How to calculate the Cost of Customs Clearing of cars in Nigeria

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Cost of Customs Clearing of cars in Nigeria with Roro shipping Containerized car shipping


Cars importation is one of the fast moving import commodities in Nigeria. The cost of customs clearing of cars is one of the major factors that importers and cars dealers consider while importing cars and trucks. Importers always do thorough calculation on the amount to pay as import duties of each before that make decisions on the purchase and shipping.

In this article, I will take time to explain different factors to consider while importing cars to Nigeria. I will also show you how to calculate import duties on each car. I believe after reading this information, you will have great insight on how to calculate your cars import duties.

Let’s begins with highlighting factors to consider when you are shipping cars to Nigeria.

  1. Shipping method
  2. The condition of the car
  3. The Model number and year of manufacture
  4. Formula to calculate customs clearing charges of cars in Nigeria

Shipping Methods of cars in Nigeria

As an importer of cars, you need to consider shipping method that will favour your customs clearing process. It is very important to avoid unnecessary cost and delay in clearing process.

Let’s talk about the two type shipping method of cars to Nigeria

  • RORO (Roll on, Roll Out) shipping method: This method is when cars are driven into the ship at the port s of loading and those cars will be driven out of the ship at the ports of destination
  • Container Shipping Method: This car shipping method involves loading cars in the containers. This is advisable if the cars are used cars. For example, 40ft (ca. 12 meters) containers can contain up to 4 or 5 sedan cars. The 20ft (6.1 meters) container can load up to 2 or 3 cars depending on the size of the cars. At times, using container for shipping can be cost effective. The only issue with container shipping is that you will pay for container deposit and it is refundable when you return the container to the shipping company.
  • Aircraft carrier shipping method: This is when you plane the cars in the aircraft for delivery at the airport. This is always done with expensive cars that have to be delivered on time.

The car shipping method will determine the charges like terminal handling charges, destination shipping invoice, and its customs valuation cost.


The condition of the imported cars to Nigeria

This is one of the major factors that determine the cost of customs clearance of cars in Nigeria. The Harmonized Systems (HS) Code percentage on each car type is determined whether the cars are new or used cars.

The HS Code for imported cars starts from 8702101110 to 8704909000 on Nigeria Customs Service server. This will determine whether the importer will pay levy or any other fee for clearing the cars at the port with customs.

Imported New Cars Percentage

Import Duty – 35% of CIF

Levy                - 35% of CIF

Port Surcharge – 7% of Import Duty

ELTS                     - 0.5% of CIF

CISS                    - 1% of CIF

VAT                      - 5%

Imported Used Cars Percentage

Import Duty – 35% of CIF

Port Surcharge – 7% of Import Duty

ELTS                     - 0.5% of CIF

CISS                      - 1% of CIF

VAT                      - 5%

The Model number and year of manufacture

The Model number alongside with year of manufacture of the cars determines the cost of customs clearing. Any car manufacture year that is more than 15 years is under prohibited goods by Nigeria customs service. Each model number of cars alongside with their year of manufacture attracts customs CIF benchmark. As an importer, you will need to discuss your cars shipping with both freight forwarding company and customs agent in Nigeria. They have what it takes to give you the estimate of cost of clearing at the ports.

Formula to calculate customs clearing charges of cars in Nigeria

In this section, I will explain the meaning of each payment so that you can be sure of what you are paying for as an importer.

Import Duty – 35% of CIF for each car: This is the percentage value of HS code of the product or the items. It will be use with CIF (the Cost of the goods, insurance value on the goods and Freight and shipping cost of the item from country of supply to country of destination.

Levy   Duty on Products             - 35% of CIF: (if new car(s)

Port Surcharge – 7% of Import Duty: This is charges that will be paid  to Nigeria Ports Authority (NPA) or Federal Aviation Authority of Nigeria (FAAN)

ELTS (ECOWAS Liberation Trade Scheme) - 0.5% of CIF: This is levy that will be paid to ECOWAS Trade community

CISS (Comprehensive Inspection Supervision Scheme)  - 1% of CIF: this is charges by customs services and other agencies for examination of the product, goods and cars at the ports.

VAT (Value Added Tax) - 5% of CIF, Import Duty, Levy (if applicable), Port Surcharge, ELTS, CISS value of the cars.

In conclusion, clearing of cars at Nigeria ports is easy only if the right documentations are in place. Importers need to working hand in hand with the clearing agents. There can be seizure of cars at port by Customs FOU (Federal Operations Unit) when import duty charges are less than what customs officers expect.

Do you need a reliable customs clearing agent that can assist in both shipping of cars and delivery of the cars from sea ports or airport? Distinctcushy Freight can assist you clear your cars with affordable cost. You can connect and contact the clearing team today.




Follow Michael Adewale:

International Freight Forwarder, Shipping Consultant and Customs Clearing Agent

He is Chief Executive Officer at Distinctcushy Global Freight Forwarding Company Limited, an International Freight forwarding company and Customs Clearing Broker in Lagos, Nigeria. He loves integrity and value honesty with importers and Exporters in Nigeria and abroad.

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