Committee seeks strict documentation on duty-free pharmaceuticals to curb drug trafficking
By Martha Agas
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 in Abuja.
Nweke said that the idea would help to mitigate the activities of drug traffickers and international cartels.
NAN recalls that the Nigeria Customs Service (NCS) on March 26 announced import duty and Value Added Tax (VAT) waiver on critical raw materials essential for pharmaceutical production for a period of two years.
The exemption covers Active Pharmaceutical Ingredients (APIs), excipients, and other vital raw materials required for manufacturing essential medicines.
It also covers Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, and packaging materials.
The NCS said that eligibility was limited to manufacturers of pharmaceutical products recognised by the Federal Ministry of Health and Social Welfare, provided they possessed valid Tax Identification Number (TIN).
According to Nweke, this policy has the potential to positively impact Nigeria’s pharmaceutical industry and public health.
He said that effective implementation and monitoring were crucial to the policy’s success.
“This is important so that unfortunate experiences of the past will note repeat itself,” he said.
He said that the initiative aimed to boost the local pharmaceutical industry by reducing production costs and increasing competitiveness.
“Waiving tariffs on raw materials will lower production costs for pharmaceutical manufacturers, making their products more competitive in the market.
“With reduced costs, local pharmaceutical manufacturers can compete more effectively with foreign companies, potentially leading to increased market share and economic growth.
“By promoting local production, this policy may improve access to essential medicines for Nigerians, enhancing public health,” he said.
He emphasised the importance of manufacturers complying to the eligibility conditions, particularly regarding their track record of trade compliance over the years, given the increasing focus on health and safety.
“For instance, there is the need to differentiate between pharmaceutical manufacturing firms and pharmaceutical products traders (importers).
“In this regard, the NCS will outline specific guidelines and procedures for customs-related operations, including documentation requirements and customs duties calculation,” he said.
According to the CCC official, some stakeholders are sceptical on the policy’s implementation, citing concerns over possible government revenue losses.
He said that the concern could be addressed with strong oversight to prevent abuse and smuggling activities. (NAN)(www.nannews.ng)
Edited by Kadiri Abdulrahman
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