Demystifying FORM-M in Nigeria: A Comprehensive Guide to Streamline Import Procedures

Introduction:

Importing goods into Nigeria involves navigating a complex web of regulations, documentation, and procedures. One crucial aspect of this process is obtaining a Form M, a mandatory document issued by the Central Bank of Nigeria (CBN) that facilitates the importation of goods. In this comprehensive guide, we will delve into the intricacies of FORM-M, its significance, and the step-by-step process to successfully obtain it for seamless imports.

Understanding FORM-M:

FORM-M, also known as the “Request for Import Form,” is a vital document required by the Nigerian government for import transactions. It serves as an application for the allocation of foreign exchange for the payment of goods and services from overseas suppliers. The CBN uses FORM-M to monitor and regulate international trade and ensure proper documentation and payment of duties.

The Importance of FORM-M:
Obtaining a FORM-M is essential for several reasons:

1. Foreign Exchange Allocation: The CBN uses FORM-M to allocate foreign exchange for the importation of goods, ensuring that legitimate transactions are prioritized.
2. Regulatory Compliance: FORM-M ensures compliance with Nigerian regulations and trade policies, preventing unauthorized imports and promoting transparency.
3. Customs Clearance: Customs authorities require a valid FORM-M for customs clearance, allowing goods to enter the country legally.
4. Documentation: FORM-M provides a comprehensive record of the import transaction, including details about the supplier, goods, and payment terms.
5. Control of Imports: FORM-M helps the government manage and control the inflow of goods into the country, safeguarding local industries and the economy.

WHERE CAN IMPORTERS ACQUIRE FORM M?

Form M documents, also referred to as e-Form M, can be conveniently processed by importers from anywhere across the globe through online channels. The designated portal for completing Form M is the Nigeria Single Window for Trade. Alternatively, importers have the option to delegate the Form M processing task to banks. Almost all commercial banks in Nigeria can facilitate Form M processing. However, for optimal results, it is advisable for importers to engage experienced Customs Brokers or Clearing Agents for the Form M procedure. These professionals possess comprehensive knowledge about goods classification, tariff structures, and regulatory permits within Nigeria’s trade landscape. Among these, Jumta Xpress Cargo Ltd. stands out as an agency renowned for seamlessly handling Form M documents. To reach us, visit our contact us page.

WHAT DOCUMENTS ARE REQUIRED TO OBTAIN FORM M?

The requisites for obtaining Form M hinge on the nature of the imported goods. A wide array of products necessitate either a SON importation permit or SON product certification. For instance, consumables such as food, pharmaceuticals, paints, and cosmetics necessitate an NAFDAC permit for import. Further, power generation sets warrant approval from NERC, while agricultural importers of planting seeds require authorization from the federal Ministry of Agriculture. For entities dealing in second-hand goods, endorsement from NESREA is vital. It’s worth noting that certain goods might require dual permits from distinct ministries.

To initiate and successfully secure Form M in Nigeria, the following prerequisites are essential:

• Authorization or permit from relevant regulatory agencies or ministries pertaining to the imported goods. These agencies encompass SON, NESREA, NAFDAC, NAQS, NERC, among others. In most instances, SON product certificates or SONCAP are obligatory.
• A valid Tax Identification Number (TIN) allocated to the individual or company involved.
• A cargo or marine insurance certificate.
• A proforma invoice detailing the imported goods.
• An active account with a commercial bank operating in Nigeria.
• An authenticated login account on the single window trade portal.

Processing FORM-M: Step-by-Step Guide

1. Obtain Tax Identification Number (TIN): Before initiating the FORM-M process, ensure that you have a valid Tax Identification Number from the Federal Inland Revenue Service (FIRS). This is a prerequisite for engaging in import activities.
2. Choose Appropriate Bank: Select an authorized dealer bank (usually a commercial bank) that will process your FORM-M application. Ensure the bank is well-versed in foreign exchange transactions.
3. Submit Application: Complete the FORM-M application on the bank’s online portal or physical form. Provide accurate details about the importer, supplier, goods, payment terms, and other relevant information.
4. Attach Required Documents: Attach necessary documents, including the Proforma Invoice, Bill of Lading or Airway Bill, Packing List, Insurance Certificate, and any other documents requested by the bank.
5. Submit Processing Fee: Pay the prescribed processing fee to the bank. The fee covers administrative and processing costs associated with the FORM-M application.
6. Bank Review and Approval: The bank’s foreign exchange department reviews the application and documents for accuracy and compliance with regulations. If everything is in order, they will approve the application.
7. CBN Approval: The bank forwards the approved FORM-M application to the Central Bank of Nigeria for final review and approval. The CBN ensures that the transaction aligns with trade policies.
8. Allocation of Foreign Exchange: Upon CBN approval, the allocated foreign exchange is credited to the importer’s account, allowing for the payment of the overseas supplier.

WHO ISSUES FORM M?

The issuance of Form M falls under the jurisdiction of the central bank of Nigeria. Here’s a breakdown of the Form M process:

1. Applicant, either a bank or a hired consultant, submits an online application for Form M and designates a commercial bank as the dealer bank.
2. An automated email notification is sent to the chosen bank indicating that they have been selected as the authorized dealer for Form M.
3. The bank then reviews and validates the Form M or raises queries if necessary.
4. Nigeria Customs Services receives an automated email, initiating their review and registration of Form M on behalf of the central bank.
5. The applicant receives an automated email notification confirming the successful registration of Form M.

CAN I APPLY FOR FORM M MANUALLY?

No, since 2012, Form M application is exclusively electronic.

HOW CAN I OBTAIN THE REQUIRED DOCUMENTS AND PERMITS FOR FORM M?

The proforma invoice is typically provided by the seller without charge. Jumta Xpress Cargo, a reputable clearing and forwarding company, handles the processing of other essential documents. Feel free to reach out to us for assistance.

WHAT IS THE TIMEFRAME FOR FORM M REGISTRATION?
Form M document issuance is mandated to be within 24 to 48 working hours from the time of application. In practice, some Form M’s may take up to one month to process. Delays may arise from banks’ procedures, inaccurate data entry, or incomplete information. Therefore, it’s advisable to engage an experienced consultant for smooth processing. At Jumta Xpress, we pride ourselves on efficient and timely operations.

WHAT IS A FORM M NUMBER AND WHERE CAN IT BE FOUND?

Form M numbers typically take the form of sequences like MF20230194332/BA21420230054403 or CB21420230584939, with BA or CB denoting whether the goods are exempt from destination inspection. These Form M numbers are essential for shipping lines to manifest or enter details of goods at the originating port.

WHAT IS THE VALIDITY OF AN E-FORM M AFTER ISSUANCE?

An initially approved e-Form M is valid for 12 to 24 months. However, an Authorized Dealer Bank can renew the Form M for an additional 12 months.

CAN I PROCEED WITH IMPORTATION TO NIGERIA WITHOUT FORM M?

The answer hinges on several factors:

1. How do you intend to make payments for your goods?
2. What is the mode of shipment—sea or air?
3. Is your shipment a full container load or less than a container load?
4. Which Nigerian seaport will your goods arrive at?

In essence, if payments are involved in exporting goods from Nigeria, Form M is essential. Air shipments can sometimes undergo direct assessment without Form M. Similarly, some seaports permit direct assessment for less than container loads. However, note that not all Nigerian seaports support direct assessment for less than container loads.

Conclusion:

Obtaining a FORM-M in Nigeria is a critical step in the import process, facilitating the allocation of foreign exchange and ensuring compliance with regulations. By understanding the significance of FORM-M and following the step-by-step guide, importers can navigate the complexities of international trade more effectively. As Nigeria’s trade landscape evolves, staying informed about such essential procedures is crucial for successful and efficient imports, contributing to a robust and vibrant economy.