One question we frequently receive from prospective vehicle importers is whether very old used vehicles, including vehicles manufactured in the 1990s or early 2000s, can still be imported into Nigeria.
The answer is yes, older vehicles are not automatically prohibited simply because of their manufacture year. However, there is an important Customs valuation rule that importers need to understand before purchasing such vehicles.
2015 Is Currently the Customs Benchmark
For used passenger vehicles, 2015 is currently the least recognized manufacture year for the purpose of the applicable Customs duty valuation benchmark.
In practical terms, this means that if you choose to import a vehicle manufactured before 2015, Customs valuation does not necessarily become lower simply because the vehicle is older. Instead, the vehicle will be assessed using the 2015 benchmark valuation applicable to that same vehicle model or model family. This applies even if the vehicle was manufactured in 2010, 2005, 2000 or even 1990.
A Simple Example
Consider a Toyota Camry:
– 2015 Toyota Camry : assessed using the applicable 2015 benchmark.
– 2005 Toyota Camry : if imported, the applicable 2015 benchmark can still apply.
– 2000 Toyota Camry : the same 2015 benchmark principle applies.
– 1990 Toyota Camry : being much older does not automatically result in a lower Customs valuation.
Therefore, a 2000 Toyota Camry will attract the same Customs duty valuation as a 2015 Toyota Camry, where the same applicable model benchmark is being used. The same principle applies across variants within the same model family. For example, Lexus RX 300, RX 330 and RX 350 manufactured below 2015 can fall under the applicable 2015 benchmark framework for Customs valuation.
What This Means for Importers
The important distinction is that 2015 is the benchmark, not necessarily a prohibition line. You can decide to purchase and import a vehicle manufactured before 2015. You will only pay same duty as if it is a 2015 model.
Therefore, you should not assume that its older age or lower purchase price will automatically result in lower Customs duty. For example, an importer may purchase a 2000 Toyota Camry abroad at a significantly lower price than a 2015 model. However, if Customs applies the 2015 benchmark valuation, the importer will face a duty assessment comparable to that applicable to the 2015 benchmark vehicle.
This can substantially reduce the financial advantage of importing very old vehicles.
Why Newer Vehicles May Offer Better Value
The policy effectively encourages importers to consider newer vehicles. If a 2000 or 2005 model is going to be assessed using the same applicable 2015 benchmark as a newer vehicle within the same model family, paying considerably less for the older vehicle may not translate into equivalent savings after Customs clearance.
The importer therefore needs to consider the complete landed cost, rather than looking only at the overseas purchase price. This includes the vehicle cost, shipping, Customs duty and applicable levies, terminal charges, clearing expenses and logistics.
What Importers Should Do Before Shipping
Before purchasing an older vehicle for importation, it is advisable to establish the likely Customs valuation and overall clearing cost. This is particularly important when the vehicle is significantly below the 2015 benchmark year.
A vehicle may look like an attractive bargain overseas, but the applicable Customs valuation can change the economics of the transaction considerably.
Final Insight
The current benchmark does not mean that every vehicle manufactured before 2015 is banned from entering Nigeria. Rather, the important point is that 2015 is currently the minimum benchmark year recognized for the applicable used-vehicle duty valuation. If you choose to import a vehicle below 2015, you should be prepared for it to be assessed as though the applicable 2015 benchmark applies.
In simple terms: a 2000 Toyota Camry does not necessarily receive a lower Customs valuation simply because it is 15 years older than a 2015 Toyota Camry. The 2015 benchmark can still determine the applicable duty assessment.
Understanding this before purchasing a vehicle can help importers avoid making buying decisions based solely on the low purchase price of an older vehicle. If you’re considering importing a used vehicle into Nigeria, it is advisable to confirm the likely Customs valuation and total clearing cost before making the purchase.