Nigeria lowers brown rice import tax to 0%

The Nigerian Customs Service has announced a new policy that reduces import tax to 0% for six food products, including brown rice, sorghum, millet, corn, wheat, and beans, and exempts value added tax (VAT) for some other products. This policy, in effect from July 15 to December 31, 2024, is designed to make essential food items more affordable and address potential food security challenges. However, to enjoy these tax exemptions, Nigerian businesses must meet specific criteria such as being registered and operating in the country for a minimum of five years, having a milling plant for brown rice and millet, and owning sufficient agricultural land. This policy is expected to benefit Vietnam, Nigeria's largest trading partner in Africa, by making the import of these food items more economically feasible.

On August 14, the Nigerian Customs Service announced the reduction of import tax on 6 types of food products to 0%, and the exemption of value added tax (VAT) for some other products. Among the 6 products that benefit from import tax is brown rice (HS code 1006.20.00.00). In addition, there are sorghum, millet, corn, wheat and beans. The new policy of the West African country will be implemented from July 15 to December 31, 2024. Although quite expensive, brown rice is not among the main products of the rice industry. In return, Vietnam has some highly appreciated varieties. Typically, Japonica brown rice is favored by Asian markets. According to the Vietnam Trade Office in Nigeria, businesses wishing to enjoy preferential treatment on imported goods under the new policy must satisfy the following requirements: Registered business in Nigeria and have been operating for at least 5 years; Have complete annual revenue reports and financial reports, and pay all taxes as prescribed ...