G/VAL/W/321  
 
10 January 2019  
(19-0142) Page: 1/3 
Committee on Customs Valuation  Original: English  
 
NOTIFICATIONS UNDER ARTICLE 22 OF THE  
CUSTOMS VALUATION AG REEMENT  
NIGERIA  
Replies from Nigeria  to Questions from the United States  
contained in document G/VAL/W/ 175 
The following submission, dated 31 December 2018, is being circulated at the request of the 
delegation of Nigeria.  
 
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We have received  the provisions of Nigeria 's Customs and Excise Management (Amendment Act) of 
2003, as well Nigeria 's responses to the Checklist of Issues. Based upon this review, we have the 
following comments  and questions regarding Nigeria 's implementation of certain provisions of the 
WTO Customs Valuation Agreement.  
Does Nigeria provide a provision that implements the language from Article 1.2(a) of the 
Agreement? It appears that Article 1(d) of the Customs and Excise Management Act omits 
the language from Article 1.2(a) that states, "the fact that the buyer and seller are related 
within the meaning of Article 15 shall not in itself be grounds for regarding transaction 
value as unacceptable."  
Answer:  
Yes, Ni geria provides a provision that implements the language from Article 1.2(a) of the Agreement. 
Part IX – Determination of Duties and Taxes under section 65 (6) of the revised "Nigeria Customs 
Service Act, 2013 " yet to be applied by the Nigeria Customs Servi ce states as follows; "The fact that 
the buyer and seller are related shall not solely constitute grounds for rejecting a transaction value. "  
While the new law is yet to be applicable because the relevant constitutional authorities including 
the National Assembly are debating it for general acceptability by relevant stakeholders, including 
the traders/importers that will be affected by the new legislation. This is in line with the WTO 
Agreement on Trade Facilitation Article 2 on "Opportunity to comment, information before entry into 
force, and consultation. "    
However, it may appear that Article 1(d) of the current Act omits the language from Article 1.2(a) 
of the CVA as stated above, but nonetheless, Article 1(d) of the Act provides for fair hearing for  the 
buyer to prove to the Customs that the relationship has not influenced the price. The test is, whether 
the buyer and the seller are related? "and if related, that buyer has proved to the satisfaction of the 
Board that the relationship has not influenc ed the price of the goods… " This is important as duty 
payable is dependent on the price of the goods and importers prefer to present a lower price to pay 
lower duty.  
Furthermore, Article 16 subsection (2)(c) (i) -(ix) of the Act specifically states conditio ns under which 
"persons shall be deemed to be related …", including if "they are officers or directors of each other 's 
business, or they are legally recognized partners in business, or they are employer and employee… " G/VAL/W/321  
 
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  These are logical, transparent and veri fiable conditions that are reasonable. All that the importer is 
required to do is prove that the conditions are not applicable.   
The United States is also concerned that Article 2.3 and 3.3 of the Agreement have not 
been fully implemented in Nigeria's leg islation. Does Nigeria require that, where more 
than one transaction value of identical or similar goods is found, the lowest value shall be 
used to determine the customs value? Where can these provisions be found in Nigeria's 
legislation?  
Answer:  
The curr ent Act does not expressly provide for "where more than one transaction value of identical 
or similar goods is found, the lowest value shall be used to determine the customs value." However, 
the Act provides in Article 6(1) for "reasonableness " in determin ing the transaction value as follows; 
"Where the customs value of goods imported into Nigeria cannot be determined under the provisions 
of paragraphs 1, 2, 3, 4, or 5 of this Schedule, the Customs Value shall be determined using 
reasonable means consistent  with the principles and general provisions of this Schedule, and on the 
basis of data available in Nigeria." The application of "reasonable means" should ensure the lowest 
value that is fair, transparent and verifiable for the parties involved.  
However, t he provisions in Articles 2.3 and 3.3 of the Agreement can be found in Nigeria's legislation 
titled "Nigeria Customs Service Act, 2013,"which expressly provides in sections  69(3) and 70 (3) as 
follows; "Where more than one transaction value of identical goo ds is found, the lowest of such value 
shall be used to determine the Customs value of the imported goods." The legislation as indicated 
earlier is currently at the National Assembly for public hearings to ensure fairness and opportunity 
for stakeholders th at may be affected to make further inputs in line with Article 2 of the WTO Trade 
Facilitation Agreement.  
We have noticed that according to Article 8 of Nigeria's legislation, importers are only 
allowed the option to reverse the order of application of Art icles 5 and 6 of the Agreement 
if is approved by the Board. Based upon our research, it does not appear that Nigeria has 
made a reservation under Annex III.3 concerning the reversal of sequential order of 
Articles 5 and 6. As a result, we were  surprised to  see this requirement. We would 
therefore like to hear from Nigeria regarding the basis of this provision.   
Answer:  
Though Nigeria has not made a reservation under Annex III.3 concerning the reversal of sequential 
order of Articles 5 and 6 of the Agreemen t, it is relevant to note that under Article 8(4) of the Act, 
every buyer has a right, on a request to the Board, to have a written explanation from the Board as 
to how the Customs Value of goods imported by him into Nigeria was determined as required by 
Article 16 of the Agreement.  
Furthermore, if necessary, Nigeria and the United States may explore consultation under Article 19 
of the Agreement on Consultation and Disputes Settlement, subsection 3 that requires as follows; 
"the Technical Committee shall provide, upon request, advice  and assistance to Members engaged 
in consultations."   
In respect of Article 13(5) of the Act, which court or courts in Nigeria have jurisdiction of 
matters involving customs valuation?  
Answer:  
The Federal High court has exclusive jurisdiction in civil ca ses and matters relating to the revenue 
of the Government of the Federation such as taxation, customs, and excise duties, banking, 
copyright, admiralty, citizenship, etc. as follows : 
- Section 25(1) of the Constitution of the Federal Republic of Nigeria 19 99 – "Notwithstanding 
anything to the contrary contained in this constitution and in addition to such other jurisdiction 
as may be conferred upon it by an Act of the National Assembly, the Federal High Court shall 
have and exercise jurisdiction to the excl usion of any other Court in civil causes and matters."  G/VAL/W/321  
 
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  - Subsection (c) of this section provides as follows; "Connected with or pertaining to customs 
and excise duties and exports duties, including any claim by or against the Nigeria Customs 
Service or any  member or officer thereof, arising from the performance of any duty imposed 
under any regulation relating to customs and excise duties and export duties."  
It appears that the Interpretative Notes of CVA have not been incorporated into Nigeria's 
legislation, except by reference in Article 14 of the Act. In view of the fact that the 
Interpretative Notes are integral to the proper implementation of the Agreemen t, does 
Nigeria have any plans to incorporate them in greater details?  
Answer:  
Yes, the revised legislation titled "Nigeria Customs Service Act, 2013" yet to be applied appears to 
have taken care of this under Section 64 of the Act, which provides for; "De termination of 
classification, valuation and origin of imported goods by the Customs Service."  
Could Nigeria provide an explanation on how Article 14 of their legislation should be 
interpreted and implemented?  
Answer:  
The proposed "Nigeria Customs Service Act 2013" under Section 64: Determination of classification, 
valuation and origin of imported and exported goods by the Customs Service provides as follows;  
Subsection (1): The Customs Se rvice shall be responsible for:  
(a) applying the classification, valu ation and origin standards contained in this Act to imported 
and exported goods;  
(b) determination of classification, valuation and origin of imported and exported goods by the 
Customs Service ; 
(c) determining the correctness of declarants ' statements and documentation regarding the 
classification, valuation and origin of imported and exported goods; and  
(d) providing general information to the traders regarding the standards governing the 
classification, valuation and determination of origin through public ations, educational 
programmes and enquiry points.  
Subsection (2): The Customs Service shall carry out the responsibilities referred to in sub section  (1) 
of this section in a timely and efficient manner providing sufficient details to enable declarants to 
carry out their responsibilities under this Act and its regulations.  
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