Following resistance against its implementation of 4% Free-On-Board (FOB) charge by licenced Customs agents and freight forwarders, the Nigeria Customs Service (NCS) has issued a statement to inform importers and other port users about the enforcement of Customs Act 2023.
The NCS on February 4, 2025, began implementation of 4% FOB charge, which port users misunderstood as an increment of the Comprehensive Import Supervision Scheme (CISS) fee, otherwise known as import processing charge levied on importations into Nigeria.
The Nigeria Customs Act 2023, allows the trade regulator to charge 4% FOB in addition to existing the import processing fee of 1%,a development the agents and freight forwarders condemned, saying the port community was not notified as required by the same Act.
In a statement on Wednesday, the NCS acknowledged recognises the invaluable contributions of stakeholders in shaping and actualising the Nigeria Customs Service Act (NCSA) 2023, noting that this landmark legislation, which replaces the long-standing Customs and Excise Management Act (CEMA) and other related laws is a product of extensive consultations, constructive dialogue, and collaborative efforts with key industry players, government agencies, and other stakeholders.
“In line with the provisions of Section 18 (1) of NCSA 2023, the NCS is implementing a 4% charge on the Free On-Board (FOB) value of imports. The FOB charge, which is calculated based on the value of imported goods, including cost of goods and transportation expenses incurred up to the port of loading, is essential to driving the effective operation of the Service,” the Customs said in the statement signed by its national Public Relations Officer, Abdullahi Maiwada.
Maiwada further acknowledged concerns raised by stakeholders over the sustained collection of 1% CISS fee, which he said was a regulatory charge imposed for funding Nigeria’s Destination Inspection Scheme alongside the 4% FOB charge.
“As a responsive and responsible 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.
“Under the leadership of the Comptroller General of Customs, Bashir Adewale Adeniyi, the NCS reaffirms its commitment to transparency, fair trade practices, and efficient revenue management. All stakeholders are urged to support this legally binding initiative, as the measures introduced in alignment with the NCSA 2023 reflects a balanced approach born out of extensive consultations with industry players, importers, and regulatory bodies,” Maiwada stated.
