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

2. Implementation of Fiscal Policy Balance Nigeria‘s National Priorities
THE STATUTORY FUNCTIONS OF CUSTOMS
Border Security
&
Implementation of Fiscal Policy
Trade Facilitation
&
Revenue Collection
Regulatory Enforcement
Inspection & audit
Enforcement of quota Restrictions
Etc
Inter-Agency Collaboration
Economic Development
Foreign Direct Investment
Etc.
Balance Nigeria‘s National Priorities

3. 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.

4. 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.

5. TARIFF CLASSIFICATION OF SOLAR PANEL
EXPLANATORY NOTES to Heading 8501 ( XVI ), 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.

6. TARIFF CLASSIFICATION OF SOLAR PANEL
Furthermore, the relevant EXCLUSION NOTES from the provisions of the Explanatory Note, Vol.5, P – XVI on Heading 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.

7. 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)

8. 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.

9. Renewable Energy equipments that do not attract 0% are as follows;
Other items
Renewable Energy equipments that do not attract 0% are as follows;
Solar– Power Generator @ 5% and 0% VAT
Wind – Powered Generating set @ 5%
……. Solar Lamp and Lighting Sets @ 5% and 0% VAT
Solar Water Heaters @ 5% and 0% VAT

10. 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 according to the power 5% Duty and 5% VAT in tandem with extant ECOWAS Common External Tariff (CET)
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.

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