The Nigeria Customs Service (NCS) has reaffirmed that solar panels continue to be exempt from import duties.
This clarification was provided in a recent circular (T&T/2024/CIRCULAR NO.18) titled ‘Clarification on the Classification of Solar Panels’, signed by Deputy Comptroller CK Niagwan.
According to the circular, the NCS addressed misunderstandings regarding the classification of solar panels. It noted that some units of the service had been misclassifying solar panels under Heading 85.01 instead of the correct Heading 85.41.
The confusion seems to have arisen from Note (B) to Heading 85.41 in the Explanatory Notes (7th Edition, Page XVI-8541-5), which details that the heading covers solar cells, whether assembled into modules or not. However, the note also specifies that solar panels or modules with additional elements, such as diodes or motors, are not included under this classification.
To clear things up, the NCS stated: “Solar panels, whether assembled into modules or equipped with components like diodes, motors, or electrolysers, should be classified under HS Codes 8541.42.00.00 and 8541.43.00.00. These panels are subject to 0% import duty and are value added tax (VAT) -free, in line with the ECOWAS Common External Tariff (CET) 2022-2027.”
This new classification replaces all previous rulings concerning the importation of solar panels.
