Calculation of import duty in Nigeria entails payment of import duty based on applicable H.S. code, 7% surcharge, 1% Comprehensive Import Supervision Scheme(CISS), 0.5% ECOWAS Trade Liberalization Scheme(ETLS), and 7.5% VAT which are to be made through one of the banks designated by the Federal Government for the Customs Area of Importation. This is key for Customs clearance and freight forwarding services. As a logistics company in Lagos Nigeria, click here for details on our offered services.
Example of calculation of import duty in Nigeria using 20% import duty:
– FOB value = 80.00
– Freight = 20.00
– CIF = 100.00
The Customs duty in Nigeria is paid as follows based on the above assumption :
| Import duty – 20% on CIF | 20.00 |
| 7% surcharge on duty | 1.40 |
| 0.5% ETLS levy on CIF value | 0.50 |
| 1% CISS fee on FOB | 0.80 |
| 7.5% VAT on all above + CIF | 9.20 |
| Total payable to Nigeria Customs | 31.90 |
| Landed cost of item in Nigeria | 131.90 |
Custom duty in Nigeria and all other applicable taxes in favour of the federal government of Nigeria is 31.90
To enhance the monitoring of the import duty scheme, Shipping lines and Airlines are requested by law to always state the Form M which entails M Form and BA numbers for each consignment on the ship’s/aircraft’s manifest, bill lading or airway bill, as well as on all shipping documents for all import shipment to Nigeria before such manifest are submitted to the Nigeria Customs Service Department.
On the calculation of import duty in Nigeria, issues has been raised on why is the 5% VAT value on the high side and this brings us to – How to calculate VAT in Nigeria
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How To Calculate VAT In Nigeria
The VAT base is on the high side when computing Custom duty in Nigeria and all other applicable taxes. The VAT base is a cumulative of the CIF value, import duty, 7% surcharge, 0.5% ETLS, and 1% CISS. 5% VAT is taken on the aggregate value. This can be expressed as follows:
5% x (CIF value+Duty+7% Surcharge+0.5% ETLS+1% CISS) = VAT value
If the issue on how to calculate VAT in Nigeria is not quite clear, then contact us and we shall be glad to clarify same.
We can equally provide you with ship agency services.
Computation of duty and taxes for imported cars into Nigeria
For more information in respect of duty and taxes for imported cars into Nigeria, click here.
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