Kano, Jigawa Customs dialogue with stakeholders on FOB tax

The Kano/Jigawa Customs Area Command has held a stakeholders’ meeting on the collection of 4% Free On Board (FOB), insisting that the new revenue law was in the interest of all stakeholders, including exporters, importers, customs agents, among others.

Dalhatu Abubakar, area comptroller of the command said the 4% FOB collection was temporarily suspended because the Nigeria Customs Service (NCS) contract with the service providers has been terminated.

According to him, NCS will begin to collect the 4% FOB by by itself once the suspension is lifted, adding that the Nigeria Customs Services is using the period of suspension to sensitize all stakeholders on the need to pay the 4% FOB levy.

“Our meeting today is to discuss what all of us are already aware of; that is the issue of 4% Free-On-Board collection has been suspended,” Abubakar said.

“The suspension is why we are here. We want to engage the stakeholders. The suspension aligns with the termination of our contract agreement with the service providers.

“This stakeholders meeting will be continuous. We will be inviting you in the coming weeks. We are here to sensitize you and give you lectures on the reason we should pay the 4% FOB levy.”

The Customs boss further stated that the 4% FOB also known as Financial Customs Service Operation (FCSO) is backed by law as stated in Section 18 (1) of the NCS Act (2023).

According to him, the Act gives Customs the powers to collect the 4% FOB, which is largely used to facilitate the activities of the NCS, as well as making the process of dealing with stakeholders easier.

Lectures were presented to the stakeholders, highlighting the need they should accept the collection of the 4% FOB.

Though some of the stakeholders who spoke said the levy was adding more burden on their business transactions, many of the agreed with the submission of the NCS, but insisted that stakeholders should be carried along whenever such laws affecting their businesses directly are promulgated.

They also urged the NCS to inform all stakeholders whenever the suspension of the 4% FOB is lifted so that they can inform their customers and business partners.