Investor Presentaiton
The Country and its
institutions
Business Organisation Labour and Social
and Regulation
Security Regulations
The Nigerian Financial
Services Industry
Tax System
Foreign Exchange
Transactions
Investment in Nigeria
Accounting and
Auditing Requirements
Importation of Goods
Exportation of Goods
COVID-19 - Economic
and Fiscal Measures
9.6
Import Duties
In line with an agreement reached in October 2013, Nigeria and other members
of the Economic Community of West African States (ECOWAS) have adopted a
Common External Tariff (CET) with effect from 1 January 2015.
CET is a uniform tariff structure applicable to all goods imported into any ECOWAS
member country from a jurisdiction outside the sub-region. The import tariffs under
the ECOWAS CET are aimed at trade harmonisation to ensure all ECOWAS member
countries apply a single tariff structure. The CET has five tariff bands into which
goods are categorised and taxed as follows:
Category 0 comprises essential social goods (medicine), which are subject to
0% duty
• Category 1 covers essential commodities, basic raw materials, capital goods and
specific inputs which are taxed at 5%.
•
Category 2 is made up of inputs and intermediate products which are taxed at
10%.
.
Category 3 covers final consumer goods which are subject to 20% duty.
9.7
• The final category (Category 4) comprises specific goods for economic
development which will be taxed at 35%.
The new ECOWAS CET 2015 - 2019 and the accompanying Supplementary
Protection Measures (SPM) were approved for implementation in the country by
the President of the Federal Republic of Nigeria for a period of 5 years.
The SPM comprises the following:
(a) An Import Adjustment Tax (IAT) list which involves additional taxes on 175 Tariff
Lines of the CET 2015 - 2019. The IAT is imposed to effectively increase the
import duty payable on the specified tariff lines beyond the uniform duty rate
applicable, in order to discourage importation of the goods into the country, for
instance, because there is excess local capacity.
(b) A National List consisting of items whose import duty rates have been
reviewed to encourage more development in strategic sectors of the economy.
(c) An Import Prohibition List (Trade) applicable only to certain goods originating
from third countries.
A Comprehensive Import Supervision Scheme (CISS) administrative charge of
1% is payable on imported goods, except where exempted. The 1% CISS is on
the F.O.B. value of all imports assessed and is additional to the import duty on the
product/good imported.
The assessed duty stated on the imported goods, together with the 1% CISS
administrative charge, is payable to the designated bank. Despite this, it is
possible to obtain import duty exemption for special government projects if it was
negotiated as part of the contractual terms.
The following additional charges/levies are also payable in respect of imports:
• 7% surcharge calculated on the import duty;
0.5% trade liberalisation scheme levy calculated on the Cost Insurance and
Freight (CIF) value (where import is from countries outside the ECOWAS region);
· VAT calculated at 7.5% on the CIF value of the imports, customs duty and the
charges stated above; and
• Other levies typically port surcharges.
Temporary Importation
The NCS is responsible for granting temporary importation status for importation
of the underlisted machinery and equipment, which are to be re-exported within a
period of two years or on completion of specialised government-approved projects:
aircraft;
•
• ships/vessels and boats;
•
barges/pontoons, tugs for oil exportation or approved projects;
• dredger for soil erosion projects or oil drilling operations, etc.;
● oil rigs and accessories; and
•
super cranes used for petrochemical construction/oil exploration-related
projects.
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Investment in Nigeria Guide - 8th Edition
TKROVL MUNG
KPMGView entire presentation