Nigeria Customs gives conditions for implementation of zero tariffs on CNG, LPG
The Nigeria Customs Service said importers of gas-related equipment must present a letter of Import Duty Exemption Certificate (IDEC) from the Federal Ministry of Finance and a letter of support from the Office of the Special Adviser to the President on Energy to benefit from a zero import tariff.
This comes as the service on Wednesday announced that it has commenced the implementation of a zero import tariff for all gas equipment importation.
Items to be exempted from the import tariff comprise all related compressed natural gas (CNG) and liquefied petroleum gas (LPG) imported into Nigeria.
The spokesperson of Customs, Abdullahi Maiwada, disclosed this in a statement on Wednesday.
The service explained that the fiscal incentive is part of the Presidential Gas for Growth Initiative.
Accordingly, he noted that the measures are designed to ameliorate the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.
“Pursuant to Part 1, Section 5 of the Customs and Excise Tariff Act, machinery, equipment, and spare parts imported for Nigerian gas utilisation are now subject to a zero percent (0 percent) import duty rate.
“This exemption encompasses all equipment related to Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) imported into Nigeria,” NCS stated.
Furthermore, Customs also identified items that are zero-rated for Value Added Tax.
They include “feed gas for all processed gas, compressed natural gas, imported liquefied petroleum gas, CNG equipment components, conversion and installation services, LPG equipment components, conversion and installation services, and all equipment and infrastructure related to the expansion of CNG, LPG, and the Presidential CNG Initiative, including conversion kits.”
The service added that importation under HS Codes 2711.12.00.00, 2711.13.00.00, and 2711.19.00.00 are exempted from both import duty.
“Consequently, all debit notes issued to petroleum marketers who have imported LPG using these codes from August 26, 2019, to date will be withdrawn by the NCS in line with previous approvals,” the statement indicated.
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