Customs and Excise Authority


Welcome to class!

In today’s class, we will be talking about customs and excise authority. Enjoy the class!

Customs and Excise Authority

REVEALED: Despite leadership change, Nigerian Customs remains ...


  • Functions of the Nigerian Customs and Excise Authority
  • Methods of calculating customs duties
  • Customs and Excise Drawback

Functions of the Nigerian customs and excise authority

  1. Supervision of a bonded warehouse.
  2. Prevention of smuggling.
  3. Collection of customs duties (i.e. import duties and export duties) and excise duties.
  4. Enforcement of ban on prohibited goods.
  5. Supervision of import and export trade.
  6. Collection of data and provision of statistics on international trade.
  7. Prosecution of smugglers.
  8. Provision of quarantine facilities for animals/plants.
  9. Issuance of licenses for the manufacture and sale of certain goods in the country.
  10. Exchange currency control/checking of illegal trafficking of currency notes.


  1. What functions are performed by the Nigerian Customs Authority?
  2. Explain the difference between customs duties and excise duties.

Custom duties or tariffs

Customs duties, also tariffs, are taxes imposed mainly on imports and exports.

Methods of calculating custom duties

There are two methods of calculating customs duties, namely, specific duty and ad valorem duty:

  1. Specific Duty or Tax: Here the amount of the tax to be paid depends on the amount or quantity of goods bought so that the greater the number of goods bought, the greater the tax to be paid
  2. Ad Valorem Duty or Tax: The amount of the tax to be paid depends on the value or quantity of the commodity. This value or quality is measured in terms of the price of the commodity. This means that goods which have higher prices are supposed to have higher values and are therefore taxed more heavily than goods whose values/prices are lower.

Customs and excise drawback

Where goods on which import duty has already been paid are re-exported a refund of the duty may be claimed. This refund is called a customs drawback.

Excise duties are taxes on goods produced and consumed within a country. Where goods on which excise duty has been paid are now to be exported, a refund called excised drawback may be claimed by the exporter of such goods.


  1. Explain the differences between Specific duty and Ad Valorem duty.
  2. Distinguish between customs drawback and excise drawback.

Reading assignment

Comprehensive Commerce for SSS by J.U. Anyaele Page 44 – 64

General evaluation
  1. State five features of a supermarket
  2. State the difference between industry and commerce
  3. Mention and explain five types of commercial occupations
  4. State five functions performed by the customs authority
  5. Explain five factors that adversely affect the growth of commerce in West Africa


  1. Give three functions of the Customs and Excise Authority
  2. State two ways of Calculating Customs Duties


In our next class, we will be talking about Terms of Quoting Prices /Methods of Payment in Foreign Trade. We hope you enjoyed the class.

Should you have any further question, feel free to ask in the comment section below and trust us to respond as soon as possible.

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