CBN Issues New Instruction to Customs on Forex Rate Adoption to Clear Goods
- The CBN has advised the Nigeria Customs Service to apply the closing foreign exchange rate in the official window for import duty calculations.
- This came as importers have witnessed fluctuation in the price of clearing goods upon the liberalisation of the foreign exchange market
- This replaces the previous requirements specified in a 2018 Central Bank of Nigeria rule, and it takes effect from February 26
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The Central Bank of Nigeria (CBN) has issued a guideline urging the Nigeria Customs Service to apply the closing foreign exchange rate in the official window for import duty calculations in response to concerns regarding uneven import duty assessment levies.
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This development came as importers experienced price uncertainty for goods and services due to the recent liberalisation of the foreign exchange market.
These difficulties have been made worse by the fluctuating import-duty adjustments, which have disrupted pricing and general company operations.
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CBN recommends closing FX rate
Through a circular signed by Hassan Mahmud, director of the trade and exchange department, the apex bank recommended that the closing FX rate on the date of opening Form M for importation should be utilised for duty assessment to reduce business confusion and clarify.
The circular read:
“The Central Bank of Nigeria wishes to advise that the Nigeria Customs Service and other related parties adopt the closing FX rate on the date of opening Form M for the importation of goods as the FX rate to be used for Import Duty Assessment.
“This rate remains valid until the date of termination of the importation and clearance of goods by importers.
“This would enable the Nigeria Customs Service and the importers to effectively plan appropriately and reduce the uncertainties around varying daily exchange rate in determining their revenue or cost structure, respectively.”
According to the apex bank, the decision is effective as of February 26 and replaces the prior specifications listed in a Central Bank of Nigeria regulation from 2018.
This ruling lowers uncertainty in income and cost structures while giving importers and the Nigeria Customs Service a clear framework for figuring out import duties.
Nigerian customs begin sale of cheap rice, others
Legit.ng reported that the Nigeria Customs Service (NCS) has announced that rice and other food commodities will be sold to the general public in Lagos and other regions of the country starting today, Friday, February 23, 2024.
The sales are being conducted at the Service's Zone 'A' Headquarters on Harvey Road in Yaba.
According to Comptroller-General Adewale Adeniyi in a The Nation report, a 25kg bag would be sold to vulnerable Nigerians for N10,000.
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Source: Legit.ng
