IN THE FREE TRADE ZONES-SPELLING OUT THE RULES

ON STANDARDS

BY

Dr. Joseph I. Odumodu, MFR

Director General/Chief Executive

Standards Organisation of Nigeria

@ THE

FREE TRADE ZONE CONFERENCE & EXHIBITION

2012LAGOON RESTAURANT

OZUMBA MBADIWE STREET,VICTORIA ISLAND, LAGOS

5TH – 7TH APRIL, 2012

FREE TRADE ZONES (FTZ)

DESIGNATED AREAS FOR PRODUCTS LANDING, HANDLING, MANUFACTURING,RECONFIGURATION AND OR RE-EXPORTWITHOUT INTERVENTION OF CUSTOMSAUTHORITY

OBJECTIVES OF FREE TRADE ZONES

TO REDUCE OR ELIMINATE TRADE BARRIERS TO ENCOURAGE INVESTMENT TO PROVIDE EMPLOYMENT

OPPORTUNITIES TO FACILITATE ECONOMIC

GROWTH

FTZ INCENTIVES IN NIGERIA

COMPLETE TAX HOLIDAY FOR ALL FEDERAL, STATE AND LOCAL GOVERNMENT TAXES, RATES, CUSTOMS DUTIES AND LEVIES

ONE-STOP APPROVALS FOR ALL PERMITS, OPERATING LICENSES AND INCORPORATION PAPERS

DUTY-FREE, TAX-FREE IMPORT OF RAW MATERIALS AND COMPONENTS FOR GOODS DESTINED FOR RE-EXPORT

DUTY-FREE INTRODUCTION OF CAPITAL GOODS, CONSUMER GOODS, MACHINERY, EQUIPMENT, AND   FURNITURE

FTZ INCENTIVES IN NIGERIA

PERMISSION TO SELL 100% OF IMPORTED MANUFACTURED, OR ASSEMBLED GOODS INTO THE DOMESTIC NIGERIAN MARKET

WHEN SELLING INTO THE DOMESTIC MARKET, THE AMOUNT OF IMPORT DUTY ON GOODS MANUFACTURED IN THE FREE ZONE IS CALCULATED ONLY ON THE BASIS OF THE VALUE OF THE RAW MATERIALS OR COMPONENTS USED IN ASSEMBLY NOT ON THE FINISHED PRODUCTS

FTZ INCENTIVES IN NIGERIA

100% FOREIGN OWNERSHIP OF INVESTMENTS

100% REPATRIATION OF CAPITAL, PROFITS AND DIVIDENDS

WAIVER OF ALL IMPORT AND EXPORT LICENSES

WAIVER ON ALL EXPATRIATE QUOTAS FOR COMPANIES OPERATING IN THE ZONES

PROHIBITION OF STRIKES AND LOCKOUTS RENT-FREE LAND DURING THE FIRST 6

MONTHS OF CONSTRUCTION

THE PLACE OF STANDARDS

WHAT STANDARDS DO;

MAKE THE DEVELOPMENT, MANUFACTURING AND SUPPLY OF PRODUCTS AND SERVICES MORE EFFICIENT, SAFER AND CLEANER

FACILITATE TRADE BETWEEN COUNTRIES AND MAKE IT FAIRER

PROVIDE GOVERNMENTS WITH A TECHNICAL BASE FOR HEALTH, SAFETY AND ENVIRONMENTAL LEGISLATION AND CONFORMITY ASSESSMENT

THE PLACE OF STANDARDS

SHARE TECHNOLOGICAL ADVANCES AND GOOD MANAGEMENT PRACTICE

DISSEMINATE INNOVATION SAFEGUARD CONSUMERS AND USERS

INTERESTS IN THE PURCHASE AND USES OF PRODUCTS AND SERVICES

MAKE LIFE SIMPLER BY PROVIDING SOLUTIONS TO COMMON PROBLEMS

MENACE OF SUBSTANDARD PRODUCTS

SOME SOURCES OF SUBSTANDARD PRODUCTS

IMPORTATION LOCAL FORMAL PRODUCTION ADULTERATION/

COUNTERFEITING

STANDARDS & FREE TRADE ZONES

LOCAL & INTERNATIONAL CONCERNS ON THE QUALITY OF SOME PRODUCTS FROM FREE TRADE ZONES

CONCERN ON ISSUES OF CONTERFEITING/ADULTERATION

CURBING THE MENACE OF SUBSTANDARD PRODUCTS

THE LAUNCHING OF THE “ZERO TOLERANCE TO SUBSTANDARD PRODUCTS” STRATEGY & MOBILIZATION OF STAKEHOLDERS SUPPORT

CURBING THE MENACE OF SUBSTANDARD PRODUCTS

ON-GOING ESTABLISHMENT OF HELP DESKS IN MAJOR MARKETS ACROSS THE COUNTRY IN COLLABORATION WITH CONSUMER PROTECTION COUNCIL & MARKET ASSOCIATIONS

CURBING THE MENACE OF SUBSTANDARD PRODUCTS

COLLABORATIVE ARRANGEMENT WITH NEPZA TO INSPECT PRODUCTION ACTIVITIES WITHIN THE FREE TRADE ZONES FOR QUALITY ASSURANCE

SON- OUR COMMITTMENT

CONTINUOUS STAKEHOLDERS’ ENGAGEMENT WITH A VIEW TO;

FULLY IMPLEMENT OUR MANDATE PROMOTE GENUINE BUSINESSES & FIGHT

THE SCOURGE OF SUBSTANDARD PRODUCTS CIRCULATION

PROVIDE A LEVEL PLAYING FIELD FOR LOCALLY MANUFACTURED & IMPORTED PRODUCTS

SON - OUR COMMITTMENT

PROTECT NIGERIAN CONSUMERS & PROMOTE VALUE -FOR-MONEY IN PRODUCTS PURCHASE

PROMOTE RE-INDUSTRIALIZATION OF NIGERIA &

CONTRIBUTE SIGNIFICANTLY TO THE TRANSFORMATION AGENDA OF THE FEDERAL GOVERNMENT

CONCLUSION WE REQUEST MAXIMUM COOPERATION

FROM OPERATORS IN THE FREE TRADE ZONES

WE ENCOURAGE CONSUMERS IN NIGERIA TO DEMAND QUALITY AT ALL TIMES & TO ENDEAVOUR TO COMPLAIN WHEN THEY DO NOT GET IT

WE THANK THE ORGANIZERS OF THIS PROGRAM FOR THE OPPORTUNITY.

CONCLUSION

THANK YOU ALL AND GOD BLESS

…Improving life through

Standards