Section 122: Licensing of warehouses and warehouse keepers

1 A warehouse shall not be operated as a customs warehouse without a license issued by the Service to the warehouse keeper.

2 The Service may make regulations for licensing warehouses and warehouse keepers which regulations may make provisions -
a for the maintenance of appropriate inventory control systems;
b for proof of financial solvency; and
c setting standards for the qualifications of employees, contractors and service providers of a warehouse.

3 The Service may, upon application made to it on the prescribed form -
a license any building as a warehouse for the deposit of goods for warehouse purposes; or
b may, where the application has failed to fulfill the prescribed conditions for the grant of a license, refuse to issue a license to the applicant.

4 Where the Service has issued a license to the applicant under this section, it may at any time revoke the license.

5 A building may be licensed by the Service as -
a a general bonded warehouse, for the warehousing of goods which are the property of the warehouse keeper or of any other person; or
b a private bonded warehouse, only for the warehousing of goods which are the property of the warehouse keeper.

6 A license issued under this section shall -
a be in such form as the Service may prescribe;
b conform with such terms and conditions as the Service may by regulations prescribe;
c be subject to the payment of such fees as may be specified by the Service; and
d expire on the 31 December of each year.

7 A license shall not be issued to an applicant under this Part until the applicant has -
a furnished a bank guarantee for the due payment of all duties, excise Customs duties, other Customs duties and fees in an amount as the Service may prescribe;
b provide any additional guarantee as the Service may prescribe; and
c give an undertaking to comply with customs and excise laws.

8 A warehouse keeper who, without the prior written approval of the Service, makes any alteration to, or addition to, a warehouse shall be liable to a penalty of N10,000,000 and upon review may, at the determination of the Service, have the license revoked.

9 A warehouse keeper who uses his warehouse, or permits the warehouse to be used, in contravention of the conditions of the license shall be liable to a penalty of N10,000,000 or revocation of the license or to both.

10 An owner or occupier of a building who use the building or permits it to be used, for the deposit of goods for warehousing purposes without a valid license issued under this section shall be liable to a penalty of N20,000,000 and, in addition to a penalty of N 1,000,000 for each day, or part of a day, during which the building is used or is permitted to be so used for warehousing purposes.