To lower the cost of staple foods, the Nigeria Customs Service has announced that duties on imports of essential food will be waived starting on July 15, 2024, and ending on December 31, 2024.
As part of steps to combat rising food inflation, the federal government authorised a 150-day duty-free window in July to ease the importation of wheat, husked brown rice, and maize.
Chief Superintendent of Customs and National Public Relations Officer for the Comptroller General of Customs Abdullahi Maiwada made this announcement regarding the timing for the implementation of the duty waiver in a statement reached by BrandSpur national news story, that was made public on Wednesday.
Although the policy went into effect on July 15, 2024, the Customs Service has just announced it, giving clarity on the specifics and framework for its implementation, which will continue through December 31, 2024.
The statement outlines the guidelines for the duty waiver, covering items such as husked brown rice, grain sorghum, millet, maize, wheat, and beans.
The statement reads: “Drawing from the Presidential directives aimed at alleviating the hardship faced by Nigerians due to the high prices of essential food items, the Nigerian Customs Service (NCS) is pleased to announce that His Excellency, the President of the Federal Republic of Nigeria Bola Ahmed Tinubu GCFR through the Honourable Minister of Finance and the Coordinating Minister of the Economy, Olawale Edun has approved the regulation for the implementation of a Zero percent duty rate and Value Added Text (VAT) exemption on selected basic food items. This policy is effective from 15th July 2024 and will remain in force until 31 December 2024.”
The statement also mentioned how the duty waiver on these particular imports of vital food will lower the high cost of food in Nigeria by lowering the price of necessities for Nigerians. It further stressed that, despite being a short-term solution to deal with current issues, this step does not undermine the long-term plans put in place to safeguard regional farmers and manufacturers.
The announcement also included comprehensive qualifying standards for businesses looking to take advantage of the zero import tax policy on necessities.
Companies must be incorporated in Nigeria, have been in business for at least five years, continuously file financial statements and annual reports, and have paid all applicable taxes and payroll duties during this time to be eligible.
Additional requirements for importers of husked brown rice, grain sorghum, or millet include having a milling plant capable of processing at least 100 tonnes of grain per day that has been in operation for at least four years and an adequate amount of farmland for cultivation. In a similar vein, businesses that import beans, wheat, or maize must be farming operations with sufficient farmlands or feed mills/agro-processing facilities that sustain a network of out-growers for cultivation.
Under the guidelines of this strategy, the Nigeria Customs Service (NCS) would receive a list of approved importers and their quotas from the Federal Ministry of Finance regularly to help with the seamless importation of these staple foods.
The regulation also requires that at least 75% of the imported goods be sold through reputable commodities exchanges, with complete documentation of all transactions and storage.
Businesses must keep thorough records of all associated actions, which the government may ask to verify compliance with.
The corporation will lose any waivers and be obliged to pay the relevant import duties, levies, and VAT if it doesn’t fulfil its requirements under the import authorisation.
