Are you in Nigeria and interested in becoming a car dealer i.e importation of cars, you are on the right page as we put you through all the costs and guide to get your dream business running in Nigeria?
First of all what is the cost: the cost depends on the model, category of the car and type.
- For 1999 Model, the clearing fee for cars is N260,000, while SUV goes for 400,000.
- For 2000 Model, the clearing fees for cars is N280,000, and SUV goes for N450,000.
- For 2001, the clearing fees for cars is N280,000, SUV goes for N450,000.
- 2002 clearing fees for cars is N320,000, SUV goes for N450,000.
- 2003 clearing fees for cars is N330,000, SUV goes for N480,000.
- 2004 clearing fees for cars is N350,000, SUV goes for N480,000.
- 2005 clearing fees for cars 400,000, SUV 500,000
- 2006 clearing fees for cars 410,000, SUV 550,000
- 2007 clearing fees for cars 500,000 SUV 570,000.
- 2008 clearing fees for cars 600,000 SUV 600,000
- 2009 clearing fees for cars 780,000 SUV 850,000
- 2010 clearing fees for cars 800,000 SUV subject to negotiation.
Guide to Clearing Cars in Nigeria 2020
Having known the costs, here is a quick guide to clearing cars in Nigeria 2020.
- Phase 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.
There are two ways of obtaining this receipt. You can get it via any Nigerian courier service that will convenience you or request for a softcopy via mail.
If you will ask me, I prefer a softcopy which will be forwarded to my mail. After which you proceeded to print it as hardcopy to kick-start the clearance procedures.
- Phase 2, Ascertain Car’s Import Duty
Import duty is simply the car importation taxing and does not refer responsibility, as you might think. This 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. Once the draft is certain and ready, the content should be such that requests import duty valuation of your car. In case you did not obtain your B/L, you need it because you’ll attach it to the letter. It’s, in some cases, the first slip that the Nigerian Customs would look out for.
During this phase, the details of your car on B/L is what determines your car import valuation. For instance, if car B/L details states that your car is new, you’ll incur additional 35% levy from the initial 35% surface duty.
- Phase 3, Obtain Valuation Site and Perform DTI
In simple terms, 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. I 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.
Besides, if you devalue your import duty, when Phase 6 inspection takes place, it’ll affect you with delays and questioning. During this stage, ensure that you have verified with your valid Tax Identification Number (TIN). You would slightly have to rapport with a certified clearance agency at this time to scale this stage. I’m suggesting this in case you do not have TIN. Besides, every process requires the TIN.
- Phase 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. You might be tempted to do this, but don’t because all of these would be verified again and again before your car exits port. It is moments such as this that also cause people’s car to be impounded.
Phase 5, Import Duty Valuation Payment Time
This phase has two payment options available, it’s either you inconvenience yourself through the bank or simply pay online.
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.
- Phase 6, Car Details Verification and Inspection
Here your sincerity will be put to test and judged, Insincerity doesn’t count on how to clear imported cars in Nigeria because you are risking impoundment.
This is the time when you’ll submit all the forms you’ve been collecting. They include Bill of Lading (B/L), Payment Receipt (bank or online), Import Duty Valuation Papers, Assessment Notice and Single Goods Declaration (SGD) form. All these forms must be the originals and not photocopies, unless otherwise.
It should be noted that, provided information must tally with details on each form or slip. When the inspecting officers come forth, they expect to find exactly what is present in each form.
Your car import valuation duty must remain untampered. If there are tampers, they’ll, of course, be a revaluation of the car import duty. And when it doesn’t correspond, questioning customs eyebrows will stare at you fiercely. If there is an extra imported item in the car, they’ll also verify that it was valued during the first stages. If it isn’t valued, it’s regarded as insincerity and you risk further expenses or seizure.
- Phase 7, SGD Form Submission to Appropriate Shipping Company
The submission of your Single Goods Declaration form follows as step 7 on how to clear imported cars in Nigeria. This is only, but a sort of confirmation that you will be making to show that the car is yours. Simply locate the office of the shipping company responsible for the freighting of your car. Submit the Single Goods Declaration form and obtain a copy of an exit form to proceed. With your shipping company’s exit slip or form in your palms, you’re nearing the end process.
- Phase 8, Request for Car Release
This 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. Also, if you have none of these but your International Passport is in place, it will make a good option. The little problem however, is that you need also, a Customs Authority Card which is renewed annually. This is the form that licensed clearance agencies conventionally, to qualify them for several other clearances. But then, you can pay it off or obtain surety from a licensed agent to proceed.
- Phase 9 CIU Stamp/Signature
In this phase, you locate the Customs Intelligence Unit (CIU). There, do not wait to ask or read what is required to avoid delaying yourself. Simply make ready, the car release document issued to you during the valuation stages.
Submit this form alongside the exit copy issued by your car shipper and your payment receipt.
Verifications will be carried out and if successful, the document will be stamped and signed by the officer.
This process can only be unsuccessful if the servers encounter problems with verification. And of course, this can only be caused by submitting faulted documents.
- Phase 10, Proceed to Terminal Operator Office
This is the Phase 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.
- Phase 11, Final Vehicle Movement and Final Verifications
At this point 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 or your friends that your cars have arrived, your car dealer business officially begins.
Cost of Clearing Accidented or Salvaged Cars in Nigeria?
Distinguishing between accident vehicles and dented ones, a vehicle to be categorised as accident or salvaged, chassis must be affected, and that such damage could not be compare to that of case of dented ones.
The factors that determine accidented or salvaged vehicles are:
1. The airbags must be out.
2.The chassis must be affected.
3.The frontal or back side must be damaged.
Coming to the cost, it attracts only a wave of 20 percent of the normal duty, check above to see price on normal duties by model.
How Long Does It Take To Clear A Car At Apapa Or Tin islands?
In Lagos Tincan Island port, particularly, PTML terminal from where 70 percent of roro shipments arrived, and from where major auto-clearing through Nigerian custom take place, clearing using PTML take three days maximum without any obstruction or strike action by customs, other government agency and or independent operators that are also major players in clearing activities.
Note: Clearing a rollroll car is the easiest and fastest way of accomplishing a good delivery.
Custom clearing process includes:
- Capturing of Bill of Laden at the customs approve DTI caffe.
- Approach custom valuation unit to calculate Car value as agreed and recommended by the custom.
- Make payment of duty due to custom at designated banks.
- Examination- Custom will designate her officer to examine imported car / vehicle.
- Back to custom office- Get all required signatures for releasing through units of custom.
- Get Exit from shipping company-
a) Shipping & Terminal company- Upon collection of exit from shipping company, you’ll pay debit notes issued by the shipping / terminal company, and collect receipt for such payment.
- Return to custom final endorsement and confirmation that you’re cleared by shipping and terminal company.
- And finally, return to shipping company to collect TDO (Terminal Delivery Order), Importers are expected to pickup their vehicle(s) between the three free days given, usually after the departure of the vessel.
What Are Custom Duty Rates on Imported Cars in Nigeria?
Cars produced in 1999 would cost N260,000 or N400,000 (respectively, passenger cars and jeeps)
Cars produced in 2000 would cost N280,000 or N400,000 (respectively, passenger cars and jeeps)
Cars produced in 2001 would cost N280,000 or N450,000 (respectively, passenger cars and jeeps)
Cars produced in 2002 would cost N320,000 or N450,000 (respectively, passenger cars and jeeps)
Cars produced in 2003 would cost N330,000 or N480,000 (respectively, passenger cars and jeeps)
Cars produced in 2004 would cost N350,000 or N480,000 (respectively, passenger cars and jeeps)
Cars produced in 2005 would cost N400,000 or N500,000 (respectively, passenger cars and jeeps)
Cars produced in 2006 would cost N410,000 or N550,000 (respectively, passenger cars and jeeps)
Cars produced in 2007 would cost N500,000 or N570,000 (respectively, passenger cars and jeeps)
Cars produced in 2008 would cost N600,000 or N600,000 (respectively, passenger cars and jeeps)
Cars produced in 2009 would cost N780,000 or N850,000 (respectively, passenger cars and jeeps)
Costs for cars produced in 2010 – 2020 goes higher and higher.
However, no matter what the production year is, the cost of the car will determine the clearance price.
Coming to the most popular models of cars in Nigeria, their clearance cost goes thus:
- Acura MDX will cost approximately N700,000 to N980,000 or N380,000 to N850,000 depending on the production year.
- Benz ML will cost approximately N450,000
- Ford Focus 2012 will cost about 900,000 – N1,400,000 depending on the production year.
- Hyundai Sonata will cost about N350,000 while Hyundai Elantra will cost about N1,300,000.
- Kia Optima 2012 will cost approximately N1,200,000 while Kia Spectra will cost about N500,000
- Land Rover R / Sport 2006 will cost about N1,500,000
- Mitsubishi Carisma 2005 will cost about N380,000
- Lexus RX 300 will cost approximately N420,000
- Mazda 3 SV will cost about N2,000,000 while Mazda 6 will cost approximately N450,000 depending on the
- Toyota 4 Runner 1994 will cost about N450,000 while Toyota Camry will cost approximately N270,000 to N600,000 or even N1,000,000 depending on the production year.
- Toyota Corolla will cost approximately N450,000 to N600,000 depending on the production year.
- Toyota Sienna 2004 will cost approximately N350,000
- Toyota Venza 2010 will cost approximately N1,100,000
- Toyota Yaris 2000 will cost about N200,000
- Volkswagen Passat will cost approximately N380,000 while 2011 Volkswagen CC will cost about N1,200,000.
However, you need to remember that part from the automobile price, there are other costs that need to be foreseen. Besides that, the information may change, so, before you make up your mind to purchase a car from abroad, consult the official webpage of the CET tariff administration and find out whether your information is correct.
Who Is The Best Clearing Agent in Lagos?
Here is a list of 5 best Clearing Agents in Nigeria, Tested And Trusted if you want your cargo on-time every time. The Clearing Agent, Nigeria
- BMH shipping services, custom Licensed, verified by our platform, Address: No 7 Kolawole Shonibare street Lagos Mobile: +2348033022591 Email:Bonnymholding@yahoo.com
- Mutaba Business solutions limited Clearing and Forwarding Agency, Custom Licensed.
- Hallelujah Logistics Nigeria Limited.
- S.mile 2 Nigeria Limited.
- Ajadematanle Logistics Company limited.
If you were attentive to the guide above, you’d have seen that there were several offices that charge one duty or the other during clearance.
This is to say that your car model, type, production year and so on determine what you pay. This particularly applies when you’re dealing with customs because they’ll value your car and charge you by the value. This is what is called import duty valuation. This valuation is based on your car description, as I stated earlier.
Also, the charges from customs are determined by the Dollar rate. This means that the higher the rate of Dollars, the higher the cost to be incurred and vice versa.
All you do is multiply the cost of your car by the valuation rate and the current dollar rate (Car Price X Valuation Rates X Dollar Rates).