Customs puts 4% FOB levy on hold, engages with industry stakeholders.

The Nigeria Customs Service has put on hold the implementation of a 4% charge on the Free-on-Board (FOB) value on imports, which was stipulated in the Nigeria Customs Service Act (NCSA) 2023.

The suspension notice made known yesterday in a statement signed by the Assistant Comptroller of Customs, National Public Relations Officer, Abdullahi Maiwada, following ongoing consultations with the Minister of Finance and Coordinating Minister of the Economy, Mr Olawale Edun and other Stakeholders.

According to Customs’ spokesperson, the suspension allows for wider consultations and discussions with stakeholders on how to implement the Act.”

“The timing of this suspension aligns with the exit of the contract agreement with the Service providers, including Webb Fontaine, which were previously funded through the 1% Comprehensive Import Supervision Scheme (CISS). This gives us a chance to assess and refine our revenue strategy as a whole”.

Under the previous funding arrangement revoked by the NCSA 2023, separating the 1% CISS and 7% cost of collection created operational inefficiencies and funding gaps in customs modernisation efforts.

The new Act addresses these challenges by consolidating “not less than 4% of the Free-on-Board value of imports,” designed to ensure sustainable funding for critical customs operations and modernisation initiatives,” the statement read.

The Act further empowers the Service to modernise its operations through various technological innovations. Specifically, Section 28 of the NCSA 2023 authorises developing and maintaining electronic systems for information exchange between the Service, Other Government Agencies, and traders.

Customs noted that, the service is already implementing several digital solutions, from which stakeholders are benefiting from through faster clearance times and improved transparency.

According to the Service, other innovative solutions authorised by the Act include; Single Window implementation (Section 33), Risk management systems (Section 32), Non-intrusive inspection equipment (Section 59) and Electronic data exchange facilities (Section 33(3)).

Customs emphasized that the suspension period will allow the Service to further engage with stakeholders while ensuring proper alignment with the Act’s provisions.

“The NCS remains committed to implementing the provisions of the Act in a manner that best serves our stakeholders while fulfilling our revenue generation and trade facilitation mandate. We will communicate the revised implementation timeline following the conclusion of stakeholder consultations,” Customs added.

Culled from The Nation newspaper.