The Agriculture and Food Authority (AFA) announced on Tuesday, May 28, that a new levy for all food crop importers and exporters will begin on July 1, 2024. This levy, specified in the Crops (Food Crops) Regulations 2019, was developed by AFA in collaboration with the Ministry of Agriculture and Livestock Development and relevant stakeholders to guide the promotion, development, and regulation of the production, processing, and trade of scheduled food crops. The regulations were gazetted on December 31, 2019.
The new regulations apply to food crops such as cereals, legumes, and roots and tuber crops, including sweet potatoes, cassava, beans, cowpeas, peas, soybeans, rice, oats, maize, barley, wheat, and sorghum, among others. Importers of cereals will be required to pay 2% of the customs value, while exporters will pay 0.3%. The same rates apply to legumes. For roots and tubers, importers will pay 1% and exporters 0.3%.
The levy will be based on the Free on Board value of the food crops or produce and must be paid at the point of entry or exit. Payments should be made to AFA or an appointed agent no later than the tenth day of the following month. Failure to pay within this timeline will result in a 25% interest on the outstanding amount plus a compound interest of 12%.
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