Introduction
Import and Export: Importation is a business operation that involves acquiring commercial consumable goods and products from another country into Nigeria while exportation is simply the outflow of goods and products from Nigeria into other countries for commercial purposes. The procedures for import and export are governed by various laws and regulations made by different government agencies responsible for import and export operations in Nigeria.
An importer is a person or company who buys goods from an exporter. An exporter is the seller of goods and services in one country, to be delivered to another country.
The relationship between an importer and a clearing, freight forwarding company can be defined as follows:
The importer pays for the shipping charges (freight) and other relevant expenses such as insurance, customs duties etc., which are incurred during transit of cargo from point of origin/export to destination point/importation.
In return for this payment by the importer; his goods are cleared through Nigerian ports by Nigerian Customs Service officers before being released into circulation within Nigeria or outside Nigeria (depending on whether there was any export licence issued).
Procedure for Importation
There are certain requirements required to be complied with by any importer before carrying importing goods into Nigeria. Most times, the steps toward importation commence with the importer duly register a company with the Corporate Affairs Commission (CAC). The importer is also expected to register and open a tax file with the nearest branch of the Federal Inland Revenue Service (FIRS). Tax Identification Number will be issued to the importer with a valid email address attached to it. Also, the importer is required to open a corporate bank account by choosing any reputable bank in Nigeria to act as the Authorised Dealer Bank (ADB), which will be responsible for processing the E-Form M and Pre Arrival Assessment Report (PAAR), as well as act as the mediator among the Nigeria Customs Service, the importer and other bodies where necessary. The E-Form M and PAAR documentation are processed on the Nigeria Single Window Trade Portal. The importer must register as a client on the Nigeria Single Window Trade Portal, which is an intergovernmental
online site that encourages trade between government agencies and parties on the FIRS’ site.
The importer is also required to obtain the appropriate permit from the various regulatory bodies which are dependent on the kind of goods and product to be imported. For instance, an importer of petroleum products must obtain import from the Department of Petroleum Resources (DPR), while any importer of food or drug items must obtain a requisite permit from the National Agency for Food and Drug Administration and Control (NAFDAC).
Upon the fulfilment of the above conditions, the importer is ready to import goods and products for commercial purposes from other countries in Nigeria. The following steps are to be taken by the importer as prescribed by the Nigeria Ports Authority;
- Obtain the requisite regulatory permits/certificates for goods and products that are regulated.
- The importer is required to activate the Product Certificate on the online single window for assessment.
- The importer is expected to obtain Form M on the Nigerian Trade Platform (Single Window System, attaching the required documents such as the proforma invoice, insurance certificates, or product certificate and submit the same to the authorized dealer bank (ADB).
- Afterwards, the authorized dealer bank is to review and validate Form M and send it to the Nigeria Customs Service.
- The Nigerian Customs Service has the power to either accept or reject the Form M when it is not duly completed or the importer defaults in attaching some required documents.
- Upon the acceptance of the duly completed Form M by the Nigeria Customs Service, the importer is required to forward the Form M to his exporter who will, in turn, contact Cotecna, which is a provider of laboratory testing, cargo scanning, etc where applicable.
- Afterwards, the importer activates the SONCAP Certificate and applies for the Pre-Assessment Arrival Report (PAAR) where applicable. PAAR is an online application used by the Nigerian Customs for inspection before the arrival of the cargo to reduce the time spent when the goods arrive on the Nigerian Single Window for Trade.
- The PAAR is therefore issued and the importer can now carry on the clearance of its products.
- For shipping companies, the importer is required to submit the import manifest
- to customs, the Nigerian Port Authority, and terminal operator and pay the shipping charges.
- Documents of each importation are required to carry the name of the product, country of origin, specifications, date of manufacture, batch number, and standard to which the goods have been produced.
Procedure for Exportation
To carry on the business of exportation, the exporter is required to incorporate a company with the CAC in Nigeria, upon incorporation the exporter is also required to register with the Nigerian Export Promotion Council (NEPC) and obtain the exporter’s certificate to be eligible for NEPC benefits. The exporter is also required to complete the NXP Form with an authorized dealer, which is any reputable bank in Nigeria.
Also, an export contract may be executed between the exporter and the importer which sets out the obligations of the exporter and importer.
It is the responsibility of the exporter of any commodity to ensure an appropriate license or export permit has been obtained from various regulatory agencies before attempting to export any consignment. For instance, an exporter of any solid minerals must obtain an export permit from and pay royalty through the Ministry of Mines and Steel Development (MMSD).
The Agent (Forwarder) plays significant roles in facilitating exportation on behalf of the exporters. By and large, the functions of an Agent during the export process include the followings:
- Make arrangements for transportation to Port.
- The agent is also expected to make arrangements for inspection by the Nigerian Customs Service, the SSS, Nigerian Drug Law Enforcement Agency, and other authorized government agencies.
- Make payment for the prescribed duty where applicable.
- Make the necessary payment of the shipping company charges, that is, the Freight.
- The agent is also to book space with the shipping agent.
- He may also make payment for terminal operators’ chargers.
The shipping companies also play pivotal roles in the export of any goods from Nigeria. The major duties of a shipping company are to accept the cargo at the port of departure from exporter under the bill of lading contract, transport and deliver the same to the consignee.
If you are importing goods into Nigeria, you will need to use a clearing and freight forwarding company. There are several advantages of using such companies which are :
-
Cost savings
– They can help you save money on your importation costs by advising on how much money should be paid as duties and taxes at different stages of the process. This is because they have experience in dealing with customs officers, who may ask for more money than necessary if they do not know what they are doing. -
Legal and regulatory requirements
– Clearing agents also know about legal requirements such as customs declarations forms (CN23), which must be submitted before goods can be cleared by Nigerian Customs Service officers. They also understand local regulations regarding storage facilities for imported goods, which may differ from country to country depending on their type or weight distribution per container load (TL). -
Types of Documentation Required
- The following are some of the documents required for import clearance:
- · Commercial invoice
- · Packing list
- · Bill of lading (B/L) or airway bill
- · Certificate of origin, if applicable
- · Insurance certificate(s), if applicable
- In addition to these documents, you may also need to present other supporting documentation depending on your specific situation. For example:
In addition to these documents, you may also need to present other supporting documentation depending on your specific situation. For example:
A Certificate of Inspection (C/I) from a recognized authority in Nigeria that certifies that your goods meet all Nigerian import requirements; this document can be obtained from NAFDAC or any other relevant government agency in Nigeria before shipping your goods there.
Import Procedures
Import procedures at Nigerian sea ports are quite simple. The following are the steps to be taken by importers:
Filing of customs declaration form:
This is done before arrival of goods in Nigeria, where the importer submits information regarding their consignment and pays duty on it.
Payment of duties and taxes:
Once you have filed your customs declaration form, you will pay all applicable duties and taxes. The amount paid will depend on what type of product you are importing, as well as its value or weight (if applicable).
Inspection of goods:
Your shipment will then be inspected by officials from Nigerian Customs Service (NCS) who may ask questions about them if they suspect fraud or misdeclaration has been committed during importation process; this step helps ensure that products entering Nigeria meet safety standards set out by law makers.
The Role of the Importer
The role of the importer is to ensure that all necessary documents are in order and paid for. This includes duties, taxes, permits and licenses. The importer should also coordinate with their clearing and freight forwarding company so that they can provide documentation on time.
The Role of the Clearing and Freight Forwarding Company
The role of the clearing and freight forwarding company is to prepare and file all required documents including import permit, customs clearance, shipping documents and other relevant legal requirements. They also coordinate with customs on behalf of their clients in order to facilitate smooth clearance of goods at Nigerian sea ports.
The responsibilities of this company include:
· Preparation/filing of documents such as CCL/FCCL (Certificate of Clearance or Freight Certificate), Invoice & Packing List etc.,
· Coordinating with Customs Officials for smooth clearance,
· Arranging for transport & delivery of goods from Nigeria Sea Ports.
Contact Us
For Import and Export Procedure in Nigeria, contact Chaman Law Firm today. Our offices are conveniently located in Lagos, FCT Abuja, Ogun State, and the UK. We are readily available to assist you with your legal needs. Whether you require consultation, representation, or ongoing legal support, Chaman Law Firm is your trusted partner in navigating Import and Export Procedure in Nigeria.
Call us at 08065553671 or email us at info@chamanlawfirm.com to schedule a consultation.
Chaman Law Firm: Your Trusted Legal Partner in Import and Export Procedure
By choosing Chaman Law Firm, you are selecting a team of dedicated professionals committed to providing exceptional legal services tailored to your unique needs. Let us be your advocate and guide in the complexity of import and export procedure, ensuring your interests are protected and your goals are achieved.