories of vehicles.

The National Public Relations Officer of the service, Abdullahi Maiwada explained in a statement on Friday that it was part of efforts to ease economic hardship and encourage compliance, noting that stakeholders, including vehicle owners, importers, and agents had been encouraged to seize this opportunity to regularise import duty payments within the designated 90-day timeframe.

Read Also: NERC warns electricity consumers against buying transformers, poles for Discos

It could be recalled that early in the month, Maiwada had explained that the initiative applies solely to vehicles imported into Nigeria where the requisite customs duty had not been fulfilled or vehicles detained due to undervaluation.

The statement noted that it was important to clarify that vehicles seized and condemned would not be released under this arrangement and would be forfeited to the Federal Government in accordance with extant regulations.

It said: “All vehicle owners, importers/agents seeking to regularise import duties on their vehicles are required to apply to the Zonal Coordinators (Zones A, B, C, D) and CAC FCT Command. They must submit the necessary available documents and process Vreg in line with the Federal Ministry of Finance directives for the registration of imported motor vehicles. Valuation and assessment of the vehicles will be carried out using the VIN valuation method.”

The statement stressed that import duty and a 25 per cent penalty would be paid in tandem with the import guidelines, procedures and documentation requirements for used vehicles under the Destination Inspection Scheme in Nigeria (2013) and the Nigeria Customs Service Act 2023.

It noted that duty payments must be made using the Procedure Code (PC) specifically created for this exercise.

According to the statement, “This initiative reflects our unwavering commitment to facilitating compliance. We encourage all stakeholders to capitalize on this opportunity within the stipulated timeframe”