The 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.
This followed the approval of the policy by President Bola Tinubu.
In a recent circular, the service said the Ministry of Finance has sent a letter on the approval of the policy implementation by President Tinubu.
In the letter, the Minister of Finance, Wale Edun, said the measure which is geared towards ameliorating the high cost of food items in the Nigerian market would be limited to the national supply gap to be determined by a committee he set up.
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 minister said: “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.”
He said the ministry would furnish Customs with the list of importers and their approved quotas to guide the importation of the basic food items during the implementation period.
Edun charged Customs to ensure strict compliance with the guidelines.
Following the approval, Customs said the duty waiver took effect on July 15 and would lapse on December 31.
In another circular signed by its Deputy Comptroller-General, C.K Niagwan, Customs said the food commodities include maize, husked brown rice, wheat, grain beans, and millet.
On Tuesday, the Customs Comptroller-General, Bashir Adeniyi, said the Federal Government would lose N188 billion in revenue due to the suspension of import duties on food commodities.
He the service would ensure adequate implementation by enlisting special corridors to clear imports of food items.
By: Babajide Okeowo
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