Many people want to import personal vehicles into the US. With so many car vendors available in Nigeria and all the importation hassle, some people might believe it is a difficult task and not worth attempting.
However, there are situations where you must. For example, you may be an immigrant in a foreign country and decide to return to Nigeria with your car. Also, enthusiasts can desire a car model that isn’t yet available in Nigeria.
Importing cars into Nigeria can be expensive, but with help you can do it without any problems. There are considerations to make before you decide to import a vehicle, regardless of your reason. In this post, we’ll look at the cost.
Primary Expense: Vehicle Import Duty In Nigeria
Clearing imported automobiles at Nigerian ports falls within the purview of the Nigerian Customs Service. A car’s customs clearance fee in Nigeria used to largely be determined by its make and model, but that has changed in the past few years.
Approximately 22% of the vehicle’s MSRP was added on for clearance fees due to the adopted import duty position. The factors used to compute clearing fees have evolved in recent years. The overall cost of clearing an imported vehicle is 70% of its MSRP due to a 35% import tariff and an extra 35% fee.
The government of Nigeria decided to increase the clearing charge by 48% as a means of discouraging imports and promoting domestically produced automobiles.
Aside from the vehicle import duty, there are some other fees you may have to pay. They include:
International bank fees
Using a foreign bank account to pay for a car or a service can lead to additional charges from that bank. Wire transfers within Nigeria may not be overly expensive, but sending money abroad can cost a lot.
When dealing with smaller foreign banks, it is not uncommon for the cash to be redirected through a series of institutions, each of which will charge a fee.
If you have a Nigerian-based bank account, you can avoid bank fees by making payments from there. Also, if you use a one-stop shipper, you won’t have to deal with anything from purchasing to transporting to clearing import customs. Which means that there will be just one bill to pay.
Ground transport fees
You probably want to maintain the vehicle’s pristine state. While open auto carriers are excellent for transporting the vast majority of cars, covered carriers are recommended for moving vehicles that are in mint condition.
In the unlikely event that your automobile is on the truck under another car that is leaking oil, coolant, or other potentially hazardous fluids, your car will be protected from harm. However, the cost to ship a vehicle in an enclosed container is typically 1.5-2 times that of an open carrier.
Read Also: Best Cars Below 500,000 In Nigeria 2022
Marine insurance fees
Maritime carriers usually aren’t liable for any broken cargo containers. The marine line can only be held liable for damages up to a particular amount, in the event that a container is damaged in any way during transport (including being dropped, dinged, or falling off the ship).
The shipper is responsible for anything beyond that. Because of these risks, transport companies always have marine insurance. Marine insurance is optional and the premiums are typically around 2% of the vehicle value.
Customs inspection fees
It is never pleasant when customs officials randomly choose to inspect your shipment’s container. If customs does choose to investigate the container, the costs will be passed on to the shipper.
Inspection costs at customs might cost up to N300,000 or more. Furthermore, you are still responsible for all costs even if your container passes inspection.
Nonetheless, sporadic customs checks do happen, but not often. According to our estimates, only around one in every 500 containers is ever selected for a random check.
This is notable since most buyers are unaware that there are additional fees needed when their vehicle arrives in its destination. This is owing to the fact that many shipping companies only provide a rate for “port to port” transportation, which does not account for customs fees or other costs incurred upon arrival.
Costs associated with your shipment’s final destination may include picking up the container at the dock, transporting it to the warehouse, emptying it, and storing it until your arrival.
It might range from zero to several thousand nairas, depending on the vehicle’s make, model, and the agent who is taking delivery. Import duties, which change based on the model year and engine size, are not factored in here.
Clearing Your Vehicle at the Port
If you want to get your car through customs after the shipping company has dropped it off at the port, you’ll need to work with a clearing agency.
First, you’ll need your bill of lading. Model, year, VIN/chassis number, weight, name of conveying vessel, origin port, discharge port, and details of the consignee to receive the car in Nigeria are all included on the bill of lading.
This is a crucial piece of paperwork that the shipping firm must provide before they deliver your vehicle to you. It can be sent by express courier or sent to your email inbox, from which you can then print it.
Next, you apply for duty valuation. A registered customs brokerage must create this application on your behalf. Together with the BOL (Bill of Loading), it is addressed to the Nigerian Customs Office at Tincan, Apapa, or Onne.
When this form is submitted to the customs office, the clearing agent will get an amount representing the duty owed on the car. After making all the necessary payments as directed by the customs office, you should be free to go with your car.