Customs Releases Guidelines On Food Import Waiver …C0NTINUE READING HERE >>>
The Nigeria Customs Service (NSC), on Wednesday, released import guidelines for the implementation of a Zero Percent Duty Rate and Value Added Tax (VAT), exemption on selected basic food items.
A statement by the service’s Public Relations Officer, Abdulahi Maiwada, noted that the guidelines were released by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun.
According to statement, the policy is effective from 15th July 2024 and will remain in force until December 31, 2024.
Maiwada, a chief superintendent of Customs, said the import waiver was to mitigate the high cost of food items in the Nigerian market by making essential commodities more affordable for citizens.
“This measure aims to mitigate the high cost of food items in the Nigerian market by making essential commodities more affordable for citizens. The initiative is part of the government’s broader efforts to address food security challenges and ensure that basic foodstuffs are accessible to all Nigerians.
“However, it is important to emphasise 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,” Edun stated.
Maiwada, however, reiterated that for importers to participate, they must have filed annual returns and financial statements, paid taxes and statutory payroll obligations for the past five years.
He disclosed further that companies importing husked brown rice, grain sorghum, or millet must own a milling plant with a capacity of at least 100 tons per day, operated for at least four years, and have enough farmland for cultivation.
“It is pertinent to note that the implementation of this policy will 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 paid taxes and statutory payroll obligations for the past five years. Companies importing husked brown rice, grain sorghum, or millet need to own a milling plant with a capacity of at least 100 tons per day, operated for at least four years, and have enough 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.
“The basic food items eligible for the zero percent duty rate are as follows:
S/N Item Description ECOWAS CET H.S. Code Previous Duty Rate + Levy New Duty Rate
I. Husked Brown Rice 1006.20.00.00 30% 0%
II. Grain Sorghum – Other 1007.90.00.00 5% 0%
III. Millet – Other 1008.29.00.00 5% 0%
IV. Maize – Other 1005.90.00.00 5% 0%
V. Wheat – Other 1001.19.00.00 20% 0%
VI. Beans 0713.31.90.00 20% 0%”
The statement also added that 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 within the framework of this policy.
The policy also requires that at least, 75% of imported items be sold through recognised commodities exchanges, with all transactions and storage recorded.
The Customs spokesman urged all stakeholders to cooperate fully in implementing the initiative for the benefit of all Nigerians.
“Companies must keep 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 authorisation, it will lose all waivers and must pay the applicable VAT, levies, and import duties.
“This penalty also applies if the company exports the imported items in their original or processed form outside Nigeria,” NCS spokesperson said.
He expressed the commitment of the Service, under the Comptroller General of Customs, Bashir Adeniyi to supporting government policies towards enhancing food security and promote economic stability.
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