The Lagos Chamber has asked the federal government to suspend the newly introduced customs chargeThe chamber said the newly introduced 4% Customs processing charge will increase the cost of doing businessesThe Nigeria Customs Service has assured Nigerians and business owners that implementation of the new charge is legal
Henzodaily.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Lagos Chamber of Commerce and Industry (LCCI) has called on the Federal Government to suspend the recently implemented 4% Customs processing charge, known as the Comprehensive Import Supervision Scheme.
Chinyere Almona, the Director-General of LCCI said that the sudden enforcement of the charge by customs will hurt businesses.
Nigerians to pay more to clear goods
Photo credit: Customs
Source: Getty Images
In a statement made available to Henzodaily.ng, Almona condemned the implementation of the charge without prior notice to stakeholders.
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She added that before the implementation there should have been a sensitisation process to inform and prepare stakeholders adequately.
Almona stressed the absence of stakeholder engagement, mandated under Section 23 of the same Act.
She revealed that Importers, exporters, freight forwarders, and clearing agents were reportedly blindsided by the sudden enforcement.
Part of the statement reads:
“The sudden enforcement of this charge is already disrupting business operations, increasing transaction costs, and causing uncertainty in the trading environment. Such an approach is detrimental to economic growth and investor confidence.”
The LCCI expressed concern that businesses are already grappling with multiple challenges including high taxes, interest rates, forex scarcity, and inflation, Punch reports.
Almona pointed out additional pressures such as the proposed hike in telecom tariffs and rising logistics costs due to high energy prices, exacerbating the strain on the business community.
Furthermore, the chamber stated that the abrupt implementation of the charge was contrary to international best practices as it would disrupt business operations and increase transaction costs.
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Further, the LCCI urged the government to focus on trade facilitation and port efficiency rather than imposing new levies.
Customs 4% charge
The Nigeria Customs Service (NCS) has commenced the enforcement of a 4% charge on the Free On-Board (FOB) value of imports, as mandated by the Nigeria Customs Service Act (NCSA) 2023.
Abdullahi Maiwada, national public relations officer (PRO) announced the implementation in a statement issued on Wednesday in Abuja, stating that the measure aligns with legal provisions and is aimed at enhancing customs operations.
He said:
“In line with Section 18 (1) of the NCSA 2023, the NCS is implementing a 4% charge on the Free On-Board (FOB) value of imports,.
“This charge, calculated based on the value of imported goods including the cost of goods and transportation expenses up to the port of loading is crucial for ensuring the effective operation of the service.”.
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CBN raises dollar rate to clear goods at ports
Henzodaily.ng reported that the Central Bank of Nigeria has adjusted the Customs exchange rate for clearing goods at the nation’s ports and airports.
The latest data shows that the new exchange rate represents a slight increase from the previous rate.
The import duty exchange rate reflects the performance of the naira in the official foreign exchange market.
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Source: Henzodaily.ng