FOB 4% LEVY SUSPENSION: Group Faults Customs , Demands Total Cancellation

 

A maritime pressure group under the auspices of Save Nigeria Freight Forwarders Importers Exporters Coalition (SNFFIEC) has expressed disappointment for the Nigeria Customs Service initial implementation of the 4% Free On Board (FOB) Levy imposed on shippers.

The group demanded for a total cancellation of the levy urging stakeholders not to entertain the notion of being suspended because of the ripple effects on cargo clearance from the ports

Speaking at a press briefing held in Lagos on Wednesday, National Coordinator of the SNFFIEC, Sir Ositadimma Chukwu , described management of service led Adewale Adeniyi as incompetent,calling for the resignation of the Finance Minister Wale Edun and the Comptroller General of customs.

Chukwu , while seeking explanation from the customs stated that already importers had allegedly commenced payment of the 4% FOB levies before the suspension saying that “who will refund their monies with the new development of suspending the levy.

According to him,. high cost of cargo clearance from the nation’s ports will continue to soar higher if the levy finds its way back to the already existing multiple tariff on importation.

He said “what we want on this FOB levy is not suspension but total eradication there is no way it will add value to the system. It is dead on arrival.

“We categorically call on the government to remove this 4% increase and revert to the original percentage being charged on the cargoes through FOB”. he declared.

Chukwu noted that what was agreed by stakeholders to be in the act was a 4% increase in the derivation that accrued to the Nigeria Customs Service from all the levies and duties paid on goods and not a hike in the percentage on free on board (FOB) levy as presented in the act.

The Coordinator lamented that the economic hardships being faced by Nigerians has continued to render customs brokers jobless , noting that any levies introduced this time should be resisted by practitioners.

Chukwu opined that as a public relations pundit, the Comptroller-General of Customs should have been in a better position to advice the Minister of the disadvantages of the levy on the trading public.

He pointed out that consequences of implementing such a hike in levy earlier before the suspension at this moment could cost more problem for the trading public.

Recall that on Tuesday the 11th of February, the Nigeria Customs Service announced the suspension of the implementation of 4% Free-on-Board (FOB) value on imports as provided in Section 18(1)(a) of the Nigeria Customs Service (NCSA) 2023.

This is sequel to ongoing consultations with the Minister of Finance and Coordinating Minister of the Economy, Mr Olawale Edun and other Stakeholders”.