Imports to Nigeria and other countries come with so many questions. Especially so as the logistics industry is ever evolving. Many new importers and exporters are confused, not knowing where to begin. Some have abandoned noble ideas because of frustration. Still, others engage unqualified hands in cargo handling, and are frustrated down the line. Just like every other endeavors, starting imports into Nigeria with little or no knowledge can be truly frustrating. To exacerbate this issue, the internet is full of wrong answers or shallow information.
Consequently, this article is with the clear intention to deal with frequently asked questions on imports to Nigeria. Thus, we urge you to read patiently and feel free to contact us for issue-free cargo handling in Nigeria. We do everything legally possible to clear goods, using the best-tailored route.
Without waste of time, let us delve deep into the frequently asked questions and match them with latest answers. The use of the word ‘latest’ or recent answers here is deliberate. What is correct today may not be tomorrow. Therefore, we will keep updating as new knowledge unfold.
WHERE DO I BEGIN MY IMPORTS TO NIGERIA?
Firstly, you must have sought the products, and must have seen the seller from the country of interest. Most Nigerians buy goods from China, America, Europe, India, etc. A good number of exporters in those countries know Nigeria import requirements. Hence, if you are fortunate to meet one of these exporters with good knowledge of Nigeria Customs requirements it makes things pretty easier. Otherwise, if your seller is a complete novice about Nigeria, you will need to consult early.
Consult with informed logistics company to teach you from the beginning. Vagmon e-Grup & Logistics Ltd is here to help. We take up your work from the very beginning, answering questions on different terms of trade and pay methods. More so, click on the link below to see what hiring an Agency at onset could mean for you.
HIRE CLEARING AGENT IN NIGERIA FOR SMART CLEARING
CAN I IMPORT AS A PERSON OR MUST I USE A COMPANY?
Imports to Nigeria can be as an individual, a business name or a company. The entity in use is irrelevant. What matters is the tax identification number. Any entity in use must have a functional tax identification number – TIN. As an individual, who says you cannot have a TIN? In as much as you pay personal income tax, you should have a TIN. For clarity, it is impossible to clear any import in Nigeria without tax identification number – TIN. Tax identification number is the primary key upon which imports and importers are classified. Therefore, walk in to the nearest office of First Inland Revenue Services – FIRS to create a TIN for self, business name or company.
Alternatively, you can engage another company with functional TIN, preferably, the Customs Broker or Clearing Agent as an Importer of Record – IOR.
Recommended: CUSTOMS CLEARING PROCESS: TAX IDENTIFICATION NUMBER
SINCE I DO NOT LIVE IN THE COUNTRY OF ORIGIN OF GOODS, HOW DO I SHIP IMPORTS TO NIGERIA?
In a straightforward answer, you do not have to live or travel to different countries before importing goods. Question of who ships your imports to Nigeria could largely depend on you and the INCOTERMS terms of sale. There are terms that requires the supplier to do everything until goods is at your doorstep in the form of door-to-door. Other terms are in the form of port-to-port. Still, there is a term that requires you or someone designated by you to pick-up goods from the supplier’s warehouse, and take ownership immediately upon pick-up.
Again, this is where cargo-forwarding agencies like Vagmon e-Grup & Logistics limited comes in. Hiring an experienced agency from onset is highly recommended. This is because most suppliers are unwilling to take the pain of meeting import requirements in your country. Some suppliers are willing to do all things for you, but are limited by not having local presence in your country (Nigeria).
For thorough understanding of the roles of cargo-forwarding agencies and what they can do for you, check the link below:
GROUPAGE TO NIGERIA: WHAT YOU NEED TO KNOW
WHAT SHIPPING MODE SHOULD I USE, SEA OR AIR?
Shipping by air or see depends on a number of factors. For containerized cargos, that is of course sea freight. However, for less than container capacity, there is a choice. The choice is between sea freight and airfreight. Of course, there are goods that come on roads from neighboring countries. By sea freight for goods that cannot fill a container here, we mean groupage or consolidation. In our article for GROUPAGE TO NIGERIA: WHAT YOU NEED TO KNOW, we have details on how groupage work. Similarly, some of our articles discusses the factors that could warrant shipping through sea or air. Thus, we recommend that you look up those articles for comprehensive answer to your question. In addition, feel free to contact us at will. Our mission is to help you do things profitably.
WHAT DOCUMENTS DO I REQUIRE TO CLEAR IMPORTS TO NIGERIA?
The following is a simple listing of documents required for importing into Nigeria:
- Firstly, the proforma invoice
- Secondly, the SON product certificate or other regulatory agency certification of goods
- Thirdly, the marine insurance certificate
- Fourth, the form m
- Fifthly, the bill of lading, air waybill or road waybill.
- In addition, the commercial invoice, the packing list and the certificate of origin
- Also, the PAAR
- Equally, quality assurance documents such as MSDS, test results and certificates of analysis if applicable.
For more information on import documentation, visit the link: CUSTOMS CLEARING DOCUMENTS NIGERIA: COMPLETE SET
WHAT IS A PROFORMA INVOICE IN IMPORTS TO NIGERIA?
A proforma invoice is quotation in simple terms. It is a rough estimate of the quantity, price of goods and the terms of trade. The proforma invoice is not the same as the final invoice. At this stage, no concrete agreement, but a mere proposal. In Nigeria, there are certain ingredients that make up an acceptable proforma invoice. To understand more about the proforma invoice, click on the link below:
WHAT IS A PROFORMA INVOICE IN NIGERIAN CONTEXT?
SON AND OTHER REGULATORY AGENCIES’ PRODUCTS CERTIFICATES AND PERMITS
SON means standard organization of Nigeria. Almost all equipment import into Nigeria requires SON certification. NAFDAC, NERC, NESREA, NAQS, etc. regulate other goods and products. NAFDAC stands for National Agency for Food and Drug Administration and Control. As the name implies, NAFDAC regulates foods, drugs and chemicals that come into Nigeria. Similarly, all power-generating sets go through NERC, which is an acronym for Nigerian Electricity Regulatory Commission. In the same vein, NESREA takes care of items related to the environment and used goods. Importers of agricultural products, animals, wooden pallets and the like must have permit from the Nigeria Agricultural Quarantine Services – NAQS.
For more information on SON product Certificates and SONCAP, please see the link below:
SONCAP QUESTIONS; ANSWERS THAT WORK
WHAT IS A FORM M IN IMPORTS TO NIGERIA?
Simply put, a Form M is an application to import into Nigeria. The application is to the central bank of Nigeria, requesting an approval to bring a raw material or finished product into Nigeria. Individuals and companies can apply for Form M from the comfort of their homes and offices. Otherwise, they can use banks or hire professional services to do. Again, Vagmon e-Grup & Logistics Ltd is an expertise documentation company with years of experience. Why not contact us today for topnotch services and then concentrate on other company matters. Indeed, there is wisdom in hiring a consultant to mediate between your bank and the central bank.
Additional information on Form M are in the link below:
FORM M QUESTIONS; BEST UPDATED ANSWERS
WHAT IS THE BILL OF LADING?
We have published many information on what a bill of lading is, and various types acceptable in different settings. The air waybill is to the airfreight Importer what the bill of lading is to the ocean freight Importer. To know more on the subject of bill of lading, check our article for BILL OF LADING NIGERIA: WHAT TO KNOW. More so, we have information on the air waybill here.
WHAT ARE COMMERCIAL INVOICE, THE PACKING LIST AND THE CERTIFICATE OF ORIGIN?
The commercial invoice is the real invoice as far as imports to Nigeria is concerned. Unlike the proforma invoice, the commercial invoice contains final shipment figures. Nevertheless, the commercial invoice closely resembles the proforma invoice. Sometimes the value of goods remains stable for a long period, so that nothing changes from the estimate period to the actual shipping time. In which case, the invoice title mere changes from proforma to commercial invoice with the inclusion of Form M numbers on it.
To understand more about the commercial invoice, and how it differs from the proforma invoice, visit the link below:
COMMERCIAL INVOICE; NIGERIA TEMPLATE
In one of our articles, we defined the packing list as an unabridged dimensional and weight information of a shipment. This is because the packing list contains the actual weight, packaging and dimension of parcels in the shipment. Fortunately, we have and article for PACKING LIST TEMPLATE IN NIGERIA. Please check it out.
Certificate of origin comes from the supplier much like the commercial invoice and the packing list. The supply must approach the chamber of commerce or similar organization in his own country to declare the goods and obtain the certificate of origin – CO. Variant form of the certificate of origin is the combined certificate of value and origin – CCVO. As the name goes, the CCVO is a two document in one. It contains both declaration of value and the attestation of origin. Notwithstanding which of the two nomenclature used, both the CO and CCVO are acceptable in Nigeria. They substitute for each other. Again, we have the article WHAT IS CCVO TEMPLATE IN NIGERIA? as another freebie to our ardent readers.
WHAT IS PAAR?
Pre-Arrival Assessment Report – PAAR is issuable by the Nigeria Customs – NCS. It is your duty as the Importer to request PAAR via your bank to the NCS. The PAAR document shows the duty (surface) payable to the Nigerian government. Additionally, the PAAR reflects the comprehensive inspection scheme – CISS. Without the PAAR, it will be impossible to capture goods for duty payment, unless such goods are on direct assessment by the NCS. Happily again, we have the below link for PAAR:
IMPORTING INTO NIGERIA: WHAT IS PAAR DOCUMENT?
HOW DO I SAFELY PAY FOR IMPORTS TO NIGERIA?
Payment for imports to Nigeria are via the bank in Nigeria to the seller’s bank. Your bank in Nigeria will use the Form M approved by CBN to make payment to your supplier. Without the Form M, it would be almost impossible to for goods abroad, except for very small amounts payable with online platforms like PayPal and Alipay.
Read also: LETTER OF CREDIT; PAY IMPORTS TO NIGERIA
HOW DO I GET FOREIGN CURRENCY TO PAY FOR IMPORTS TO NIGERIA?
Many beginners have had issues thinking about how to get dollars and foreign currencies Nigeria. To add to this is the issue of dollar scarcity in Nigeria. Notwithstanding, there are legitimate means of buying dollars. Many importers have resulted to the unofficial windows like black market or parallel market. Officially, the CBN rules allows every enterprise is entitled to exchange Naira to foreign currency equivalent to twenty thousand dollars per quarter. Besides this quarterly arrangement, importers would have to bid to buy foreign monies.
Furthermore, some have arrangements where someone abroad pay for imports to Nigeria and they compensate in Naira. Others have engaged the services of bureau the change operators, who takes off the burden of payments.
CAN I IMPORT WITHOUT FOLLOWING ALL PROTOCOLS ON IMPORTS TO NIGERIA?
Yes, for airfreight, it is possible to do without the rigors of Form M and PAAR. In which case, you require only the air waybill, the commercial invoice and the packing list to clear goods. The Nigeria Customs and all relevant Agencies will first carry out physical examination of the goods before determining value. This form of on the ground evaluation of goods is what many call the direct assessment. To understand more on how direct assessment work, see our article below:
NIGERIA CUSTOM CLEARING CHARGES: DIRECT ASSESSMENT
WHAT FEES DO I PAY WHEN I IMPORT INTO NIGERIA?
In the first place, importers pay customs duty or duty and taxes as a requirement. We have explained term duty in one of our articles. Other costs for importing into Nigeria includes the following:
- Terminal handling charges
- Shipping company or airline local handling charges
- Inspection fees by regulatory agencies
- Clearing agency or Customs Broker’s charges
- Lastly, do not forget there are haulage costs in taking goods from port to your final destination
IN SUMMARY
Imports to Nigeria is a compendium of frequently asked questions – FAQs. As FAQs, we will keep on adding information as more and more people ask questions. We are a hands-on-tool company, who write from daily experience. Hence, we allow importers to choose for themselves who they want to employ to clear imports to Nigeria. Our services are equal to none in the industry. With a team composed of men and women with not-less-than 15 years experiences in what they do, we pride ourselves with knowledge. What are you still waiting for? Contact us today for smooth end-to-end or any stage handling of any cargo.
Furthermore, ask any question that worries you the most and we will try as much to answer from experience and research. Unlike most people, we strongly believe that an informed client is much easier to work with.