Katsina Times

Breaking News

Nigeria Customs highlights conditions for companies to access zero-duty food import waiver

Katsina City News
15 Aug, 2024
View 293

Companies wishing to import husked brown rice, grain sorghum, millet, maize, wheat, and beans at zero duty must be incorporated in Nigeria.

The Nigeria Customs Service (NCS) on Wednesday announced the conditions that companies must meet to qualify for the government’s new zero per cent duty and VAT exemption on select food imports.

According to a statement by the Service’s spokesperson, Abdullahi Maiwada, companies wishing to import husked brown rice, grain sorghum, millet, maize, wheat, and beans at zero duty must be incorporated in Nigeria, operational for at least five years, and have a proven track record of filing annual returns, financial statements, and fulfilling tax obligations.

To participate in the zero-duty importation of basic food items, a company must be incorporated in Nigeria and have been operational for at least five years. It must have filed annual returns and financial statements and paid taxes and statutory payroll obligations for the past five years.

Companies importing husked brown rice, grain sorghum, or millet need to own a milling plant with a capacity of at least 100 tons per day, operated for at least four years and have enough farmland for cultivation. Those importing maize, wheat, or beans must be agricultural companies with sufficient farmland or feed mills/agro-processing companies with an out-grower network for cultivation,” it said.

The policy, which became effective on 15 July and will run till 31 December, aims to reduce the cost of essential foods and improve food security across the country.

The NCS said the zero-duty initiative is designed to alleviate the high costs of these staple foods, which previously faced import duties ranging from 5 per cent to 30 per cent.

By eliminating these charges, the government aims to cushion the impact of inflation on household budgets, particularly for low-income families. However, the policy also includes measures to ensure compliance, requiring that at least 75 per cent of imported items be sold through recognised commodities exchanges and that all transactions and storage be documented.

It said the NCS, led by Comptroller General Bashir Adeniyi, has emphasised that while this temporary measure addresses immediate food security challenges, it does not undermine long-term strategies to support local farmers and manufacturers.

It said companies that fail to meet the outlined conditions risk losing their waivers and may be required to pay the applicable VAT, levies, and import duties. Also, any exported items in their original or processed form will be subject to these penalties.

The Federal Ministry of Finance will periodically provide the NCS with lists of approved importers and their quotas to facilitate compliance with the policy.