The Nigeria Customs Service (NCS) has announced the implementation of a 4% charge on the Free-on-Board (FOB) value of imports, in line with the provisions of the Nigeria Customs Service Act (NCSA) 2023.
In a statement issued on Wednesday, Abdullahi Maiwada, NCS national public relations officer, said the new charge aligns with Section 18 (1) of the Act and is aimed at enhancing the operational efficiency of the service.
“The FOB charge, which is calculated based on the value of imported goods—including the cost of the goods and transportation expenses incurred up to the port of loading—will help drive the effective operation of the service,” Maiwada said.
Understanding FOB and the New 4% Charge
Under the Free-on-Board (FOB) system, the seller is responsible for delivering goods to the port of departure, clearing them for export, and loading them onto the vessel. Once loaded, the risk and cost transfer to the buyer, who becomes responsible for all expenses from that point onward. The new 4% FOB charge applies to the value of goods before they are shipped, impacting import costs for businesses across various sectors.
Comprehensive Import Supervision Scheme (CISS) Fee Remains
Maiwada also addressed concerns from stakeholders regarding the sustained collection of the 1% Comprehensive Import Supervision Scheme (CISS) fee, which is used to fund Nigeria’s Destination Inspection Scheme.
“As a responsive government agency, the service wishes to assure the general public that extensive consultation is ongoing with the federal ministry of finance to address all agitations raised by our esteemed stakeholders,” Maiwada said.
Call for Stakeholder Compliance
The NCS emphasized that the 4% charge was conceived after extensive consultations with relevant stakeholders, regulatory bodies, and industry players. Maiwada urged all stakeholders to support the initiative and comply with the directive.
“As measures introduced in alignment with the NCSA 2023 reflect a balanced approach, we appeal for cooperation from importers and industry players,” he added.
