Clearing and forwarding business is quite beneficial for a businessman who wants to have a positive influence on the worldwide market. Choosing a reliable, trustworthy, and cost-effective clearing and forwarding agency can be quite challenging. This is because of the competitive nature of the logistics markets. Additionally, there is the unpredictable custom clearance fees as a result of Naira fluctuation in the foreign exchange markets. This article will walk you through some things to know about Clearing and Forwarding in Nigeria.
WHAT IS CLEARING AND FORWARDING?
Shipment clearing is the declaring of consignments to authorities and government agencies in the ports. Whereas, Forwarding is the transporting of the purchased goods to the consignee. The businesses of clearing and forwarding are two inter-related entities.
The Nigeria customs services and the Nigeria Port Authority must license the clearing and forwarding Agency. Hence, Clearing Agents or Customs Brokers are companies or individuals, who declare goods to Customs and other border authorities. Whereas, individuals and companies who arrange transportation logistics aimed at moving goods across country borders are called Forwarders. It is not mandatory that to be an Agent you must be a forwarder. Some companies are both clearance and forwarding agencies.
Read also: HIRE CLEARING AGENT IN NIGERIA
HOW LONG DOES CLEARING AND IN NIGERIA TAKE?
Most first time importers are keen to know how long it will take to take delivery of imported goods at the final destination. The answer to the question of how long is not straightforward yes or no, if you ask me. So many factors determine goods delivery timeline. From the origin, you want to factor in the distance from pickup warehouse to departure port. In addition, you will consider the Export Customs processing. In most advanced world, Customs processes are easy. Furthermore, is the import via air or sea?
On arrival, are the documentation perfectly done? Does the importer have a Form M, SONCAP, PAAR, and Rotation Number? Are the assessment and capturing process for duty payment in place? Is the Importer ready to pay duty and all taxes? What about the terminal and the shipping company local charges?
As if concisely, the answer to how long goods arrives and gets ready for clearance and final delivery largely depends on good planning.
HOW MUCH DOES IT COST TO CLEAR GOODS?
The question should rather be what is the overall cost of clearing goods (mention the particular goods and details) from the port? The following are what you pay to clear goods:
- Customs duty
- Shipping company local charges
- Container deposit (for containerized goods)
- Terminal handling charges
- Inspection charges by Agencies such as SON, NAFDAC, NESREA, depending on who regulates the goods in question
- Clearance Agency service fee;
- In order to offset the costs of preparing and filing customs paperwork, customs clearing agents charge a fee. Depending on what you want to clear from the port, we can work out a deal on the Clearance Agencies’ cost.
A LOOK AT THE COST OF CLEARING 40FT CONTAINER CARRYING PALM OIL PROCESSING MACHINE
- The overall Customs duty is estimated at NGN4,500,000, depending invoice value and what Customs agree to be true.
- Shipping company local charges estimated to NGN200,000, assuming no demurrage
- Container deposit charge is NGN200,000 for goods being delivered to the same city as the port, otherwise, NGN400, for delivery to another state.
- Terminal Handling Charges/storage charges is estimated to NGN200,000, assuming prompt clearance upon arrival of goods
- Inspection charges at NGN7,500 for machines, which is SON regulated.
- Clearance service charge by the Clearing Agent NGN200,000, depending on negotiation and the level of services desired.
Consequently, you should be looking at Six million or Seven million Naira for machines in a forty feet container. Note that this estimates are mere assumptions, duty depends on genuine invoice value and Custom’s sound judgement.
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CONCLUSION
Finally, keeping in close touch with your clearing and forwarding agency can assist in reducing overall logistics costs. Click here to hire Vagmon e-Grup & Logistics Ltd, as your clearing and forwarding Agent.