How Much Is Custom Fee in Nigeria?

Custom fees are levies imposed on goods imported into a country. The Nigerian government, through the Nigerian Customs Service (NCS), also impose custom fees on imported goods. These fees serve as a means of revenue generation for the government. In this article, we will discuss how much custom fee is in Nigeria.

What is Custom Fee?

Custom fee is a fee levied on goods that are imported into a country. It is an indirect tax imposed on imported goods to raise revenue for the government. Custom fees are also known as import duties, tariffs, or levies.

Custom fees vary from country to country and are determined by the country's customs authority. In Nigeria, the customs authority responsible for imposing custom fees is the Nigerian Customs Service.

How are Custom Fees in Nigeria Calculated?

Custom fees in Nigeria are calculated based on the CIF (Cost, Insurance, and Freight) value of the imported goods. The CIF value is the total value of the goods, including the cost of the goods, insurance, and freight charges.

The CIF value is used to determine the customs duty, Value Added Tax (VAT), and other charges imposed on the imported goods. The customs duty is calculated as a percentage of the CIF value of the goods, while the VAT is calculated as a percentage of the customs duty and the CIF value.

What is the Percentage of Custom Fee in Nigeria?

The percentage of custom fee in Nigeria varies depending on the type of goods being imported. The Nigerian Customs Service has a tariff book that contains the list of goods and their corresponding tariffs.

The tariff book contains different classifications of goods, and each classification has a corresponding tariff rate. The tariff rates range from 0% to 70%, depending on the type of goods.

For example, the tariff rate for agricultural products, such as rice and maize, is 10%. The tariff rate for finished products, such as electronics and appliances, is 20%. The tariff rate for luxury goods, such as jewelry and exotic cars, is 35%.

What Other Charges are Imposed on Imported Goods in Nigeria?

Apart from the customs duty, there are other charges imposed on imported goods in Nigeria. These charges include the Value Added Tax (VAT), the Comprehensive Import Supervision Scheme (CISS), and the Destination Inspection Fees (DIF).

The VAT is a tax imposed on the customs duty and the CIF value of the goods. The VAT rate is currently 7.5%. The CISS is a scheme designed to ensure compliance with import regulations and standards. The DIF is a fee charged by the inspection companies for inspecting the imported goods.

How Can I Calculate the Custom Fee for My Imported Goods?

To calculate the custom fee for your imported goods, you need to know the CIF value of the goods and the corresponding tariff rate. You can find the tariff rate in the Nigerian Customs Service tariff book.

To calculate the customs duty, you multiply the CIF value of the goods by the corresponding tariff rate. For example, if the CIF value of your goods is $10,000, and the corresponding tariff rate is 20%, the customs duty will be $2,000.

To calculate the VAT, you multiply the customs duty and the CIF value of the goods by the VAT rate. For example, if the customs duty is $2,000 and the CIF value of the goods is $10,000, the VAT will be $825.

What are the Consequences of Non-Payment of Custom Fees in Nigeria?

Non-payment of custom fees in Nigeria has some consequences. The Nigerian Customs Service has the power to seize and forfeit any imported goods that have not paid the required custom fees.

The Nigerian Customs Service can also impose fines and penalties on importers who fail to pay the required custom fees. The fines and penalties can be up to three times the value of the imported goods.

Conclusion

Custom fees are an important source of revenue for the Nigerian government. The custom fees in Nigeria are calculated based on the CIF value of the imported goods and the corresponding tariff rate.

It is important for importers to know the custom fees and other charges imposed on imported goods in Nigeria to avoid penalties and fines.

FAQs

1. What is CIF value?

   • CIF value is the total value of the imported goods, including the cost, insurance, and freight.

2. Can I negotiate the custom fees with the Nigerian Customs Service?

   • No, the custom fees in Nigeria are fixed and cannot be negotiated.

3. Is there any exemption on custom fees in Nigeria?

   • Yes, some goods are exempted from custom fees in Nigeria, such as books, medical supplies, and educational materials.

4. How long does it take to clear imported goods at the Nigerian ports?

   • The time it takes to clear imported goods at the Nigerian ports varies depending on several factors, such as the type of goods, the volume of goods, and the level of compliance.

5. Can I pay the custom fees online?

   • Yes, the Nigerian Customs Service has an online payment platform for the payment of custom fees.