News Investigators/ The Customs Consultative Committee (CCC) says reintroducing the four per cent Free On Board (FOB) levy will affect the cost of vehicles and goods.
The Secretary of the CCC, Eugene Nweke, told the News Agency of Nigeria (NAN) on Tuesday that the levy would raise the cost of clearing goods through the port.
NAN recalls that on February 4, the Nigeria Customs Service (NCS), announced plans to implement a four per cent charge on the FOB value of imports, in line with the provisions of the NCS Act 2023.
The implementation was later suspended to allow for more consultations with stakeholders, following criticism from experts and some stakeholders, who argued that the move could worsen the economic situation.
However, the Chairman of the Joint Committee on Customs and Tariff, Sen. Isah Jibrin, recently directed the NCS to immediately commence implementation of the charge.
The Comptroller-General of Customs, Adewale Adeniyi, said the move was necessary to enhance operational efficiency and to fund the service’s technology and modernisation programme.
According to Nweke, the levy can be considered a burden to shippers.
“While the NCS may argue that it(FOB levy) replaces existing fees and aims to modernise customs operations, the reality is that it still increases the financial burden on importers.
“However, the shippers take solace to the fact that the port is considered a value adding supply chain, and without mincing words, four per cent FOB levy stands as a value addition to the port supply chain,” he said.
He explained that the increased costs for importers due to the FOB levy may be passed on to consumers, and noted that this could potentially affect the competitiveness of Nigerian businesses and the overall economy.
“While the spirit behind the intention is desirous and as a legislative revenue requirements, the NCS has a duty to appreciate the fact that, there are practical implications of this levy on businesses and consumers.
“There is therefore, the need to ensure transparency in the implementation process,” he explained.
NAN
