Import duty Nigeria could mean different thing to different people. Used in a loosed sense of a novice, import duty could embrace a whole lot. The lay man or fresh importer thinks import duty covers all charges payable upon importation. Conversely, import duty is not the only duty or money payable on importation to Nigeria. Other duties come in the form of import levy and value added taxes. What is the difference between import duty and import levy? Are there recent changes with import duty in Nigeria or import levy in Nigeria? This article is prepared to answer all question raised herein.
WHAT REALLY IS IMPORT DUTY IN NIGERIA?
Import duty Nigeria if you ask me, refers to surface duty. The duty rate in Nigeria ranges from 0 to 35%, depending on the commodity and tariff code. For more detail on surface duty in Nigeria, see my article for: CALCULATING CUSTOMS DUTY; NIGERIA AS EXAMPLE
DIFFERENCE BETWEEN IMPORT DUTY AND LEVY
Levies are other taxes imposed on importation of certain commodities. The reason for levy may be because the commodity is from certain place. While import duty (ID) has a generic application for each commodity, levies do not. Import levies in Nigeria includes ECOWAS levy (ETLS), the comprehensive import supervision scheme (CISS) levy, surcharge, etc. So, to speak about duty, one must be clear of what is meant. Thus, total duty payable in Nigeria for instance includes import duty and all levies.
NIGERIAN GOVERNMENT INTRODUCES NEW LEVY
The Nigerian Federal Executive Council, FEC, on Monday 20 May, 2019 approved a new import levy. This new import levy on Cost, Insurance, and Freight (CIF) will be charged on imports coming into Nigeria. The new levy was announced by the Minister of Finance, Zainab Ahmed. She disclosed this while briefing Journalists at the end of the weekly FEC meeting presided over by the Vice president, Yemi Osinbajo at the Council Chamber, Presidential Villa Abuja.
According to Ahmed, the FEC approved a rate of 0.2 per cent as the new import levy on imports coming into Nigeria from AU countries. The minister explained that there were some exceptions on goods originating outside the territory of member countries. In her words:
“The council approved a rate of 0.2% as a new import levy on Cost, Insurance, and Freight (CIF) that will be charged on imports coming into Nigeria but with some exceptions.
“The exceptions include goods originating from outside the territory of member countries that are coming into the country for consumption. It also includes goods coming in for aid.”
CONCLUSION:
A new levy of 0.2% of CIF is to be charged on goods coming from AU member countries into Nigeria. This levy will help Nigeria sustain its membership obligation to AU. For further information, please contact us using means available at our contact us page. Furthermore, you can know more about duty calculation in Nigeria by reading: CUSTOMS DUTY TARIFF: NIGERIA CUSTOMS SERVICE EXAMPLE.