Business Studies

Customs And Excise Duties in Foreign Trade

The customs and excise authorities assess and collect the customs and excise duties levied by the government as an important source of revenue. The customs and excise authorities make sure that the amount of certain imports does not exceed the quota or limit allowed to be imported within a specified period. Quotas are imposed to protect the local manufacturers from foreign competition and only a limited amount of foreign goods will be allowed into the domestic market to compete with the locally manufactured goods.

Functions of the customs and excise authority

  1. i) Collection of Tariffs: It assesses and collects revenue from tariffs and excise duties.
  2. ii) Supervision of Warehouse: The customs department supervises bonded warehouse.

iii) Compilation of Statistical Records: The department compile statistics on export and import trade which is supplied to the government.

  1. iv) Prevention of Smuggling: The customs authority prevents smuggling and seize contraband goods.
  2. v) Supervision of Foreign Trade: It supervises foreign trade by ensuring that only licensed goods are imported and exported.
  3. vi) Enforcement of Ban: The customs authority ensues that bans on prohibited goods are enforced.

vii) Provision of Quarantine Facility: It provides appropriate quarantine facilities for the importation of livestock.

viii) Completion of Documents: The customs will ensure that customs declaration forms and other dicuments are completed.

Preventive services and tax duties

The service is mandated to collect Import and export duty tax, petroleum tax and import excise. It promotes the protection of revenue through the prevention of smuggling of goods across the country’s borders. The service protects the boundaries of the country by preventing external aggression and promotes territorial integrity of the country. Import and export restrictions and prohibitions are supervised by the service.

Nigerian Export Promotion Council

Nigerian Export Promotion Council (NEPC) was set up to assist exporters in the course of exporting goods and to set out procedures for export trade. The council also assist in assessing the performance of Nigeria’s export commodities in foreign market.

Functions of the Nigerian Export Promotion Council

The following are the functions of the Nigerian Export Promotion Council

  • Trade information service: The Nigerian Export Promotion Council establishes and operates international trade information centres to provide prompt information service.
  • Organize training Activities: NEPC organizes training programs, seminars, conferences, and workshops in export management and international marketing.
  • Creation of awareness: The council produces publicity materials to publicize the export potentials of the country and by so doing create awareness for them and the council’s activities.
  • Export development activities: The NEPC helps to give advice on quality control, packaging, and product design to ensure acceptable standard of exportable goods.
  • Export Financing and Incentives: It assists in in financing export by evolving measures designed to make available export financing facilities, investment etc.
  • Trade Enhancement Activities: NEPC reviews all liberalizes export procedures and documentation to enhance clearance at the port.

The Roles of Custom and Excise Duties in Foreign Trade are

  1. Collection of Various dues like import duties (money paid on imported goods) and excise duties (money paid on exported goods).
  2. Control of the flow of goods in and out of the country. Goods needed in the country are not allowed to be taken out
  3. Collection of information and facts about trade to help planning by the government
  4. Supervision of bonded warehouses (where imported goods are kept till duties are paid on them). The custom and excise department is in charge of bonded warehouses.

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