Federal Gov’t Unveils Guidelines for Zero-Duty Importation of Basic Food Items

Federal Gov't Unveils Guidelines for Zero Duty Importation of Basic Food
Federal Gov't Unveils Guidelines for Zero Duty Importation of Basic Food

Federal Government Unveils Guidelines for Zero-Duty Importation of Basic Food Items

The Federal Government of Nigeria has released guidelines for the implementation of the “Zero Percent Duty Rate and Value Added Tax” exemption on certain basic food items. The announcement was made by the Spokesperson of the Nigeria Customs Service, Abdullahi Maiwada, on Wednesday in Abuja.

According to Maiwada, the policy is effective from July 15 and will remain in place until December 31. The zero-duty importation of food items, including maize, husked brown rice, wheat, and cowpeas, is aimed at addressing the current economic hardships and ensuring food availability.

To participate in the zero-duty importation, companies must meet specific criteria, including being incorporated in Nigeria and operational for at least five years. Additionally, companies importing husked brown rice, grain sorghum, or millet must own a milling plant with a capacity of at least 100 tonnes per day, operated for at least four years, and have enough farmland for cultivation.

The policy requires that at least 75 per cent of imported items be sold through recognized commodity exchanges, with all transactions and storage recorded. Companies must also keep comprehensive records of all related activities, which the government can request for compliance verification.

The penalty for non-compliance includes losing all waivers and paying applicable VAT, levies, and import duties. Additionally, companies that export imported items in their original or processed form outside Nigeria will face the same penalty.

The Federal Ministry of Finance will periodically provide the service with a list of importers and their approved quotas to facilitate the importation of staples within the policy’s framework.

The spokesperson emphasized that the policy is a temporary measure aimed at addressing the current economic hardships, but it does not undermine the long-term strategies put in place to safeguard local farmers and protect manufacturers.

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