NIGERIA CUSTOMS SERVICE TARIFF CLASSIFICATION AND IMPORT DUTIES OF SOLAR ENERGY EQUIPMENT PRESENTED AT 2018 NIGERIA ENERGY FORUM BY THE NIGERIA CUSTOMS SERVICE

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THE TECHNOLOGY OF SOLAR PANEL Solar Panels products are equipment used as alternative sources of energy which supply electricity for industrial and domestic use. The solar panel absorbs energy from the sun which transforms it into electricity using photovoltaic cells. Solar Panels are made up of units of photovoltaic cells arrange in modules and Arrays.

TARIFF CLASSIFICATION OF SOLAR PANEL Classification are based on international standard General Interpretative Rules (GIRs). According to GIR 1 - The titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and Sub-heading Notes. The Notes mentioned above Explains the following : Inclusions Exclusion Explaining The GIRs above is in WCO Harmonised Systems Nomenclature for Harmonising classification in all 190 contracting parties of the WCO.

TARIFF CLASSIFICATION OF SOLAR PANEL EXPLANATORY NOTES to Heading 8501 ( XVI-8501-3), covers inter alia: Photovoltaic generators consisting of panels of photocells combined with other apparatus, like storage batteries and electronic controls, (voltage regulator, inverter, etc.). It also covers Panels or modules equipped with elements, however simple (for example diodes to control the direction of the current), which supply the power directly to, for example, a motor, an electrolyser, etc.

TARIFF CLASSIFICATION OF SOLAR PANEL Furthermore, the relevant EXCLUSION NOTES from the provisions of the Explanatory Note, Vol.5, P – XVI-8541-3 on Heading 8541 which clarifies that, “the Heading DOES NOT COVER panels or modules equipped with elements, however simple (for example, diodes to control the direction of the current) (HEADING 8501)’’. This implies that such panels are classifiable under Heading 8501.

TARIFF CLASSIFICATION OF SOLAR PANEL While photovoltaic cells of 8541 covers Arrays, Module and Panels, once this arrangement starts to generate stand-alone usable energy that could be connected to external load, the scope of 8541 is exceeded, at this stage, it enters the scope of 8501. Solar cells and Panels for function other than generation of useful power = 8541 Solar cells and Panels for generation of power = 8501 The above position is agreed by the International Renewable Energy Agency (IRENA) with the World Customs Organization (WCO)

TARIFF CLASSIFICATION OF SOLAR PANEL Consequently, Solar Panels as presented consisting of modules and elements (however simple, e.g diode and junction boxes) should henceforth be classified in their appropriate heading of 8501.

Renewable Energy equipments that do not attract 0% are as follows; Other items Renewable Energy equipments that do not attract 0% are as follows; 1. 8502.39.10.00 Solar– Power Generator @ 5% and 0% VAT 2. 8502.31.00.00 Wind – Powered Generating set @ 5% 3. 9405……. Solar Lamp and Lighting Sets @ 5% and 0% VAT 4. 8419.19 Solar Water Heaters @ 5% and 0% VAT

CONCLUSION Accordingly, all importations of Solar Panels made up of the solar modules, diodes and junction boxes should be classified on the appropriate commodity code of heading 8501 according to the power capacity @ 5% Duty and 5% VAT in tandem with extant ECOWAS Common External Tariff (CET) 2015-2019. The Nigeria Customs Service are to implement Government policy as directed. They ensure proper classification of import/export using internationally laid down principle and assess duty based on appropriate rate of duty as has been allocated to the tariff line by Fiscal Policy.

Thank you for your attention ? ----- Meeting Notes (19/12/2012 09:37) ----- Thank you for your attention