ExpdonaLoaded.blogspot.com (+2348097205188): Expdonaloaded News; Rice investors decry Customs action over duty payment

Thursday 30 July 2015

Expdonaloaded News; Rice investors decry Customs action over duty payment

Rice investors and importers have decried the sealing of their warehouses by the Nigeria Customs Service over alleged non-payment of N23.60 billion excess importation levy. The Customs, on Tuesday, pounced on the rice importers, sealing their warehouses in Lagos. The sealed companies include OLAM, Stallion, Masco Agro, Ebony Agro and Conti Agro (Milan).

Reacting to this development, some of the importers expressed reservation, since, according to them, they have never done business without compliance to the provisions of the law.
The controversy over the 2014 allocation of quota for rice importation is before a court, as some of the companies involved sued the Customs. Stating their case, they said that the quantum and the basis of allocation of quotas for 2014 were not in order, and were issued late after all the imports were made and goods sold, implying there was no real “excess.”
The rice investors are concerned that the recent action of Customs was based on unfair allocation of quotas, alleging that they are being subjected to unwarranted harassment, notwithstanding their substantial investment. Some of them query the rationale of the Customs to hinder the activities of foreign investors.
Following the confusion that trailed 2014 quota, the one for this year was also issued, canceled and later on reissued again. The implementation of the policy received a lot of criticism over the process followed, which was not in accordance with the presidential directives.
President Goodluck Jonathan had, on May 26, 2014, granted approval for investors with rice milling capacity and verifiable backward integration programme to import rice at 10 per cent duty, with a levy of 20 per cent for a period of four years. The objective was to encourage investors in the rice value chain while addressing the supply gap effectively.
The Ministry of Finance on July 8, 2014 issued a circular to this effect. Several millers certified as bonafide by the Ministry of Finance commenced imports based on the undoubted authenticity of the circular. The subsequent sequence of events led to a chaotic environment, with the rice importers highlighting several problem areas.
They had complained that the 2014 allocations made by the Ministry of Agriculture was not valid as its was not made as stipulated by the President. Also, they complained that   the allocations were made late, after six months from the stipulation in December 2014, too late to meet the country’s rice demand for the season.
The rice importers said the quotas were imposed with retrospective effect, after they had already cleared the shipments and delivered them to their customers, based on incurred landed costs.
According to them, the allocations were inadequate and not commensurate with the investments made in Nigeria by integrated rice millers. Sensing that something was seriously wrong, the former Presidency called for the cancellation of the 2015 quotas and a full review of the 2014 implementation under the leadership of the Vice President.