Abuja: The Customs Consultative Committee (CCC) has called for strict documentation in the implementation of the Federal Government’s duty-free policy on pharmaceutical raw materials. The Secretary of the CCC, Dr. Eugene Nweke, made the call in an interview with the News Agency of Nigeria (NAN) on Sunday.
According to News Agency of Nigeria, Nweke emphasized that this approach would help mitigate the activities of drug traffickers and international cartels. The Nigeria Customs Service (NCS) had previously announced on March 26 an import duty and Value Added Tax (VAT) waiver on critical raw materials essential for pharmaceutical production, valid for two years. The exemption covers Active Pharmaceutical Ingredients (APIs), excipients, and other vital materials required for manufacturing essential medicines, including Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, and packaging materials.
NCS stipulated that eligibility was limited to manufacturers of pharmaceutical products recognized by the Federal Ministry of Health and Social Welfare, provided they possessed a valid Tax Identification Number (TIN). Nweke noted that this policy has the potential to significantly impact Nigeria’s pharmaceutical industry and public health positively. However, he stressed the importance of effective implementation and monitoring to ensure the policy’s success and avoid past failures.
The initiative aims to boost the local pharmaceutical industry by reducing production costs and increasing competitiveness. Waiving tariffs on raw materials is expected to lower production costs for pharmaceutical manufacturers, making their products more competitive in the market. With reduced costs, local manufacturers can compete more effectively with foreign companies, potentially leading to increased market share and economic growth. By promoting local production, this policy may enhance access to essential medicines for Nigerians, improving public health.
Nweke emphasized the importance of compliance with eligibility conditions, focusing on manufacturers’ trade compliance history. He highlighted the need to distinguish between pharmaceutical manufacturing firms and pharmaceutical product traders (importers). In this regard, the NCS will provide specific guidelines and procedures for customs-related operations, including documentation requirements and customs duties calculation.
According to the CCC official, some stakeholders remain skeptical about the policy’s implementation, citing concerns over potential government revenue losses. Nweke suggested that these concerns could be addressed through strong oversight to prevent abuse and smuggling activities. (NAN)(www.nannews.ng)