Regulatory Alerts2024-02-14 | TED/FEM/PUB/FPC/001/005Allowable Deviation Limit on The Price Verification System
The Central Bank of Nigeria has adjusted the allowable deviation limit on the Price Verification System for exports and imports to -15% and +15% of the global average prices, respectively, due to global inflation and other challenges. This system aims to curb over-invoicing and under-invoicing by monitoring the declared prices of import items that deviate from the global average. The CBN emphasizes that the PVS is designed to curtail excessive foreign exchange outflows rather than determine item prices for tariffs or duties.
09-61637800 CENTRAL BANK OF NIGERIA Corporate Head Office Central Business District P.M.B. 0187, Garki, Abuja, FCT 09-61637804 TRADE AND EXCHANGE DEPARTMENT E-mail address: ted@cbn.gov.ng TED/FEM/PUB/FPC/001/005 February 14, 2024 TO: ALL AUTHORISED DEALER BANKS ALLOWABLE DEVIATION LIMIT ON THE PRICE VERIFICATION SYSTEM Following the implementation of the Price Verification System (PVS) to curb over-invoicing of imports and under-invoicing of exports, the CBN in a circular referenced TED/FEM/FPO/PUB/O1/001 stated that declared prices of import items that are more than 2.5 percent above the global average prices of the referenced item will be queried.
However, due to global inflation and other related challenges, the CBN has reviewed the allowable limit of price deviation for exports and imports to -15% and +15% of the global average prices, respectively.
Authorized Dealer Banks and the general public are hereby advised to note and comply accordingly. For further clarification, the PVS is not meant to determine the actual prices of items for tariffs or duty charged by government but rather to enable the CBN curtail the excess outflow of the limited foreign exchange through over-invoicing and other price manipulation activities.
DR HASSAN MAHMUD DIRECTOR, TRADE AND EXCHANGE DEPARTME