In Nigeria, the roads are teeming with imported cars, predominantly second-hand models from various brands like Toyota, Lexus, Mercedes Benz, Honda, and Hyundai. However, the seemingly high prices of these used vehicles can be attributed to the intricate process of clearing them through the Nigerian Customs Service. This blog post will unravel the complexities of car clearing, shedding light on the associated costs and recent changes in government policies.
The Costly Customs Clearance Process
Imported cars must undergo clearance by the Nigerian Customs Service to avoid being considered contraband. The cost of clearing is a composite of various fees, including customs duty, terminal fees, clearing agent charges, and shipping company fees. Additionally, taxes and duties are imposed on all imports, effectively doubling the price of the vehicle.
In 2021, there was a policy shift from calculating clearance costs based on the manufacturing year to determining it by the total value of the car. Despite a 15% reduction in import duties according to ECOWAS directives, a new 15% levy for the National Automotive Council (NAC) was introduced by the Nigerian Customs Service. This has kept the effective import duty rate at 35%.
Clearing Costs for Popular Toyota Model
To illustrate the impact of clearing costs on car prices, let’s explore the clearing fees for various Toyota models:
- Toyota Corolla (2013): N1,400,000
- Toyota Camry (2015): N1,500,000
- Toyota Venza (2012): N1,400,000
- Toyota Highlander (2010): N1,800,000
- Toyota Rav 4 (2013): N1,400,000
- Toyota Land Cruiser (2010): N3,100,000
- Toyota Tundra (2011): N2,550,000
- Toyota Matrix (2013): N1,400,000
- Toyota Sienna (2013): N1,800,000
- Toyota Avalon (2010): N1,750,000
Clearing Costs for Mercedes Benz Models
Mercedes Benz, known for its durability, also incurs significant clearing costs:
- C-Class (2012): N2,400,000 to N3,000,000
- C-Class (2011): N2,500,000
- C-Class (2010): N2,000,000 to N2,500,000
Clearing Costs for Lexus Cars
Lexus, a symbol of luxury, commands substantial clearing costs:
- Lexus LX 570 (2010-2020): N3,100,000 upwards
- Lexus GS 350 (2011-2020): N3,250,000 to N12,000,000
- Lexus GX 460 (2010-2020): N3,100,000 to N13,000,000
- Lexus IS 350 (2012-2020): N1,600,000 to N12,000,000
Clearing Costs for Hyundai Models
Hyundai, synonymous with luxury, imposes considerable clearing costs:
- Hyundai Accent (2020): N2,760,000
- Hyundai Santa Fe (2020): N2,000,000
- Hyundai Sonata (2021): N3,000,000
Clearing Trucks and Accidented Cars
Truck clearing follows the same policies as cars, while accidented cars, despite their low market prices, are subject to a 35% levy and import duty, making their clearing costs equivalent to 70% of the original price.
Conclusion:
Clearing agents play a crucial role in navigating the labyrinth of importing cars into Nigeria. The annual changes in clearing costs highlight the dynamic nature of this process. As the prices provided here are subject to change, prospective buyers are encouraged to stay updated on current regulations and costs. Importing a car may be a complex endeavor, but understanding the intricacies can empower buyers to make informed decisions.