PSI
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Customs Service Sets to Implement New Policy On Vehicle Importation- August 2002
Nigeria bans meat shipments from Benin - 31/7/02
Intertek Services Limited issue refunds - July 2002
Nigeria - Ruling on 5 year old vehicles - June 2002
Nigerian Destination Inspection - June 2002
Nigerian Customs procedures on drugs - 16th May 2002
2002 Budget Policy Measures and Tariff Amendments - April 2002
Licence fee for new customs - April 2002
Import/Export changes outlined in the Nigerian Budget 2002 - April 2002
Changes to Nigerian Pre-Shipment Inspection procedures - Form M - March 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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Customs Service Sets to Implement New Policy On Vehicle Importation - 20/08/02

Nigerian Customs Service have begun seizure of fairly used vehicles otherwise known as 'tokunbo' as its deadline and grace period for the importation of those vehicles expired last weekend. There was a rush by importers to beat the deadline as a total of 26,000 vehicles above five years were released by the Tincan Island NCS port command. Importers and clearing agents were still making last efforts to beat the deadline.

Records of vehicles released during the grace period showed 5,938 vehicles were released from the ro-ro terminal whilst 5,083 vehicles were released from the Ashaye terminal. The Satellite car park recorded the highest number of 6,110 vehicles while the satellite car parks (II) and (III), recorded 3,137 and 2,065 vehicles released respectively.

According to the public relations officer, Alhaji Usman Bello every thing possible was done to ensure clearance. He explained that vehicles trapped in the port are either overtime or vehicles that were imported after Government gave the directive of the grace period adding that the number of such vehicles could not be ascertained immediately. He however warned importers and agents to desist from attempting to use fake documents to clear vehicles as any body caught will be dealt with accordingly. Bello also reminded importers that the idea of the grace period was to allow for clearance of vehicles that were imported before the directive and not for the importation of new vehicles.

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Nigeria bans meat shipments from Benin - 31/7/02

The Nigerian government has decided to prohibit the importation of frozen meat importation via Benin. All goods of this kind are currently blocked at the Benin / Nigeria border. We therefore recommend that you postpone any frozen meat shipment for Nigeria via Cotonou until further notice.

Negotiations are underway between the Beninese and Nigerian authorities in order to reach a consensus on this issue. We will advise you of any change.

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Intertek Services Limited issue refunds - July 2002

The Nigerian government has made a partial payment for outstanding debt to ISC Services Limited (ISC) and Swede Control Intertek. In turn Intertek Testing Service (ITS) are now able to refund deposits for inspections performed and corresponding CRF's issued between the 1st February 1999 to the 17th March 1999. Only exporters who received certificates within the quoted time frame are entitled to a refund.

For full details and a deposit claim form please contact the following:

Intertek Testing Services International Limited
Academy Place
1-9 Brook Street
Brentwood
Essex CM14 5NQ
Tel: 01277 223255
Fax: 01277 220127
Website: www.itsfts.com
Contacts: Jason Wellden General Manager

Questions & Answers

Why has ITS done this?
ITS has received partial payment for its services during 1999, the period where deposits were made by exporters in advance of Nigerian PSI services.

Why is ITS making a partial refund?
Exporters made deposits subject to the terms of the original notice to exporters. ITS are making a refund to those exporters who made deposits for inspections performed and corresponding CRF's issued between 01/02/99 and 17/03/99, as ITS itself has only received partial payment.

Why is ITS deducting bank charges?
The original deposit was made under clear instruction that bank charges would not be to ITS's cost. These have been deducted prior to payments being made.

Why can I not have the interest earned on the account during this period?
In the original instructions it was made clear that interest would not be credited to the deposit, Please note that the money deposited was immediately consumed by ITS in providing the on-going PSI services dating 1999.

I have a deposit slip dated before 17th March 1999 but the CRF is dated after that date - can I have a refund?
No. Both documents must be within the refund period. I cannot find my documentation.

Is that a problem?
Repayment can only be made where bona fide documents are presented.

Can the refund be made in cash?
No. ITS will mae all refunds by cheque.

What if I am not the exporter, but the exporter's representative?
Repayments can only be made to the exporter of record.

What is ITS's mechanism for paying exporters?
ITS has maintained records of payment receipts and will provide refunds once ITS receive bona fide evidence that you are the exporter entitled to the refund. Where deposits were made by ITS raising an invoice to you, tax liabilities paid by ITS and deducted from the deposit should be claimed back by you from the tax authorities on return to you of the net fee and credit note.

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Nigeria - Ruling on 5 year old vehicles - June 2002

The Comptroller General of the Nigerian Customs Service has announced that the ban on 5 year old vehicles does not affect trucks or lorries. However the grace period for other vehicles will expire on 16 August 2002. By then all importers with cars over 5 years old, must have removed their vehicles from the port by that date, otherwise they will be in contravention of the law.

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Nigerian Destination Inspection - June 2002

There is a report in the Nigerian 'Guardian' newspaper that the Destination Inspection date of July 1st is no longer "feasible". This announcement was made by Dr. Olu Ogunloye who is the Minister of State for Defence (Navy). He is reported to have said that a fresh date is to be decided by the Federal Government within the next three months after weighing the benefits of the system. A committee is to be set up to look into all outstanding issues and to make recommendations to the government.

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Nigerian Customs procedures on drugs - 16th May 2002

NAFDAC hereby notifies all drug importers that the following Pre-shipment information must be made available to the NAFDAC Port Inspectorate Directorate (PID) before any drug consignment arrives Nigeria from any part of the world.

1. Name of the drug product.
2. Manufacturer's Name and Address
3. Quantity being imported.
4. Various pack sizes, strength of the drug and the dosage form (tabs, caps, inj, syr, etc.)
5. Batch number, manufacture and expiry dates.
6. Conveying vessel and expected date of arrival

This pre-shipment information will help NAFDAC to inspect, analyze and release your products on time. Failure of any importer to comply will be seen as a blatant intent to smuggle the drugs into Nigeria, and such company will be seriously sanctioned by NAFDAC. The deterrent sanctions for offenders are as follows:

A first time offender; Payment of One million naira (N1,000,000.00) only, in addition to other requirements for release of imported products. An unregistered product attracts an additional payment of four hundred thousand naira (N400,000.00) only and must satisfy all due registration processes before it can be released.

For a second time offender, the product will not only be seized and destroyed; it will also be banned from being imported into the country for (5) years. This applies to both registered and unregistered products.

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Licence fee for new customs - April 2002

The Federal government has increased the licence fee for new Customs clearing agents from N20,000 to N50,000with an annual renewal charge increase of N10,000 to N200,000. Agents will also have to pay an insurance bond of N350,000 and pay an operational fee of N15,000 to the port.

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Import/Export changes outlined in the Nigerian Budget 2002

The Nigerian Government has approved a number of tariff amendments in the 2002 budget, all of which take effect from 6 March 2002. The major measures are as follows:

1. Vehicles over 5 years old from the year of manufacture shall not be allowed into Nigeria.
2. Importation of vehicles irrespective of age through land borders will not be allowed.
3. Confirmation that pre shipment inspection will stop in June 2002. Destination Inspection will commence 1 July 2002.
4. Importation of used refrigerators, air conditioners, and compressors will be banned. However there is a reduction on duty for a range of spare parts for air conditioners and compressors.
5. Containers from third countries will not be allowed to enter through neighbouring countries. This will be good news for shipping lines, as we can keep an eye on the whereabouts of our containers.
6. All agricultural cash crops e.g. cocoa, groundnuts, rubber, cotton, palm produce, gum arabic, ginger etc., shall enjoy a 5% Export Expansion Grant (EEG) in 2002
7. A wide range of "luxury" imported food items now attracts 100% duty. These include, margarine, sausages, sugar confectionery, chewing gum, chocolate, pasta, prepared food such as cornflakes, bread, cakes pastry etc, ice cream, beer, wine and spirits.
8. Tobacco, or tobacco substitute items such as cigarettes, cigars, cigarillos also attracts 100% duty.

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Please note the following changes to Nigerian Pre-Shipment Inspection procedures:

A circular issued by the Central Bank of Nigeria on 1st March outlines changes to pre-shipment arrangements.

CENTRAL BANK OF NIGERIA, ABUJA

OUR REF: TED/AD/10/2002

TO: ALL AUTHORISED DEALERS NIGERIA CUSTOMS SERVICE, SHIPPING COMPANIES, INSPECTION AGENTS AND THE GENERAL PUBLIC

ADDENDUM TO IMPORT GUIDELINES

This is to inform all Authorized Dealers and the general public that the following additional guidelines shall, henceforth, apply to all imports into the country:
1. All imports into the country shall continue to be subject to the completion of Form M, irrespective of value and whether valid for foreign exchange or not.
2. Where the processing bank for the Form ‘M’ is a Designated bank, payment of import duty and other charges shall be made only through that bank.
3. All goods destined for Nigeria shall be in unitised packages, that is, containerised (in 40, 20, 10, or 8 feet container sizes) or standardized crates, combis, shrink wrapped pallets, tanks, ISO-tanks, boxes and one-ton sacks.
4. Under the Pre-shipment Inspection Scheme which has been scheduled to terminate on 30th June, 2002, it should be noted that where the goods to be shipped constitute a full container load (FCL), the exporter (seller) shall be required to provide an appropriate container size at the time of inspection. The relevant Pre-shipment Inspection Agent (PIA) shall be required to seal such a container on satisfactory inspection before stuffing and shipment.
5. Where no container has been provided to enable the PIA carry out appropriate sealing after stuffing, the pre-shipment inspection exercise should be aborted. In such cases, the supplier shall bear the cost of the subsequent inspection activity.
6. For goods that are less than a container load (LCL), the goods so inspected in unitised packages, shall be identified by the relevant PIA’s hologram or mark. For the avoidance of doubt, a hologram or mark should be pasted conspicuously on all packages or pallets after inspection, where such goods are not full container loads.
7. The Bill of Lading/Airway bill/Way bill required for ALL IMPORTS shall be claused “Shipped on Board” or “Clean on Board” and issued by the Captain of the carrying vessel or his agent. Where, however, the Bill of Lading/Airway bill/Waybill is not so claused, a Carrier Certificate issued by the Captain of the vessel shall be an additional document needed for importation.

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.

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

MRS O.A. DEMUREN - DIRECTOR - TRADE & EXCHANGE DEPARTMENT

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