APFFLON rejects 15% NAC levy on used vehicles  

The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has kicked against the introduction of 15 percent National Automotive Council (NAC) levy on imported used vehicles by the Nigeria Customs Service (NCS).

Recalled that the NCS in a statement by its Public Relations Officer, Timi Bomodi, on Monday announced the Service migration from the old version of the Economic of West African States (ECOWAS) Common External Tariff (2017-2021) to the new version (2022-2026) with effect from Friday April 1,2022 in line with the World Customs Organization (WCO) five years of the nomenclature.

The statement said the contracting parties were expected to adopt the new review based on regional consideration and national economic policy.

According to Bomodi, “As allowed in Annex 11 of the 2022-2026 Common External Tariff (CET) edition and in line with the Finance Act and the National Automotive Policy, NCS has retained a duty rate of 20% with a NAC levy of 15%. New vehicles will also pay a duty of 35% with a NAC levy of 20% as directed in the Federal Ministry of Finance letter ref. No.HMF BNP/NCS/CET/4/2022 of 7th April 2022”.

But in statement issued in Lagos on Wednesday, a copy of which was made available to Maritime Today Online, President of APFFLON, Frank Ogunojemite argued that the NAC levy should be limited to only brand-new vehicles.

According to him, the introduction of the NAC levy by Customs without consultation with stakeholders has shown a high level of inconsistency capable of betraying the existing trust and undermining the cordial working relationships with freight forwarders and importers.

“Two weeks ago, the NPRO disclosed that there would be a Town hall meeting again to harmonize issues bordering on auto policy which did not hold and just the other day, they came up with a controversial NAC levy again.

“We are shocked by the inability of the Nigeria Customs Service to maintain a firm stance on auto policy.

“What is Customs trying to do? The agitation against VIN Valuation has barely settled and there they go again with NAC levy. The protest against VIN Valuation was not because it was introduced in bad fate but because it jerked up the duties paid on vehicles.

“APFFLON is strongly against the collection of NAC levy on used vehicles, it should be limited to brand new vehicles only and we demand to know why used vehicles should pay NAC levy, and how the money will be appropriated. Dr. Ngozi Okonjo Iweala during her time removed NAC levy which was 2% then, why the sudden imposition of 15% and 20% NAC levy on Nigerians?

“We are of the opinion that they engage stakeholders to clarify more on the new price which did not consider Essential Service Vehicles like Ambulances, Commercial buses and firefighters. Why are they always coming out with policies without sensitization and stakeholders’ inputs, why are they less concerned about carrying stakeholders along. As far as it is monetary issue their decisions are not sacrosanct, they should bear in mind that policies are subject to review unless they want to tell us that we are not practicing democracy,” he said.

The APFFLON President called for a unified tariff on vehicles imported into the country, just as he stressed the need for the NCS to always engage with stakeholders on new policies to avoid industrial action.

“APFFLON is demanding for a unified tariff on vehicles but not astronomical rise in duty that will reduce the purchasing power of the citizens and accelerate inflation in the country. We expect circulars on major changes by Customs Management and not only press releases on social media platforms to avoid industrial actions which shipping companies and terminal operators leverage on to demand additional charges. Nigerian importers lost over 300billion Naira in demurrage in the last protest caused by increased target given to the NCS by the Federal Government. It is high time Customs commenced constant interface with critical stakeholders on revenue policies to forestall crises in Nigerian Ports.

“APFFLON is using this opportunity to appeal to all freight forwarders not to embark on yet another round of protest but peacefully demand for explanation on the NAC levy slammed on used vehicles. The Federal Government and policy makers should realize that Nigerians are struggling to survive in the present harsh economic situation.

“We urge the Nigeria Customs Service and the Federal Ministry of Finance to always handle issues like this with utmost care to avoid unnecessary crises,” the statement concluded.