How to Calculate LEVY on Imported Goods in Nigeria

5 years ago

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How is LEVY calculated on imported goods in Nigeria? If you have ever asked this question, this article will answer the question for you!

Meanwhile, before we get to that you need to know what Levy really is.

Levy is simply an additional type of tax charged on specific types of goods imported into Nigeria.

What this simply means is that not all goods or items imported into Nigeria pay levy. In other words, Levy is charged and paid on some goods imported into Nigeria except those specifically exempted by the Common External Tariff (CET).

Unlike VAT, when you import goods into Nigeria, Levy due on the goods is calculated on the Cost, Insurance and Freight (CIF) of the Item being imported.

Here is the formula:

Formula: LEVY = x% X (CIF)

Hence, to calculate Levy on imported goods, you need to know the H.S Code of the goods (very important) and then the CIF.

You can read our comprehensive guide on How to Calculate Customs Import Duty in Nigeria

Now let’s do a working example. Let’s say we have a 1x20ft container load of Brake Fluid imported by Mr Eze Nnabuife from China and he has the following as the figures already converted to Naira for the different taxes (CIF + ID + Surcharge + CISS + ETLS):

Note: Brake Fluid has the HS Code 2710193200 (10% Duty rate with 7.5% VAT and 20% Levy)

Read: How to Calculate Customs Import Duty in Nigeria to learn how to convert these taxes and levies to Naira

CIF: ₦6,176,010.00

CISS: ₦61,760.00

DTY: ₦617,601.00

SUR: ₦21,617.00

ETL: ₦30,881.00

LVY: ?

VAT: ₦6,879,304

To calculate the LEVY Mr Eze will pay for importing Brake Fluid into Nigeria, we simply calculate the X% of the CIF. is ₦6,176,010.00 X 20%.

Hence (CIF) X 20%

LEVY = ₦6,176,010.00 X 20%