Sections
Poll: UK military offer
Do you support UK's military assistance as a way of fighting militancy and smuggling in Niger Delta?
FG imposes new requirement on importation of buses, trucks
Font size:
Charles Ugwu, minister of commerce and industry who disclosed this at a meeting with the local automotive manufacturers/assemblers and major importers/distributors in Abuja, said this was to avoid the importation of vehicles that would require excessive maintenance.
Ugwu who also disclosed that government was rolling out a new policy on the development of panel vans, light trucks, challenged local manufacturers to concentrate on panel vans, light trucks and mid range trucks that could move commerce and industry forward
He assured the auto manufacturers that government would provide some incentives and protective measures which include “enforcement of the patronage gazette for products of local firms by all tiers of government, in all government contracts, in all multinational grants, in joint partnerships agreements.”
“I wish to encourage the local manufacturer and assembly of vans and light trucks” he stated, adding if the companies are making comfort vehicles there is nothing bad in that we wont stop them but the national efforts should be geared towards developing functional vehicles that are will move the commerce and industry so base on that we would now have target investment in that direction and mobilise resources to achieve that.”
The minister while revealing that that “government would maintain the requirement that cars imported in the country should not be older than eight years” stressed government focus is “how do we realise the new policy of the development of panel van, light truck and road in truck that Nigeria need.
“Government will introduce a certain degree of consistency in duty charged with used vehicles attracting higher tariff (minimum of 50% than new ones, while manufacturers/assemblers should enjoy low tariff on all imputes. This will discourage the continue purchase of used vehicles whilst that of new ones will be encouraged” Ugwu said.
While noting that the automotive industry grown to be the major economy activity of many countries for about 15 percent of their GDP, which led to foreign reserve exchange, large employment acquisition of technology know-how and effective utilisation of raw material, the minister posited that this could only be achieved in Nigeria if the majority of local parts in vehicle we used locally (and exported) were produced here.
He assured the auto manufacturers that government would provide some incentives and protective measures which include “government to charge minimum of 50% import duty on the light commercial vehicles types designated as Nigerian vehicles while maintaining a duty of 2.5% on its completely knocked down kit (CKD).
“The national Automotive Council (NAC) to work out a deletion programme with local assemblers such that the import of any component for which local capability and capacity is established should attract 50% duty.”
Others include “that importers of light commercial vehicle above 1000 units per annum should set up a an assembly plant locally; a policy based finance system whrereby the federal government guarantee long term loans at very low interest rates from BOI, NEXIM etc would be put in place
“Government would through NAC intensify support for R&D activities in the development of local parts and the Nigerian Vehicle project”
On the establishment of standard workshops to ensure proper maintenance of vehicles the minister said government has recommended that all local manufacturers of vehicles must have service centres, with trained personnel spare parts and tools for their products, one in each Zone as a minimum.
“These service centres may be owned by them or their distributors. The following companies are currently affected; GM Nigeria Ltd., MB-Anammco, National Trucks manufacturer, PAN, Leyland Nigeria Ltd; All major distributors of vehicle brands of which more that 200 units are imported annually must have service centre, with trained personnel, spare parts and tools for their products one in each Zones as minimum
“These Service centres include Hyundai, Nisan, Toyota , Mercedes-Benz, BMW, Honda, Mistibushi, Peugeot, VW/Skoda, Ford, Mazda, KIA”
According to him other vehicles importers should only import vehicle brand lited above or should set up service centre for their products as detailed above noting that three conditions above a requirement for import of vehicles or CKD.
He therefore warned that any manufacturer or importer who fails to abide by the conditions stated above would be barred from importing vehicles or CKD adding that the NAC and consumer protection Council would ensure compliance with these conditions.
Spare parts, workshop equipment and tools imported to comply with these conditions would have a duty of only 2.5% charged as incentive, as the NAC’s Automotive Development fund would provide soft loans to interested parties to establish workshop .
Ugwu who also disclosed that government was rolling out a new policy on the development of panel vans, light trucks, challenged local manufacturers to concentrate on panel vans, light trucks and mid range trucks that could move commerce and industry forward
He assured the auto manufacturers that government would provide some incentives and protective measures which include “enforcement of the patronage gazette for products of local firms by all tiers of government, in all government contracts, in all multinational grants, in joint partnerships agreements.”
“I wish to encourage the local manufacturer and assembly of vans and light trucks” he stated, adding if the companies are making comfort vehicles there is nothing bad in that we wont stop them but the national efforts should be geared towards developing functional vehicles that are will move the commerce and industry so base on that we would now have target investment in that direction and mobilise resources to achieve that.”
The minister while revealing that that “government would maintain the requirement that cars imported in the country should not be older than eight years” stressed government focus is “how do we realise the new policy of the development of panel van, light truck and road in truck that Nigeria need.
“Government will introduce a certain degree of consistency in duty charged with used vehicles attracting higher tariff (minimum of 50% than new ones, while manufacturers/assemblers should enjoy low tariff on all imputes. This will discourage the continue purchase of used vehicles whilst that of new ones will be encouraged” Ugwu said.
While noting that the automotive industry grown to be the major economy activity of many countries for about 15 percent of their GDP, which led to foreign reserve exchange, large employment acquisition of technology know-how and effective utilisation of raw material, the minister posited that this could only be achieved in Nigeria if the majority of local parts in vehicle we used locally (and exported) were produced here.
He assured the auto manufacturers that government would provide some incentives and protective measures which include “government to charge minimum of 50% import duty on the light commercial vehicles types designated as Nigerian vehicles while maintaining a duty of 2.5% on its completely knocked down kit (CKD).
“The national Automotive Council (NAC) to work out a deletion programme with local assemblers such that the import of any component for which local capability and capacity is established should attract 50% duty.”
Others include “that importers of light commercial vehicle above 1000 units per annum should set up a an assembly plant locally; a policy based finance system whrereby the federal government guarantee long term loans at very low interest rates from BOI, NEXIM etc would be put in place
“Government would through NAC intensify support for R&D activities in the development of local parts and the Nigerian Vehicle project”
On the establishment of standard workshops to ensure proper maintenance of vehicles the minister said government has recommended that all local manufacturers of vehicles must have service centres, with trained personnel spare parts and tools for their products, one in each Zone as a minimum.
“These service centres may be owned by them or their distributors. The following companies are currently affected; GM Nigeria Ltd., MB-Anammco, National Trucks manufacturer, PAN, Leyland Nigeria Ltd; All major distributors of vehicle brands of which more that 200 units are imported annually must have service centre, with trained personnel, spare parts and tools for their products one in each Zones as minimum
“These Service centres include Hyundai, Nisan, Toyota , Mercedes-Benz, BMW, Honda, Mistibushi, Peugeot, VW/Skoda, Ford, Mazda, KIA”
According to him other vehicles importers should only import vehicle brand lited above or should set up service centre for their products as detailed above noting that three conditions above a requirement for import of vehicles or CKD.
He therefore warned that any manufacturer or importer who fails to abide by the conditions stated above would be barred from importing vehicles or CKD adding that the NAC and consumer protection Council would ensure compliance with these conditions.
Spare parts, workshop equipment and tools imported to comply with these conditions would have a duty of only 2.5% charged as incentive, as the NAC’s Automotive Development fund would provide soft loans to interested parties to establish workshop .
Add to:
del.icio.us |
Digg
del.icio.us |
Digg
Email to a friend
Print version
Plain textRate this article
Comments ( posted):
Post your comment