PSI
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2003 Tariff Regime - Duties on Imports- March 2003
Importacion of rice circular - March 2003
Importation of articles of printed fabrics and other textile materials circular - March 2003
Destination Inspection - No further news - January 2003
Plant quarantine service back in Lagos Port - January 2003
FMOT permission to operate in Nigerian territorial waters for vessels - January 2003
Suspension and new regulation on importation of printed fabrics and other textile materials - January 2003
Amendment of import duty rates - January 2003
Ban on textile imports- November 2002
Jan 2003 take-off date for destination inspection irreversible - October 2002

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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.

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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.

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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.

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Circular NO. 008/2003 - Under invoicing in the importation of rice

I am directed to inform you that with effect from 13th February, 2003 , import duty and other statutory charges on rice shall be calculated on a minimum cost of Two Hundred and Thirty United States Dollars ($230) per ton, and freight of not less than Forty United States Dollars ($40) per ton unless where a lower amount has been authorized by express written permission.

2. Where ships are discharging at less than Two Hundred and Thirty Dollars ($230) per ton, discharging will be discontinued until the importer accepts to pay the full amount of duty due on cost at $230 per ton plus freight of Forty Dollars ($40) per ton if the importer declines, the government will take over the cargo at the price claimed on the invoice.

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Circular NO. 09/2003 - Importation of articles of printed fabrics and other textile materials

Further to our Circular No. 27/2002 of 14th October, 2002, on the above subject matter, I hereby restate in the light of the Year 2003 Fiscal Policy Measures and without any amendments as follows:

1. That the suspension of importation of Printed Fabrics under chapters 52- 55 continues in year 2003.
2. That importation of other textile materials, is still allowed through Apapa and Tincan Island Ports only;
3.That 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 - 130,00 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 Chapter 50- 63 of the Tariff structure

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

Note also that the importations of all textiles through land borders are banned

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Destination Inspection - No further news - January 2003

No further news about implementation of the destination inspection regime is available. A circular from the Ministry of Finance and / or the Central Bank of Nigeria would be the expected means of disseminating information but nothing has been received from either body. For the foreseeable future we would suggest that all parties importing to Nigeria continue to have goods inspected prior to shipment in line with existing regulations.

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Plant quarantine service back in Lagos Port - 6/01/03

The Plant Quarantine service Lagos has officially notified us that they resume their duties in the Lagos Ports with immediate effect, inspecting goods for import and export.

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FMOT permission to operate in Nigerian territorial waters for vessels - 6/01/03

The office of the Government Inspector of Shipping has introduced with immediate effect a new tariff for the above permit. Their official letter dated 10th November 2002 refers, copies are available upon request.

The new rates are :

First Issue

Less than 50tons- N 20,000
50 - 200tons - N 40,000
200-1000tons - N 75,000
Above 1000tons - N 75,000 plus N 5,000 per 500tons

In addition costs for the Government Inspector and the usual Panalphina processing fee apply.

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Suspension and new regulation on importation of printed fabrics and other textile materials - 6/01/03

Nigeria Customs have circulated directive number 25/2002 of 24th September and 27/2002 of 4th October introducing a ban on importation of all printed fabric under H.S Codes Chapters 52-55 with effect from 31st August 2002. New Regulations are further introduced for the importation of all other textile materials.

CIRCULAR NO.25/2002

TEMPORARY SUSPENSION OF IMPORTS OF FOLKLORIC ARTICLES OF PRINTED FABRICS ( AFRICAN PRINTS, SUPER PRINTS ANS WAX PRINTS)

I am directed to inform you that Ministry of Finance has approved temporary suspension of Folkloric Articles of Printed Fabrics (African Prints, Super prints and Wax prints) effective from 31st August, 2002.

The transaction period will be operated under the following conditions:

(i) A minimum import price and quantity of printed fabrics based on the appropriate international import price to be determined by the Federal Ministry of Finance.
(ii) All imports of printed fabrics should pass through Apapa and Tin can Ports only or be treated as contraband if otherwise.
(iii) Any customs Patrol Team that impounds such contraband shall be entitled to 20% of its selling price as incentive.
(iv) Only bonafide end-users of remnant textile materials, like blanket Manufacturers should be allowed to import them.
(v) All imports into Nigeria must be accompanied by a certificate of Free sale to be issued by approved authorities in the exporting Country.

CIRCULAR NO.27/2002

IMPORTATION OF ARTICLES OF PRINTED FABRICS AND OTHER TEXTILE MATERIALS

Further to an earlier circular No. 25/2002, ref. No. NCS/T&T/ I&E/012/S.19/IV of 24th September,2002 on Temporary Suspensions of Imports of Folkloric Articles of Printed Fabrics ( African Prints, Super Prints and Wax Prints), I am directed to inform you that the Honourable Minister of Finance has approved for implementation the following policy measures on textile materials:

(a) Importation of printed fabrics (HS Codes chapter 52-55) is suspended with effect from 31st August, 2002. (b) All other textile materials, import of which is still allowed, can be though Apapa and Tin Can Island Ports only
(b) All textile materials imported into Nigeria must be 20ft containers in the following range:
(i) Other textiles (non-printed) 110,000 - 140,000 metres
(ii) Brocade/Damask 120,000 - 130,000 metres
(iii) Lace/Embroidery 70,000 - 80,000 metres
(c) That a minimum import price of 40 cents or US $0.40 per metres shall apply to all textile fabrics under Chapter 52 - 69 of the tariff structure.

It is to be noted that above conditions apply only to those textiles import of which is still allowed.

Please give this circular the widest publicity and ensure strict compliance.

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Amendment of import duty rates - 6/01/03

Nigeria Customs Service Circular 35/2002 dated 11th November outline import duty rates on cube sugars, some articles of iron and steel, candles, paper and barley malt have been amendment effective 1st November 2002.

CIRCULAR NO.35/2002

MID-YEAR REVIEW OF THE YEAR 2002 FISCAL POLICY MEASURES AND TARIFF AMENDMENTS

As a result of the Mid-Year Review of year 2002 Fiscal Policy Measures, The President, Commander-in-Chief of the Armed Forces has approved the following tariff amendments with effect from 1st November, 2002:

(a) Imported cube sugar HS Code 1702.1100 50%
(b) Cold rolled flat products of Iron HS Code 7211.1900 15%
(c) Moulded Candles HS Code 3406.0000 45%
(d) Barley Malt HS Code 1107.1000 30%
(e) Ingots/Billets HS Code 7601.1000 2.5%
(f) Coils/Profiles HS Code 7605.1100-2900, 7606.1200-9200 25%
(g) Foils. HS Code 7607.1900 30%
(g) Printing, writing, graphic And photocopying papers 5%
(h) Other paper used for graphic purposes 5% HS code 4823.5900

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Ban on textile imports - 4/11/02

Nigeria’s government has banned imports of all printed fabrics in order to protect its own ailing industry. The number of textile factories in the country has fallen to just 40, a quarter of the number existing in the mid-1980s, and the government said it had taken the decision as a protective measure against dumping. Professor Jerry Gana, the Information Minister, stressed the importance of the industry in terms of job creation, and said they hope to generate an annual income of $1 billion from local textile production. Chief Kola Jamodu, the Minister of Industry, is leading a ministerial committee charged with making Nigeria self-sufficient in textile production by 2006. Measures already adopted include a crackdown on smuggled imports, reduced import taxes on raw materials for textiles, compulsory purchase of locally made textiles by the army, government and schools, and harmonisation of local prices. The ban on the import of printed fabrics is expected to remain in place until the government agrees which fabrics can be allowed into the country.

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Jan 2003 take-off date for destination inspection irreversible-29/10/02

The Federal Government has stated that the January 2003 date for the re-introduction of Destination Inspection (DI) scheme is irreversible.

Minister of Finance, Malam Adamu Ciroma made this known on Monday at the 2002 edition of the Comptroller-General's yearly conference with the theme: "Integrity and Optimal Performance in the Nigerian Customs Service by Ibadam Oye.

According to the minister the delay of the scheme muted to take off on July 1 this year was due to the discovery by the Government that certain documentation involved in trade inflow, among other factors, were not in place.

Ciroma said the Government decided to ensure that the documentations were put in place, adding that as far as the Federal Government was concerned the Destination Inspection system should be regarded as having taken off.

On the fate of the four Pre-Shipment Inspection (PSI) companies handling the inspection of imports at the ports of origin of goods coming into the country , the minister revealed that the four companies would be withdrawn to pave way for the Customs to take full control of import examination.

He also observed that the current 100 per cent physical examination of imports being practised by the Customs Service is a form of Destination Inspection. Due to under declaration of consignments which had previously claimed to have been inspected by the Preshipment Inspection Companies it was decided to revert to Destination Inspection after over 30 years of the Pre-shipment Inspection Scheme.

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