FG enforces 35 per cent new tariff

Justus Adejumo |

The Nigeria Customs Service has begun the enforcement of the Economic Community of West African States’ Common External Tariff that pegs import duty at 35 per cent.

All the 16 members of the ECOWAS, including Nigeria, had agreed to introduce a uniform import tariff, from January this year, to facilitate trade within the region but the implementation did not start until Monday.

The policy, which was supposed to take effect on April 11, however threw importers and clearing agents to confusion on Monday as many of them were asked to pay double what they use to pay as tariff on imported materials.

However, some of the stakeholders had said that the development could result in port congestion as many might be unable to immediately pay the new tariff.

Investigation showed that due to the new development, most clearing agents could not access the Customs portal on Tuesday.

Reacting to this, the Public Relations Officer, NCS, Tin Can Island Port Command, Mr. Chris Osunkwo, said the ECOWAS CET was a two-way tariff, adding that while some importers would have to pay more on certain goods, others would pay less.

Details of the new tariff show that a zero per cent duty is payable on goods imported under social and necessary items category; five per cent on raw materials; 10 per cent on intermediate goods; and 20 per cent on finished goods not produced locally.

According to a statement by the Public Relations Officer, NCS, Mr. Wale Adeniyi, the new tariff comprises an Import Adjustment Tax list, which involves additional taxes on 177 tariff lines of the ECOWAS CET; and a national list consisting of items whose import duty rates have been reviewed to encourage more development in strategic sectors of the economy.

It stated that the Comptroller-General of Customs, Abdullahi Dikko, had directed the immediate enforcement of the tariff provisions by all Customs area commands and urged all stakeholders to comply.

He also allayed fears about fresh port congestion resulting from the ECOWAS CET implementation, noting that there were usually initial teething problems at the start of any policy.