Customs Re-imposes Restriction on Rice Importation

The Nigeria Customs Service has re-introduced the restriction order on importation of rice through land borders across the country. Comptroller-General of Customs, Col. Hameed Ali (Rtd) gave the approval for the reversal of an earlier policy, which allowed rice imports through the land borders, once appropriate duty and charges were paid.

At a review session held with Comptrollers of Border Commands and Federal Operation Units in Abuja, the Service, noted that dwindling revenue from rice imports through the land borders do not match the volume rice landed in neighboring Ports. Rather, reports from Border commands indicated an upsurge in the tempo of rice smuggling.

Implementation of the restriction order got off to a smooth start, with a high level of compliance in October 2015. However, revenue started dwindling from January 2016, with importers blaming access to foreign exchange as the major impediment. During the Five-month period when importation was allowed, a total of 24.992 metric tonnes of rice valued at N 2.335 billion was imported through the land borders.

During the period, total revenue generated amounted to N1.685 billion, a figure considered lower than the revenue projected to be generated with the removal of import restrictions.

However, an upsurge in the number of the seizures has been reported across the land borders since January 2016. In the first two months of the 2016, a total of 9,238 bags were seized with Duty Paid Value of N64.666 million was made by the Customs anti-smuggling patrol teams of federal operations and border commands.

Ali said: “My officers and men cannot be totally exonerated from the abuse associated with the implementation of the order on rice, as this office has been inundated with reports of collusion between customs officers and rice importers.” The CG has therefore directed investigation into the reports, insisting that indicted personnel will be sanctioned.

While directing a zero-tolerance to rice imports through the land borders irrespective of volume with immediate effect, Ali stated that “importers who have already initiated import processes will have a grace period ending Friday 25th March 2016 to clear their consignments.”