The 2024 Guide to Import Used Cars from China to Nigeria

Used car transactions account for over 95% of Nigeria's automobile market; annually, the trade reaches about 700,000, with more than 200,000 used cars being imported. Nigeria’s cars mainly come from the United States, Japan, South Korea, Germany, and France; mainly, Apapa and Lagos imports. Nigeria’s vehicles will be dominated by low-priced, mostly used cars for a longer time.

Restrictions on imported used cars

Finally, only left-hand drive cars may be imported. Thus, to work on environmental pollution, Nigeria's Customs Excise Duty (Variation) Amendment Order 2023 issued on May 8, 2023, to make changes to some taxes. The law is to operate on June 1, 2023; it prohibits the import of used vehicles of HS codes 8703.10.00-8703.90.0000 over 12 years from the year of manufacture and adjusts the tax.

Tax policy on importing used cars from China to Nigeria

Importation of used cars brings such taxes, Customs Duty, National Automotive Council Levy, Value Added Tax, and Import Adjustment Tax. The old ECOWAS Common External Tariff expired at the end of 2021 and was migrated to the new version (2022-2026), Nigeria’s Bureau of Statistics retained the 20 percent for used cars adopted by the ECOWAS.

- Tariff: 20%

- National Automobile Council Levy (NAC): 15%

- Value Added Tax (VAT): 7.5%

- Import Adjustment Tax (IAT): 2% for vehicle engine sizes 2-3.9L, and 4% for sizes 4L and greater. The IAT is waived for vehicles with engine sizes 4L and above.

Required documents for importers

- Proof of the qualifications of the importing enterprises

- Inspection report

- Final invoice

- CCVO

- Packing List

- B/L

- Certificate from the transportation provider

- Certificate of Insurance

- Documented list of the manufacturer-approved specifications

To conclude, the importation of used cars from China to Nigeria can bring huge benefits, including boosting Nigeria's economy through trade. Used cars from China provide affordable travel options and meet the high demand for automobiles in Nigeria. It is also highly recommended to inquire about Nigerian local import agents before purchasing used cars from China.

Please note that used car import tax rates and policies may change over time or be adjusted according to the latest regulations from the government. Therefore, it is advisable to confirm the most current tax information with relevant tax and customs authorities before importing.