FOB means that the seller takes care of getting the goods to the departure port, handling the export clearance, and loading them onto the ship. Once the goods are on board, the buyer takes on the risk and is responsible for any further costs.
In a press release issued Wednesday, Abdullahi Maiwada, National Public Relations Officer of the Nigeria Customs Service (NCS), clarified that this action conforms to the Nigeria Customs Service Act (NCSA) 2023.
The Free On Board (FOB) charge, calculated on imported goods' value inclusive of cost and transportation to the loading port, is crucial for efficient service operations.
The NCS acknowledges stakeholder concerns regarding the ongoing 1% Comprehensive Import Supervision Scheme (CISS) fee, a regulatory charge funding Nigeria's Destination Inspection Scheme alongside the 4% FOB charge.
As a responsive agency, the NCS assures the public that comprehensive consultations are underway with the Federal Ministry of Finance to address stakeholder concerns.
Maiwada encouraged all parties involved to adhere to this directive, which was developed after thorough discussions with relevant stakeholders and organizations.
“All stakeholders are urged to support this legally binding initiative,” he said.
The steps taken in line with the NCSA 2023 show a well-rounded strategy developed through thorough discussions with industry experts, importers, and regulatory agencies.
He emphasized how crucial the input from stakeholders has been in shaping and bringing the NCSA 2023 to life, “Their insights, expertise, and unwavering commitment have been instrumental in ensuring a robust legal framework that enhances efficiency, promotes innovation and strengthens transparency in customs operations.”
The customs official mentioned that under Adewale Adeniyi's leadership as comptroller-general, the service is dedicated to maintaining transparency, fair trade practices, and effective revenue management.