CBN issues fresh guidelines to Customs on import clearance exchange rate

• The regular changes in the customs duties rate have disrupted the pricing structure, leading to irregular increases in the final cost of goods in the market

The Central Bank of Nigeria has instructed the Nigerian Customs Service, (NCS), to adopt a foreign exchange closing rate on the date of the ‘Form M’ submission by importers for the clearance of goods and import duty assessment.

The CBN disclosed this in a statement on Friday signed by its Director of Trade and Exchange Department, Hassan Mahmud.

According to CBN, the regular changes in the customs duties rate have disrupted the pricing structure, leading to irregular increases in the final cost of goods in the market.

The new move by the apex bank aims to tackle the volatility and frequent updates on the customs website concerning the liberalization of the foreign exchange market.

It added that effective 26th February 2024, Nigeria customs should implement the new guideline.

“To this effect, the Central Bank of Nigeria wishes to advise the Nigeria Customs Service and other related parties to adopt the FX rate on the date of opening the Form M for importation of goods, as the FX rate to be used for import duty assessment. This rate remains valid until the date of termination of the importation and clearance of goods by the importers.

“This would enable the Nigeria Customs Service and the importers to effectively plan appropriately and reduce uncertainties around varying exchange rates in determining revenue or cost structure, respectively.

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 rate that would apply for assessing goods and services. This supersedes the requirement of Memorandum 9, J (2) of the Central Bank of Nigeria Foreign Exchange Manual (Revised Edition) 2018.”

Since January this year, the Central Bank of Nigeria has raised the exchange rate for cargo clearance at least six times. The latest was the exchange rate increase for cargo clearance to N1,605 per US dollar.