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 have
to 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.