On the 16th of July, 2024, the Nigerian Customs Service organised a sensitisation and flag-off programme of the Advance Ruling System in Nigeria. The programme was organised in partnership with GIZ, German Corporation, World Customs Organisation and the European Union.
Overview of the Advance Ruling System
The Advance Ruling System is a product of Section 24 of the Nigerian Customs Service Act, 2023. With this system in place, importers can apply for an advance ruling on tariff classification, customs valuation etc. of their goods before the goods are shipped to Nigeria. Advance rulings are binding. As such, when the goods are shipped to Nigeria, the ruling which was issued in respect of those goods must be complied with by the Nigerian Customs Service.
Conditions for Applying for an Advance Ruling
In order to apply for an advanced ruling, some conditions must be fulfilled. They are as thus:
- There must be an actual intention to import/export goods
- The goods have not been shipped to Nigeria
- The subject of the advance ruling is currently not being litigated.
Information Required for Obtaining an Advance Ruling
Some pieces of information are required in order to obtain an advance ruling on tariff classification. They are as follows:
- Product samples (if applicable)
- Technical specifications (MSDS, CAS numbers, chemical analysis, etc.)
- Brochure or catalogs
- Pictures of the subject of the advance ruling
Valuation Requirements
The following should be provided for valuation:
- Commercial or pro forma invoice
- Packing list
- Distributor’s agreement (if applicable)
- Contract of sale (if applicable)
- Commercial level
Determining Country of Origin
In order to determine the country of origin, the following details will be supplied by the trader:
- Full details of all components used in the production of goods
- Country(-ies) of origin of components
- Specific preferential trade agreement under which products will be imported/exported.
Revocation and Annulment of Advance Rulings
Advance rulings may be annulled or revoked by the Nigerian Customs Service. It will be revoked if there is a change in the fiscal policy or international conventions which are applicable to the advance ruling. An advance ruling will be annulled if the beneficiary of the advanced ruling provides false information.
Impact of the Advance Ruling System
With the launching of the Advance Ruling System in Nigeria, trade will be easier. This will ensure that a trader can know, in advance, what customs rules govern their trade activities. As such, delays occasioned by compliance with customs rules will be removed.
Stay informed on the latest trade facilitation measures and how the new Advance Ruling System can streamline your import/export processes in Nigeria. Follow us on LinkedIn for more updates and insights on Nigeria’s trade policies and initiatives https://www.linkedin.com/company/harboursim-lp
