Customs: Why we’re yet to implement duty-free food importation policy

The Nigeria Customs Service (NCS) says the suspension of duties on imported food items will be implemented as soon as it receives the list of beneficiaries from the ministry of finance.

Abdullahi Maiwada, spokesperson of the NCS, spoke on Thursday at a joint press briefing of security agencies, organised by the strategic communications inter-agency policy committee (SCIPC) in Abuja.

The development comes almost two months after the federal government directed the suspension of duties, tariffs, and taxes on the importation of food staples through land and sea borders to reduce inflation.

On August 14, the NCS said it had begun implementing the policy to allow the importation of maize, husked brown rice, beans, millet, and wheat.

The waiver, which took effect from July 15 and billed to end on December 31, is part of measures to combat rising food inflation across the country.

Providing updates at the news conference, Maiwada said the directive is yet to be implemented because the ministry of finance has not provided the list of those who will benefit from tax exemptions.

“The issue of food security. You made mention of the policy that was announced by Mr. President and we have issued a statement on the guidelines on how to benefit from that policy,” he said.

“Well, I would like to discuss in such a way that the common man would understand how these things work.

“People think that me and you can just go and import rice. No, that is not what the policy is all about. We have policy issues that have a long-term effect. We have the medium-term and we have the short-term effects.

“So, while formulating policies that are related that have a short-term effect, we have to do it in such a way that it will not have adverse effects on long-term policy issues.

“Our responsibility as an agency of government, NCS, is to implement government policies.

“That’s why the statement we issued is based on the guideline issued by the federal ministry of finance.”

Maiwada said the ministry of finance issued a guideline on the conditions and the requirements for participation in the zero import duty scheme.

“We have three lines, six lines of tariff line with the HS code (harmonized system code) with initially a duty of 35% and leave you some of the items and they have all been waived,” he said.

“However, the policy stated clearly that you must be a miller, you must be a taxpayer, you must have been into operations for a certain number of years and there will be a quota that will be issued by the federal ministry of finance.

“So, the list of those who benefit from those exemptions will come from the ministry of finance and our role as an agency of government is to implement the directives of the government. So we are policy implementers, not formulators.

“So, by the time we get those lists, within the twinkle of an eye, we are going to implement those directives from the federal ministry of finance.”

‘OVER N277 BILLION REVENUE COLLECTED IN AUGUST’

Speaking on revenue, Maiwada said the service collected N277.5 billion in import duties for the month of August.

He said the service also collected N15.8 billion in excise duties, reinforcing its commitment to optimising revenue generation.

According to the NCS spokesperson, the agency recorded 83 seizures across various commands as part of its efforts to curb smuggling.

“The NCS also intensified its Operation Whirlwind” (OPWW) to combat the smuggling of petroleum products, especially in border states,” he said.

“The operation over the months has led to the interception of seven PMS trucks, the sealing of 12 retail outlets, and the seizure of 466,000 litres of PMS and 23 vehicles.”

Maiwada said the investigations had resulted in the prosecution of seven suspects, while three marketers were fined by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

He added that the sealed filling stations were handed over for further action.