CUSTOM DUTIES AND OTHER IMPORT TAXES IN NIGER
Main taxes on imports are :
1. Custom duty - 5% ad valorem on goods in category-1
10% ad valorem on goods in category-II
30% ad valorem on goods in category-III2. Statistical duty - 5% ad valorem (uniform)
3. VAT - 17% ad valorem
4. Surcharge on imports-levied on imports for the protection of particular sector of economy. The rate is fixed by the rules in vigour of degree of protection to be applied on concerned sector.
(Rarely applied)
5. Excise duty. - This is a special tax which is levied on consumption of certain products.
Category-I: Special products and products of premier necessity.
Category-II: Intermediary products , machines and equipments.
Category-III: Miscellaneous products.
CATEGORY-I ITEMS: Chickens , ducks, turkey and fowls of weight not exceeding 185 gms, milk and creams, potato, cereals, grains, fruits, vegetable oils, sugar cane, breads, Gas, Petrol, medicines, fertilizers, films, batteries for cameras, insecticides, hygienical items, surgical gloves , firewood , charcoal, copies, notebooks, printed school or scientific brochures , journals and periodicals, postal and excise duty stamps , manual pumps, spare parts for manual pumps, medical/surgical or laboratory sterilisers, apparatus for protection of insecticides, apparatus/equipments for watering, spare parts of mechanical apparatus, carts, parts of carts, chairs for handicaps, chairs and other vehicles for handicaps, microscopic , therapic and orthopedic articles , masks and equipments, medical and surgical equipments, tables and other equipments for making designs.
CATEGORY- II ITEMS: Wheat flour, other cereal flour, oatmeal, semolina, malta, oleaginous grains and fruits, seedling and other fruits, industrial and medicine plants, straw and grass, gum, resin and other vegetable juice, animal or vegetable fat and oil, all sugar products including lactose,maltose, glucose and fructose which are chemically pure, children foodstuff, yeast, lecithin, coca-fanta-sprite products, ethyl alcohol and drinkable water, crude or non manufactured tobacco, tobacco waste for industry, sulphur, clay and stones, lime and cement, gas-oil, domestic fuel oil, light fuel oil, heavy fuel oil, Vaseline, petrol gas and other gas hydrocarbons except butane, paraffin, electric power, inorganic chemical products, tanning or tinctorial items, tannin items, pigment and other material for colouring, paint and varnish, mastic, ink, mixing items, medical soaps, lubrification and oiling products for textile materials , wood pastes, papers and cartons , cotton threads, cotton clothes , plastic tubes and other products and textile articles used for technical purpose, Machines, apparatus and electric materials , accumulators, electromechanic apparatus, razors, electric lamps, water heaters, microphones and their supports, vedios, machines for radio telegraphy and radio telephones, television sets, road building vehicles and materials, tractors, vehicles for the transportation of ten persons or plus including driver, transporting vehicles for goods, chassis or other accessories of vehicles, bicycles and other cycles without motors, bicycles and other motorcycles with motors, air navigation equipments, maritime navigation or river navigation equipments, optical glasses, instruments for physical and chemical analyses, counters for gas, liquid and electricity, instruments and apparatus for the regulation of automatic control .
CATEGORY -III ITEMS: All other items not mentioned in Category I and II.
GENERAL
Present economic conditions and trading environment offer very modest opportunities for improvement in direct bilateral trade with Pakistan. The reasons for this lie in the geographical location of the two countries, incompatible systems, highly underdeveloped economy of Niger and its landlocked status forcing Nigerien traders to resort to indirect trade.
Situated in West Africa, Niger is a land-locked country bordered by Mali, Algeria, Libya, Chad, Nigeria, Benin and Burkina Faso. Nearest port at Cotonou (Benin) is about 1000 km from Niamey. Not only the distance but non-frequent, insufficient and expensive sea and air links between Niger and other destinations impede normal growth of trade with many countries of the world including Pakistan.
Niger is one of the world's poorest countries. Rated only above Sierra Leone and Somalia, Niger is amongst the bottom five countries according to United Nations poverty index list. Widespread illiteracy, lack of facilities like health and access to potable water, etc, have further been compounded by a staggering 3.2% population growth rate.
Agriculture and Mining are the base of Niger’s economy. Together they constitute about 50% of GDP, 83% of the value of exports and 75% of work force. Agriculture alone represents 37% of GDP and employs 70% of work force. Agricultural products compose 30% of country’s exports. Livestock’s contribution is 15% in GDP. Uranium remains, despite decline of international prices, Niger’s principal export product (67.2% in 1992).
Industrial sector is highly underdeveloped contributing mere 6% towards economy and employs 5% of work force. Due to negligible local production, Niger depends upon imports for most of its demands in all fields. Majority of the industrial units are in public sector. Facing serious financial and technical problems, most of these units are in the pipeline for privatization and restructuring. The number of principal manufacturing units in Niger is so small as can be seen from the list below :
Name
Capacity
Product
OLANI Dairy Plant
20,000 l/day
milk
BRANIGER (private)
Beer, soft drinks
MDS(Flour mill,private)
30,000 ton p.a
wheat flour
RINI(Rice mill)
20,000 ton p.a
rice
SNC(Cement Plant)
40,000 ton p.a
cement
ONPPC(Pharmaceutical)
Tablets, syrups, ORS SPCN
Soap, perfumes ENITEX (Sonitextil)
25 million m. p.a
printed cotton cloth
(State owned units SONITEXTIL, OLANI and SNC have already been privatized)
Decrease in international demand for Uranium (Niger’s top foreign exchange earner) since 1983 has resulted in diminishing revenues over the years. Increase in foreign debts, decrease in domestic receipts and periodic droughts have rendered the economy dependent upon foreign aid and assistance. The government relies on bilateral and multilateral aid for operating expenses and public investment and is strongly induced to adhere to structural adjustment programs designed by the IMF and the World Bank.
With an area of 1,267,000 sq.km and a population of approximately 9 million, Niger has one of the lowest population densities in the region. Actual market in Niger is limited mainly to Niamey and some other main cities like Zinder and Maradi. It is a small market characterized by poor purchasing power of the consumer. The market supply-demand mechanism is badly managed. Another major problem is the absence of an industrial class of entrepreneurs in Niger. Industry in private sector is almost non existent. There is no Stock Exchange to promote portfolio investment. Although there are certain very rich business groups, all of whom are traditionally engaged in trade. However, lately some of them have started showing interest in investment in industrial sector. Project financing through banks and other institutions is a big problem in Niger. Banking sector is underdeveloped. All of the few banks in Niger are in private sector and are not in a position to finance projects that involve heavy investment.
PRACTICE OF INDIRECT TRADE
Nigerien trade with most of the countries including Pakistan is largely indirect. It would not be wrong to say that to a great extent, the third parties (or intermediaries) and not the countries of origin, are the real competitors in the Nigerien market. Niger's trade is so structured that most of the traders avoid direct trade and prefer making orders to third parties who have their presence in the port cities of Cotonou (Benin) and Lome (Togo) and who supply all kinds of goods at short notice at very attractive rates. Niger's is a small and ill organized market. Traders make small orders for various items depending upon their requirements and financial capacity. Niger is also member of the West African Economic and Monetary Union (UEMOA) and CEDEAO which have preferential trade arrangements between member countries. This facilitates intra Union trade thus encouraging local traders to meet their demands from neighbouring countries notably Nigeria, and Ivory Coast.
FACTORS IMPEDING DIRECT TRADE WITH NIGER
a. High sea freight and inland transportation costs to this distant land locked country
b. Irregular shipping facility
c. Poor means of communication, language barrier
d. Small size of economy, restricted capacity of an average Nigerien trader, weak purchasing power of average consumer
e. Lack of adequate information about trade opportunities and facilities
f. Lack of study, anticipation and planning of local market and its requirements by Nigerien traders
g. Lack of direct links between traders and absence of representatives/ trade offices.
h. Most of the small Nigerien traders are unwilling to use banking channels for trade
i. With 100% devaluation of FCFA in 1994, products of Franc Zone have become more competitive as compared to products of other countries.
J. Since Pakistani companies do not have their representatives in the region, rare opportunities like contracts for civil works etc. cannot be availed. Language is another discouraging factor.
