Importing Used and Salvage Vehicles from the United States to Nigeria: A Comprehensive Guide

Importing Used and Salvage Vehicles from the United States to Nigeria: A Comprehensive Guide

Despite high tariffs, the market for imported used vehicles in Nigeria still exists, presenting a lucrative opportunity for savvy importers/exporters. This is especially true for those exporting from the United States, where there is a wide availability of popular used automobiles in the Nigerian market.

However, the process of importing used and salvage vehicles from the United States to Nigeria can be complex. Throughout this journey, there are several important factors to consider. In this guide, we will cover everything you need to know about this process.

Purchasing a Used or Salvage Car at a U.S. Auction

To begin the import process, you must first purchase a used or salvage vehicle. Online U.S. used car auctions provide a convenient option, offering significant cost savings of up to 70-80% of a vehicle's value. These online auctions also offer a vast selection of vehicles to meet your specific criteria.

Getting started with online U.S. used car auctions is simple. You need to make a deposit that establishes your bidding power, usually 10% of your total bidding power. Once you've made the deposit, you can search through the extensive inventory on auction sites. Pay attention to factors like insurance repair estimates and vehicle history reports. If you have any questions or concerns, contact the assigned auction agent for assistance.

It's important to note that these websites may not publicly display their full inventory. However, you can request your auction agent to search their private databases for auctions and vehicles that match your requirements. During the bidding process, you can participate directly or have your agent bid on your behalf after establishing a maximum bid. If successful, you will need to pay the full bid amount minus the deposit. Then, you can proceed with arranging shipping, navigating customs, and importing the vehicle into Nigeria.

Arranging for Shipment to Nigeria

When shipping your U.S. used car to Nigeria, you have two shipping method options. The first is traditional container shipping, and the second is roll-on roll-off (RORO) shipping.

RORO shipping is generally cheaper and more convenient for loading and unloading vehicles, but there are safety concerns due to potential damage during transportation. Some U.S. ports that offer RORO shipping to Nigeria include Baltimore, Bayonne, Galveston, Jacksonville, Portsmouth, and Savannah.

If you choose traditional container shipping or if RORO shipping is not available for your vehicle, other U.S. ports that offer container shipping to Nigeria include Houston, Long Beach, Miami, Newark, Oakland, and Savannah.

There are two arrival ports in Nigeria for used vehicles: The Lagos Port Complex and The Tin Can Island Port Complex. Both ports accommodate container ships, but only the Tin Can Island Port is available for RORO shipments. The Lagos Port Complex is located in Apapa, an economic hub in Nigeria.

For more information about these ports, consult the Nigerian Ports Authority.

Getting Your Used or Salvage Car Through U.S. Customs

Before shipping your vehicle to Nigeria, you must present it to U.S. Customs at the departure port. You will need to provide appropriate documents to establish and verify the vehicle's Vehicle Identification Number (VIN) or Product Identification Number (PIN), such as the Certificate of Title or Salvage Title. Multiple copies of these documents are required, which can be the original copy along with two complete copies or an original copy with a Certified Copy.

These copies must be submitted to U.S. Customs at least 72 hours in advance of the ship date. The vehicle will also undergo inspection at the port. To determine the location for submitting documentation and inspection, contact the Port Director at your departure port. For more information, consult an overview of the process provided by U.S. Customs.

Getting Your Used or Salvage Car Through Nigerian Customs

There are two major restrictions for importing used vehicles from the United States to Nigeria. The vehicles must be no older than 15 years from their manufacture date, and right-hand drive vehicles are not allowed.

Navigating Nigerian customs can be complex, requiring multiple documents to be filed. Familiarize yourself with the process and required documents by referring to the guide provided by the Bank of Niger. To ensure a smoother customs clearance, you may choose to work with a customs broker or shipping agent, considering the associated cost ranging between $1,000 and $2,000.

Import Duties and Sales Tax for U.S. Vehicles Imported into Nigeria

The Nigerian government has imposed heavy duties on imported used vehicles to protect the local automotive market. Currently, a 70% duty is imposed on Fully Built Units (FBUs) and a 35% duty on buses, an increase from the previous 20% duty. Additionally, a 5% Value Added Tax (VAT) is applied. Completely Knocked Down (CKD) parts have no tariff, while Semi Knocked Down (SKD) parts have tariffs ranging from 5% to 10%.

Registering Your Imported Car in Nigeria

For registration, gather important documents such as your Nigerian Driver's License, identification (passport or national ID card), proof of address, proof of insurance, chassis number, engine number, and customs paperwork.

Visit a local State Board of Internal Revenue / Motor Licensing Authority (SBIR/MLA) office with a Plate Number Form and the required documents. Pay for your plate number, as registration costs vary by state and vehicle type. After submission and payment, a Vehicle Inspection Officer will examine your imported car for roadworthiness. If it passes the inspection, you will receive a roadworthiness certificate, a Vehicle Identification Tag (VIT), and a proof-of-ownership certificate. With these documents, along with your registration, you will receive a license plate.

However, the verification process is not yet complete. Bring your documents, including a passport or national ID, to the Federal Road Safety Commission (FRSC) office for further verification. If all documents are in order, your used car will be officially registered in Nigeria.