modalities for importation of goods and incentives

8/8/2019 Modalities for Importation of Goods and Incentives

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MODALITIES FOR IMPORTATION OF GOODS AND INCENTIVES

Nigeria Customs Service is the organ of Government responsible for the:

- Assessing, collection and accounting of government revenue (import,

excise and other related taxes) – e.g. levies etc.

- Suppression of smuggling

- Source for statistical data for planning/budget.

- Security function – Checking illegal arms and ammunition, drugs, etc.

- Agency function, in collaboration with the :-

• NAFDAC – Foods and Drugs

• PHCN – for Generators

• SONCAP – Manufactured articles

• FIRS – VAT

• NPA – 7% Surcharge

• Monitoring of foreign exchange utilisation (CBN)

Accordingly, it has a responsibility for the implementation of Government fiscal

policy.

Import guidelines/procedures

The following guidelines, procedures and documentation requirement were

put in place in respect of import transaction with effect from 1st

of January

2006

1. Importer processes form M with the service providers – SGS, COTECNA,

Global scan through the Dealer Bank.

2. Issuance of the Risk Assessment Report (RAR) based on the first step

above by the service provider through the Dealer Bank. The RAR carries

all the details of the imports – description, value, HS tariff code,quantity, import/export details etc.

3. Clearance proper using the new simplified clearance procedure. The

importer having received the RAR advices his agents to clear the cargo.

The agent assembles the import documents, i.e. Bill of lading, RAR,

packing list, form M and final invoice.



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- The agent declares online using the ASYCUDA DTI. (direct trader input)

- The system automatically assesses the declaration and advise the bank

on the details of the assessment, i.e. payment to be made.

- The agent/importer pays at the collecting bank using the e- payment

system.- The NCS is advised by the bank as soon as the payment is made.

The declaration is thereafter selected

- Green – consignment is released automatically

- Blue – documentary check is done and if the officer is satisfied the cargo

is released otherwise routed for physical examination.

- Red - scanning or physical examination and if the examining officer is

satisfied the cargo is released, otherwise it is reassessed.

The system advises the terminal operator to release the consignment to the

declarant. That ends the customs procedure. The agent processes his

document with the shipping company/terminal operator and takes delivery of

the cargo.

Trade facilitation initiatives by the NCS.

1. use of the Automated System for Customs Data (ASYCUDA) which is a

risk management based system (version 3.0 or ASYCUDA + +)

2. online submission of manifest in advance by the airline/shipping

companies.

3. Introducing the Direct Trader Input (DTI) for importers/agency –

private/public

4. E – payment system, e – remittance to CBN and e – reconciliation.

5. Availability of fast track facility for compliant operators and traders.

NCS/NERC (Nigeria Electricity Regulating Commission)/PHCN and their

Contractors.

• Generally duty rate for electrical machinery and devices range from 0%

to 20% except for luxury goods and items with industrial protective

levies attracting 35%



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• However, most importation by PHCN and its contractors have been

granted import duty exemption as encouragement and relief to the

sector.

• Industrial electrical machinery/other industrial machinery enjoyed 0%

last year and currently 5% duty and are exempted from the payment of VAT.

• Ensuring compliance with the SONCAP certification requirement as

emphasised in the import guidelines.

• Permit for importation of generators granted by PHCN

• The NERC, PHCN and other related bodies in the sector can avail

themselves with the fast – track facility available for compliant

operators, so that their consignment will be delivered in their premises

for examination and follow up by PCA officers of NCS.

As Challenges

1. The CET (Common External Tariff) is supposed to be the tariff and duty

rate applicable in the ECOWAS sub region. Accordingly, review will haveto go through the Head of Government and the time to achieve this may

be too long.

2. In the present Common External Tariff (CET) there is no difference

between the low energy saving devices eg. lamps (CFL or LED) and high

energy consuming lamp (incandescent lamps). Appropriate tariff

headings could be created with some duty rebate or such import be

taxed at a low duty rate as incentive or introduction of higher duty rates

for high energy consuming devices.3. Imposing of protective levies for low energy consuming devices

manufacturers.

4. We wish to call on NERC to present a memo to the government on the

encouragement of the use of energy saving devices, e.g. CFL and LEDS



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through giving incentives to industrialists to establish industries that can

manufacture CFL and LEDS lamps locally in Nigeria.

Finally, the Nigeria Customs Service is always ready to enforce all government

fiscal policies and give its fullest to the actualisation of Mr President’s dream

of uninterrupted power supply in our country and working with other stake

holders in achieving the objectives of this workshop.

Thank you.

modalities for importation of goods and incentives

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