Importation business is described as a business niche that involves movement of goods or commodities from one country to another. Do you think of importing from somewhere to Nigeria? May be for resale, consumption or for manufacturing. Whatever the reason, there are same laws and principles that must be followed to get things right.
In this article, I am giving a brief bullet-points-guide on how to make your importation business idea a success. The steps I am giving does not matter if your import is from any part of the world to Nigeria. Also, Vagmon Integrated Services is a cargo clearance vendor that will walk you through importation business.
IMPORTATION BUSINESS IN NIGERIA
Below is a simple bullet points of how to begin and end your importation business into the Nigerian space.
- The importer must have a company registered with the Corporate Affairs Commission (CAC). Otherwise, the importer would have to use someone else company on agreement for importation business.
- Open and maintain a bank account with any commercial bank of choice. This bank will be the one mediating with the Customs to help you obtain import documents. I will tell you why I prefer UBA much later in another article. Suffice to say that any commercial bank can serve your importation business need.
- Approach the First Inland Revenue Services with the certificates as given by CAC to register for Tax Identification Number (TIN), and create access to the Nigerian Single Window for Trade
- Contact the seller to give you pro forma invoice with proper description of goods of import
- Liaise with an insurance company to keep issuing insurance certificate to cover the conveyance of goods.
- Check which regulatory certificate(s) that apply. Virtually all items of import require SON certifications. If SON applies, liaise with the seller to process SON Product Certificate (PC).
- Activate the SON Product Certificate as described in my earlier article for SON in the above link.
- Opens a Form M on the Nigerian Trade Platform (Single Window system) attaching the required documents, the Pro forma Invoice, the Product Certificate (for products regulated by SON), and the Insurance Certificate. See my article on how to process and obtain Form M.
- Forward a copy of the Form M to your exporter or seller, who will add Form M detail to all other documents such as Commercial Invoice, the Bill of Lading or Air waybill or Telex Releases, and the packing list. Also, contact SON agents, the International Accreditation Firm, with all these documents to obtain SONCAP Certificate.
- The supplier or you should arrange a shipping line or airline or automobile for road shipment.
- The shipping line or liner should submit manifest to the Nigerian Customs via online platform.
- Activate the SONCAP as described in my earlier article for SON in the above link.
- Apply for PAAR by sending a set of final documents to the applicant dealer bank. The final documents include activated SONCAP, Bill Lading or Air Waybill or Telex Releases, Combined Certificate of Value and Origin (CCVO), the Commercial Invoice and the Packing List.
CLEARING AND THE CLEARANCE VENDOR
- At this point the clearing agent comes in to assist your importation business.
- The Clearing agent takes all final documents [Bill of lading (BL) or Air Waybill (AWB), the Commercial Invoice (CI), the Packing List (PL), the Combined Certificate of Value and Origin (CCVO), the SONCAP Certificate (SC) and the PAAR] to a Direct Trade Input (DTI) cafe, to data capture information relating to the shipment
- The DTI generates Single Goods Declaration (SGD) document and the Duty Assessment Report
- The clearing agent or vendor gives the Duty Assessment to consignee or whoever is responsible for the cargo to make payment via Customs approved commercial bank
- confirm the payment by ensuring the bank stamps and sign the payment teller before agent proceeds with physical examination and finishes up.
Consequently, taking the above steps reduces the amount of money spent on clearing goods in every importation business. Thus, Vagmon Integrated Services help from ground zero to the delivery of your items to ensure minimal expense.
Similarly, Read also: FORM M IN NIGERIA: HOW TO PROCESS AND OBTAIN IT
In summary, the following are the basic clearing documents you need in your importation business in Nigeria:
- Certificate of incorporation (yours or that of the clearing vendor or agent or someone else’s)
- SON Product Certificate.
- Activate the SONCAP Certificate as described in my earlier article for SON in the above link.
- Best to contract a documentation specialist like Vagmon Integrated Services.
- Pro forma invoice; We help importers in designing Customs acceptable format.
- Marine insurance or Insurance Certificate. This is to be purchased by you from an insurance company. Vagmon Integrated Services have best Insurance companies that serve best premium rates.
- Form M to be obtained by you from Nigerian Customs via your bank. Suggest you use a documentation specialist.
- SONCAP; same process for Product Certificate applies
- Pre-Arrival Assessment Report (PAAR); to be processed by you from Nigerian Customs via your chosen commercial bank
- Bill of Lading or Air waybill, to be issued by the shipping line or the airline chosen
- Combined Certificate of Value and Origin; Again Vagmon Integrated Services can help.
Importation business to Nigeria becomes easier when the right steps are followed. Finally, contact Vagmon Integrated Services to handle all things for you. Furthermore, you can call us today at +2349075526276.