By Stephen Ubanna
In apparent confirmation of theValue News Story’’ titled 2022 Fiscal Measures: How Hajia Ahmed, Kept Nigerians Waiting, Importers To Pay More For 172 Selected Items’’, Timi Bomodi, a Deputy Comptroller, published on Monday, April 11, 2022, Timi Bomodi, a Deputy Comptroller, and the Customs spokesperson, at the instance of Hameed Ali, a retired Army colonel the Comptroller General, had said that on Friday April 1st, 2022, that the Service migrated from the version of the Economic Community of West African States, ECOWAS Common External Tariff , CET,2017-2021 to 2022-2026.
He may have gladdened the heart of importers with their agents when he said ‘’implementing the current ECOWAS CET takes immediate effect’’.The Customs spokesperson had said that the new ECOWAS CET, is in ‘’line with the World Customs Organisation, WCO, five years review of the nomenclature’’. The Deputy Customs Comptroller had said that ‘’the contracting parties are expected to adopt the revised version of the CET, based on regional considerations and national economic policy. Note that the government had introduced additional taxes and levies on 172 products.
Given an insider information of the 2022-2026, CET, Bomodi had said that the nation had adopted all tariff lines with few adjustments in it. He cited the Annex II, of the 2026, CET, and in line with the National Automotive Policy, NAP, the NCS, has retained the a duty rate of 20% for used vehicles as was transmitted by ECOWAS with a levy of 35%. He noted that importers of New vehicles will pay a little bit higher. According to him the ECOWAS had said that they will 20% duty on such New vehicles and 20% levy. He had cited a memo from the office of Hajia Zainab Ahmed, minister of Finance Budget and National Planning, HMFBNP/NCS/CET/4/2022 of April 7, 2022.
It is instructive to note that that the domestic Fiscal on the importation of motor vehicles through the nation’s RORO ports at Tin can Island port and Port Multi-services Terminals Limited, PTML, and other general Merchandise is targeted at growing the local economy in these sectors. He maintained that the focus of the Hameed Ali, a retired Army Colonel led Customs is on the implementation of these policies in ‘‘the hope that that it would achieve its desired objectives in line with the country’s NA C, policy and other Fiscal policies of the government.
He further disclosed that the Customs also activated the use of Chapters 98 and 99 of the CET in accordance with the WCO, recommendation for national use by the contracting parties, which in the case of Nigeria will ‘’promote industrialization through sectorial incentives for members targeted at economic growth , enhancement of security and minimized consumption of foreign goods.
There is no gain saying the fact that the nation’s Automotive industry , bonafide local car assemblers, like COSCHARIS, Manufacturers of spare parts and local Manufacturers enhance technology transfer skill acquision, create job opportunities and increase per capital income.
Note that the Chapter 98 of the 2022-2026, CET, had made it clear that bonafide car assemblers importing Completely Knocked Down, CKD, and Semi Knocked Down, SKD, are to enjoy a concession of 0% Duty respectively for the next five years. There indications that in Republic of Benin, Ghana, Togo, Cote D’Ivoire and other West African countries the duty rate of same items are between 5% and 10% respectively.
Bomodi, the Custom Public Relations Officer, may have spoken the mind of the Customs Comptroller General , when he stated in a recent Statement released that that ‘’Incentivizing the efforts through such policy interventions would guarantee a win-win situation for the nation in the long run’’. The government may have taken the bold initiative to discourage Nigerian importers rushing to these neighbouring West African countries seaports to imp take delivery of their CKD and SKD imports when thy could import such items through Nigeria ports enjoying 0& duty rate.
Maritime analysts believe that with the 0% duty rate Concession on CKD and SKD, imports, many importers who had relocated to Benin to take deleievery of their CKD and SKD, in the country two major sea- ports: Atonomous port of Benin, Cotonou and Bollore port including the other ports in other countries in the egion would relocate to Nigerian to enjoy the Concessions to save money.
