TARIFF CLASSIFICATION AND IMPORT DUTIES OF SOLAR ENERGY EQUIPMENT PRESENTED AT 2018 NIGERIA ENERGY FORUM BY THE NIGERIA CUSTOMS SERVICE Balance Nigerias National Priorities Trade Facilitation ID: 815426
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NIGERIA CUSTOMS SERVICE
TARIFF CLASSIFICATION AND IMPORT DUTIESOF SOLAR ENERGY EQUIPMENTPRESENTED AT2018 NIGERIA ENERGY FORUMBYTHE NIGERIA CUSTOMS SERVICE
Slide2Balance Nigeria‘s National Priorities
Trade
Facilitation
&
Revenue
Collection
Border Security
&
Implementation of Fiscal Policy
Inter-Agency Collaboration
Economic Development
Foreign Direct Investment
Etc
.
Regulatory Enforcement
Inspection & auditEnforcement of quota Restrictions Etc
THE STATUTORY FUNCTIONS OF CUSTOMS
Slide3THE TECHNOLOGY OF SOLAR PANEL
Solar Panels products are equipment used as alternative sources of energy which supply electricity for industrial
and
domestic use.
The solar panel absorbs energy from the sun which transforms it into electricity using photovoltaic cells.
Solar Panels are made up of units of photovoltaic cells arrange in modules and Arrays.
Slide4Classification are based on international standard General Interpretative Rules (GIRs).
According to GIR 1 - The titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and Sub-heading Notes.The Notes mentioned above Explains the following :Inclusions ExclusionExplainingThe GIRs above is in WCO Harmonised Systems Nomenclature for Harmonising classification in all 190 contracting parties of the WCO.
TARIFF CLASSIFICATION OF SOLAR PANEL
Slide5TARIFF CLASSIFICATION OF SOLAR PANEL
EXPLANATORY NOTES
to Heading
8501 ( XVI-8501-3),
covers inter alia:
Photovoltaic generators consisting of panels of photocells combined with other apparatus,
like
storage batteries and electronic controls, (voltage regulator, inverter, etc.).
It also
covers
Panels or modules equipped with elements, however simple (for example diodes to control the direction of the current), which supply the power directly to, for example, a motor, an
electrolyser
, etc.
Slide6TARIFF CLASSIFICATION OF SOLAR PANEL
Furthermore, the relevant
EXCLUSION NOTES
from the provisions of the Explanatory Note,
Vol.5, P – XVI-8541-3
on Heading
8541
which clarifies that,
“the Heading DOES NOT COVER panels or modules equipped with elements, however simple (for example, diodes to control the direction of the current) (HEADING 8501)
’
’. This implies that such panels are classifiable under Heading
8501
.
Slide7TARIFF CLASSIFICATION OF SOLAR PANEL
While photovoltaic cells of 8541 covers Arrays,
Module and Panels, once this arrangement starts to generate stand-alone usable energy that could be connected to external load, the scope of 8541 is exceeded, at this stage, it enters the scope of 8501.
Solar cells and Panels for function other than generation of useful power = 8541
Solar cells and Panels for generation of power = 8501
The above position is agreed by the International Renewable Energy Agency (IRENA)
with the World Customs Organization (WCO)
Slide8TARIFF CLASSIFICATION OF SOLAR PANEL
Consequently, Solar Panels as presented consisting of modules and elements (however simple,
e.g
diode and junction boxes) should henceforth be classified in their appropriate heading of
8501
.
Slide9Other items
Renewable Energy equipments that do not attract 0% are as follows;
2. 8502.31.00.00 Wind – Powered Generating set @ 5%
1. 8502.39.10.00 Solar– Power Generator @ 5% and 0% VAT
3. 9405……. Solar Lamp and Lighting Sets @ 5% and 0% VAT
4. 8419.19 Solar Water Heaters @ 5% and 0% VAT
Slide10Accordingly, all importations of Solar Panels made up of the solar modules, diodes and junction boxes should be classified on the appropriate commodity code of heading 8501 according to the
power capacity @ 5% Duty and 5% VAT in tandem with extant ECOWAS Common External Tariff (CET) 2015-2019.
CONCLUSION
The Nigeria Customs Service are
to implement Government policy as directed. They ensure proper classification of import/export using internationally laid down principle and assess duty based on appropriate rate of duty as has been allocated to the tarif
f line by Fiscal Policy.
Slide11Thank you for your attention
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