FG bans importation of rice again

The Comptroller-General of Customs, Hameed Ali, made the announcement on Tuesday, March 22, 2016, saying the presidency has approved the reversal the October 2015 policy which allowed rice imports through land borders, once appropriate duty and charges were paid.

Ali stated this at a review meeting with Comptrollers of Border Commands and Federal Operation Units in Abuja.

He said the Service has observed that crashing revenue from rice imports through the land borders rarely match the volume of rice arriving in neighbouring ports.

According to him, reports from border commands indicates an upsurge in rice smuggling, adding that implementation of the restriction order had already taken off smoothly since October 2015, with a high level of compliance.

But revenue began to crash from January 2016, with importers blaming access to foreign exchange their as major impediments, Ali said.

During the five-month period October 2015 and March 17, 2016 when the importation was allowed, he said a total of 24.992 metric tonnes of rice valued at N2.34 billion were imported through the land borders.

The total revenue generated for the period stood at about N1.69 billion, considered lower than the projected revenue to be generated with the removal of import restrictions.

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He said an upsurge in the number of the seizures has been reported across the land borders since January 2016, with about 9,238 bags of rice seized within the first two months of the year, with about N64.67 million as duty paid value received by the Customs anti-smuggling patrol teams of Federal operations and Border commands.

“I have directed a zero-tolerance to rice imports through the land borders irrespective of volume with immediate effect. Importers who have already initiated import processes will have a grace period ending Friday March 25, 2016 to clear their consignments,” the Comptroller-General declared.

Although the Comptroller-General of Customs said his officials cannot be totally exonerated from the abuses associated with the implementation of the order on rice, he disclosed that his office has been inundated with reports of collusion between them and some rice importers.

In view of this, he said he has directed full investigation into the reports, assuring that all indicted personnel will be sanctioned.