What duty, levy and VAT apply when a truck lands in Nigeria, how the assessable value is built, and why landed cost estimates vary.
Duty is where most landed-cost guesses go wrong. This page explains the structure so you can compute a defensible estimate — and know where the moving parts are.
How the assessable value is built
Import duty is not calculated on the FOB price alone. For a typical CIF import, duty applies on the CIF value (cost + insurance + freight), and VAT applies on the duty-paid value (CIF + duty + levies + charges). Your PAAR states the final assessable position.
The typical cost stack for a truck
| Layer | Basis | Note |
|---|---|---|
| FOB price | Supplier quotation | Negotiated, specification-driven |
| Ocean freight + marine insurance | Market rate, route | RoRo vs container changes this materially |
| Import duty | % of CIF | HS chapter 87; rate depends on classification |
| Levies (e.g. ETLS where applicable) | % of CIF | Applies to many tariff lines |
| VAT (7.5%) | Duty-paid value | On CIF + duty + levies + listed charges |
| Port, terminal, agency charges | Fixed + negotiable | Agent fees, terminal handling, documentation |
The exact duty percentage for your truck depends on its HS classification (chapter 87 covers vehicles) — tippers, tankers and refuse trucks can sit on different codes. Ask your clearing agent for the classification and current fiscal treatment before you finalize budget.
Example: a USD 42,000 FOB tipper
Illustrative only, with assumed freight/insurance and placeholder duty/levy rates:
- FOB: $42,000
- Freight + insurance: ≈ $4,500–6,500
- Duty + levies on CIF: five figures — classification dependent
- VAT on the duty-paid value: adds a further 7.5% layer
- Port and agency: negotiable, volume helps
Our quotations include a landed-cost worksheet template with your specific configuration — ask the sales desk.
Why estimates differ between buyers
Exchange rate applied at assessment, classification interpretation, agent efficiency, and demurrage discipline. The first three you can manage with a good clearing agent; demurrage you manage by agreeing timelines before the vessel sails.
Regulatory figures and duty rates change. Always confirm current requirements with the Standards Organisation of Nigeria (SON), the Central Bank of Nigeria (CBN), Nigerian Customs Service and your licensed clearing agent before you ship.