Customs Implements Duty-Free Import of Food Items, Lists Conditions for Companies Interested

Nigeria Customs Service (NCS), has announced the implementation of zero percent import duty and exemption from value-added tax (VAT) on selected basic food items. This new policy, directed by President Bola Ahmed Tinubu, will be effective from July 15, 2024 to December 2024. Abdullahi Maiwada, Chief Superintendent of Customs and National Public Relations Officer for the Comptroller General of Customs, says this initiative is intended to deal with the present hardships and close the national supply gap.

In a bid to ensure that this measure succeeds and results into low food prices in the market, Nigeria Customs has issued guidelines. Below are some of the key details:

Company Requirements:

• Must be incorporated in Nigeria.
• Should have been operational for at least five years.
• Must have filed annual returns and financial statements.
• Should have paid taxes and statutory payroll obligations for the past five years.

Specific Requirements for Importing Certain Items:

• Companies importing husked brown rice, grain sorghum or millet must;
• Own a milling plant with capacity not less than one hundred tons per day.
• Has operated for a minimum period of four years.
• Have enough farmland for cultivation.

Regulatory Oversight:
– The Federal Ministry of Finance will provide the NCS with a list of importers and their approved quotas periodically.

Sales and Reporting Requirements:
– At least 75% of imported items must be sold through recognized commodities exchanges.
– All transactions and storage must be properly recorded.

Record Keeping:
– Companies must maintain detailed records of all related activities. The government may request these records for compliance verification.
Penalties for Non-Compliance:
– Companies that fail to meet import authorization obligations will lose all waivers and be required to pay applicable VAT, levies, and import duties. This also applies if the company exports the imported items, whether in their original or processed form, outside Nigeria.

Breakdown of Selected Food Items for Duty-Free Import:
– Husked Brown Rice: Previously 30% duty rate + levy, now suspended.
– Grain Sorghum – Other: Previously 5% duty rate + levy, now suspended.
– Millet – Other: Previously 5% duty rate + levy, now suspended.
– Maize – Other: Previously 5% duty rate + levy, now suspended.
– Wheat – Other: Previously 20% duty rate + levy, now suspended.
– Beans: Previously 20% duty rate + levy, now suspended.