COST OF CLEARING

COST OF CLEARING CARGO: EXAMPLE OF NIGERIA

Cost of clearing has remained a subject of concern to prospective importers. Do you want to import some pieces of machinery? Are you wandering what the overall clearance process could cost? Or could the problem be that of not knowing where to begin? If you answered yes to any of the questions above, then this article is for you.

COST OF CLEARING CARGO IN NIGERIA: WHERE TO BEGIN

First of all, you must begin well to avoid making costly mistakes. For instance, some persons ship items without consultation, and consequently spend a lot of money thereafter. Take for instance, a person starts his shipping to Nigeria, without following the Form M route required by regulation. The implication of this is that such item(s) would have to be cleared on the basis of direct assessment with more cost implications.

To be on the safest side is to consult a cargo clearance vendor from the onset. The clearance vendor is an expert in the import and export business. So, involve the vendor from the very beginning of the import business.

Read Also: CUSTOMS CLEARING AGENT/CUSTOMS BROKER IN NIGERIA

COST OF CLEARING CARGO IN NIGERIA

Let us now focus on the overall cost implication of clearing items into Nigeria. In this section, we shall use a typical item to demonstrate the cost involved from the port in Nigeria to the importer’s warehouse. These costs shall be categorised as:

  • Certification costs
  • The clearing vendor’s charge
  • Shipping company local charge
  • Terminal handling charge
  • Post Inspection charges
  • Government duty

COST OF CLEARING CARGO IN NIGERIA: CERTIFICATION COSTS

To clear items in Nigeria, importers are required by law to process SON Product Certificate (PC) and a SONCAP Certificate (SC). The SON PC is used to open Form M while the SONCAP is used to raise Pre-Arrival Assessment Report (PAAR). Both Form M and PAAR are used for Customs clearance of the imported items.

Furthermore, the imported items may not be SON regulated, but requires the use of NAFDAC or NESREA clearance permits.

Consequently, there are costs in processing import certificates. More often than not, the cost of certification is a function of the value of item or goods imported. Vagmon Integrated Services is a specialist company that handles all import documentation from any country of origin. Contact us today; whatsapp: +2349075526276, email: info@clearingandforwardingclearingnigeria.com

Read Also: IMPORTATION LICENSE: REGULATORY AGENCIES

COST OF CLEARING CARGO IN NIGERIA: THE CLEARING VENDOR’S CHARGE

This is otherwise known as service charge or clearing cost. It is the amount of money charged by the clearance vendor to do the job of physically getting out the cargo from Customs. The job done by clearance vendor depends on the agreement. For some arrangement, the importer basically hands all things to the vendor from the point of purchase. This means that the vendor would have to work with the supplier to determine shipping methods; export handlings export haulage, and export clearance. An example we clarify matters.

COST OF CLEARING CARGO IN NIGERIA: SHIPPING COMPANY LOCAL CHARGE

The local offices of international shipping companies raise some charges before releasing containers or packages to the consignee. This depends on the transport arrangement agreed. We shall use a typical goods cleared by us to demonstrate this charges.

COST OF CLEARING CARGO IN NIGERIA: TERMINAL HANDLING CHARGE

Again, an example will clarify what terminal handling charges are. Typically involves additional storage at the terminals like Federal Operations Terminal (FOT) and Federal Lighter Terminal (FLT).

COST OF CLEARING CARGO IN NIGERIA: POST INSPECTION CHARGES

Most often, this is charges raised by SON or other regulatory government agencies for inspection purposes. This article will show an example SON post inspection charge.

COST OF CLEARING CARGO IN NIGERIA: GOVERNMENT DUTY

This is the duty payable to the government for the importation of goods. Government duty is basically a summation of the following:

  • CISS – Comprehensive Import Supervision Scheme
  • DT – Import Duty
  • SU – Surcharge
  • ETL – ECOWAS Tax Liberalisation Scheme
  • Value Added Tax, etc.

Read Also: CALCULATING CUSTOMS DUTY; NIGERIA AS EXAMPLE

Let us now take a typical example in a separate article.

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