The Nigeria Customs Service (NCS) is implementing a 4 per cent charge on the Free On-Board value of imports.
The Service’s spokesman, Abdullahi Maiwada, who made this known in a statement on Wednesday – yesterday, February 5 – in Abuja, the FCT, explained that the directive was in line with the provisions of the Nigeria Customs Service Act (NCSA) 2023 .
“In line with the provisions of Section 18 (1) of NCSA 2023, the NCS is implementing a 4 per cent charge on the Free On-Board (FOB) value of imports.
“The FOB charge, which is calculated based on the value of imported goods, including cost of goods and transportation expenses incurred up to the port of loading, is essential to driving the effective operation of the service,” Maiwada said.
“Free on Board” (FOB) is a shipping term that indicates that the seller is responsible for delivering goods to a designated port and loading them onto the vessel, at which point the buyer assumes responsibility for all further transportation costs and risks, essentially meaning the goods are “free” once they are on board the ship
FOB charge is like imposing an additional charge on the risks assumed by the importer whose goods are onboard a ship on the high sea.
Experts say this is one of the numerous, not to say unnecessary charges on imports that translate to higher costs in the local markets.
But Maiwada said that while NCS acknowledges concerns raised by stakeholders over the sustained collection of additional 1% Comprehensive Import Supervision Scheme (CISS) fee, “It is a regulatory charge imposed for funding Nigeria’s Destination Inspection Scheme alongside the 4 per cent FOB charge.”
“ As a responsive 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,“ he said.
He urged all stakeholders to comply with the directive, which was conceived after extensive consultation with relevant stakeholders and organisations.
“All stakeholders are urged to support this legally binding initiative.
“As the measures introduced in alignment with the NCSA 2023 reflect a balanced approach born out of extensive consultations with industry players, importers, and regulatory bodies,” he said.
He described the contribution of stakeholders in shaping and actualising the NCSA 2023 as invaluable.
“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.
According to him, under the leadership of the Comptroller-General , Adewale Adeniyi, the service remains committed to transparency, fair trade practices, and efficient revenue management.
