WHO ARE CUSTOMS CLEARING AGENTS IN NIGERIA AND THEIR ROLES

Clearing agents are companies that help ensure the release of imported goods. When the goods are shipped, the Clearing Agent works with the relevant authorities to make sure the goods have been properly registered and shipped. This person is specially trained in getting imported goods from customs officials at the ports of destination. When we talk about cargo clearing, this means declaring the cargo and relevant documents to the customs authority. To be a clearing agent, you must have a license.

However, there are some important factors to consider when choosing a clearing agent in Nigeria to work with your RORO or containerized cargo. However, choosing someone who is easy to work with and charges low prices will only lead you to bad luck. The most important factors to consider are the quality of the clearing service and the experience of the clearing agent.

Clearing agents in Nigeria must be affiliated with a custom licensed clearing agent. There is a duty tariff for every consignment you plan to import for clearing services. It’s important to be aware of which items are prohibited from entering the country, as this can affect the price you are charged for clearing your shipment. You mustn’t also always look for cheaper and easier alternatives to beat the government at their duty tariff prices as this may have a daunting effect on your consignment as it can be seized and you may get you into unwarranted or avoidable

trouble.

There are several entities involved in the successful transportation of a shipment.. However big or small a shipment is, two entities stand out due to the importance of their roles in a shipment..

These entities are a Freight Forwarder and a Clearing Agent..

It is very important to understand the functions of a freight forwarder and a clearing agent and their role in a shipment as this is often confused..

While in a lot of cases, a freight forwarder and clearing agent may be the same entity, there are many cases where they are different as well and in this post we explore the difference between a freight forwarder and clearing agent..

DIFFERENCE BETWEEN A CLEARING AGENT AND A FREIGHT FORWARDER

The line between a freight forwarder and a clearing Agent is so thin and ever closing. Technically speaking, the Freight Forwarder is that company that mediates importers/exporters of less-than-container loads and the shipping companies. The freight forwarder plays the following roles in the industry at large:

• Gather piece and pieces of less-than-container-loads (LCL) from Customers (importers/exporters)
• Liaise with Shipping Lines or companies to consolidate and ship LCL from different Customers to full container loads (FCL)
• Negotiation of freight costs to cover Customers’ interests
• Cargo booking
• Documentation of bill of lading, CCVO, and other shipping documents
• Do the work of Clearing Agents in some cases
• Render storage and warehousing services.

The Clearing Agent mainly does preparing and submitting declaration and required documents to Customs Authorities. Let us now discuss the role played by the Clearing Agent in detail under the following headings.

THE ROLES OF CLEARING AGENT IN GENERAL:

It is clear from the above facts that the job of a clearing agent involves very specialized tasks and they are regulated by the country’s government.

Clearance of cargo from the seaport or a country’s border crossing is a complicated process that requires good operational and organizational skills. Apart from these skillsets, they must have a good knowledge of the local laws and customs formalities.

Clearing agents should also be familiar with the software that is used for the entry of shipment data and any other details that are required to be input into the relevant government information systems portals.

Goods that are waiting to be cleared may first have to pass inspection by customs authorities. Operational and organisational skills of clearing agents come into play for the arrangement of such inspections by authorities.

Labour and equipment such as forklifts and pallet jacks have to be available at the right time. Timely and prompt inspections facilitate quick transfer of the cleared goods to the customer’s storage facility.

Clearing agents may be required to arrange labour for loading and off-loading. The right labour force that can use special loading/unloading equipment will have to be made available at the correct time of loading and off-loading as it might also involve customs personnel as observers during these activities.

All activities related to the clearance and transport of cargo will have to be monitored, dues paid, and the consignee kept informed. Subsequently, clearing agents may also be required to submit data and written reports to their supervisors or directly to the consignee regarding clearance and delivery of the cargo.

An important task performed by clearing agents is to prepare and submit the required customs documentation with the authorities for clearance of shipments.

Most countries have switched over to electronic data interchange (EDI) systems into which the required data is entered by the clearing agent.

It is therefore essential that the clearing agent is tech-savvy and can operate the different types of software that are used in his office as well as by the customs.

Depending on the type of goods that is imported, the clearing agent may also be required to inform and submit documentation to regulatory bodies like the Health Department, the Environment and Pollution Control Board, etc.

Food items, alcoholic drinks and tobacco, and chemicals are some examples of such goods.

THE ROLES OF CLEARING AGENT IN NIGERIA:

DOCUMENTATION:

International logistics trade requires lots and lots of documents for effective and efficient movement of commodities across countries. The Clearing Agent is an expert documentation company. Thus, the Agent should be involved from the beginning to the end of your importation to avoid costly mistakes. Documents prepared with the assistance of the Customs Clearing Agent include the following:

The Proforma invoice: used to obtain Form M in Nigeria
Regulatory Import Certificates and Permits: these include NAFDAC Permit, SON Product Certificate/SONCAP, etc.
Shipping documents: Also called final documents in Nigeria. Final documents include the commercial invoice, packing list, CCVO, and the bill of lading/air waybill.
PAAR: This means the pre-arrival assessment program.
Single Goods Declaration – SGD and the Assessment Note.
Purchase of marine insurance certificate, etc.

PHYSICAL EXAMINATION:

The Clearance specialist goes to terminal administrators to book for situating of the compartment for physical examination of the products. For the Physical Examination to be done, the specialist writes a letter to Customs’ examination requesting Examination. The Agent engages Customs officers and units who do the examination. The various Customs units that take part in the Physical Examination are:

1. Valuation unit,
2. The entryway control unit,
3. The requirement unit and
4. The Customs Intelligent Unit (C.I.U).
   Other functions of the Agent include securing final release, local transportation arrangement and so on

CONCLUSION

Clearing Agents are companies that works with the relevant authorities to make sure the goods have been properly registered and shipped. An important task performed by clearing agents is to prepare and submit the required customs documentation with the authorities for clearance of shipments.  Every cargo importation undergoes two times clearance at origin and destination. The agent will guide you from the choice HS Code to documentation, cargo release and transport to desired location.