What is Customs duty tariff? Are you a miniature importer seeking to know the overall cost before embarking on an importation? Alternatively, are you an exporter or Forwarder with a client on Delivered Duty Paid (DDP) trading terms to Nigeria?
One thing is common to the group of persons mentioned above. For the new importer, he is curious, and wants to know if buying locally made goods is more cost effective than importing one. The freight Forwarder without much knowledge of importation clearance in Nigeria needs the help of local Customs Brokers. Vagmon e-Grup & Logistics Ltd, reachable on mail – info@clearingandforwardingnigeria.com, and on phone – +2349075526276 is a foremost Customs Broker in Nigeria.
Read also FORM M NIGERIA: HOW TO PROCESS AND OBTAIN IT
CUSTOMS DUTY TARIFF: WHAT IS PURPOSE OF ARTICLE?
My purpose of writing this article is to demonstrate a straightforward customs duty tariff in Nigeria. The article is experiential, and contains excerpt of work done by our team. Hence, I request you to study all things in this article.
CUSTOMS DUTY TARIFF: PROBLEM STATEMENT
Our client writes:
We have your reference by one of our associates. Hence, we like to seek your assistance for a proposal. We have to handle a consignment at Lagos/Apapa Ports, and onward transportation to internal destinations in Nigeria.
Kindly look at the details below and say your competitive clearance offer to enable us pursue the matter with the Shipper in India:
Product: Water Pump Sets for Agriculture
FOB: USD450, 000
Freight: USD10, 000
HS Code: 84089090
No of Containers: 4 x 40ft
Port of Loading: Mundra
Port of Destination: Apapa / Lagos
Terms of Delivery: DDP Maiduguri
Address of the Consignee: FAO [Food and Agriculture Organization of the United States], Maiduguri in Borno State, North East Nigeria.
Cargo Weight per each 40ft Container: 12 Tones max per container.
What is the cost of clearance? Similarly, what documents required at seaport of destination? State costs at port of destination. In addition, say the transportation Costs from Apapa Lagos Port to Maiduguri and return of containers at Lagos Port. Let us know in terms, Custom Duties for the above product. Are there some other taxes payable for the above product? Furthermore, what time is required for the above activities at port of destination until the empty container is goes back to the Port.
We shall be obliged to receive your prompt response with detailed quotation to pursue the matter further. Thanks and Best Regards
CUSTOMS DUTY TARIFF: PROBLEM SOLUTION
Read also CALCULATING CUSTOMS DUTY; NIGERIA AS EXAMPLE
Sir,
Kindly see below quote for the above mentioned job description.
ITEM | DESCRIPTION | BASIS | UNIT PRICE (NGN) | TOTAL AMOUNT (NGN) | COMMENT |
| 1.1 | SON PC/SONCAP | PER INVOICE | TBD | TBD | |
| 1.2 | FORM M/PAAR | PER INVOICE | 50,000.00 | 50,000.00 | |
| 1.3 | MARINE INSURANCE CERTIFICATE | 0.13% OF INVOICE VALUE | 201,289.00 | 201,289.00 | INSURANCE PREMIUM |
| 1.4 | CUSTOMS CLEARANCE | PER CONTAINER | 150,000.00 | 450,000.00 | |
| 1.5 | THC | PER OUTLAY | 220,000.00 | 880,000.00 | USING CMSCGM STANDARD |
| 1.6 | SHIPPING COMPANY LOCAL CHARGE | PER OUTLAY | 140,I00.00 | 560,400.00 | USING CMSCGM STANDARD |
| 1.7 | CONTAINER DEPOSIT | PER CONTAINER | 400,000.00 | 1,600.000.00 | DEPOSIT OUTSIDE LAGOS |
| 1.8 | CUSTOMS DUTY | PER HS CODE 8413810000 AND ITEM VALUE | 2,405,809.00 | 9,623,235.00 | WE USED BEST HS CODES WITH 5% DUTY RATE, BUT CUSTOMS HAS FINAL SAY |
| 1.9 | TRANSPORT TO MAIDUGURI AND RETURN | PER TRUCK | 1,400,000.00 | 5,600,000.00 | 6 DAYS TRAVEL AND RETURN |
NOTES:
WE LOOK FORWARD TO HEAR FROM YOU. | |||||
Read also CUSTOMS HS CODES NIGERIA: HOW TO FIND HS CODES
CONCLUSION
Customs duty tariff is a function of the HS Code, the item value and the freight cost. Thus, when asked to estimate duty, we first request to establish what the HS Code is and secondly the cost and freight. Vagmon e-Grup & Logistics Ltd have the expertise to do customs clearance for any item imported into the Nigerian trading space. Reach us via our contact us page today. Many thanks for reading this article.