Customs, Finance Ministry in talks over 4% FOB levy

The Nigeria Customs Service (NCS) says  it is in discussions with the Federal Ministry of Finance regarding concerns raised by stakeholders over the newly introduced 4% levy on the Free-on-Board (FOB) value of imports.

The levy, which came into effect on Tuesday, has sparked widespread criticism, particularly from freight forwarders who are demanding its suspension.

The NCS, in a statement released on Wednesday by its spokesman, Abdulahi Maiwada, acknowledged the concerns surrounding both the 4% FOB charge and the continued collection of the 1% Comprehensive Import Supervision Scheme (CISS) fee.

The NCS explained that the implementation of the 4% FOB levy is in line with the provisions of Section 18 (1) of NCSA 2023 and essential to driving the effective operation of the Service.

The statement reads, “The Nigeria Customs Service proudly recognises the invaluable contributions of stakeholders in shaping and actualising the Nigeria Customs Service Act (NCSA) 2023.

“This landmark legislation, which replaces the long-standing Customs and Excise Management Act (CEMA) and other related laws is a product
of extensive consultations, constructive dialogue, and collaborative efforts with key industry players, government agencies, and other stakeholders.

“Their insights, expertise, and unwavering commitment have been instrumental in ensuring a robust legal framework that enhances efficiency, promotes innovation and strengthens transparency in customs operations.

“Furthermore, the NCS acknowledges concerns raised by stakeholders over the
sustained collection of 1% Comprehensive Import Supervision Scheme (CISS) fee (a regulatory charge imposed for funding Nigeria’s Destination Inspection
Scheme) alongside the 4% FOB charge.

“As a responsive and responsible government agency, the Service wishes to assure the general public that extensive consultation is ongoing with the Federal Ministry of Finance to address all agitations raised by our esteemed stakeholders.

“Under the leadership of the Comptroller General of Customs, Bashir Adewale Adeniyi, the NCS reaffirms its commitment to transparency, fair
trade practices, and efficient revenue management.

“All stakeholders are urged to
support this legally binding initiative, as the measures introduced in alignment with the NCSA 2023 reflects a balanced approach borne out of extensive consultations with industry players, importers, and regulatory bodies.”

The FOB charge is calculated based on the value of imported goods, including cost of goods and transportation expenses incurred up to the port of loading.