This is the email I got from a friend today, seems govt has reconsidered and increase the tarrifff by 15% which makes the tarriff 35% instead of the 70% proposed initially. Read through and make your conclusions.

TARRIFF STRUCTURE FOR TOKUNBO CARS AND TYRES

The Federal Ministry of Finance recently announced revised fiscal policy measures in the Automotive and Tyre Industries.
 These measures seek to achieve the following: 
·         Fast track the industrialization of the country
·         Reduce foreign exchange demands by importers of vehicles
·         Create jobs in the country
·         Commence the process of production and exportation of auto parts to other parts of the world
·         Attract foreign equipment manufacturers to the country as well as sustain existing automotive assembly plants.
Consequently, the directive will pave the way for a new regime of revised tariffs on imported used (tokunbo) vehicles, brand new vehicles and tyres. These tariffs however exempt all existing transactions for which the Form M and Letter of Credit were opened and established on or before October 9, 2013. Kindly note that the last shipment date for these transactions should be on or before January 10, 2014.
Highlights of the Fiscal Policy measures are as follows: 
1.     Fully Built Unit (FBU) commercial vehicles shall attract a duty of 35% without levy.

2.     Local Assembly Plants shall import their:

·         Completely knocked down (CKD) at 0% duty
·         Semi-Knocked Down (SKD) at 5% duty
3          Fully Built Unit (FBU) cars at 35% duty and commercial vehicles at 20% duty without levy respectively in numbers equal to twice their imported CKD/SKD kits.
4.     Cars, Lorry/Bus tyres shall attract a duty of 20% and 5% VAT.

5.     Importation of machinery and equipment for tyre production is now duty free.

6.     Local tyre manufacturing plants are to import tyres at 5% duty in numbers equal to twice their production for two years from the date of commencement of production.

Subsequently, the Nigeria Customs Service (NCS) shall carry out the following actions to prevent under declaration of vehicle value by importers who are keen on reducing the applicable duty:
·         Publish the price of new vehicles on annual basis.
·         Provide a transparent benchmark to determine the value of used (Tokunbo) vehicles. This will be achieved via the application of depreciation indices on the value of new vehicles; however, the final depreciation assessment shall not be below 30% of the value of the new vehicle equivalent.
·         All vehicle dealers and importers of vehicles for sale to the public shall be licensed by the National Automotive Council of Nigeria.
 Please note for your information and guidance.

I hope it will be gazatted sha.

bsghaulage: This is the email I got from a friend today, seems govt has
reconsidered and increase the tarrifff by 15% which makes the tarriff 35% instead of the
70% proposed initially. Read through and make your conclusions.

This memo is not new and I think you read it wrong. The government has not reconsidered
anything. The new 70% tariff is still in effect and includes a 35% duty and 35% levy totaling
70%. As you can see, you only included the 35% duty and omitted the other 35%. Below is
what the directive actually said.

imported fully built unit (FBU) cars shall now attract 35% duty and 35% levy, totaling 70%

No,this friend works in the financial sector and that was the official mail from the ministry of finance and it says 35% duty and no levy so I believe that's exactly what it infers, no 35% levy.

Can someone please explain this, what exactly is the difference between levy and duty, what part of the purchasing process is affected, is it clearing fee or the actual purchased value of the car from abroad.

There was a mail that was sent by diamond, a friend show me this morning seems the policy will be effective tomorrow

bsghaulage: No,this friend works in the financial sector and that was the official
mail from the ministry of finance and it says 35% duty and no levy so I believe that's exactly
what it infers, no 35% levy.

My brother, it is 35% duty plus 35% levy. It says so in black and white in the memo.
To see an actual copy of the memo from the Minster of Finance, visit the link below:

https://www.nairaland.com/1570516/new-policy-importation-tokunbo-cars/1#20668969

Provide a transparent benchmark to determine the value of used (Tokunbo) vehicles. This will be achieved via the application of depreciation indices on the value of new vehicles; however, the final depreciation assessment shall not be below 30% of the value of the new vehicle equivalent.

Men, this clause is wicked o 30% value of a vehicle bought for $30,000 13years ago will be about $9,000 with the new assessment and consequently, the import tarrif will be higher. Can they not just settle for the option of checking out the price from the point of purchase or using Kelly blue book value rather than this new way of milking the poor?