The Nigerian Customs Service (NCS) has been requested by the Central Bank of Nigeria (CBN) to use the same exchange rate for goods imports and clearance throughout the nation.
The directive was included in a circular released on Friday by Hassan Mahmud, the Director of Trade and Exchange Department at the top bank. Mahmud claimed that pricing irregularities have resulted in unforeseen rises in the ultimate cost of items on the market due to the continual fluctuations in customs duty rates.
It gave the NCS instructions to use the FX closing rate on the day that importers submit Form M for goods clearance and import duty assessment.
The regulation aims to reduce the interruptions brought about by the customs website’s regular updates addressing the liberalization of the FX market.
“To this effect, the Central Bank of Nigeria wishes to advise the Nigeria Customs Service and other related parties to adopt the FX rate on the date of opening the Form M for 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 the importers,” the circular partly read.
“This would enable the Nigeria Customs Service and the importers to effectively plan appropriately and reduce uncertainties around varying exchange rate in determining revenue, or cost structure respectively.
“Therefore, effective 26th February 2024, the closing rate on the date of opening of Form M for importation of goods and services would be the rate that would apply for assessment of goods and services. This supersedes the requirement of Memorandum 9, J (2) of the Central Bank of Nigeria Foreign Exchange Manual (Revised Edition) 2018.”
