Lagos Free Trade Zone to do what exactly? Before now, sometimes around the year 2015, I had some ugly experiences with commercial banks in Nigeria handling documents relating to free zone shipment for my clients. The commercial banks continued to reject files sent to them for PAAR processing based on the reason that documents are predating the Form M and the pro forma invoice. Thus, putting us in a position where we had to amend dates and ask exporters to reissue documents repeatedly before we could obtain PAAR and clear shipments from the Nigerian Customs Services.
Read also CBN FORM M AND PAAR REQUIREMENT IN BRIEF
LAGOS FREE TRADE ZONE: REASON FOR THIS ARTICLE
Upon careful research and studies, I found to my surprise that the banks had it all wrong over time. Issue was lack of knowledge on how the free zone works. This is what informed my decision to write this article. Therefore, I will explain to you how the free zone cargo clearance works. Similarly, in my next article I will guide you on how to register for a license as an oil and gas free zone user.
LAGOS FREE TRADE ZONE: HOW THE FREE ZONE SHIPMENT WORK
Free zone shipments come to the zone without Form M. In theory, the DMS of the free zone are to issue a set of transit documents that would harmonize the Form M and the PFI. In practice however, DMS issue nothing. So, how did we solve the Form M/documents date problem with the bank? With my knowledge expanded, I included the following expression in my regular letter to the banks for PAAR applications. “Let me inform the bank that free zone shipment come into the zone without Form M. Hence the issue of final documents predating Form M and PFI should not arise.” This statement is exactly what changed the game. Some of the banks called and I educated them on how oil and gas free zone operate.
LAGOS FREE TRADE ZONE: What really is a free zone?
Free Trade Zone is a designated area where goods are move into for value addition without the intervention of the Customs. Assumption is that the goods that arrive to the zone are in another country. Consequently, such goods must undergo export and import to the country’s Customs area before it goes into the country. The term is often useable loosely interchangeably with free economic zone.
There are a handful of free zones in Nigeria. My article for ‘how to register for a free zone’ will show a number of them.
Read also INTERNATIONAL CARGO SHIPPING TO NIGERIA
In Conclusion:
As if in a nutshell, to import into the Nigerian free trade zone, you must be a licensed operator. Free zone cargo clearance from the zone into Nigeria Customs Area follows normal clearance procedure.
Lagos free trade zone is a designated area where goods go into for value addition without the intervention of the Customs. Assumption is that goods that arrive to the free trade zones are in another country.
Free zone shipments come to the zone without SONCAP, Form M and PAAR. In theory, the free zone authority is to issue a set of transit documents that would harmonize the Form M and the proforma invoice.
Consequently, goods at the free zone must undergo export and import processes to Nigeria Customs area before they leave the zone to be in the country.
To enjoy the benefits that free trade zone offers you must register as a free zone user.
We consult to register companies and manage inbound and outbound goods to the free trade zones in Nigeria. Contact us today.