Do You Know How Customs Calculates Vehicle Duty Fees?
Lately, the issue of duty payment on imported vehicles has been on the front burner.
Did it get you thinking of how exactly the Customs determine how much it charges as duty on imported vehicles?
The NCS uses a depreciation value method of up to 50% to calculate duties, says Umar Abubakar, who is the Deputy Comptroller-General of Customs on Tariff and Trade.
Abubakar says when calculating duty on vehicle, the value and age of that vehicle is taken into consideration.
“We are using depreciation value method, as the vehicle gets older, the value depreciates; and the depreciation value we use is up to 50%,’’ he said.
He said that customs clearance document are valid for 7 years, adding that the the years would start counting from the date of importation not the manufacturing date on the vehicle.
According to him, law empowers customs to back-date any customs offence to 7 years and after that, no customs officials can intercept the vehicle.