PORT CARGO CLEARANCE FOREX IS REDUCED BY 0.76% BY CBN

On Wednesday, the Central Bank of Nigeria (CBN) reduced by 0.76 percent to calculate customs duties at the country's seaports and airports.

The naira's versus the dollar winning at the official window on Tuesday was the cause of the decrease.

On Tuesday, the naira appreciated 0.90 percent vs the US dollar due to a rise at the official foreign currency (FX) market.

According to data issued by the FMDQ Securities Exchange, following trading on Tuesday, the local currency gained against the dollar was quoted at N1,603.38, greater than N1,617.96 posted on Monday at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

Reports say its strengthen at the NAFEM, the nations official window with naira closing at N1,603/$1, on Tuesday.

However, according to information on the National Trade Hub, the official trade site of the Nigeria Customs Service, the Customs duty rate was reviewed reduced from N1, 624.7/$ to N1, 612.281/$1, as a result of the naira's strengthening in the official market, 0.76 percent drop when compared to N1, 624.7/$1 utilized as of Tuesday, and a reduction of N12.419 less on a dollar.

Because import tariffs are based on the value of the dollar, importers who opened Form M today will pay less to clear their shipment.

Also, importers will open Form M at a lower rate compared to those who opened Form M on Tuesday, 12th March, 2024 due to the apex banks latest direction to Customs, on the day of filing Form M for calculating import duties.

Dr. Kayode Farinto, the former acting president of the Association of Nigerian Licenced Customs Agents (ANLCA), suggested the CBN implement two quarters.

“This would save the nation's ports and importation from declining,” For customs and cargo clearance, we can use an exchange rate of N1000=$1 from January to June. This will stabilize our import and reaffirm our faith in our importation, knowing N1000 to the dollar regardless of the circumstances. If an increase is necessary, everyone will be able to see it, and from the second week of June onwards, people will have been made aware of the necessity.

“Thumbs up to the new CBN leadership for the directive on Form ”M,“ which should be the standard rather than necessarily an intervention or solution but international best practices. The CBN advised the Nigeria Customs Service and other related parties to adopt the closing FX rate on the date of opening Form ”M for the importation to be used for import duty assessment.

You may remember that we have been demanding for the past ten years that import duty collection at the time of clearance be contingent only on the foreign exchange rate in effect when Form “M” is opened. The Nigeria Customs Service has been benchmarking in recent years; the CBN mandate will assist with this instead of providing a fix for the volatile exchange rate.

He remarked that the CBN needed to completely revamp her system if the country's economy was to remain sane.