Zero Duty: Customs lists 5 rules on 6 food items, retains embargo on foreign parboiled rice

Comptroller General of Customs Adewale Adeniyi has enumerated four (5) guidelines to be strictly followed for importers of the six (6) food items approved for zero duty rate within a period of five (5½) months, starting from 15th July, 2024 until 31st December, 2024 as promised by President Bola Tinubu and factored out by the Coordinating Minister of the Economy, Olawale Edun.

An e-signed press release, made available to pressmen by National Public Relations Officer of Nigeria Customs, Chief Superintendent of Customs, Abdullahi Maiwada, has it that every company that will be granted the zero duty rate must (i.) be incorporated in Nigeria and have been operational for at least five years. (ii.) have filed annual returns and financial statements and paid taxes and statutory payroll obligations for the past five years. (iii.) be Companies importing husked brown rice, grain sorghum, or millet. (iv.) 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. (v.) 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.

Enumerated further in the release are the following six (6) basic food items under the ECOWAS CET H.S. Code Previous Duty Rate + Levy New Duty Rate: (i.) Husked Brown Rice 1006.20.00.00 30% 0%

(ii.) Grain Sorghum – Other 1007.90.00.00 5% 0%

(iii.) Millet – Other 1008.29.00.00 5% 0%

(iv.) Maize – Other 1005.90.00.00 5% 0%

(v.) Wheat – Other 1001.19.00.00 20% 0%

(vi.) Beans 0713.31.90.00 20% 0%

Earlier, the CGC has noted that the “temporary measure does not undermine the long-term strategies put in place to safeguard local farmers and protect manufacturers but address current hardships.

“This measure aims to mitigate the high cost of food items in the Nigerian market by making essential commodities more affordable for citizens. The initiative is part of the government’s broader efforts to address food security challenges and ensure that basic foodstuffs are accessible to all Nigerians.

“It is pertinent to note that the implementation of this policy will focus on addressing the national supply gap.

“The Federal Ministry of Finance 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 this policy.

“The policy requires that at least 75% 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.

“The Nigeria Customs Service, under the leadership of Comptroller General of Customs, Bashir Adewale Adeniyi MFR, remains committed to supporting government policies to enhance food security and promote economic stability. The Service urges all stakeholders to cooperate fully in implementing this initiative for the benefit of all Nigerians”, the release concluded.