FG List Conditions For Companies To Benefit From Imports Duties Suspension

The Nigeria Customs Service (NCS) on Wednesday rolled out criteria for companies interested in participating in the zero-duty importation of basic food items in the country.

The National Public Relations Officer of Customs, Abdullahi Maiwada said the process has been approved by the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun.

Maiwada noted that the regulation for the implementation of a Zero-per cent Duty Rate and Value Added Tax (VAT) exemption on selected basic food items will take effect from July 15 and will remain in force until December 31, 2024.

He said, “It is pertinent to note that the implementation of this policy will focus on addressing the national supply gap. To participate in the zero-duty importation of basic food items, a company must be incorporated in Nigeria and have been operational for at least five years.

“It must have filed annual returns and financial statements and paid taxes and statutory payroll obligations for the past five years.

“Companies importing husked brown rice, grain sorghum, or millet need to own a milling plant with a capacity of at least 100 tons per day, operated for at least four years and have enough farmland for cultivation.

“Those importing maize, wheat, or beans must be agricultural companies with sufficient farmland or feed mills/agro-processing companies with an out-grower network for cultivation.”

In addition, Maiwada said the policy requires that at least 75 per cent of imported items be sold through recognised commodities exchanges, with all transactions and storage recorded.

“Companies must keep comprehensive records of all related activities, which the government can request for compliance verification.

“If a company fails to meet its obligations under the import authorisation, it will lose all waivers and must pay the applicable VAT, levies, and import duties. This penalty also applies if the company exports the imported items in their original or processed form outside Nigeria.”

Customs added that the finance minister will periodically provide the NCS with a list of importers and their approved quotas to facilitate the importation of these basic food items within the framework of the policy.