Nigeria Customs Service Ready To Suspend 4% Financing Customs Service Fee
Nigeria Customs Service Ready To Suspend 4% Financing Customs Service Fee
In a swift development, the Nigeria Customs Service (NCS) is poised to announce the suspension of the controversial 4% Financing Customs Service (FCS) Operation fee, pending any last-minute changes.
This decision comes in response to widespread confusion among stakeholders in the trading community regarding the fee’s implementation.
Sources indicate that the suspension aims to facilitate a thorough sensitization process for members of the trading public, ensuring that all parties are adequately informed before the fee is officially introduced. Currently, the Tariff and Trade department of the NCS has reportedly not been involved in the fee’s introduction, further contributing to the uncertainty surrounding the matter.
An authoritative source within the NCS revealed to our correspondent that cargo clearance at seaports has come to a standstill, as clearing agents have halted the processing of their imports. The source cautioned that without proper communication and sensitization, there could be dire consequences, including the abandonment of cargoes and increased congestion at the ports.
“There is confusion among stakeholders, and the Tariff and Trade department has stated they are not aware of the fee’s introduction. A meeting is currently underway, and it is highly likely that the implementation will be suspended to allow for proper stakeholder engagement,” the source explained.
The situation has left many in the industry, including Customs Area Controllers (CACs) and manufacturers, in a state of uncertainty.
“Manufacturers are stranded, agents are confused, and operations are at a standstill, but I am optimistic that a resolution will be reached soon,” the source added.
This development echoes concerns raised by Dr. Eugene Nweke, the former President of the National Association of Government Approved Freight Forwarders (NAGAFF). In a recent statement titled “The 4% FCS Fee As Contained In Part Five, Section 18 Of The Customs Act 2023 – A Professional Opinion / Explanation,” Dr. Nweke warned that imposing a 4% charge on the Cost Insurance, and Freight (C) value without adequate notification and circular could lead to significant uncertainty for importers and customs brokers.
He emphasized that implementing the fee without the necessary presidential endorsement and official announcement could be viewed as unilateral inconsistent with the provisions of the law. Dr. Nweke highlighted the serious implications of this situation, noting that many cargoes currently undergoing duty payment and clearance processes are effectively trapped at customs ports.
As the NCS prepares to address these issues, stakeholders await further clarification and guidance on the future of the 4% FCS fee and its impact on trade operations in Nigeria.
