Nigeria Custom New Import Duty Exchange Rate Era Begins With N282/US1$

To work in harmony with the new foreign exchange policy of the CBN, The Nigeria custom service has announced the commencement of new  Import Duty Exchange Rate Era. The new era which pegged import duty rate at N282 to $1 will take effect from July 1st, 2016.

Customs CG, Hameed Ali

The Public Relation Officer of the Tin Can Island Port Customs Command, Mr. Chris Osunkwo, affirmed to news agency that the Customs rate for custom duty calculation had at last been changed at commands throughout the nation to N282 per dollar.


He said, "a circular issued by the CBN to the Customs in 2016, expressed that payable duty on all imports would be calculated in view of the conversion scale at the time of placing import request.

This, he said is contained in the circular dated May 28, 2015/No 015, titled: Application of Exchange Rate at the Time of Making Entry. The circular said: “Where the value of imported goods is shown in foreign currency, such value is to be converted to the equivalent of Nigerian currency as at the rate at the time of making declaration to Customs. “Going by the provisions of this circular, it is quite clear and incontrovertible that the exchange rate has changed.” Osunkwo, nonetheless, said that deciding the duty payable was not a Customs issue, expressing that the order is from the CBN and Customs just applies the provisions of the circular.

As per him, "it implies that if by tomorrow the dollar drops to N200, it implies we would apply N200. "For a long while, we have been excessively liberal such that the swapping scale (regardless of what won) still stays at N197, however in the event that you pass by the law, it implies that we need to adjust to the prevailing foreign exchange market rate.”

In practical sense using Vehicles / Cars as example, it means that minimum surface duty (benchmark) on 2001 vehicle and or Car would now be N186,000 as against N130,000 before the announcement of this Import Duty Exchange Rate. If you add other variables, it means that duty on 2001 car will be as high as N239,000 as total duty of N166,000 before this Import Duty Exchange Rate.

Considering other port charges like Terminal and shipping charges, there is no doubt that the new Import Duty Exchange Rate era will increase entire cost of clearing consignments at the port, and this will have effects on consumers at large.

About the Blogger: Adedamola Adewoye is a Senior custom relation liaison officer with VHI Cargo. He has over 15 years experience interfacing with Nigeria custom and other Government agencies at the port.

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