The Nigeria Customs Service (NCS) has unveiled requirements for companies seeking to participate in the duty-free food importation program as approved by the federal government.
The announcement was made in a statement released by Abdullahi Maiwada, the Spokesperson for the Nigeria Customs Service (NCS), on Wednesday in Abuja.
According to Maiwada, the policy takes effect from July 15 and will remain in force until December 31.
He outlined the guidelines, stating that only companies that are incorporated in Nigeria and have been operational for a minimum of five years are eligible to participate in the zero-duty importation of the staples.
Requirements for import food
He said, “The company 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 capacity of at least 100 tonnes 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,”
“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,”
Finance Ministry to provide regular updates on approved importers
- The NCS official stated that the Federal Ministry of Finance would regularly provide the service with a list of importers and their approved quotas to facilitate the importation of the staples under the policy’s framework.
- He noted that the policy mandates that at least 75% of the imported items must be sold through recognized commodity exchanges, with all transactions and storage fully documented.
- He emphasized that while the policy is a temporary measure designed to address the current economic challenges, it does not compromise the long-term strategies established to support local farmers and protect manufacturers.
- According to the spokesperson, the previous duty rates and levies were set at 30% for husked rice, 20% for beans, 20% for wheat, and 5% for millet, maize, and grain sorghum.
Backstory
- Nairametrics earlier reported that the federal government through the Ministry of Agriculture and Food Security approved a 150-day duty/tariff-free window for the importation of specific staple foods into the country to cushion the supply deficit and reduce food prices.
- The specific staple foods include; husked brown rice, maize, and wheat.
- The federal government noted that food importation will not derail activities geared towards improving local food production.
