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Friday, 14 September 2018

Import policies Tariffs

The Nigerian government is used to frequent change in tariff structure regime . More so uneven collection of duties make important difficult and expensive thereby creating difficulties for commercial activities. The country's dependence on imported raw materials and finished goods seems to enhance the problem which affect both the domestic As well as foreign investors. This result in under invoicing and smuggling as an escape route to avoid paying full tariff.

 To buttress the above point, government inconsistent policy on tariff made real nonsense of Dunlop's 18 billion investment in the production of truck tyres in the country. Dunlop invested this sum to expand into heavy truck radial type production only for the government to slash the import duty on that grade of tyre from 40% to 10%. Dunlop had involved its business model for the investment in the truck tire plant on the level of the government tariff on truck tires. But with the reduction in tariff, it became clear that it would be difficult for the company to compete with imported tyres.

 Non tariff trade barriers
 The government of the federal republic of Nigeria tend to pursue policies that are inconsistent with WTO prohibitions against certain non tariff trade barriers. Dance on variety of items sorghum, millet, which floor, cassava, frozen poultry, vegetable oil in bulk, kaolin gypsum, mosquito repellent net and coil , wax printed fabric, used clothing and bagged cement continued in 2003. Then in 2004, a total of 43 items were prohibited from entering into the country. The comprehensive list are as follows;
 1 live or dead birds including frozen products.
 2 pork and pork products .
 3 bird eggs.
4 flowers plastic and fresh.
 Cassava cassava products.
 Wheat floor. Enter vegetable oils and fats.
 Sugar confectionery is other than chocolate.
 Butter, power and cakes.
 Spaghetti noodles.
 Fruit juice.
 Water including water and aerated water containing added sugar or sweeten mata or flavoured, and they non alcoholic beverages.
 Water, including water and added water not containing at the sugar or sweden matter of flavour ice snow .
 Beer bottles canned or otherwise packed.
Batonies and batteries.
Bagged cement.
 Medications listed beloved.
 Paracetamol tablets and syrups
Cotrimazole tablet and syrup. Chloroquine tablets and syrups herbal formulations. Folic acid tablets. Multivitamin tablets, capsules and syrups except special formulations.

 Custom barriers
 Nigerian ports r a source of worry and great obstacle to international marketing. Marketers face difficult and long clearance procedure, hi breeding and unloading cost, erratic application of customs regulation and corporation .

 Standard, testing, labelling, and certification
 The task of standardization and regulation of quality of all products is the responsibility of standard organisation of Nigeria son established in 1971 and we three amendment in 1976, 1984 and 1990 . The organisation has sold the responsibility for national policy and on standards standard specification quality control and mythology. Sun was dormant and almost rendered powerless in implementing his mandate until the commencement of the tenure of president director general doctor john akanya.

 Order to solve the twin problem of how many our environment with dangerous fumes that usually result from the combustion of seized material and improvising of are importers the organisation came up with the introduction offshore assessment program son cap .

 The aim of son cap is to identify those goods that pays the highest risk to consumers in nigeria and ensure that their claims of safety are verified before they are exposed to Nigeria. This is aimed at ensuring that Nigerian costumers are protected from onset and substandard goods as well as ensuring that nigerian manufacturers are not subjected to unfair competition from such goods .

 Son cap became mandatory from sep1 2005 4 products within its scope. These products are known as regulated products and failure by important to compare with some camp in relation to this product's may result in the reduction of goods subjected to additional texting and subsequent delays in Nigerian ports, soncap is independent of and is an addition to any existence import process such as psi.

 The presentation of son cap certificate which consists of a product certificate and asap certificate is the means through which the son cap will be enforced. These two items are mandatory clearance documents for regulated product in addition to any psi documentation.

 To check the manufacturing of fake and substandard products in the country, sun came up with the mandatory conformity assessment program, mancap . Among other objectives, mancap makes the nigeria industrial standard certification n i s compulsory for every product made in Nigeria.

This policy is expected to compare manufacturers in nigeria to take steps and ensure that their product process meets all relevant local and international quality requirements thereby guaranteeing high quality products for Nigerian consumers. This will also launch Nigerian product into the competitive global market.

 Resolve to achieve this feat is predicted on the following objectives;

To provide industries with up-to-date information on standardization, its benefits and to encourage participation of the Organised private sector ops in standardization and review.

 to improve information, advice and assistance to industries on quality management for improved cost-effectiveness.

 To ensure improved competitiveness in nigeria good at home and abroad by encouraging quality assurance practice.

 To motivate the workforce through steady investment in human resource development for acquisition of skill in tune with technological advancement .

 The organisation would ensure adequate technical support for our industries as they reposition to match the quality required for competitiveness in global trade and proper economic growth.

 To collaborate with regional and international organisation in the areas of metrology standards, testing and quality assurance for enhancement of skills and encouragement of free trade and building capabilities.

 The erratic application of impulse and labelling regulations contribute to making importation of high-value perishable products difficult. And dispute among Nigerian agency over the interpretation of regulation often cause delays. Frequent change in custom guidelines slow the movement of goods through Nigerian ports. The setbacks often results in production of deterioration and significant loss of importance.

Apart from the petroleum sector where investment is limited to existing joint ventures or production sharing agreement, nigeria allows 100% foreign ownership of firms as provided for under the nigerian investment promotion commission nipc decree of 1995 . A foreign investor may buy shares from any nigerian firm except firm on a negative list such as manufacturers of fire arms animations and military and military apparel. After incorporation under the companies and allied matters decree of 1993 must register with the nipc.

 it is unfortunate that despite all efforts made by the government to improve the country's investment climate, this disncentives to invest in nigeria continue to plug international investors. Some of the factors are as follows;

 Multiple and high business taxes.
 Confusion land ownership laws.
 Arbitrary application of regulations .
Extensive crime .
 Sanctity of contract cannot be guaranteed . Court system for settling commercial dispute is weak and sometimes biased.
 In the oil sector, napims has compelled foreign oil companies to increase patronage of indigenous firm in the local content initiative.
Efcc efforts in eliminating financial crimes such as money laundering and advance fee fraud after the relevant section of the Nigerian criminal code Have increased but still legally ineffective.
Fraud, theft, and exhaustion are rampant. Bullion van robbery On the increase.
 corruption is very high, with international watchdog groups routinely ranking nigeria among The most corrupt countries in the world. Firms that cannot accommodate request for improper payments bribe may lose juicy contracts.import

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