CUSTOM CLEARANCE PROCEDURE – IMPORT TO NIGERIA

STEP 1. Obtain Tax Identification Number (TIN)

The first step in the import process is to decide whether to import goods under your company name or under the name of another company, such as a clearance agency. If you choose to import goods in your own name or under your company name, follow these steps:

1. Register a company with the Corporate Affairs Commission (CAC). The company can be an enterprise or a Limited Liability Company (Ltd.) or any other type of company that is legally acceptable. Please note that taxpayers with tax identification numbers can also import goods as individuals.
2. Take your company certificate (which includes the three certificates given by CAC) to any office of the First Inland Revenue Services (FIRS) to apply for and activate your Tax Identification Number (TIN). Your TIN will then be visible on the Federal Government of Nigeria’s Single Window for Trade.
3. Use your TIN (username) and the password you created with the FIRS to log in to your page on the trade window website. From there, you can view your page and see what you can do with your company.

If, on the other hand, you prefer to use a clearance agency company to import your goods, you can skip this entire first step. If you require assistance or want to use clearance agency company, Jumta Express Cargo can help

STEP 2. Obtain FORM M

In Nigeria, every conventional method of importing goods requires the completion of Form M, which is the first official document. To open Form M, several documents are required, including the Proforma Invoice, Marine Insurance Certificate, and the SON Product Certificate. Additionally, the importation of used items requires the SON Import Permit and NESREA Import Permit. Read this article on how to process FORM M and take a closer look at each of these required documents.

STEP 3. Ship Your Cargo

Once you have obtained the Form M, you are now ready to proceed with shipping your goods.

You can give the Form M to either the seller or the shipper, depending on the arrangement that you have made. In a separate article, we will discuss how to find a suitable shipping company.

After you have given the Form M, the shipping company will issue a shipping document, which may take the form of an air waybill, bill of lading, sea waybill, or telex release, depending on the mode of transportation used. It is important to ensure that the Form M number is included on the shipping document. An air waybill is used for cargoes shipped by air, while a bill of lading or sea waybill is used for cargoes shipped by sea.

STEP 4. SONCAP

After obtaining the Form M, the cargo shipping process can begin. Before loading the shipment, a SON inspection agent, chosen from any of the three, inspects the shipment to ensure it meets the regulations set by SON.

If you used SON PC to obtain the Form M, the seller or designated person needs to approach SON again to obtain the SON Conformity Assessment Program Certificate (SONCAP). However, if you used SON Import Permit at the Form M stage, this sub-step is not necessary because the permit already covers for Form M and Pre-Arrival Assessment Report. SONPC confirms that the products conform to Nigerian standards and technical regulations, while SONCAP confirms that the product in a specific shipment complies with relevant Nigerian technical regulations and approved international, regional, or national standards.

The seller then arranges the real invoice, packing list, combined certificate of value and origin (CCVO) and includes the Form M number on all documents. Activate the SONCAP or SON Import Permit against the documents with SON directly to enable them to vet what was received from their agents and ensure standards are met. read more about SONCAP here

STEP 5. Process PAAR

After SONCAP inspection, the documents must be given to the bank, which will then provide them to Nigerian Customs for issuance of the Pre-Arrival Assessment Report (PAAR). Finally, the PAAR and all other clearing documents mentioned above must be handed over to the clearing agent. read more about PAAR here

The Custom Clearance agent takes over from the following steps and continues until the end of the process. By following the aforementioned steps in the custom clearance procedure, you can save yourself from the significant costs associated with documentation. At Jumta Express Cargo, our goal is to assist you in reducing the costs associated with cargo clearance.

STEP 6. Customs Duty Payment

The term “Customs duty” refers to the mandatory fee that must be paid to the Nigerian government when importing goods into the country.

An assessment notice, also known as a Customs debit note, is issued either by a DTI café or a clearing agency café. This document shows the total amount of duty payable to the Nigerian government through its agency, the Customs Services, and is calculated using international standards. We will provide a separate article to guide you on how to estimate Customs duty yourself from the convenience of your office.

Once the assessment notice is received, the consignee or clearing vendor must make the payment at a Customs-approved bank.

STEP 7. Booking and Examination

Once the Customs clearing agent has obtained the necessary documents and paid the required fees, the next step is to secure release stamps from different units within the Customs department. These units include the Enforcement Unit, Customs Intelligent Unit, and Customs Gate Control. The agent must ensure that all units have provided the necessary release stamps before proceeding to the next step.

Once the release stamps have been secured, the agent must then obtain the signature of various government agencies operating within the port. These agencies include NDLEA, Anti-Bomb, Police, SSS, NAFDAC, SON, and others. The purpose of obtaining these signatures is to ensure that the cargo is in compliance with all relevant regulations and standards. These agencies will examine the cargo and certify that it meets all necessary requirements before signing the examination form.

STEP 8. Issuance/Payment of Debit Notes

The next step in the clearance process involves obtaining charges from the shipping company or liner agent, who is responsible for conveying your cargo from the country of origin. The clearing vendor presents the Bill of Lading to the shipping company, who then issues an invoice or debit note. Examples of such companies include Grimaldi Agency, Maersk Line, APMDC, and others.

Similarly, the clearing agent approaches the terminal operator’s office to obtain an invoice for terminal charges. Terminal operators have a crucial role to play as they are responsible for securing the container and providing the handling equipment required to convey the container(s) for examination by Customs or scanning processes in and around the seaport.

Both terminal and shipping companies’ charges must be paid in the approved banks. It’s worth noting that some terminals require that shipping company charges be paid before examination.

Once payment to the shipping company is made and the shipping company releases the cargo, they issue a Delivery Order to the consignee and transmit it to the terminal. At this stage, all the required documents for exit note and terminal delivery order are submitted to the terminal operator. These documents include the shipping company’s Delivery Order, supporting documents, customs release documents, and any other necessary paperwork. With all documents in place, the Terminal operator issues a Terminal Delivery Order (TDO). Consequently, the cargo is released and ready for truck out to the Final Gate.

STEP 9. Final Clearing

After leaving the terminal, the truck carrying the container(s) proceeds to the final gate, where it undergoes another round of documentation by the customs. This includes confirmation of duty payment, endorsement, and multiple registrations of documents. Once all the necessary documentation is completed and approved, the truck can leave the seaport and begin its journey towards the destination.

Upon arrival at the destination, the cargo is delivered to the consignee’s warehouse or designated point, completing the customs clearance process. It is important to note that throughout the entire process, from obtaining the necessary documentation to the final delivery, there are various fees and charges associated with the customs clearance process that must be paid in order to successfully clear the cargo. Proper planning and adherence to the required steps can help to minimize costs and avoid delays.

NOTES

1: While most banks typically require the supplier to send the documents mentioned in stage 3 directly to them, there are some banks that may allow for hand delivery or scanned copies.

2: By following the recommended process outlined in this article, you can avoid common bottlenecks in the customs clearance process and save money. Don’t worry about the cost of SONCAP from the origin or the time it takes to process the PAAR, as you’ll benefit from a more secure and streamlined clearance process.

3: The customs clearance process described here applies to both air and sea freight, with some slight variations.

4: For goods marked as used, NESREA certification is required instead of SON PC/SONCAP.

Other Important Information on Import to Nigeria/Responsibilities of Parties involved

The main objective of providing this information is to equip you with knowledge of the roles and responsibilities of the various parties involved in the importation process. By understanding these roles, you will be able to identify the specific party responsible in case of any errors or failures that occur during the importation process. This knowledge will empower you to take appropriate action and help ensure that the importation process runs smoothly and efficiently.

RESPONSIBILITIES OF NIGERIA CUSTOMS: The Nigeria Customs is responsible for the following:

• Issuing or rejecting Form M
• Issuing Pre-Arrival Assessment Report (PAAR)
• Collecting duty on behalf of the Federal Government
• Conducting cargo examination, compliance monitoring, and clearance

RESPONSIBILITIES OF IMPORTERS: Importers have the following responsibilities:

• Ensuring that the supplier provides a pro-forma invoice that meets the import procedure of the country with clear and unambiguous descriptions of the goods
• Ensuring that all documents forwarded to the Authorized Dealer Bank are genuine and verifiable
• Complying with all the import procedure requirements before sending documents to the Authorized Dealer Bank
• Advising the supplier of the relevant Form M status before shipment

RESPONSIBILITIES OF SUPPLIERS: The overseas supplier has the following responsibilities:

• Providing the relevant shipping documents used by the importer to the bank in Nigeria
• Understanding the timing and regulatory requirements of the supplied item
• Complying with Nigerian shipping laws

RESPONSIBILITIES OF AUTHORIZED DEALERS: The Authorized Dealer Bank is responsible for the following:

• Processing and validating Form M documents
• Presenting PAAR documents to Customs
• Vetting documents for compliance with rules and requirements, including CBN directives
• Providing guidance to both the importer and exporter
• Issuing payment guarantees, such as letters of credit

5. RESPONSIBILITIES OF SHIPPING LINES/AIRLINES: The shipping lines or air carriers have the following responsibilities:

• Ensuring that all goods consigned for shipment to Nigeria are covered by the appropriate Form M
• Including the Form M number on the Bill of Lading, Airway Bill, or road way bill for such goods
• Complying with rules on documentation and manifest submission

In conclusion, importing goods from one country to another involves two custom clearance procedures, one at the supply country and the other at the destination country. This article has provided a detailed explanation of the import custom clearance process for reducing customs clearance costs in Nigeria. We also offer custom clearance services for some classified goods that may not require strict adherence to the standard customs clearance procedure. For more information, contact us at +2348145464778 today.