[size=14pt]FG to introduce new tariff on imported vehicles[/size]
By Emeka Ezekiel, Abuja
Wednesday, 11 Aug 2010



MARTINS KUYE
The Federal Government on Tuesday said it was planning to introduce a new tariff structure on imported new and fairly used vehicles as part of efforts to encourage local assembly of vehicles.


The new tariff, according to the National Automotive Council, will be predicated on a 35 per cent import duty on all Fully Built Units - new or old. The council said 50 per cent import duty would be slammed on FBU vehicles with engine capacity of more than three litres; zero per cent on vehicles Completely Knocked Down and Multi-Knocked Down parts; and 15 per cent on the semi-knocked down as well as double or twin unit pack parts.


Other measures that will be introduced by the government include the imposition of a 10-year age limit on used commercial vehicles including trucks and buse; local assemblage of all brand of vehicles for which at least 2,000 units are imported annually into the country; zero per cent duty on CKD and MKD for agricultural tractors and 10 per cent duty on FBU tractors meant for farmers.


Our correspondent gathered that the proposed tariff regime was the highpoint of the meeting between the NAC and the Ministry of Commerce and Industry, in Abuja, on Tuesday.


The Board Chairman, NAC, Mr. Yahaya Mafindi, who confirmed the development, stated that the automotive industry in Nigeria could no longer meet the nation’s vehicular needs and therefore required special incentives to boost local production of vehicles.


He said, “The government is looking into the issue of tariff as a measure to increase local capacity and not as a revenue generation instrument, as the tariff structure should reflect the very nature and direction it wants to steer the economic activities.”


Meanwhile, the NAC chairman, said in Abuja on Tuesday that N150bn would be needed to revive the nation‘s automotive industry.


Mafindi said this when the NAC board paid a courtesy visit to the Minister of State for Commerce and Industry, Ms Josephine Tapgun, in her office.


“If the automotive sector is given about N150bn, this will put the sector back on the recovery path and it will be able to produce some of the local contents like windscreens, belts, batteries, glass and other parts of the vehicles,’’ he said.

http://www.punchng.com/Articl.aspx?theartic=Art2010081111363731

Cotonou ports will become busier now.

Who would the N150b go to?we have good ideas effected at an immature time.
We I hope Benin republic would increase the kick back they give to our governmental officials or should I say a few power that be policy makers.

Why do these guys keep on fooling themselves that higher tariffs on fully built cars will  will encourage car manufacturers to set up  factories in Nigeria.How many new cars are bought in Nigeria annually to justify setting up a plant in the country?Do we have the infrastuture to support such plants?The ones we have now are they actually producing profitably?I think all this annual reviews of tarriffs show that our planners place more emphasis on cars as luxuries rather than on their utility as a means of transport , otherwise why keep on raising tarriffs in the midst  of a depressing economy?Should the goal of govt not be to boost  rather than restrict sales?

CHANCEMAN:

Why do these guys keep on fooling themselves that higher tariffs on fully built cars will  will encourage car manufacturers to set up  factories in Nigeria.[b]How many new cars are bought in Nigeria annually to justify setting up a plant in the country?[/b]Do we have the infrastuture to support such plants?The ones we have now are they actually producing profitably?I think all this annual reviews of tarriffs show that our planners place more emphasis on cars as luxuries rather than on their utility as a means of transport , otherwise why keep on raising tarriffs in the midst  of a depressing economy?Should the goal of govt not be to boost  rather than restrict sales?

Don't mind them.

femmy2010:

Who would the N150b go to?we have good ideas effected at an immature time.
We I hope Benin republic would increase the kick back they give to our governmental officials or should I say a few power that be policy makers.

It will go owards buying Jonathan's 3 new jets.

Fhemmmy:

Nigeria ! Nigeria !! Nigeria !!!

Yes my lord.Thou son is here

And the Americans thought the Chinese has a steep duty on cars

http://bottomline.nbcnews.com/_news/2012/09/17/13917547-auto-industry-in-middle-of-us-china-trade-conflict?lite&ocid=msnhp

Auto industry in middle of US-China trade conflict
By Paul A. Eisenstein, NBC News contributor
With both nations facing possible leadership changes, the U.S. and China appear heading for a serious battle over trade – and the auto industry is caught in the middle.
President Barack Obama, clearly intending to look tough, has authorized the U.S. to file a new trade complaint with the World Trade Organization over China’s subsidized auto and auto parts exports. But the Chinese landed the first punch today when they filed a complaint with the World Trade Organization over allegedly unfair duties the U.S. has enacted on 30 different types of goods including Chinese-made steel, paper and kitchen appliances.
China and the U.S. began squabbling over trade – and backing up the dispute with tit-for-tat sanctions – earlier this year. But the debate has been heating up for a number of years, especially over concerns about China’s lackadaisical attitude towards American intellectual property.


In recent years, critics contend, it’s become routine for the Chinese to copy American-made goods. Earlier this summer, in fact, Ford Motor Co. won a rare victory when it was able to block a Chinese competitor from producing a virtual clone of its big F-Series pickup. Despite some high-profile campaigns, however, American business officials say China has done little to stop the problem, especially when it comes to entertainment programming, such as films and videos.
Both countries continue to insist they want to take steps to improve – rather than limit – free trade. But the timing may make it difficult for either side to back down from their increasingly confrontational approach.
President Obama will announce the details of the new WTO complaint during a campaign swing through Ohio, later today. The timing and location are anything but coincidental. China has been rapidly building up its automotive export business to the U.S., something that has a direct impact in Ohio, a manufacturing swing state that could play a pivotal role in outcome of the November presidential election. About 12% of Ohio’s workforce is employed directly or indirectly in the automotive sector.
And that’s not lost on Republican candidate Mitt Romney who has been accusing the White House of ignoring the trade threat from China.
US, China take trade battle up a notch
The situation could grow worse if subsidized auto goods are allowed to continue freely entering the U.S. market, critics contend. The government complaint asserts the Chinese government provided about $1 billion in support for that country’s car parts manufacturers between 2009 and 2011, a move that allegedly benefited about 60 percent of the auto goods shipped to the U.S.

According to the White House, the U.S. auto parts industry lost about half its jobs between 2001 and 2010, the same time period during which it claims employment in the export side of China’s auto parts making industry increased seven-fold. There’s not a direct, one-to-one comparison; China, for one thing, exports parts to markets other than the U.S. But there’s no question that lower-priced Chinese parts have been cutting into jobs at manufacturers as diverse as Delphi Corp. and American Axle.
“Those subsidies directly harm working men and women on the assembly line in Ohio and Michigan and across the Midwest. It's not right; it's against the rules; and we will not let it stand,” the President declared during a stop in Cincinnati. “American workers build better products than anyone. 'Made in America' means something. And when the playing field is level, America will always win."
The President’s comments were countered by candidate Romney who issued an e-mailed statement insisting, “It is too little, too late for American businesses and middle-class families.” The GOP nominee, who has taken significant fire for his own foreign affairs gaffes in recent months, asserted he will pursue a “comprehensive strategy (to) ensure a level playing field” with China.

Follow @NBCNewsBusiness
While a White House official insisted the timing of today’s WTO complaint was coincidental, the result of months of preparation, the President clearly used the news for his own political advantage. He referred to Mitt Romney’s long ties to Bain Capital noting, “I understand my opponent has been running around Ohio claiming he's going to roll up his sleeves and take the fight to China. But here's the thing: his experience has been owning companies that were called 'pioneers' in the business of outsourcing jobs to countries like China.
“Pioneers!” the President added, “Ohio, you can't stand up to China when all you've done is send them our jobs.”
This is the 15th trade complaint the U.S. has filed with the WTO since China joined that global trade regulating body in December 2001. But it’s also the second time since the beginning of the current presidential campaign that the Obama White House has taken action against China for alleged trade violations in the automotive sector. The first complaint targeted the claimed dumping of Chinese-made tires.
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But that move prompted a rapid backlash, China firing back by placing over $3 billion in duties on U.S. automotive exports. The Chinese auto import tariffs vary widely by manufacturers but are stiffest for products built by Detroit’s Big Three. The Cadillac CTS and Buick Enclave, for example, are subject to 22 percent duties, the Jeep Wrangler and Grand Cherokee models 15 percent. The American-made Acura TL sedan, on the other hand, faces only a 4.1 percent mark-up.
While the bitter presidential campaign may be spurring the White House to move with the latest trade complaint, China has similar motivation to fight back. The country plans to install its own new president during the 10-year party meeting tentatively scheduled for October. But things have not gone nearly as smoothly as planned.
The all-powerful Communist Party was roiled by a corruption scandal involving rising star Bo Xili and his wife – the latter now convicted of murdering a British businessman. Complicating matters, Xi Jinping, the man expected to become president, has been virtually invisible in recent weeks raising serious questions about his health and the planned succession process.
Experts warn the Chinese will not be ready to back down on trade issues at this crucial point, especially not on a sector as crucial to their economy as the auto industry. Complicating the situation, Chinese domestic auto sales have unexpectedly weakened in recent months making exports all the more important.
So the shots fired today could trigger still more unless the Geneva-based WTO finds a way to achieve a face-saving compromise for both sides.

That is the difference between economies on top and the ones way below.

that's a good move if nigeria has a company that produce cheap cars at the moment. The only indigenous car manufacturer~ innoson prices are very expensive. www.naijatechportal.info/2013/07/made-in-nigeria-vehicles-reality.html?m=1