Nigeria Customs Service ,NCS, has begun the implementation of the zero percent import duty and exemption of Value-Added Tax ,VAT, on basic food items.
In a circular seen by this newspaper yesterday, customs said the Ministry of Finance sent a letter to the NCS, informing the agency that President Bola Tinubu has approved the implementation.
Following the approval, Customs said the duty waiver took effect from July 15 to December 31.
The Federal Government announced on July 10 the suspension of duties, tariffs, and taxes on the importation of food staples through land and sea borders to reduce inflation.
On August 7, the NCS said the duty waiver on imported foods would be implemented within the next one week.
In the circular signed by C.K Niagwan, Deputy Comptroller of Customs said the food commodities include maize, husked brown rice, wheat, grain beans, and millet.
In the letter, Wale Edun, the Minister of Finance, said the “Measure geared towards ameliorating the high cost of food items in the local market shall be limited to the national supply gap to be determined by a committee set up by the Minister”.
Edun said importers applying for the duty waiver must have milling capacity and a verifiable Backward Integration Programme ,BIP.
BIP is the sourcing of raw materials locally to reduce dependence on foreign raw materials.
“The importation of these items shall also be limited to investors with milling capacity and verifiable Backward Integration Programme ,BIP, for some of the items”, the Minister said.
Also, he said from time to time, during the implementation period, the Ministry will furnish Customs with the list of importers and their approved quotas to guide the importation of the basic food items.
Edun said Customs must ensure strict compliance.
On Tuesday, Bashir Adeniyi, Comptroller-General (CG) of NCS, said the Federal Government would lose about N188 billion in revenue due to the suspension of import duties on food commodities.
Adeniyi said the service would ensure adequate implementation by enlisting special corridors to clear imports of food items.
