The Nigeria Customs Service (NSC), on Wednesday, launched import pointers for the implementation of a Zero % Obligation Charge and Worth Added Tax (VAT), exemption on chosen primary meals gadgets.
A press release by the service’s Public Relations Officer, Abdulahi Maiwada, famous that the rules have been launched by the Minister of Finance and Coordinating Minister of the Financial system, Mr Wale Edun.
In line with assertion, the coverage is efficient from fifteenth July 2024 and can stay in drive till December 31, 2024.
Maiwada, a chief superintendent of Customs, mentioned the import waiver was to mitigate the excessive price of meals gadgets within the Nigerian market by making important commodities extra inexpensive for residents.
“This measure goals to mitigate the excessive price of meals gadgets within the Nigerian market by making important commodities extra inexpensive for residents. The initiative is a part of the federal government’s broader efforts to handle meals safety challenges and be certain that primary foodstuffs are accessible to all Nigerians.
“Nevertheless, it is very important emphasise that whereas this short-term measure is meant to handle present hardships, it doesn’t undermine the long-term methods put in place to safeguard native farmers and shield producers,” Edun acknowledged.
Maiwada, nevertheless, reiterated that for importers to take part, they should have filed annual returns and monetary statements, paid taxes and statutory payroll obligations for the previous 5 years.
He disclosed additional that firms importing husked brown rice, grain sorghum, or millet should personal a milling plant with a capability of not less than 100 tons per day, operated for not less than 4 years, and have sufficient farmland for cultivation.
“It’s pertinent to notice that the implementation of this coverage will concentrate on addressing the nationwide provide hole. To take part within the zero-duty importation of primary meals gadgets, an organization should be integrated in Nigeria and have been operational for not less than 5 years.
“It should have filed annual returns and monetary statements and paid taxes and statutory payroll obligations for the previous 5 years. Corporations importing husked brown rice, grain sorghum, or millet must personal a milling plant with a capability of not less than 100 tons per day, operated for not less than 4 years, and have sufficient farmland for cultivation. These importing maize, wheat, or beans should be agricultural firms with enough farmland or feed mills/agro-processing firms with an out-grower community for cultivation.
“The essential meals gadgets eligible for the zero p.c responsibility fee are as follows:
S/N Merchandise Description ECOWAS CET H.S. Code Earlier Obligation Charge + Levy New Obligation Charge
I. Husked Brown Rice 1006.20.00.00 30% 0%
II. Grain Sorghum – Different 1007.90.00.00 5% 0%
III. Millet – Different 1008.29.00.00 5% 0%
IV. Maize – Different 1005.90.00.00 5% 0%
V. Wheat – Different 1001.19.00.00 20% 0%
VI. Beans 0713.31.90.00 20% 0%”
The assertion additionally added that the Federal Ministry of Finance will periodically present the NCS with a listing of importers and their accepted quotas to facilitate the importation of those primary meals gadgets inside the framework of this coverage.
The coverage additionally requires that not less than, 75% of imported gadgets be offered by way of recognised commodities exchanges, with all transactions and storage recorded.
The Customs spokesman urged all stakeholders to cooperate totally in implementing the initiative for the advantage of all Nigerians.
“Corporations should maintain complete data of all associated actions, which the federal government can request for compliance verification. If an organization fails to satisfy its obligations below the import authorisation, it is going to lose all waivers and should pay the relevant VAT, levies, and import duties.
“This penalty additionally applies if the corporate exports the imported gadgets of their authentic or processed kind outdoors Nigeria,” NCS spokesperson mentioned.
He expressed the dedication of the Service, below the Comptroller Common of Customs, Bashir Adeniyi to supporting authorities insurance policies in the direction of enhancing meals safety and promote financial stability.
