Saturday, November 23, 2024

Customs Outlines Requirements for Companies Interested in Duty-Free Food Imports

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The Nigeria Customs Service (NCS) has shared important details for companies that want to bring in food without paying taxes, as allowed by the government.

This news was shared by Abdullahi Maiwada, the spokesperson for the NCS, on Wednesday in Abuja.

Maiwada said this program starts on July 15 and will end on December 31.

He explained the rules. Only companies that have been operating in Nigeria for at least five years can join and bring in these foods without paying taxes.

Requirements for importing food

He said, “The company must have been filing annual returns, financial statements, and paying taxes and payroll obligations for the past five years.”

“Companies importing rice, grain sorghum, or millet need to own a milling plant that can handle at least 100 tonnes per day. This plant must have been in use for at least four years, and they must have enough farmland.”

“Companies importing maize, wheat, or beans need to be farming companies with enough farmland, or they must have an agro-processing plant with a network of farmers.”

“Companies must keep detailed records of all activities, which the government can check for compliance.”

“If a company does not follow the rules, they will lose all waivers and must pay all taxes and duties.”

“This penalty also applies if the company exports the imported items as they are or after processing them outside Nigeria.”

Finance Ministry to provide regular update on approved importers

The NCS also said that the Federal Ministry of Finance will give updates about the companies allowed to bring in these foods and their quotas.

According to the rules, at least 75% of the imported items must be sold through recognized commodity exchanges, and all transactions and storage must be documented.

The policy is temporary and is meant to help with current economic challenges. However, it will not disrupt long-term plans to support local farmers and manufacturers.

The previous tax rates were 30% for husked rice, 20% for beans, 20% for wheat, and 5% for millet, maize, and grain sorghum.

Backstory

Newslodge earlier reported that the federal government, through the Ministry of Agriculture and Food Security, approved a 150-day window for importing specific staple foods without paying duties or tariffs, to help reduce food prices and supply shortages.

The foods included in this program are husked brown rice, maize, and wheat. The government assured that this food importation will not affect local food production efforts.

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