Foremost licensed customs agent Lucky Amiwero has written to President Bola Tinubu on the need for the Central Bank of Nigeria'(CBN) to evoke it’s powers to determine a stable exchange rate between the dollar and naira which, according to him, is adversely affecting trade and promoting inflation in the economy.
He also called for full compliance of the Nigeria Customs Service with a recent CBN circular and postulated a predictable and stable exchange rate regime for purpose of customs duty assessment and payment
According to him, with effect from February 26the exchange rate as the date of opening of Form M for importation should be the rate to be used for customs duty assessment for importers.
In the letter written in his capacity as President of the National Council of Managing Directors of Licensed Customs Agents(NCMDLCA) Amiwero cited Section 16 of the Central Bank of Nigeria Act of 2007 which clearly states, the exchange rate of the Naira shall be determined, from time to time, by a suitable mechanism devised by the Bank for that purpose.
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He recalled that the CBN had advised that the Nigeria Customs Service and other related Parties adopt the Closing Forex(FX) Rate on the date of opening Form M for the importation of goods, as the Forex(FX) rate to be used for Import Duty Assessment and that such rate should remain valid until the date of termination of the importation and clearance of the goods by importer
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Amiwero who had served in several presidential and ministerial committees including the committee for the reform of Nigeria Customs Service, describe a stable exchange rate regime as necessary to unlock the hardship faced by importers and other players in the international trade value chain. He frowned at the uncertainties clogging trading activities due to the increasing exchange rate
He wrote “We hereby bring to the attention of the Federal Government of the Central Bank Circular TED/FEM/PUB/FPC/001/007 OF 23RD of February 2024, and request for full compliance by the Nigeria Customs Service to ease the unpredictable , inconsistency , in the assessment of Import Duty based on forex rate on the date of opening Form M.
“There is great concern of the uncertainties built around the price structure of goods, creating abnormal increases in the final sales of price of goods, which is largely driven by uncertainties, with implication to the economy.
“The effective date of 26th February 2024, is the date of implementation, which was clearly stated in paragraph 5 of the Central Bank Circular as follows,
“Therefore, effective 26th February 2024, the closing rate on the date of opening of Form M for the importation of goods and services would be the rates that would apply for the assessment of Import Duty
This supersedes the requirement of Memorandum 9, J (2) of the Central Bank of Nigeria Foreign Exchange Manual (Revised Edition) 2018 reference the circular