The Nigerian Customs Service (NCS) has announced that it will be replacing the proposed 4 percent import levy with the existing 1 percent Comprehensive Import Supervision Scheme (CISS) levy.

The Comptroller General of Customs (CGC), Adewale Adeniyi, made the revelation at an engagement held in Lagos to sensitize stakeholders in the B’Odogwu platform.

The CGC who is also the Chairperson of the World Customs Organization (WCO) explained that, though the introduction of the 4 percent FOB had been enshrined in the constitution, he noted that the decision to reintroduce the levy was made after careful consideration and consultation with relevant stakeholders.

Adeniyi explained that the one percent CISS levy has been in place for several years and has been instrumental in facilitating trade and generating revenue for the government.

It would be recalled that the proposed 4% import levy, which was initially announced to replace the 1% CISS levy, had been met with widespread criticism from importers, manufacturers, and other stakeholders.

Many had expressed concerns that the increased levy would lead to higher costs of goods, inflation, and reduced competitiveness.

But addressing the stakeholders, the CGC stated that the reintroduction of the levy became necessary so as to enable the NCS to meet up with changes in technology in customs operations.

“Its purpose is to fund technology and modernization of Customs operations via the indigenous B’Odogwu trade platform. The transition to B’Odogwu requires significant funding,” he stated.

Meanwhile, the Organized private sector in the Nigerian trade logistics chain has lauded the NCS B’Odogwu platform, stating that it has brought more transparency, improved digital tracking of transactions, and wiped out all down-time that had been synonymous with the NICIS II.