New Age Limit For Used Cars Out

New age limit for used cars out

· Zero duty for educational materials

·Import of textiles banned
From Mathias Okwe, Abuja

ALTHOGH it is not deemed a policy reversal, the Federal Government has pegged the age limit for imported used cars also known as tokunbo at 10 years. The lifespan for such vehicles until yesterday was eight years. There were earlier moves to fix the age limit for imported buses and trucks at 10 and 15 years.

The government has also banned the importation of textiles and other fabrics.

In a five-year tariff regime released in Abuja yesterday by the Director-General of Budget Office, Dr. Bright Okogu, the government said that from 2008 to 2012, any car older than 10 years would not be allowed into Nigeria.

To ensure full compliance with the new order, the government has empowered the Nigeria Customs Service (NCS) to seize such cars from dealers and importers.

The same measures applied to banned textiles as the NCS was mandated to confiscate all banned textiles and fabrics from supermarkets, markets and other public places where they are displayed for sale.

The affected textiles are hollandis, English wax, guinea brocade and other fabrics commonly patronised by Nigerians.

NCS boss, Mr. Ahmed Mustapha, said that his men are set to invade the markets, raid shops and confiscate the items should they still find their way into the country in spite of the new rule.

The new measures evolved from the five-year

(2008 - 2012) new Tariff Book released by Okogu.

The fiscal policy, according to Okogu, is to encourage local automobile assembly plants as well as protect and bail out the ailing textile industries in Nigeria.

He also explained that the new tariff book was again Nigeria's second attempt to harmonise its tariff regime with the Economic Community of West Africa States (ECOWAS) Common External Tariff (CET).

The new tariff also features a reduction in duties for some goods, being part of efforts to encourage importers of such necessities as educational materials, which now attract zero duties while primary raw materials which before now attracted 10 per cent duty have been reduced to five per cent.

Under the new regime, intermediate products like Completely Knock Down (CKD) refrigerators and television sets are to attract 10 per cent; finished goods that are not locally produced and which required no protection 20 per cent while finished goods that are manufactured locally but require some protection are to attract 35 per cent duty.

The new tariff regime is with immediate effect and has no grace period, according to Okogu. He shed more light on the new policy thrust thus: " The new book is in line with the World Customs Organisation 2002 Harmonised Commodity Description and Coding System, which has moved from eight digits to 10 digits . This is to facilitate the separation of codes where ambiguity exists.

"The new tariff book is basically aimed at facilitating trade and industrial growth as it is simple and easy to administer. It is also hoped that it will lead to improvement in tariff revenue generation in the long run because of better compliance possibilities.''

Okogu appealed to the organised private sector to appreciate the need for "Nigeria to align its tariff regime with global trends because the country cannot afford to lag behind the rest of the world in this era of globalisation."

Under the Olusegun Obasanjo administration, the government of Nigeria had fixed the age limit for used cars for eight years. The government had said the move was to stop the dumping of unserviceable cars in the country. It, however, allowed unfettered import of buses and trucks to facilitate the movement of people and goods in the country.

The government said in the absence of a viable rail system, it was unwise to ban or fix age limit for imported buses and trucks.

But since the Umaru Musa Yar'Adua government came into office, it has taken steps to limit the import of buses and trucks.

But yesterday's announcement that the age limit for used cars was unexpected considering that the government wants to peg the age limit for buses at 10 years while trucks lifespan would stand at 15 years.

Industry Minister, Mr. Charles Ugwuh, said recently that the move was to stop the 'importation of vehicles that would require excessive maintenance." He made the announcement during a meeting with the local automotive manufacturers/assemblers and major importers/distributors.