FOREX: Importers Groan As Customs Raise Exchange Rate To N589.45/$1
From today, June 26, 2023, importers will pay more import duty for the clearance of their cargoes at the nation’s seaports as the Central Bank of Nigeria (CBN) has increased the official exchange rate used by the Nigeria Customs Service (NCS) to calculate import duties and levies from N422.30/$1 to N589/$1.
The increment recorded was as a result of the floating of naira that allowed market forces determine the exchange rate of its currency. When the CBN dictated the rates, the cargo clearance exchange rate on the customs single window was N422.30/$.
However, maritime experts have argued that the new customs exchange rate effectively means that there would be an increase in import duty payable by clearing agents to the Customs service.
Confirming the increment, the public relations officer, Association of Nigerian Licenced Customs Agents (ANLCA), Comrade Omome Monije, rued the increment saying from Monday, clearing agents will pay more for cargo clearance.
She said the increment will affect vehicle clearance saying clearing agents should engage their clients to forestall disagreement.
“The federal government has increased the Dollar exchange rate, from N422.30 to N589.45 to a dollar. What it implies in simple terms is that, if clearing agents have a Debit Note as at Friday that has not been paid on the system or Pre-Arrival Assessment Results (PAAR) or they have given you the value and you have not captured, it has affected you directly on Monday.”
“Once there is a change in the portal, there is nothing anybody can do about it. But if you have captured or access your work, you are good to go and your consignment would be released for you if you don’t have any infraction.”
She explained further that clearing agents that hasn’t done capturing of their consignment even if they have captured their consignment would have to pay with the old price.
“Whether you have collected your value, whether you have a PAAR, if you have not done your assessment as of now, you can’t capture with that old rate. Especially for the Roll On Roll Off (RORO) or those that are doing PARR door to door. It’s a Federal government policy. We stakeholders can’t do anything for now, saying it’s the prerogative of FG to intervene and stabilize the foreign exchange market.”
Also speaking, a Licensed Customs Agent, Remilekun Sikiru, confirmed that the new rate has been effected on the Nigeria Customs Service portal.
According to him, the Customs duty payable on vehicles have increased astronomically.
“For instance, the total duty payable on a Toyota Camry was N901,000 before now, but it has now increased to N1,270.000 Duty payable on Venza according to him was N1.632million before, but it is now increased to N2.278million. In the same vein, Toyota Corolla total duty payable was N786,000 before, but it has now increased to N1.097million.”
The Secretary of Association of Nigerian Licensed Customs Agents (ANLCA) at Tin Can Island Port, Barr Ovien Imonitie, said as at last check on Saturday morning, the exchange rate has increased $589.
Barr Ovien said that the New Federal Govt Approved Exchange Rate for Doing Business both Import & Export has increased, even as he advised all clearing agents to adjust their Custom Duty Payment on all imported Goods.
