Customs Authorities Have Released Detailed Guidelines On The Exemption Of Food Items From Duty Charges. The Guidelines Provide Clarity On The Process And Requirements For Obtaining Zero Duty Status For Food Products.

Nigeria Customs Service Retains Embargo on Parboiled Rice

The Nigeria Customs Service (NCS) has recently released import guidelines regarding the implementation of a zero percent duty rate and Value Added Tax (VAT) exemption on husked brown rice, grain sorghum or millet, and other selected food items. According to the NCS, companies must meet specific criteria to participate in the zero-duty importation of basic food items.

Firstly, the company must be incorporated in Nigeria and have a minimum operational period of five years. They should have also filed annual returns and financial statements, paid taxes, and fulfilled statutory payroll obligations for the past five years.

In addition, companies importing husked brown rice, grain sorghum, or millet must own a milling plant with a minimum capacity of 100 tonnes per day, which should have been operational for at least four years. They must also possess sufficient farmland for cultivation.

The NCS also highlights that there will be penalties for companies that export the imported items in their original or processed form outside of Nigeria. Furthermore, for those importing maize, wheat, or beans, they must be agricultural companies with adequate farmland or feed mills/agro-processing companies with an out-grower network for cultivation.

The guidelines have been released by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and have been effective since July 15, 2024. The policy is set to remain in force until December 31, 2024.

The initiative aims to alleviate the high cost of food items in the Nigerian market and make essential commodities more affordable for citizens. This policy aligns with the government’s broader efforts to address food security challenges and ensure that basic foodstuffs are accessible to all Nigerians.


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