The Comptroller General of the Nigeria Customs Service, Adewale Adeniyi, has accused companies operating in the nation’s Free Trade Zones of violating the law regulating their operations.
Adeniyi stated this on Friday in Abuja at the closing day of the House of Representatives public hearing on the tax reform bills organised by the Committee on Finance
He claimed that the companies are going into Customs areas where extant tax laws are operational to conduct their businesses.
His statement was in response to an allegation by the Nigerian Chambers of Commerce, Industries, Mines and Agriculture that, tax and levies are allegedly imposed on companies operating in Free Trade Zones by the Nigeria Customs Service.
In response, the Customs boss said: “The sticky issue over the years has been the compliance of free trade zone operators with the provisions of the law. The law allows them to import every manufacturing input they need, 100 per cent sometimes, including things that are prohibited into the customs territory.
“In fact, a lot of those incentives were given to them to manufacture. However, the initial incentives were for them to export everything that they imported inside this free zone. But from time to time, I think they started to develop loan proofs for the local markets. And they felt that they couldn’t trade anything from the local markets.
“So, I think there was a need to produce all the services we can provide to the local markets. From the local market to the federal market the regulations of change allow them to export 25 per cent of volume and factory into the local market, into the local customs territory and subject to extant laws affecting goods that are imported into Nigeria. I cannot stand here, Mr Chairman, and tell you that this has been observed absolutely at full compliance.”
He continued, “There have been reported violations of these provisions. We have seen some of them that were expected to export 100 per cent of the things that they produce in the free zone in Nigeria. We have even seen cases of some free zone enterprises that want to export to Nigeria. We have seen the import of locally made armoured cars and luxury goods.
