The Comptroller General of the Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, has directed all Customs Area Controllers (CAC) to inform importers and stakeholders about the recently implemented 4% Free On Board (FoB) fee.
The CG, in a circular NCS/FATS/ABJ/S.797 signed by Deputy Comptroller-General Finance, Admin and Technical Services, B.M Jibo, stated that the 4% Free on Board (FOB) fee is intended to increase revenue generation and ensure compliance with the NCS Act 2023.
The circular, headlined ‘Sensitization of Importers and Stakeholders on the Collection of 4% FOB,’ stated that the 4% Free on Board (FOB) fee is intended to increase revenue generation and ensure compliance with the NCS Act 2023.
“With the implementation of the 4% Free on Board (FOB) levy, it is critical that all Customs Area Controllers take proactive steps to engage and educate importers, clearing agents, and relevant stakeholders on the modalities for collection.
“The 4% Free on Board (FOB) fee aims to increase revenue generation and ensure compliance with the NCS Act 2023. As a result, all Area Commands are instructed to undertake stakeholder meetings, workshops, and sensitization sessions to offer clarity on the objective, procedure, and compliance requirements of the 4% FOB collection.
“Your participation in this matter is critical to the proper execution of this instruction. Please maintain rigorous compliance and provide regular updates on the extent of stakeholder involvement and compliance rates. Please treat this as urgent.
Meanwhile, the public relations officer of Nigeria Customs Service (NCS), Abdulahi Maiwada, urged stakeholders to embrace the legally binding effort. Maiwada stated that the actions implemented were consistent with the NCSA 2023 and reflected a balanced approach resulting from extensive consultations with industry stakeholders, importers, and regulatory organizations.
“In accordance with Section 18 (1) of NCSA 2023, the NCS imposes a 4% charge on the Free On-Board (FOB) value of imports.
“The FOB price, which is computed based on the value of imported products, including the cost of goods and transportation charges up to the port of loading, is critical to the Service’s efficient operation.
Furthermore, the NCS notes stakeholders’ concerns about the ongoing collection of a 1% Comprehensive Import Supervision Scheme (CISS) fee (a regulatory charge imposed to fund Nigeria’s Destination Inspection Scheme) in addition to the 4% FOB price. As a proactive and responsible government body, the Service wishes to assure the public that thorough consultation is currently underway with the Federal Ministry of Finance to resolve all concerns highlighted by our valued stakeholders.
“Under the leadership of the Comptroller General of Customs, Bashir Adewale
Adeniyi, the NCS confirms its commitment to openness, fair trade, and effective revenue management. All stakeholders are encouraged to support this legally enforceable initiative, as the measures implemented are in line with the NCSA.
2023 represents a balanced approach born out of extensive consultations with industry players , importers and regulatory bodies.
