Section 170: Imposition of excise duty

1 For the purpose of this Act, excise duty shall be -
a imposed and chargeable on excise goods produced in the Excise Factory; and
b collected at the time a dutiable transaction occurs.

2 The excise duty to be imposed shall be based on the value of excisable goods or by a stated amount per unit of excisable goods, as specified in the regulations.

3 In the case of excisable goods produced in the customs territory, the dutiable transaction is the removal of excisable goods from the production premises, however goods are not considered to be removed from the production premises during the time they are stored in a bonded warehouse.

4 For imports, the dutiable transaction is the entry of excisable goods into the customs territory of Nigeria, and the term "entry” for excise duty purpose has the same meaning as for customs purposes.

5 Goods removed from the production premises for export or for loading as stores on a vessel bound out of Nigeria are exempted from excise duties.

6 The Service may by regulations specify restrictions and make provisions for accounts to be rendered for goods exempted from excise duties.