COST OF CLEARING AIRFREIGHT CARGO IN NIGERIA

COST OF CLEARING AIR FREIGHT CARGO IN NIGERIA

COST OF CLEARING AIRFREIGHT CARGO IN NIGERIACost of clearing air freight cargo in Nigeria depends largely on the freight weight. I mean the chargeable weight. Another factor that determine the cost of clearing air freight cargo in Nigeria is the dimension of the cargo. In addition, we have the nature of the item or goods description as a factor that influences the cost of clearing air freight cargo in Nigeria. Consequently, the tariff code or HS Code has affects cost of clearing air freight in Nigeria. Not-to-be forgotten is the actual cost of goods.

What really is the cost of clearing air freight in Nigeria? How do one clear air cargo? Answers to these questions will form the body of this article. Thus, the article will look at how to estimate cargo-clearing cost for air freights. Continue reading and feel free to let us know what you think.

COST OF CLEARING AIR FREIGHT CARGO IN NIGERIA

As we mentioned in the beginning paragraph, the following are the following are the cost deterministic factors for air freight:

  • Weight
  • Dimensions
  • Type of commodity or goods
  • Tariff code
  • Actual cost of goods or invoice value.

Let me give this article a more palpable treatment by using an experiential example. Hence, I will be using a recent job done by Vagmon e-Grup & Logistics Ltd to discuss each factor. Look at the following job offer by a client.

Read Also: FORM M NIGERIA: HOW TO PROCESS AND OBTAIN IT

Our client wrote the following:

Dear Vagmon, I have some cargo in china, with below specification.

Kindly let me know the cost of shipping, clearance, and delivery to our warehouse.

Job description: shipping, customs clearance and delivery of air freight from china to Nnamdi Azikiwe International Airport Nigeria.

Goods description:

Disinfection channel: Weight: 150kg dimension 2.4*3.0*0.9m.

Elisa Reader: 15.5kg dimension 550*395*470mm.

Pipette: 3kg, 450*360*280mm.

Sterilizer: 60kg, 770*525*495mm.

Biosafety Cabinet: 334kg dimension 1540*1080*1900mm.

Biosafety Cabinet: 121kg dimension 860*800*1450mm.

Eye Washer: 8.5kg dimension 470*420*350mm.

Pickup address: No. 1 Longtong Road, Xinhe Community, Wanjiang District, Dongguan City, China.

Delivery in Nigeria: Octagon Biotech Lab Ltd. Blck 23 Ray Plaza IBB Way Abuja Nigeria.

The first step in dealing with this job is to tackle the export part. To handle the export clearance and shipping, we want to know the cost of local haulage from warehouse to the port. In addition, we will determine the freight cost and the export clearance cost. Equally, we must check the total weight and volume of the goods. Thus, we will know what the chargeable weight is. Read on to the following paragraphs.

COST OF CLEARING AIR FREIGHT CARGO IN NIGERIA: WEIGHT AND DIMENSIONS

Weight and dimension have a great impact in the cost of clearing air freight cargo in Nigeria. From the given specification, total gross weight of goods is 1082kg. The volume is sum to a total of 11.053CBM. Next, we must determine the volumetric weight, and consequently the chargeable weight. I will dwell a great deal on the concept of chargeable weight in a separate article. Not in my habit to load readers with too much information at a time. No, I rather chose to be like Jesus Christ, when he told his disciples what is in the Bible Book of Matthew Chapter 16 verse 12; “I still have many things to say to you, but you are not able to bear them now.” Never mind!

Suffice to say for the moment that volumetric weight is = volume*167kg. Like I said before, do not worry about the figure 167 my next article will explain it. Therefore, from our case study, the volumetric or dimensional weight is 1843.85kg (11.053*167kg).

Why do we have to determine or calculate volumetric weight? The reason is that airlines compare the gross weight and the dimensional weight to determine chargeable weight. Consequently, chargeable weight is the greatest of either the gross or the dimensional weight. Our example shows gross weight is 1082kg and the dimensional weight as 1844kg. Thus, the chargeable weight in this case is 1844kg.

TYPE OF COMMODITY OF GOODS AND THE TARIFF CODE

By commodity type, we mean the nature of the goods in question. Is it a machinery or something else? Does the goods have a battery or a magnet? Is the commodity dangerous goods? Each of these classes of goods have separate ways of handling, and thus attracts different costs. Our case study has one item with magnetic component – the biosafety cabinet. Hence, importer has to pay magnetic test by airline.

Again, we must check to see the HS Code for the goods to determine Customs Duty and other levies.

Read Also: CALCULATING CUSTOMS DUTY; NIGERIA AS EXAMPLE

ACTUAL COST OF GOODS OR INVOICE VALUE

The value of the goods and the invoice value are useful to calculate Customs duty as you can see from the above reference. Invoice is the sum total of goods value, the freight cost and ancillary charges. Ancillary charges may include packaging costs, certifications, etc. It is always good to allow a consultant as Vagmon e-Grup & Logistics Ltd handle all things for you.

With all of the above factors considered, and with the destination in focus, it is time to give a simplified quotation. Most importers prefer quotation based on per kg. As a result, the Customs Broker must be smart enough to give his in a way that he does not loose. His goal must not also be to exploit importers. Remember that there are many Brokers out there. My advice to the Clearance Agent is; keep your quotation open until you know actual weight after packaging of goods. You could make some remark like ‘the final quote will got after the air waybill is got.’ Experience they say is the best teacher, but I say experience is a good teacher.

COST OF CLEARING AIR FREIGHT CARGO IN NIGERIA: QUOTATION

Here you can choose to either make one-line quotation or do a breakdown. The choice depending on the client and the agreement is from the beginning. I rather do things sequentially. Thus, I would present a one-line quotation and allow client to ask questions.

AIR INBOUND QUOTATION: CHINA TO ABUJA

ITEMDESCRIPTIONBASISUNIT AMOUNTCOMMENT
AIR FREIGHT CHARGES, EXPORT/IMPORT CUSTOMS CLEARANCE, PLUS DELIVERY AT WAREHOUSE IN ABUJA NIGERIAPER KGUSD12.0USDINCLUDES PICKUP, AND ALL EXPORT CLEARANCE AND DOCUMENTS

Further Information:

Total Volumetric Weight: 1082kg, Volume: 11.053CBM

From: China To: Abuja

Validity: valid until 30-JuLY-2020

Payment Terms: 100% upfront for air freight

Delivery: 5-10 days

Approved by:

Name and Signature:

Date: 18-JULY-2020

CONCLUSION:

Cost of clearing air freight cargo in Nigeria is a function of chargeable weight of the, goods type and the tariff code. Take into consideration location of pickup and delivery while quoting for a lump sum cost of clearing cargo in Nigeria. Finally, contact us today for smart cargo clearing with reduced cost.

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