Use official FX rate for import duty, CBN tells Customs

• The CBN emphasized that the FX rate at the importation stage should be applied for assessing import duty until the termination date and completion of clearance
  

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The Central Bank of Nigeria (CBN) has instructed the Nigeria Customs Service (NCS) and associated parties to utilize the closing rate in the official foreign exchange (FX) window for import duty.

This directive, issued by Hassan Mahmud, Director of the Trade and Exchange Department, was conveyed in a statement on Friday.

The CBN emphasized that the FX rate at the importation stage should be applied for assessing import duty until the termination date and completion of clearance.

“Following the liberalization of the FX market on the Willing Buyer-Willing Seller trading principle, the Central Bank of Nigeria has noted the concerns of Importers of goods and services in the irregular changes in the Import Duty Assessment levies applied by the Nigeria Custom Service,” CBN said.

“These developments have further built uncertainties around the pricing structure of goods and services in the economy and created abnormal increases in the final sale prices of items, which is largely driven by uncertainties, rather than traditional market fundamentals, with implications to near term inflation trends.

“To this effect, the Central Bank of Nigeria wishes to advise that the Nigeria Custom 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 Custom 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.”

The financial regulator said the directive is to take effect from February 26 2024, and the closing rate on the date of opening of Form M for the importation of goods and services would be the rates that would apply for the import duty assessment.