Current Cost of Clearing Cars in Nigeria 2020 | Official Guide
Cost of Clearing Cars 2020: Are you aware that according to the National Bureau of Statistics, close to 180 thousand vehicles were in 2018 shipped to Nigerian port? This report is enough to give you a hint of the mass entry of vehicles into Nigeria irrespective of government policies on import duty on vehicles. Clearing of vehicles through Nigeria Customs is a bit challenging due to its complex bureaucratic structure and processes of getting your car out of the port. Read through for more information.
Clearing imported cars from the Nigerian at ports and borders does not come cheap. You must pay the clearance fee to the Nigerian Customs Service (NCS) before you can be allowed to bring your car into the country.
As we all know, Nigeria still does not manufacture cars (except for a few cases where we hear of cars being assembled in Nigeria) and then there’s Innoson who cannot satisfy Nigerian’s thirst for cars. This means that 99% of cars we use in the country are all made abroad and imported into the country.
- Nigeria Customs Import Duty On Imported Goods
- Duration of Clearing Cars in Nigeria
- Zonal Offices Where to Clear Your Cars
- How to Clear Imported Cars in Nigeria
- Cost Of Clearing Cars in Nigeria
- Duty Rates
- Sales Tax
- Estimated Cost of Clearing Cars in Nigeria
- Get Your Waybill or Car B/L
- Ascertain Car’s Import Duty
- Obtain Valuation Site and Perform DTI
- Print SGD and Assessment Notice
- Import Duty Valuation Payment Time
- Request for Car Release
- Final Vehicle Movement and Final Verifications
- Proceed to Terminal Operator Office
Importing cars into Nigeria is cheap at first phase but not at the last. The last phase, being the clearance phase, isn’t always a bed of roses. But then, the hassles would be nothing with your idea of how to clear imported cars in Nigeria.
While you are considering to get a new car to Nigeria, you should also consider the cost of clearing your new car as well. Cost for clearing cars different cars vary from car to car, making it necessary to check the cost of clearing a specific car when you wish to purchase or you already purchased.
There are fees attached to clearing imported cars on the ports, airports, seaports, and borders. These fees are compulsory and they include:
- The Nigerian Customs (NCS)
- The carrier of your car to the port i.e the shipping company or the airline.
- The terminal where it was offloaded.
- Clearing Charges or Agent fee.
Aside from the above-listed fees, the Nigerian Customs also have a charge for your imported car, this duty depends on the kind of car, model, size and some more factors.
You also have to settle the car carrier e.g shipping company that brought your car into the country. Their charge is dependent on the weight and size if your car. This is a summary of all that you will spend on clearing cars in Nigeria.
While searching for the total cost of clearing cars in Nigeria, you have to know that depending on the products, your duty rates in Nigeria vary from 0% to 35%, where the average duty rate at 16.96%. Irrespective of that, some products can be imported for free without having to pay duty (e.g. books).
5% of your imports is a standard fee levied for VAT on the sum of the CIF value, duty, and excise and other taxes if applicable. Hence, we can’t say that there is a minimum threshold in Nigeria. Therefore, imports are subject to taxes and duty regardless of their value.
Cost Of Clearing Cars in Nigeria
The reason the cost of clearing cars in Nigeria changes on a regular base is because of the exchange rate of naira and dollar. The cost of clearing cars in Nigeria varies between 2018, 2019, and 2020. Customs charge is subject to change depending on the strength of Naira.
To this effect, we will keep updating the current exchange rate, because this is a factor that affects the cost of clearing cars in Nigeria. We have noticed an increase in the total duty of all vehicles and imports due to this.
Fixed dollar value is placed on all cars and other imports topping into Nigeria, but the volatility of the exchange rate makes the value change from, time to time.
Zonal Offices Where to Clear Your Cars
Tin Can port and Apapa port are the most popular ports in Nigeria through which cars are brought. If you are importing cars from Cotonou, you can then clear at Seme border. There are four zonal centers of the Nigerian Customs Service, and this is where you verify your car status. These zones include:
- Zone A Headquarters, No. 1 Harvey Road, Yaba, Lagos;
- Zone B Headquarters, Kabala Doki, Kaduna;
- Zone C Headquarters, Nigeria Ports Authority, Port Harcourt and;
- Zone D Headquarters, Yelwa Tudu Road, Bauchi State.
Nigeria Customs Import Duty On Imported Goods
No one can dodge paying import duty and taxes. It doesn’t matter if you are an individual or a commercial entity, shipping goods to Nigeria warrants import Duties.
CIF (Cost, Insurance, and Freight) is the major mode through with are valued. This signifies that both the import duty and taxes due are estimated on the entire shipping value.
You may find it interesting to know that the entire shipping value includes the charge of freight, the cost of the insurance, and the value of the imported goods.
Imported goods are also subject to sales tax, and any other fee for specific products in these categories rice levy, automotive levy, sugar levy, and cigarette levy. This been said, the total cost of clearing cars in Nigeria is dynamic.
Duration of Clearing Cars in Nigeria
The duration of clearing cars in Nigeria is determined by a number of factors. These could include the validity of forms, and number of clearance applicants, etc. Another thing is laziness and frustration which could force you to delay.
This is caused probably by your inability to verify documents and many others. In essence, it can take as long as you want to clear an imported car in Nigeria. But, the average time is just about two days to three days. As a newbie, it took me four days but later, I could run it in just three days successfully.
Estimated Cost of Clearing Cars in Nigeria
These prices might vary if you get a good agent. We have gotten this list from an agent.
|Nissan Pathfinder 2001||₦350,000|
|Nissan Primera 2003||₦315,000|
|Toyota Rav4 2004||₦335,000|
|Kia Sorento 2004||₦360,000|
|Lexus RX 330 2004||₦370,000|
|Nissan Pathfinder 2005||₦400,000|
|Toyota Highlander 2005||₦450,000|
|Toyota Corolla 2005||₦300,000|
|Toyota Tundra 2005||₦400,000|
|Toyota Corolla 2006||₦300,000|
|Toyota 4Runner 2006||₦450,000|
|Lexus RX 350 2007||₦600,000|
|Lexus RX 350 2008||₦700,000|
|Toyota Highlander 2008||₦500,000|
|Lexus RX 350 2009||800,000|
|Lexus RX 350 2010||₦950,000|
|Toyota 4Runner 2011||₦900,000|
|Mercedes-Benz ML350 2012||₦1,515,000|
|Toyota Venza 2013||₦1,400,000|
|Toyota Camry 2013||₦1,350,000|
|Toyota Camry 2015||₦1,500,000|
How to Clear Imported Cars in Nigeria
1. Get Your Waybill or Car B/L
The first and foremost thing on how to clear imported cars in Nigeria is to obtain this receipt. B/L is an acronym for Bill of Lading and it is also sometimes represented as BoL.
In some cases, it’s called waybill but I prefer to address it as car’s Bill of Lading in this case. This is a receipt given by the carrier to the shipper. It acknowledges the receipt of the car(s) being shipped and specifies the terms of car(s) delivery.
It also contains the details of the car you are importing from anywhere to Nigeria and is very important.
2. Ascertain Car’s Import Duty
Import duty is simply the car importation taxing and does not refer responsibility, as you might think. This step is where a clearing agency would be needed but I successfully scaled it.
Since it requires a simple letter writing, there are computer stalls around that’ll draft an agency’s letterhead for you. In fact, they have various registered clearance agency’s letterhead and you’d just have to pick the one your mind prefers.
3. Obtain Valuation Site and Perform DTI
DTI means Direct Trader Input and refers to the input of car valuation on Customs web base. This should cost just a few minutes, if not seconds of your time. This is a simple upload that requires sincerity.
We refer to this stage as the ‘property declaration’ stage because you’ll upload info beyond your car. Apart from the car, whatever other item is present in the car must be stated and must undergo import valuation.
4. Print SGD and Assessment Notice
SGD refers to Single Goods Declaration. It involves a simple printing of forms and these forms must contain the appropriate car information. Whatever happens, do not alter or falsify any information about your car. If you should dare to falsify any info, let it not be the Customs import valuation of your car.
5. Import Duty Valuation Payment Time
There are two payment options available, it’s either you inconvenience yourself through the bank or simply pay online. Anyways, I won’t digress this writing from what I did. I paid mine through the bank and I also presented my Assessment Notice form to the bank.
Whichever payment method you use, do not fail to obtain a payment receipt. If you do not, I’m not sure of other ways you’ll follow to bypass Nigerian Customs without payment verification.
6. Request for Car Release
Here is the stage where you make your final payments to the shippers. Again, you’ll gather your initial forms including B/L, SGD, Copy(s) of Exit and a valid means of identity.
Your identity medium could be your valid National ID card, Valid Driver’s License, and even your Voter’s Card. Various shipping agents do have their requirements in terms of your identification but it won’t deviate from this.
7. Proceed to Terminal Operator Office
Here is where you make your final payments and to the terminal operator office. You will be issued a terminal charge or debit note and you’re to pay at designated banks.
Return here after making payments to obtain your Delivery Order (DO) and have your car released by your shipper. The terminal operator will also issue you a Terminal Delivery Order (TDO) to finalize things.
8. Final Vehicle Movement and Final Verifications
Here is when your vehicle moves to the final gate and for final verifications. The Customs Officer there would crosscheck every detail of the said car.
When it’s certain that it tallies with your documents, you’ll be allowed out. You can park somewhere, call your lover and inform him/her of your new wheel’s arrival and run the Nigerian roads.
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