The Free Trade Zones (FTZs) Committee, focused on reshaping Nigerian Customs Service (NCS) operations, has recommended the immediate allowance for swift export of fully processed commodities containing 100% local raw materials. The NCS has committed to adopting this recommendation, which aims to streamline trade procedures and facilitate the export of locally produced goods.
The Chairman of the Committee, Toyin Elegbede, presented the report during a joint meeting involving heads of the NCS, Nigerian Export Processing Zone Authority (NEPZA), Oil and Gas Free Trade Zone Area (OGZA), and Nigeria Economic Zones Association (NEZA) in Abuja. The report highlighted the need for such goods to meet a specified minimum value-added tax (VAT) requirement.
Formed in July under the direction of NEPZA’s Managing Director, Prof. Adesoji Adesugba, and comprising key industry representatives, the committee was tasked with recommending measures to enhance cooperation among agencies operating within the nation’s free trade zones, ultimately fostering the growth of export-oriented businesses.
The report also proposed the integration of all free trade enterprises into the NCS portal IM5 (5900), which will be revamped to address VAT-related issues for transactions involving customs territory. Additionally, the harmonization of conflicting aspects within the legal frameworks of NCS, NEPZA, and OGZA was advised.
Elegbede expressed gratitude on behalf of the committee and urged the stakeholders to take the recommendations seriously for the nation’s benefit. The Acting Comptroller General of Customs, Bashir Adewale Adeniyi, pledged to swiftly implement recommendations in alignment with the service’s operational policies. Prof. Adesugba of NEPZA and Tiijani Kaura of OGZA praised the committee’s diligent work.
Opinion:
The move to enable the rapid export of locally processed commodities containing entirely homegrown raw materials is a significant stride toward promoting Nigeria’s export trade sector. The decision to adopt the Free Trade Zones Committee’s recommendation underscores a commitment to bolstering economic growth and expanding trade opportunities. By enhancing collaboration among key agencies within the free trade zones, streamlining VAT implications, and harmonizing legal frameworks, Nigeria is poised to create a more conducive environment for sustainable economic advancement.
Published by marketnewsng