Customs issues new guidelines for importing food items duty-free
The Nigeria Customs Service (NCS) announced on Wednesday that President Bola Tinubu has approved a Zero Percent Duty Rate (0%) and VAT exemption for certain basic food items.
Customs spokesman Abdullahi Maiwada stated that the presidential approval was communicated through the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun.
This policy is effective from July 15, 2024, and will remain in force until December 31, 2024, Maiwada added.
He explained that the move aims to alleviate the hardship faced by Nigerians due to high prices of essential food items.
“However, it is important to emphasize that while this temporary measure is intended to address current hardships, it does not undermine the long-term strategies put in place to safeguard local farmers and protect manufacturers,” the Customs spokesman noted.
He added that the implementation of the policy would focus on addressing the national supply gap.
“To participate in the zero-duty importation of basic food items, a company must be incorporated in Nigeria and have been operational for at least five years. It must have filed annual returns and financial statements, and have paid taxes and statutory payroll obligations for the past five years.
“Companies importing husked brown rice, grain sorghum, or millet must own a milling plant with a capacity of at least 100 tons per day, which has been operational for at least four years, and must have sufficient farmland for cultivation.”
“Those importing maize, wheat, or beans must be agricultural companies with sufficient farmland or feed mills/agro-processing companies with an out-grower network for cultivation,” he said.
FULL LIST:
The following basic food items are eligible for the zero percent duty rate:
I. Husked Brown Rice
II. Grain Sorghum
III. Millet
IV. Maize
V. Wheat
VI. Beans
“The Federal Ministry of Finance will periodically provide the NCS with a list of importers and their approved quotas to facilitate the importation of these basic food items under this policy,” the Customs spokesman said.
“The policy requires that at least 75% of imported items be sold through recognized commodities exchanges, with all transactions and storage recorded. Companies must maintain comprehensive records of all related activities, which the government can request for compliance verification.
“If a company fails to meet its obligations under the import authorization, it will forfeit all waivers and must pay the applicable VAT, levies, and import duties. This penalty also applies if the company exports the imported items, either in their original or processed form, outside Nigeria,” the Customs spokesman added.
Meanwhile, the Comptroller-General of Customs (CGC), Adewale Adeniyi, reaffirmed the agency’s commitment to streamlining processes that support President Tinubu’s food security initiative.
He made this announcement on Tuesday, August 13, 2024, at the Nigeria Customs Service Headquarters in Abuja during the official launch of the book ‘Impactful Public Relations in Customs Management’.
According to the CGC, the goal is to ensure the swift importation of food items while adhering to standards that reduce costs and lower consumer prices.
The book launch coincided with the 2nd Economic Confidential Annual Lecture, where the Comptroller-General emphasized the Customs Service’s strong commitment to addressing food security challenges through targeted measures to boost agricultural production.
Proofreading by Uchechi Ojo, Sub-editor at Neptune Prime.
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