PSI
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Requirement for NAFDAC clearance permit and product registration certificate for form m opening - June 2003
Bonded warehouse operations - June 2003
Duty rebate for goods processed at the onne oil & gas free zone - June 2003
Appointment of new revenue collection banks for customs duty - June 2003
NEPA revised regulation for obtaining import permit for generating sets - June 2003
Implementation of 2003 Budget Fiscal Policy Measures and Tariff Amendments
NCS/HS/899/72/VOL.III/623 - 24/03/03 - Re: Import duty Concession to certain textile mills
Suspension of Eco Bank from collecting customs revenue- NCS/INV/46/002/ABJ/HQ - 19/03/03
Suspension by NNRA - Radioactive materials - NCS circular

Requirement for NAFDAC clearance permit and product registration certificate for form m opening

The Central Bank of Nigeria has directed through its circular 21/2003 that an original NAFDAC clearance permit and the photocopy of the NAFDAC product registration certificate are now required when opening Form M for the importation of finished pharmaceutical products (drugs).

NAFDAC CLEARANCE PERMIT AND PRODUCT REGISTRATION CERTIFICATE FOR THE IMPORTATION OF FINISHED PHARMACEUTICAL PRODUCTS (DRUGS)Circular No - TED/AD/21/2003 February 28, 2003

This is to inform all Authorised Dealers and the general public that the following additional documents shall henceforth be required for the registration of form ‘M’ for the importation finished products (DRUGS):

• Original clearance permit issued by the National Agency for Food and Drug Administration and Control (NAFDAC), to be duly authenticated.
• A photocopy of the product registration certificate issued by NAFDAC, original to be duly sighted.

Authorised Dealers are also required to forward to NAFDFAC for monitoring purpose, a photocopy of the Single Goods Declaration (SGD) Form returned by the importer after clearing the goods.

Please note that all the existing provisions on imports as contained in the Import Guidelines for 1999 and the Monetary, Credit, Foreign Trade & Exchange Policy Guidelines for Fiscal 2002/2003 shall continue to apply. For the avoidance of doubt, the provisions stated herein do not apply to raw materials, chemicals and other regulated products.

Authorised Dealers are enjoined to note and bring these details to the attention of their customers for compliance, please.

SIGNED: O.A. DEMUREN (MRS) DIRECTOR TRADE & EXCHANGE DEPARTMENT

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Bonded warehouse operations

The Nigeria Customs Service has re-defined the conditions for the transfer of goods from the ports to bonded warehouses. Under the new guidelines all goods intended for transfer to a bonded warehouse require this to be indicated on the Form M at the time of opening. Please see Nigerian Customs circular 27/2003 of 3rd June 2003 for further details:

OPERATIONS AT BONDED WAREHOUSE - circular 27/2003

It has been brought to the notice of the Comptroller-General that transfer of containers from Port of Landing to Bonded Warehouses are not done in accordance with the Customs and Excise Notice Nos. 9 and 10 and Circular No. NCS/CUS/092/VOL.II of 30th January, 2001.

All Customs Area Controllers are by this Circular warned for the last time to ensure that bonded warehouse operations are strictly guided by Customs and Excise Notices No. 9 and 10. In addition, Customs Area Controllers must ensure that:Operators of Bonded Warehouses must have final approval and must have renewed their licences for the current year.

• Before goods could be transferred to Bonded Warehouse, the importer must have indicated in his Form "M" that such goods would be cleared through a specified Bonded Warehouse and it must be manifested as such and covered by a relevant clean report of inspection [CRI].
• Warehousing Entry must be lodged at the Customs Processing Centre [CPC], before the goods are transferred to the Bonded Warehouse.
• The Bond Security in respect of the warehoused goods should not be less than 150% of the duty payable. This is apart from the general bond which the operator must execute with a reputable first generation bank or insurance company.
• Goods meant for any Bonded Warehouse should be transferred under escort after completion of necessary documentation.
• Monthly returns of goods transferred to Bonded Warehouses must reach the Deputy Comptroller-General, Tariff and Trade not later than the first week of the following month.
• The monthly returns must contain such details as: Name and address of consignee, Container number and size, Description of goods, Quantity, C.I.F. value, H.S. Code, Rate of Duty, Duty paid, CRI number and Clearing Agent.
• Goods evacuated to a Bonded Warehouse must be cleared within a period of three months with duty and all other charges fully accounted for.
• Under no circumstance should any container be transferred to any bonded warehouse without fulfilling the above requirements.

You are to ensure strictest compliance.

SIGNED: NWAIWU, J. [DR.], DEPUTY COMPTROLLER-GENERAL FOR: COMPTROLLER-GENERAL,NIGERIA CUSTOMS SERVICE, ABUJA

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Duty rebate for goods processed at the onne oil & gas free zone

The Federal Government has published the Oil and Gas Free Zone (Special Import Provisions) Order 2003 of 3rd April 2003 (Official Gazette No.20 of 4th April 2003 Vol.90), making the following order: As from the commencement of this order, any special product imported into the free zone under this Act –

1. on which value has been added without changing the essential character of the product after processing in the free zone;
2. and intended for the customs territory (territory within the Federal Republic of Nigeria other than the area designated as the oil and gas free zone)

shall be granted an import duty tariff rebate of 75 per cent.

No practical experience has yet been made with this new concession and its application. Customs Area Command Onne Free Zone has not received the new directive from Customs HQ, therefore same is yet to be implemented. It remains also to be clarified on which materials and cargoes the rebate will actually apply.

We shall monitor the further development and advise you as soon as more details emerge.

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Appointment of new revenue collection banks for customs duty

The Federal Ministry of Finance has approved the appointment of the following three banks as new Revenue Collecting Banks:

• NUB International Bank Limited
• African Express Bank
• ACB International Bank

Customs Duties can now also be paid through these banks.

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NEPA revised regulation for obtaining import permit for generating sets

Please see below the revised NEPA guidelines for Issuance of Clearance to Import Generating Sets, taking effect from 19th May 2003

NEPA NATIONAL ELECTRIC POWER AUTHORITY PRESS RELEASE REVISED GUIDELINES FOR ISSUANCE OF CLEARANCE TO IMPORT GENERATING SETS

Notice is hereby given to the general public and importers of generators in particular that approval criteria for issuance of clearance to import generating sets have been revised as follows:

APPLICATION
Application for clearance shall specify the following:

• Nature of Business
• Quantity, rating and make of generators
• Purpose of importation
• Country of Origin

The Application shall also be accompanied with:

• Copy of Certificate of Incorporation
• Tax Clearance Certificate
• VAT Certificate
• Commercial invoice/proforma invoice
• (All originals must be presented for sighting by Public Schools/Hospital applications)

FEES PAYABLE - Fees payable shall be as follows: SIZE OF GENERATOR FEES PAYABLE

0.5KVA N2,500.00 per unit

6KVA and above N5,000.00 per unit

Payment of the fees shall be made to NEPA Corporate Headquarters cash office at Plot 441, Zambezi Crescent Maitama-Abuja upon approval of the application.

EXEMPTIONS - Public Schools/Tertiary Institutions and Public Hospitals are exempted from payment of clearance fees.

EFFECTIVE DATE - These guidelines take effect from 19th May, 2003.

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Implementation of 2003 Budget Fiscal Policy Measures and Tariff Amendments - March 2003

The Nigerian government has approved a number of Fiscal Policy Measures and Tariff Amendments with effect from 27th January, 2003

(i) EXPORT INCENTIVES

(a) EXPORT EXPANSION GRANT (EEG):
EEG to be categorised and calculated as follows in Year 2003:

(i) Category A, 40% for intermediate and fully manufactured products with high local value addition.
(ii) Category B, 5% for all other exports not classified under Category A

(b) DUTY-DRAW-BACK (DDB)
The Duty-Draw-Back-Scheme (DDB) will cease to exist in Year 2003 as it felt that enough incentive exists under the EEG

(c ) ECOWAS TRADE LIBERALIZATION SCHEME:
Importation under ETLS shall continue to attract zero duty in Year 2003 for approved products and companies. This is in line with the Protocol agreement of member States as contained in Decision C/DEC.8/11/79 of the Council ECOWAS Council of Ministers.

(ii) PRINTED FABRICS AND OTHER TEXTILES
The suspension of Importation of Printed Fabrics under Chapters 52-55 continues in Year 2003;

Importation of other textile materials is still allowed through Apapa and Tin Can Island Ports only.

All textile materials imported into Nigeria must be in 20ft containers in the following range:
(a) Other textiles (non-printed) 110,000 – 140,000 metres
(b) Brocade/Damask 120,000 – 130,000 metres
(c) Lace/Embroidery 70,000 – 80,000 metres
(d) A minimum import price of 40 Cents or US $0.40 per metre shall apply to all textile fabrics under Chapters 52 – 63 of the Tariff structure.

Note that the above conditions apply only to those textiles whose importation is still allowed

(iii) IMPORTATION OF POULTRY PRODUCTS
Importation of frozen poultry shall remain banned in Year 2003.

(iv) IMPORTATION OF CASSAVA PRODUCTS
The suspension on importation of cassava products shall continue in Year 2003.

(v) IMPORTATION OF CERAMIC PRODUCTS
The duty rate on all Ceramic Products under Chapter 69 have been harmonized at 50% and shall continue to attract 50% duty rate in Year 2003. However the bench mark price of ceramic products has been fixed at $3.5 US Dollars in Year 2003.

(vi) IMPORTATION OF DRUGS AND PHARMACEUTICAL RAW MATERIALS
Only the following ports are to be used for importation of drugs and pharmaceutical raw materials in 2003.
a) Calabar Seaport – Finished Drug Products and Pharmaceutical Raw Materials.
b) Aminu Kano International Airport – Finished Drug Products and Pharmaceutical Raw Materials.
c) Murtala Mohammed International Airport, Lagos - Finished Drug Products and Pharmaceutical Raw Materials.
d) Apapa Seaport, Lagos - Finished Drug Products and Pharmaceutical Raw Materials.

Importation of Drugs and other regulated products through LAND BORDERs is banned.

(vii) IMPORTATION OF FRUIT JUICE:
Importation of Fruit Juice HS Code 2009.1100 to be in concentrates and in drums only (not in retail packs ready to drink) to encourage value addition.

(viii) IMPORTATION OF VEHICLES:
Vehicles over 8 years old shall not be allowed into the country.

(ix) EXCISE DUTIES:
Excise duties of 2002 shall continue to operate in year 2003.

(x) CONTINUATION OF PREVIOUS TARIFF AMENDMENTS AND FISCAL MEASURES
In order to allow enough time for previous tariff amendments and other fiscal policy measures to mature and bear fruit, the amendments will be allowed to continue to operate in Year 2003. This will enable the industries to consolidate their gain and stabilize.

BACK TO TOP ^

NCS/HS/899/72/VOL.III/623 - 24/03/03 - Re: Import duty Concession to certain textile mills - March 2003

I (Nwaiwu J - Deputy Comptroller-General - Tariff & Trade) am directed to inform you that all concessionary duty rate of 5% granted to certain Textile Mills have been declared null and void.

The H.S. Codes and the items involved are stated below:

5509.2100 Single Yarn of Polyester Stable Fibre - 35%
5402.6200 Twisted Filament Yarn - 35%
5402.3300 - Texturised Filament Yarn - 35%
5407.6100 Woven Fabrics of Non-Texturised Polyester Filament - 75%
5205.1100 Cotton Yarn - 40%
5205.1200 Cotton Yarn - 40%
5205.1300 Cotton Yarn - 40%
3204.1600 Reactive Dyes - 20%
5208.1200 Woven Fabrics of Cotton [Grey Cloth] - 75%
5402.5200 Polyester Filament Yarn - 35%
Please ensure that the goods are not cleared at 5% concessionary duty rate.

BACK TO TOP ^

Suspension of Eco Bank from collecting customs revenue- NCS/INV/46/002/ABJ/HQ - 19/03/03

Eco Bank Plc has been suspended from collecting Customs’ Revenue and ceases to be a designated Bank with immediate effect. (Ochoma DA, Comptroller Import & Export, Nigerian Customs Service, Abuja)

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Suspension by NNRA - Radioactive materials - NCS circular

The Nigeria Customs Service has directed all Area Commands that no radioactive material may be imported without the authorisation of the Nigerian Nuclear Regulatory Authority (NNRA). Intending importers must apply to the NNRA, allowing sufficient time prior to importation of such material.

BACK TO TOP ^

Requirement for NAFDAC clearance permit and product registration certificate for form m opening

The Central Bank of Nigeria has directed through its circular 21/2003 that an original NAFDAC clearance permit and the photocopy of the NAFDAC product registration certificate are now required when opening Form M for the importation of finished pharmaceutical products (drugs).

NAFDAC CLEARANCE PERMIT AND PRODUCT REGISTRATION CERTIFICATE FOR THE IMPORTATION OF FINISHED PHARMACEUTICAL PRODUCTS (DRUGS)Circular No - TED/AD/21/2003 February 28, 2003

This is to inform all Authorised Dealers and the general public that the following additional documents shall henceforth be required for the registration of form ‘M’ for the importation finished products (DRUGS):

• Original clearance permit issued by the National Agency for Food and Drug Administration and Control (NAFDAC), to be duly authenticated.
• A photocopy of the product registration certificate issued by NAFDAC, original to be duly sighted.

Authorised Dealers are also required to forward to NAFDFAC for monitoring purpose, a photocopy of the Single Goods Declaration (SGD) Form returned by the importer after clearing the goods.

Please note that all the existing provisions on imports as contained in the Import Guidelines for 1999 and the Monetary, Credit, Foreign Trade & Exchange Policy Guidelines for Fiscal 2002/2003 shall continue to apply. For the avoidance of doubt, the provisions stated herein do not apply to raw materials, chemicals and other regulated products.

Authorised Dealers are enjoined to note and bring these details to the attention of their customers for compliance, please.

SIGNED: O.A. DEMUREN (MRS) DIRECTOR TRADE & EXCHANGE DEPARTMENT

BACK TO TOP ^

Bonded warehouse operations

The Nigeria Customs Service has re-defined the conditions for the transfer of goods from the ports to bonded warehouses. Under the new guidelines all goods intended for transfer to a bonded warehouse require this to be indicated on the Form M at the time of opening. Please see Nigerian Customs circular 27/2003 of 3rd June 2003 for further details:

OPERATIONS AT BONDED WAREHOUSE - circular 27/2003

It has been brought to the notice of the Comptroller-General that transfer of containers from Port of Landing to Bonded Warehouses are not done in accordance with the Customs and Excise Notice Nos. 9 and 10 and Circular No. NCS/CUS/092/VOL.II of 30th January, 2001.

All Customs Area Controllers are by this Circular warned for the last time to ensure that bonded warehouse operations are strictly guided by Customs and Excise Notices No. 9 and 10. In addition, Customs Area Controllers must ensure that:Operators of Bonded Warehouses must have final approval and must have renewed their licences for the current year.

• Before goods could be transferred to Bonded Warehouse, the importer must have indicated in his Form "M" that such goods would be cleared through a specified Bonded Warehouse and it must be manifested as such and covered by a relevant clean report of inspection [CRI].
• Warehousing Entry must be lodged at the Customs Processing Centre [CPC], before the goods are transferred to the Bonded Warehouse.
• The Bond Security in respect of the warehoused goods should not be less than 150% of the duty payable. This is apart from the general bond which the operator must execute with a reputable first generation bank or insurance company.
• Goods meant for any Bonded Warehouse should be transferred under escort after completion of necessary documentation.
• Monthly returns of goods transferred to Bonded Warehouses must reach the Deputy Comptroller-General, Tariff and Trade not later than the first week of the following month.
• The monthly returns must contain such details as: Name and address of consignee, Container number and size, Description of goods, Quantity, C.I.F. value, H.S. Code, Rate of Duty, Duty paid, CRI number and Clearing Agent.
• Goods evacuated to a Bonded Warehouse must be cleared within a period of three months with duty and all other charges fully accounted for.
• Under no circumstance should any container be transferred to any bonded warehouse without fulfilling the above requirements.

You are to ensure strictest compliance.

SIGNED: NWAIWU, J. [DR.], DEPUTY COMPTROLLER-GENERAL FOR: COMPTROLLER-GENERAL,NIGERIA CUSTOMS SERVICE, ABUJA

BACK TO TOP ^

Duty rebate for goods processed at the onne oil & gas free zone

The Federal Government has published the Oil and Gas Free Zone (Special Import Provisions) Order 2003 of 3rd April 2003 (Official Gazette No.20 of 4th April 2003 Vol.90), making the following order: As from the commencement of this order, any special product imported into the free zone under this Act –

1. on which value has been added without changing the essential character of the product after processing in the free zone;
2. and intended for the customs territory (territory within the Federal Republic of Nigeria other than the area designated as the oil and gas free zone)

shall be granted an import duty tariff rebate of 75 per cent.

No practical experience has yet been made with this new concession and its application. Customs Area Command Onne Free Zone has not received the new directive from Customs HQ, therefore same is yet to be implemented. It remains also to be clarified on which materials and cargoes the rebate will actually apply.

We shall monitor the further development and advise you as soon as more details emerge.

BACK TO TOP ^

Appointment of new revenue collection banks for customs duty

The Federal Ministry of Finance has approved the appointment of the following three banks as new Revenue Collecting Banks:

• NUB International Bank Limited
• African Express Bank
• ACB International Bank

Customs Duties can now also be paid through these banks.

BACK TO TOP ^

NEPA revised regulation for obtaining import permit for generating sets

Please see below the revised NEPA guidelines for Issuance of Clearance to Import Generating Sets, taking effect from 19th May 2003

NEPA NATIONAL ELECTRIC POWER AUTHORITY PRESS RELEASE REVISED GUIDELINES FOR ISSUANCE OF CLEARANCE TO IMPORT GENERATING SETS

Notice is hereby given to the general public and importers of generators in particular that approval criteria for issuance of clearance to import generating sets have been revised as follows:

APPLICATION
Application for clearance shall specify the following:

• Nature of Business
• Quantity, rating and make of generators
• Purpose of importation
• Country of Origin

The Application shall also be accompanied with:

• Copy of Certificate of Incorporation
• Tax Clearance Certificate
• VAT Certificate
• Commercial invoice/proforma invoice
• (All originals must be presented for sighting by Public Schools/Hospital applications)

FEES PAYABLE - Fees payable shall be as follows: SIZE OF GENERATOR FEES PAYABLE

0.5KVA N2,500.00 per unit

6KVA and above N5,000.00 per unit

Payment of the fees shall be made to NEPA Corporate Headquarters cash office at Plot 441, Zambezi Crescent Maitama-Abuja upon approval of the application.

EXEMPTIONS - Public Schools/Tertiary Institutions and Public Hospitals are exempted from payment of clearance fees.

EFFECTIVE DATE - These guidelines take effect from 19th May, 2003.

BACK TO TOP ^

Implementation of 2003 Budget Fiscal Policy Measures and Tariff Amendments - March 2003

The Nigerian government has approved a number of Fiscal Policy Measures and Tariff Amendments with effect from 27th January, 2003

(i) EXPORT INCENTIVES

(a) EXPORT EXPANSION GRANT (EEG):
EEG to be categorised and calculated as follows in Year 2003:

(i) Category A, 40% for intermediate and fully manufactured products with high local value addition.
(ii) Category B, 5% for all other exports not classified under Category A

(b) DUTY-DRAW-BACK (DDB)
The Duty-Draw-Back-Scheme (DDB) will cease to exist in Year 2003 as it felt that enough incentive exists under the EEG

(c ) ECOWAS TRADE LIBERALIZATION SCHEME:
Importation under ETLS shall continue to attract zero duty in Year 2003 for approved products and companies. This is in line with the Protocol agreement of member States as contained in Decision C/DEC.8/11/79 of the Council ECOWAS Council of Ministers.

(ii) PRINTED FABRICS AND OTHER TEXTILES
The suspension of Importation of Printed Fabrics under Chapters 52-55 continues in Year 2003;

Importation of other textile materials is still allowed through Apapa and Tin Can Island Ports only.

All textile materials imported into Nigeria must be in 20ft containers in the following range:
(a) Other textiles (non-printed) 110,000 – 140,000 metres
(b) Brocade/Damask 120,000 – 130,000 metres
(c) Lace/Embroidery 70,000 – 80,000 metres
(d) A minimum import price of 40 Cents or US $0.40 per metre shall apply to all textile fabrics under Chapters 52 – 63 of the Tariff structure.

Note that the above conditions apply only to those textiles whose importation is still allowed

(iii) IMPORTATION OF POULTRY PRODUCTS
Importation of frozen poultry shall remain banned in Year 2003.

(iv) IMPORTATION OF CASSAVA PRODUCTS
The suspension on importation of cassava products shall continue in Year 2003.

(v) IMPORTATION OF CERAMIC PRODUCTS
The duty rate on all Ceramic Products under Chapter 69 have been harmonized at 50% and shall continue to attract 50% duty rate in Year 2003. However the bench mark price of ceramic products has been fixed at $3.5 US Dollars in Year 2003.

(vi) IMPORTATION OF DRUGS AND PHARMACEUTICAL RAW MATERIALS
Only the following ports are to be used for importation of drugs and pharmaceutical raw materials in 2003.
a) Calabar Seaport – Finished Drug Products and Pharmaceutical Raw Materials.
b) Aminu Kano International Airport – Finished Drug Products and Pharmaceutical Raw Materials.
c) Murtala Mohammed International Airport, Lagos - Finished Drug Products and Pharmaceutical Raw Materials.
d) Apapa Seaport, Lagos - Finished Drug Products and Pharmaceutical Raw Materials.

Importation of Drugs and other regulated products through LAND BORDERs is banned.

(vii) IMPORTATION OF FRUIT JUICE:
Importation of Fruit Juice HS Code 2009.1100 to be in concentrates and in drums only (not in retail packs ready to drink) to encourage value addition.

(viii) IMPORTATION OF VEHICLES:
Vehicles over 8 years old shall not be allowed into the country.

(ix) EXCISE DUTIES:
Excise duties of 2002 shall continue to operate in year 2003.

(x) CONTINUATION OF PREVIOUS TARIFF AMENDMENTS AND FISCAL MEASURES
In order to allow enough time for previous tariff amendments and other fiscal policy measures to mature and bear fruit, the amendments will be allowed to continue to operate in Year 2003. This will enable the industries to consolidate their gain and stabilize.

BACK TO TOP ^

NCS/HS/899/72/VOL.III/623 - 24/03/03 - Re: Import duty Concession to certain textile mills - March 2003

I (Nwaiwu J - Deputy Comptroller-General - Tariff & Trade) am directed to inform you that all concessionary duty rate of 5% granted to certain Textile Mills have been declared null and void.

The H.S. Codes and the items involved are stated below:

5509.2100 Single Yarn of Polyester Stable Fibre - 35%
5402.6200 Twisted Filament Yarn - 35%
5402.3300 - Texturised Filament Yarn - 35%
5407.6100 Woven Fabrics of Non-Texturised Polyester Filament - 75%
5205.1100 Cotton Yarn - 40%
5205.1200 Cotton Yarn - 40%
5205.1300 Cotton Yarn - 40%
3204.1600 Reactive Dyes - 20%
5208.1200 Woven Fabrics of Cotton [Grey Cloth] - 75%
5402.5200 Polyester Filament Yarn - 35%
Please ensure that the goods are not cleared at 5% concessionary duty rate.

BACK TO TOP ^

Suspension of Eco Bank from collecting customs revenue- NCS/INV/46/002/ABJ/HQ - 19/03/03

Eco Bank Plc has been suspended from collecting Customs’ Revenue and ceases to be a designated Bank with immediate effect. (Ochoma DA, Comptroller Import & Export, Nigerian Customs Service, Abuja)

BACK TO TOP ^

Suspension by NNRA - Radioactive materials - NCS circular

The Nigeria Customs Service has directed all Area Commands that no radioactive material may be imported without the authorisation of the Nigerian Nuclear Regulatory Authority (NNRA). Intending importers must apply to the NNRA, allowing sufficient time prior to importation of such material.

BACK TO TOP ^