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FG Warns Against Abuse of Import Duty Exemptions

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Federation Account Allocation Committee
  • FG Warns Against Abuse of Import Duty Exemptions

The Federal Government on Thursday warned not-for-profit and charitable organisations against abusing the import duty waivers granted on relief materials from foreign donors.

The warning was contained in a statement signed by the Director of Information in the Ministry of Finance, Salisu Dambatta.

The statement urged the organisations to exercise caution when applying for Import Duty Exemption Certificates, while receiving donations of relief materials from foreign donors.

This, the statement added, was to ensure that the donations were from genuine partners.

The statement said the warning followed a recently discovered case in which a charitable organisation applied for and was granted the IDEC for the importation of donated drugs for HIV/AIDS treatment, anti-malarial drugs and mosquito nets.

It added that an inspection by the Nigeria Customs Service led to the detection of 5,900 units of high-end Samsung mobile phones and screen covers valued at over N566m concealed in the mosquito nets.

It noted that the items were not listed on the manifest, nor detailed in the IDEC application.

The items, according to the statement, have now been seized and a case for potential prosecution is being prepared.

The statement added, “Following this discovery, the Ministry of Finance and the Nigeria Customs Service have amended the procedure for the issuance and extension of the IDEC in respect of relief materials.

“Henceforth, the NCS will automatically conduct 100 per cent inspection on all donations for which the IDECs have been issued.

“In addition, prior to the issuance of the IDECs for relief donations, the Federal Ministry of Finance and the Nigeria Customs Service will conduct more vigorous detailed background checks on both the foreign donors and the trustees of local charity organisations.

“The IDECs for relief materials will be valid for 180 days only, but can be reviewed if unused.”

According to the statement, while the ministry and the NCS welcome and appreciate donations of relief materials, they will work to “prevent abuse by unscrupulous individuals determined to economically damage Nigeria by evading duties payable on commercial goods.”

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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