In fulfillment of its earlier promise to introduce a product price verification mechanism for imported items, the Central Bank of Nigeria (CBN) has published the first HS Codes unit costs list which is supposed to guide Banks and all authorized dealers in Foreign Exchange in the verification of quoted prices of imported items before Form-Ms are approved.
Nigerian Banker has published CBN eliminates rent-seeking, agents in import payments where CBN in its effort to ensure the judicious use of Nigerian foreign exchange earnings and to avoid the incident of over-invoicing, transfer pricing, and double handling charges on items imported into the country has issued advisory to financial institutions and foreign exchange dealers to desist from honoring Form-M requests from buying agents and other third parties.
The CBN in its circular published on the 24th August 2020 also promised to introduce a Product Price Verification Mechanism to be used by authorized dealers in Foreign Exchange to verify prices of products before form Ms are approved.
The CBN has however released the HS Codes unit price list today. The Price list which has the HS Codes of all internationally traded items also have the Goods Description, Unit of Measurement, and Unit Cost in USD is expected to guide importers and FX dealers to avoid over-invoicing of imported items
The HS Code or Harmonized System (HS) Codes are commonly used throughout the export process for goods. The Harmonized System is a standardized numerical method of classifying internationally traded products.