Why Customs will reintroduce 4% FOB levy, CG Adeniyi

Comptroller General of the Nigeria Customs Service (NCS), Mr. Bashir Adewale Adeniyi on Monday hinted on the reintroduction of the suspended four percent Free On Board (FOB) as he affirmed that it returns will save business owners the payment of the one percent Comprehensive Import Supervision Scheme (CISS) and the 7 percent of the Cost of Collection hitherto imposed on cargoes.

The Customs boss, who spoke at a town hall meeting with stakeholders on B’Odogwu clearance with the theme “Enhancing Trade Compliance and System Optimisation Through Stakeholders Engagement” in Lagos, affirmed that the NCS will no longer impose further charges on importers.

He added that funds generated from the FOB level will be geared towards enhancing the service’s technology advancement and operational efficiency.

Responding to inquiries on the FOB, Mr. Adewale said “I am talking to you seriously our esteemed stakeholders across the different value chain, in terms of the 4 percent FOB that I spoke about, I tell you that with the implementation of 4 percent FOB, the 1 percent CISS and the 7 percent cost of collection, which is also being charged, will be completely removed.”

According to him, “Talking about the 7 percent cost of collection, it is taken from the federation account to administer Customs operations. What this represents is that the three tiers of government, the federal government, the state government, and the other sub-nationals, will comprise 70 percent of what is brought to the federation account.

“That’s what we have practised in the last 10 years. However, under the new Act, 4 percent FOB is to be paid up front, and that’s it. Once that is done, it is 100 percent of the revenue generated by Customs that will go to the federation account. So, it’s going to be a win-win situation for all of us.”

Meanwhile a cross section of the stakeholders described the B’Odogwu Clerance System as a masterstroke by the Customs as they enumerated its gains ranging from improved trade compliance, cargo clearance efficiency, improved cargo visibility and tracking, speedy clearance, transparent billing system and revenue generation.

They added that the system has so far brought about transparency in cargo businesses, improved digital tracking of transactions, as well as the eradication of all downtime associated with the now rested NICIS II.

The CG explained that the gathering has allayed his fears about the system stating that “We have organised this Town Hall meeting because we want to hear from our stakeholders their experiences with the B’Odogwu system. Over the last two weeks, I have had concerns about logging in, migration from NICIS II to B’Odogwu, payment problems, and things like that.”