WORLD TRADE  
ORGANIZATION   
G/VAL/N/1/NGA/1 
5 September 2008 
 (08-4171) 
Committee on Customs Valuation Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 22 OF THE AGREEMENT ON  
IMPLEMENTATION OF ARTICLE VII OF THE GENERAL 
AGREEMENT ON TARIFFS AND TRADE 1994 
 
NIGERIA 
 
  The following communication, dated 23 July 2008, is being circulated at the request of the delegation of Nigeria.  
_______________ 
 
   Pursuant to Article 22 of the Agreement on Implementation of Article VII of the General 
Agreement on Tariffs and Trade 1994, Nigeria submits  herewith its national implementing legislation 
on customs valuation. G/VAL/N/1/NGA/1 
Page 2  
 
  FEDERAL REPUBLIC OF NIGERIA  
OFFICIAL GAZETTE 
 
No. 70     Lagos – 29th August 2003          Vol. 90 
 
Government Notice No. 127  
 The following is published as Supplement to this Gazette: 
 
 Act. No.    Short Title                           Page 
 
   20  Customs and Excise Management (Amendment Act), 2003   A 351-362 
 
 
    
 
     
 
    
 
    
 
     
 
    
 
    
Printed and Published by the Federa l Government Press, Lagos, Nigeria 
FGP 210/92003/2,000 (OL 90)  G/VAL/N/1/NGA/1 
 Page 3 
 
 
   
CUSTOMS AND EXCISE MANAGEMENT (AMENDMENT ACT), 2003  
 
Arrangement of Sections 
 
 
Section:  1. Amendment of Cap.84 Laws of the Federation of Nigeria 1990 2. Substitution of Section 57 of the Principal Act. 
3. Substitution of First Schedule 
4. Citation. G/VAL/N/1/NGA/1 
Page 4  
 
  CUSTOMS AND EXCISE MANAGEMENT (AMENDMENT ACT), 2003 
2003 ACT No. 20 
 
  A
N ACT TO AMEND THE CUSTOMS AND EXCISE  MANAGEMENT ACT TO PROVIDE FOR A NEW 
METHOD OF VALUATION OF GOODS BASED ON THE TRANSACTION VALUE  
  
ENACTED by the National Assembly of the Federal Republic of Nigeria. 
  
[10th July, 2003] Commencement 
 
1. The Customs and Excise Management Act (referred to in this Act as "the 
Principal Act" is amended as set out in this Act. 
 Amendment of 
Cap.84  
LFN 1990 
2. Substitute for Section 57 of the Principal Act a new Section 57 Substitution for 
Section 57 of the Principal Act 
"57-(1)  The Minister may make regulations 
  (a) regulating with respect to ships a nd aircraft respectively the loading of 
goods for exportation or as stores and the embarking of passengers for a 
destination outside Nigeria 
 
 (b) prescribing the procedure to be followed and the documents to be 
produced and information to be furnished by any person conveying goods out of Nigeria by land or inland waters; and 
 
 (c) regulating with respect to concessions and privileges granted to some 
exported goods or stores pursuant to any trade relationship between the Federal 
Republic of Nigeria or any other country. 
 
 (2) A person who contravenes any regulation made under this Section is 
liable to a fine three times the value of the goods and any goods in respect of which the offence is committed shall be forfeited". 
   
3. Substitute for the First Schedule to the Prin cipal Act a new First Schedule Substitution for 
First Schedule 
  G/VAL/N/1/NGA/1 
 Page 5 
 
 
  SCHEDULE 
 
First Schedule 
 
Value of Imported Goods 
 
1. The customs value of goods bought or imported for use in Nigeria shall be the 
transaction value of the goods adjusted in accordance with the provisions of 
paragraph 7(1) of this Schedule, provided that: 
 (a) there are no restrictions as to the disposition or use of the goods by the buyer, 
other than restrictions which: 
  (i)    are imposed or required by law or by any public authority in Nigeria, or 
 (ii)   limit the geographical area in which the goods may be resold, or 
 (iii)  do not substantially affect the value of the goods;  
(b) the sale or price of the goods is not su bject to some condition or consideration for 
which a value cannot be ascribed or determined with respect to the goods being valued;  
(c) no part of the proceeds of any subsequent resale, disposal or use of the goods by 
the buyer shall accrue directly or indirectly to  the seller, unless an appropriate adjustment 
can be made in accordance with the provisions  of paragraph 7(1) of this Schedule; and 
 
(d) the buyer and seller are not related as defined in paragraph 16(2)(c) of this Schedule and if related, that buyer has proved to the satisfaction of the Board that the 
relationship has not influenced the price of the goods by showing that: 
 Transaction value 
of goods general 
 (i)    the price of identical or similar goods in a transaction between persons for 
export to Nigeria, at or about the same period of time, closely approximates to 
the price of the go ods to be valued, 
 (ii)   the customs value of identical or similar goods as determined under the 
provisions of paragraph 4 of this Schedule in a transaction between  unrelated persons, at or about the same period of time, closely approximates to the price of 
the goods to be valued, 
 (iii)  the customs value of identical or similar goods as determined under the 
provisions of paragraph 5 of this Schedule in a transaction between unrelated 
persons, at or about the same period of time, closely approximates to the price of 
goods to be valued. 
  
2. (1)   If the customs value of any goods imported into Nigeria cannot be determined 
under the provisions of paragraph 1 of this Schedule, the customs value of the imported goods shall be transaction value of identical  goods already accepted under paragraph 1 of 
this Schedule sold for export to Nigeria and exported at or about the same time, at the 
same commercial level and in substantially the same quantity, as the goods being valued, adjustment having been made under paragraph 10(1) and (2) of this Schedule to take 
account of significant differen ce in costs and charges between the imported goods and the 
identical goods arising from differences in distances and modes of transport 
 
(2) Where identical goods as mentioned in sub-paragraph (1) of this paragraph are  found but are not at the same commercial level and in substantially the same quantity as 
the goods being valued, the transaction value of the goods shall still be used as the 
Customs Value of the goods being valued,  provided that:  
(a) adjustment can be made by demonstr ated evidence to take account of the 
differences attributable to commercial level and quantity; and Transaction value 
of identical goods G/VAL/N/1/NGA/1 
Page 6  
 
  (b) where the adjustment of the transaction value of the identical goods as stated in 
this sub-paragraph leads to a value different in figure from the transaction value already 
accepted for the identical goods un der paragrap h 1 of this Schedule, the higher value or 
figure shall be used as the customs value of the goods being valued. 
  
3. (1) If the customs value of any goods imported into Nigeria cannot be determined 
under the provisions of paragraph 2 of this Schedule, then the customs value of the 
imported goods shall be the transaction valu e of similar goods, already accepted under 
paragraph 1 of this Schedule sold for export to Nigeria and exported at or about the same 
time, at the same commercial level and in substantially the same quantity, as the goods being valued, adjustment having been made under paragraph 10(1) and (2) of this 
Schedule to take account of significant difference in cost and charges between the 
imported goods and the similar goods arising from differences in distances and modes of transport. 
 Transaction value 
of similar goods 
(2) Where similar goods as mentioned in paragraph 2(1) of this schedule are found 
but are not as the same commercial level and in substantially the same quantity as the 
goods being valued, the transaction value of su ch goods shall still be used as the customs 
value of the goods being valued, provided that:  
(a) adjustment can be made by demonstr ated evidence to take account of the 
differences attributable to commercial level and quantity;  
(b) where the adjustment of the transaction value of the similar goods as stated in 
this sub-paragraph leads to a value different in figure from the transaction value already 
accepted for the similar goods under paragraph 1 of this Schedule, the higher value or 
figure shall be used as the customs value of the goods being valued. 
  
4. (1) Where the customs value of goods imported into Nigeria cannot be determined 
under the provisions of paragraphs 1, 2 or 3 of this Schedule, the customs value shall be based on the unit price at which the imported goods, identical or similar goods (in that 
order) are sold in Nigeria in the conditions as imported, in the greatest aggregate quantity, 
at or about the time of importation of the goods being valued to persons who are not related to the persons from whom they buy those goods, subject to deductions for the 
following: 
 (a) commissions usually paid, or agreed to be paid, additions usually made for profit, 
and any general expenses in connection with the sales in Nigeria of goods of the same 
class or kind, whether imported from the same country or not;  
(b) the usual costs of transport and insuran ce and associated costs within Nigeria of 
the same identical, or similar goods (in that order) whether imported from the same country or not; and 
 
(c) the customs duties, other Federal, State or Local Government taxes payable in Nigeria by reason of the importation or sale of the same identical or similar goods (in that 
order) 
 
(2) Where identical or similar goods being value are used to calculate the customs 
value as mentioned in sub-paragraph (1) of this paragraph, the goods should have been imported into Nigeria at the earliest date but not later than 90 days from the date of 
importation of the goods to be valued. 
 Sale value  G/VAL/N/1/NGA/1 
 Page 7 
 
 
  (3) If the goods imported into Nigeria, identical or similar goods are not sold in 
Nigeria in the condition as imported, the customs valued of the goods shall be based on the unit price at which the imported goods, afte r further processing, are sold in the greatest 
aggregate quantity or persons in Nigeria, wh o are not related to the persons from whom 
they buy those goods, due allowance being made for the value added by the processing and the deductions provided for in sub-paragraph (1) of this paragraph. 
  
5.(1)  If the customs value of goods imported into Nigeria cannot be determined under 
the provisions of paragraphs 1, 2, 3 or 4 of this Schedule, the customs value shall be based 
on a computed value which shall consist of:  
(a) the cost of value of materials and fabr ication of other processing employed in 
producing the imported goods;  
(b) an amount for profit and general expenses equal to that usually reflected in sales 
of goods of the same class or kind as the goods being valued which are made by producers in the country of exportation for export to Nigeria; and 
 
(c) the cost or value of all other expenses made under paragraph 7(2) of this Schedule. 
 
(2) For the purposes of determining a computed value of any goods:  
(a)  no person who is not resident in Nigeria shall be required or compelled to 
produce for examination, or to allow access, to any account or other record; 
 
(b) information supplied by the producer of the goods or any other person, may be 
verified in another country by the Board through the Federal Government of Nigeria, with 
the agreement of the producer of  the goods, provided sufficien t advance notice is given to 
the Government of the producer's country and that Government does not objects to the investigation. 
 Computed value 
6. (1) 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 custom 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.,  
(2) No customs value shall be determined under the provisions of sub-paragraphs (1) 
of this paragraph on the basis of:  
(a) the selling price in Nigeria of identical or similar goods produced in Nigeria; or 
 (b) a system which provides  for the acceptance for customs value purposes of the 
higher of two alternatives; or 
 (c) the price of goods on the domestic market of the country of exportation; or  
 
(d) the cost of production of the goods being valued, other than computed values 
determined for identical or similar goods in  accordance with the provisions of paragraph 5 
of this Schedule; or  
(e) the price of goods for export to a country other than Nigeria; or  
 (f) minimum customs values; or 
 
(g) arbitrary or fictitious values  Reasonable value G/VAL/N/1/NGA/1 
Page 8  
 
  (3) For purposes of determining customs value under sub-paragraph (1) of this 
paragraph, the Board may:  
(a) use to the greatest extent possible, Customs Value previously determined under 
paragraphs 1, 2, 3, 4 and 5 of this Schedule; and  
(b) be reasonably flexible in the application of the methods already enumerated in 
paragraphs 1, 2, 3, 4 and 5 of this Schedule. 
  
7. (1) For the purposes of determining the customs value under the provisions of 
paragraph (1) of this Schedule, there shall be added to the price actually paid or payable 
for the goods imported into Nigeria. 
 (a) to the extent that they are incurred by  the buyer but are not included in the price 
actually paid or payable for the goods: 
  (i)    commission and brokerage, except buying commission, 
 (ii)   the cost of containers which are treated as being one for customs purposes 
with the goods in question, 
 (iii)  the cost of packing, whether for labour or materials; 
 
(b) to the extent that the value has not been included in the price actually paid or payable, the value, apportioned as appropriate,  of the following goods and services, where 
supplied directly or indirectly by the importer free of charge or at reduced cost for use in 
connection with the production and sale for export of the imported goods:  
 (i)   a material, component, part and si milar items incorporated in the imported 
goods 
 (ii)   a tool, die, mould and similar item used in the production of the imported 
goods 
 (iii)   a material consumed in the production of the imported goods,  
 (iv) engineering, development, art work, design work, plan, and sketch 
undertaken elsewhere than in Nigeria and necessary for the production of the imported goods. 
 
(c) royalty and licence fee related to the goods being valued which the buyer must pay, either directly or indirectly, as a condition of sale of the goods being valued, to the 
extent that such royalty and f ee are not included in the price actually paid or payable; and 
 (d) the value of any part of the proceeds of any subsequent resale, disposal or use of 
the imported goods which accrues direc tly or indirectly to the exporter. 
 Additions for 
purposes of 
determining 
customs value 
(2) In determining the customs value under the provisions of paragraph 1 of this 
Schedule, there shall also be added to the price actually paid or payable: 
 (a) the cost of transporting the imported goods to the port or place of importation; 
 
(b) loading, unloading and handling charges associated with the transport of the 
imported goods to the port or place of importation; and 
 (c) the cost of insurance 
 
(3) An addition or a deduction to the price actually paid or payable shall be made, in any valuation under this Schedule only on the basis of objective and quantifiable data, and 
as provided for in this Schedule. 
   G/VAL/N/1/NGA/1 
 Page 9 
 
 
  (8) (1) The valuation methods enumerated in paragraphs 1, 2, 3, 4, 5 and 6 of this 
Schedule shall be followed sequentially, so however that the buyer of the goods being valued shall have the right, on a request in writing to the Board made within three days of 
the valuation, to demand that the sequential order as enumeration in paragraphs 4 and 5 of 
this Schedule be changed, stating in the request the reasons for the demand.  
(2) On receipt of a request in writing from  the buyer under sub-paragraph (1) of this 
paragraph, the Board shall consider the request  and shall, if satisfi ed with the reasons 
contained in the request, accordingly change the sequential order of valuation, and 
communicate the change in writing to the buyer or this agent not later than 7 days from the date of receipt of the request. 
 
(3) Where the board is not satisfied with the reasons given by the buyer for a change in the sequential order of valuation, it shall,  within 7 days of receipt of the request, 
communicate its decision to the buyer or his agent and the decision of the Board on the 
issue shall be final.  
(4) Every buyer shall have the right, on a written request to the Board, to have a 
written explanation from the Board, not later than  10 days from the date of receipt of the 
letter containing the determination, as to how the Customs Value of goods imported by 
him into Nigeria was determined. 
 Sequential order of 
valuation 
(9) (1) Where the conversion of currency is necessary for the determination of the 
customs value of any good, the rate of exchange to be used shall be that duly published by 
the Federal Ministry of Finance and shall reflect  as effectively as possible, in respect of 
the period covered by the document of publica tion, the current value of the currency in 
commercial transaction in terms of the Naira. 
 
(2) The conversion rate to be used shall be that in effect at the time of entry of the 
goods into Nigeria.  Currency 
conversion 
(10) (1) If, in the course of determining the customs value of goods imported into 
Nigeria, it becomes necessary to delay the final determination of the customs value, the buyer of the goods shall be permitted by the Board to clear and take possession of the 
imported goods if, where so required, the buyer provides: 
 (a) adequate surety for payment of any customs duty that may be payable; or 
 
(b) a deposit or some other appropriate instrument, covering the ultimate payment of any customs duty that may be payable; or 
 
(c) any other form of guarantee which, in the opinion of the Board, is sufficient to ensure payment of any customs duty that may be payable on the delayed valuation. 
 
(2) Delay in the final determination of customs value as stated in sub-paragraph (1) of this paragraph shall not be later than 30 days from the date of valuation commenced.  
 Delayed valuation 
(11) An information which is by nature confidential or which is provided on a 
confidential basis for the purposes of customs valuation shall be treated as strictly 
confidential by the Board, to be disclosed only:  
(a) on the specific permission of the person or government providing such 
information; or  
(b) to the extent required in any judicial proceedings; or 
 (c) to the extent required by the Board in sa tisfying itself as to the truth or accuracy 
of any statement, document, or declaratio n presented for customs valuation purposes. Restriction on the 
disclosure of 
information G/VAL/N/1/NGA/1 
Page 10  
 
  (12) (1) When a declaration has been presented and the Board has reason to doubt the 
truth or accuracy of the particulars or docume nts produced in support of the declaration, 
the Board may request the importer of the goods to provide further explanation, including 
document or other evidence, that the declared value represents the total amount actually 
paid or payable for the imported goods, ad justed in accordance w ith the provisions of 
paragraph 7(1) of this Schedule. 
 
(2) If, after receiving further information, or in the absence of a response, the Board 
still has reason to doubt the truth or accuracy of the declared value, it shall be deemed, 
having regard to the provisions of paragraph 6(1) of this Schedule, that the customs value of the imported goods cannot be determined under the provisions of paragraph 7(1) of this 
Schedule but the Board shall, before taking fi nal decision, communicat e to the buyer, in 
writing if requested, its grounds for doubting th e truth or accuracy of the particulars or 
documents produced and the buyer shall be given a reasonable opportunity to respond. 
 
(3) When a final decision is made, the Board shall communicat e to the buyer in 
writing its decision and the grounds for the decision. 
 
(4) Every buyer shall keep r ecords of all his transactions which shall be produced to 
the Board on demand. 
 Administrative and 
compliance matters 
(13)(1) If a buyer or his agent is not satisfied with the customs valuation of his imported 
goods, he may, within 7 days of becoming aware of the valuation, appeal to the Customs 
Area Comptroller in charge of  the area where the valuation took place stating the reason 
for the appeal.  
(2) The Customs Area Comptroller concerned shall consider the appeal and shall, 
within 21 days of receipt of the appeal, communicate to the buye r or his agent the result of 
the appeal. 
 (3) Where the buyer or his agent is not satisfied with the decision of the Customs 
Area Comptroller, he may, within 14 days of receipt of the deci sion, appeal to the 
Comptroller-General of Customs.  
(4) The Comptroller-General of Customs shall, not later than 10 days from the date 
of receipt of the appeal, communicate to the bu yer or his agent, the result of the appeal. 
 
(5) If a buyer or his agent is not satisfied with the decision of the Comptroller-
General he may, within 14 days of his beco ming aware of the decision, institute an action 
in Court. 
 
(6) Nothing in  this Schedule shall be construed as preventing the Board from collecting the assessed Customs duties before accepting an appeal, so however that where 
an appeal succeeds, the buyer shall be entitled to a refund of any excess duty paid. 
 Appeals 
(14) For purposes of the interpretation of Customs valuation under this Act, the 
provisions of Article VII of the Genera l Agreement on Tariffs and Trade 1994 as 
contained in the Agreement on the implementa tion of Article VII, to gether with all the 
notes to the Articles, and all the Annexes to those Articles, shall apply. 
 Application of 
GATT 1994. 
(15) No amendment or alteration shall be made to this Schedule except with the 
consent of the members to the General Agreement on Tariffs and Trade 1994 as contained 
in the Agreement on the implementation of Article VII of the General Agreement on Tariffs and Trade 1994 Agreement Amendment  G/VAL/N/1/NGA/1 
 Page 11 
 
 
  (16)(1) In this Schedule: 
  "Commercial level" means the step at which the goods are changing hands, the 
first commercial level being between the seller and the buyer, the second being between 
the buyer and the first buyer in Nigeria and subsequently in that order;  Interpretation 
 "Customs value of goods imported into Nigeria" means the value of goods for the 
purposes of levying ad valorem  duties of Customs on goods imported into Nigeria; 
 "date of importation" means the date of entry of the imported goods into Nigeria; 
 "goods of the same class or kind" means goods which fall within a group or range of goods produced by a particular industry  or industry sector, and includes identical 
or similar goods; 
 "identical goods" and "similar goods" excludes, as the case may be, goods which incorporate or reflect engineering, development, art work, design work, plans and sketches 
for which no adjustment has been made under paragraph 7(1)(b)(iv) of this Schedule 
because they were undertaken in Nigeria;  "identical goods" means goods which are the same in all respect, including 
physical characteristics, quality and reputation, so however that minor differences in 
appearance would not preclude goods otherwise conforming to the definition from being regarded as identical; 
 "price actually paid or payable" includes all payments made or to be made as a 
condition of sale of the imported goods, by the buyer to or for the benefits of the seller, or by the buyer to or for the benefit of a third party to satisfy an obligation of the seller. 
 "produced" includes grown, manufactured and mined; 
 "similar goods" means goods which, although not alike in all respects, have like characteristics and like component materials which enable them to perform the same 
functions and to be commercially inter-changeable considering the quality of the goods, 
their reputation and the existence of a trademark; 
 "transaction value" means the price actually paid or payable for goods when sold 
for export to Nigeria.   
(2) In this Schedule 
(a) except the contrary is specifically stated in a particular paragraph, goods shall not 
be regarded as identical goods or similar goods unless they were produced in the same 
country as the goods being valued; 
(b) goods produced by a different person sh all be taken into account when there are 
no identical goods or similar goods, as the case may be, produced by the same person as 
the goods being valued; 
(c) persons shall be deemed to be related if:  
 (i)  they are officers or direct ors  of each others business, or 
 (ii) they are legally recognized partners in business, or  (iii) they are employer and employee; or 
 (iv) one of them, directly or indirectly, owns, controls, or holds at least 5 per 
cent of the outstanding voting stock of shares of both of them, or 
 (v) one of them, directly or indirectly, controls the other, or 
 (vi) both of them are directly or indirectly controlled by a third person, or 
 (vii) together they directly or indirectly control a third person, or 
 (viii) they are members of the same family, or 
 (ix) they are associated in business with each other as sole agent, sole 
distributor or sole concessionaire, however described and fall into any 
of the proceeding provisions of this sub-paragraph". 
 Schedule 
(4) This Act may be cited as the Customs and Excise Management (Amendment) 
Act, 2003. Citation G/VAL/N/1/NGA/1 
Page 12  
 
   I certify, in accordance with Section 2(1) of this Acts Authentication Act, Cap.4, 
Laws of the Federation of Nigeria 1990, that this is a true copy of the Act passed by both Houses of the National Assembly. 
 
Ibrahim Salim, CON. 
Clerk to the National Assembly 
8
th day of July, 2003  
 
EXPLANATORY MEMORANDUM  
 
 The Act amends the Customs and Excise Management Act, Cap. 84, 
Laws of the Federation of Nigeria and provides a new method of valuation of 
goods imported into Nigeria based on the transaction value as contained in the 
General Agreement on Tariffs and Trade 1994.   
 
  
   G/VAL/N/1/NGA/1
 Page 13SCHEDULE TO CUSTOMS AND EXCISE MANAGEMENT (AMENDMENT) BILL, 2003  
 
 
 
(1) 
Short Title of the Bill (2) 
Long Title of the Bill (3) 
Summary of the Content of the Bill (4) 
Date passed 
by Senate (5) 
Date passed by 
House of 
Representatives 
 
The Customs and Excise Management (Amendment) Bill 2003 An act to amend the Customs and 
Excise Management Act Cap. 84 Laws of the Federation of Nigerian 
1990 to provide a new method of 
valuation of goods imported into Nigeria based on the transaction value The Bill seeks to amend the Customs and 
Excise Management Act Cap.84, Laws of the Federation of Nigeria 1990 to provide a new 
method of valuation of goods imported into 
Nigeria based on the transaction value as contained in the General Agreement on Tariff and Trade 1994 28-5-2002 6-5-2003 
 
 I certify, that this Bill has been carefully compared by me w ith the decision reached by the National Assembly and found by me  to be true 
and correct decision of the Houses and is in accordance with the pr ovisions of the Acts Authentica tion Act Cap. 4, Laws of Fede ration of Nigeria 
1990. 
  I ASSENT.  
Ibrahim Salim, CON. 
Clerk to the National Assembly 
8th day of July, 2003  
 
CHIEF OLUSEGUN OBASANJO, GCFR 
President of the Federal Republic of Nigeria 
10th day of July, 2003 
 
__________