What is the cost of Car Clearing Nigeria? Almost on daily basis, I have had to deal with requests for cost of clearing cars in Nigeria. To respond to the enquirer I always request for the make, model, year and perhaps the engine capacity of the car. This article will explain why the car make, model of the car and year are necessary in estimating clearance cost. The article will further give clue on what importers pay for when they import cars into Nigeria.
First of all, what really are the meanings of the terms car make, car model, year and the engine capacity? Let us define these terms with specific examples to bring all readers up to speed.
CAR CLEARING NIGERIA: CAR MAKE, CAR MODEL, YEAR AND ENGINE CAPACITY
By car make, we mean the company that made the car. Toyota, Mercedes, Honda, Volkswagen, Nissan, and BMW are all car makes. A car model is the specific product type from the same manufacturer. For example, Camry, Corolla, Matrix, Rav4, etc. are models of Toyota. The year means when the car was produced. So, Toyota Camry 2010 defines the make, model and year.
Why are the make, model and year such important parameters with car clearing Nigeria? The following subheading will answer this question.
CAR CLEARING NIGERIA: NIGERIA CUSTOMS AND THE CAR VALUE
The Nigeria Customs have a kind of fixed price for all car models and year. Duty calculation is based on Custom price, irrespective of what the sales invoice states. So, what this means is that the clearing agent only needs the car make, model and year to obtain the Customs value. Consequently, the amount of duty payable is a function of the Custom value of the car, which again is a function of the make, model and year of manufacture.
CAR CLEARING NIGERIA: ARE FORM M AND SONCAP NEEDED?
Most importation to Nigeria requires importers to obtain Form M first of all before proceeding with shipping. For goods regulated by the Standard Organisation of Nigeria, Form M document follows the Standard Organisation of Nigeria Conformity Assessment Program – SONCAP. Car clearing does not follow the Form M/SONCAP process for old or used cars. For new vehicles, especially manufactured the same year or last year, Form M is needful. Hence, to answer the question raised at the beginning paragraph, I will say depends on age of the car.
CAR CLEARING NIGERIA: HOW MUCH TO CLEAR CARS IN NIGERIA
The question of how much it cost to clear cars in Nigeria is not a complete question. To be complete, the inquirer must state the make, model and year of the car in question. Also, the cost of clearing cars in Nigeria is constantly changing as exchange rate is changing. Therefore, importers must be careful of just picking some pieces on the internet and using it to discredit clearance vendors. Such information may have been accurate when they were first published, but has since become obsolete. Generally speaking, the cost of car clearing Nigeria is summarised under the following headings:
- Customs duty
- Shipping company local charge
- Terminal handling charge
- Clearing service charge
Read Also: COST OF CLEARING TOYOTA CARS IN NIGERIA
CAR CLEARING NIGERIA: EXAMPLE OF HOW MUCH TO CLEAR CARS
A potential client writes:
Dear Vagmon Integrated Services, how much will it cost me to clear 2016 Mercedes-Benz GLE 450 Coupe? How long will you take to clear the vehicle
Thanks for reaching Vagmon Integrated Services. We look forward to working for you.
Kindly confirm the following:
- if your vehicle is NEW or above 3000 miles
- If your vehicle is containerized.
- Who is the shipping line? For RORO (not containerised, a term that means roll-in-roll out) We recommend you ship with Grimaldi Shipping Lines
- If there are other vehicles and/load in the container, please specify as this affects total clearance cost.
Also note the following:
- Taxes for New vehicles – 35% Duty, 35% Levy, 5% VAT
- Taxes for used Vehicles – 35% Duty, No levy, 5% VAT
Therefore, assuming your vehicle is used (above 3000 miles), the following is the cost of clearance:
- 2016 Mercedes-Benz GLE 450 Coupe (Used) valued at $44,111 by customs
- Customs duty payable – ₦5,045,000
- Terminal Charge (RORO) – ₦65,000
- Service Charge – ₦400,000
- Total cost of clearing – ₦5,510,000
All cost included, the quoted rates are the full comprehensive rates payable on your vehicle.
For containerised shipping, the charges payable are:
- Customs Duty
- Terminal Charge
- Shipping Company Handling Charge
- Clearing Services Charge
For a lower budget, with some rebates, contact us using +2349075526276.
For more information about Customs duty, see the article: CUSTOMS DUTY TARIFF: NIGERIA CUSTOMS SERVICE EXAMPLE
Finally, the age of the car also determines the clearance cost to a great extent. For instance, cars produced before 2016 attracts internal duty of 35%, while newer cars have duty rate of 35% and 35% levy, making a total of 70% overall duty.
Note that the importation of vehicles older than 15 years is contraband.
Car clearing Nigeria does not require a Form M or SONCAP. The first step in car clearing is ex factory valuation, using the make, model and year of manufacture of the car. Therefore, contact us today to give and up-to-date comprehensive quote before even buying the car. Following this piece of advice will help you avoid surprises that result when you do otherwise. Thank you for reading this piece.