₦airaland Forum

The application for Form M in Nigeria is fairly easy for pro forma invoice with single or few items. The method of processing is detailed in my article for how to process and obtain Form M in Nigeria. You may wish to make reference to that article. In a case where you have up-to 500 items in a proforma invoice, it becomes extremely difficult to type and enter all items detail in the e-Form M system. This article is designed to make your life simple by providing an alternate rout. The purpose is so that you could give your seller a template on how to arrange items in excel sheets and do all the work for you. In this article, we will talk about conversion of excel sheet (prepared in a template form that will be given) to XML document. Read carefully and drop your comments or any information considered relevant so that other people can benefit. Feel free to ask questions and contact us using the appropriate page in our website.
https://www.clearingandforwardingnigeria.com/how-to-process-form-m-in-nigeria-with-multiple-items-in-the-invoice/

In my article for how to process SON PC and SONCAP in Nigeria, I gave explicit detail on all the channels and routes available to obtaining SON Products Certification for shipments to Nigeria. Another article for how to process SON Import Permit in Nigeria delved deep into how to process and obtain permit to import for a protracted period of time or for a single import tied to a particular project or for manufacturing reasons. This article will prepare you on the information to keep at your disposal before approaching SON agents to request for regulatory import certificate. Knowing and having these requirements by SON agents, be it SGS, Intertek or Cotecna will not only facilitate your certification, but will help you reduce expenses at the eleventh hour.
WHAT ARE YOU APPLYING FOR?

Determine in advance what regulatory certificate your kind of item need. Any of the following basically require same method of application, with the import permit being done electronically, and direct with SON

SON Product Certificate (PC)
SON Conformity Assessment Program –SONCAP Certificate (SC)
SON Import Permit
https://www.clearingandforwardingnigeria.com/how-to-complete-son-pc-soncap-certificate-forms-nigeria/

The Nigerian Government through its agency – the Nigerian Customs Services has directed that all shipments to Nigeria must first of all be preceded with the issuance of Form M from an Authorised Dealer bank chosen by the importer of such goods. The importer has to request for pro forma invoice from his supplier, contact an insurance company in Nigeria to purchase marine cargo insurance, and also obtain applicable regulatory certification from SON, NAFDAC, NESREA, MANCAP, DPR, etc. depending on nature of goods being shipped. The question here is does this Form M requirements in Nigeria also include courier shipments? This article will answer in clear terms, so read on and express your concerns.
WHAT IS A COURIER SHIPMENT TO NIGERIA?

A courier service is a delivery service offered by a company such as DHL, UPS, etc. the service involves movement of consignments, letters, parcels or goods from one place to another. The courier service is known for its speed, specialisation, and ease of tracking. The courier method tends to replace the traditional mail posts. Not all consignments qualify for courier services, hence the sender must check with such services provider to make sure of what’s acceptable in terms of weights, nature of packages and other measures and criterion.

A client asked the following question to our team:

“Dear Vagmon Integrated Services,

Kindly see attached commercial invoice and assist us prepare Form M for 100 pieces of Test Cup with a total Gross weight of 27.5kg.” “Can you advise if Form M is actually needed or we can send the shipment without the Form M to Vagmon Integrated Services Nigeria?”

Our response:
http://www.clearingandforwardingnigeria.com/do-courier-shipments-to-nigeria-require-form-m/

By using the term shipping line in international logistics trade, we mean the transporter, the shipping company, who conveys the cargo from the country of supply or origin to the destination country of interest. As stated in one of my articles, the shipping line is a company that manages and operates the vessel (rented or owned) that does the actual movement of cargo. The shipping lines accept for shipment at least a container load from exporters for shipping. Hence, exporters with less than container loads (LCL) have to engage the services of a freight forwarder, who then combines cargoes from different customers to form full container loads. Otherwise, such exporter or shipper would have to pay more for less. Once the container is loaded on the ship, the master bill of lading is issued.

Freight Forwarder reserves the right to choice of shipping line in a less-than-container-load shipment. This does not have worry to both the exporter and the importer because the shipment will definitely return to the Freight Forwarder’s warehouse even at the destination in Nigeria in this case.

WHAT IS THE MASTER BILL LADING?

The master bill of lading also called the carrier bill of lading presupposes the existence of many less than container shipments in a container, and is issued to the freight forwarder by the shipping line once the container of such shipment is loaded onto the ship.

CAN THE MASTER BILL OF LADING BE USED FOR IMPORT CARGO CLEARANCE?

In a monosyllabic answer no. the master bill of lading or carrier bill of lading is not of much use for the importer or exporter of a less than container loads (LCL), since he can actually get specific information concerning his own consignment from the house bill of lading. So, always ask the shipper for the House Bill of Lading (HBL).
http://www.clearingandforwardingnigeria.com/is-the-master-bill-of-lading-accepted-in-nigeria/

Assuming you have already followed how to process SON import permits in Nigeria, and have got the permit, and perhaps have processed and got Form M already, remaining for you to obtain PAAR. You must now activate the import permit for against each invoice and bill lading or air waybill. The reason for this article is to walk you through on the SON import permit activation for PAAR.
http://www.clearingandforwardingnigeria.com/how-to-activate-import-permit-application-for-paar-nigeria/

The article for how to process and obtain form m in Nigeria has dealt considerably on how to process Form M. So also the article for how to obtain PAAR in Nigeria has dealt with PAAR processing in much detail. This article is intended to consolidate both subjects and in brief.

FORM M

The documents required to apply for Form M are:

SON Product certificate for most items, NESREA Import Permit for used items, NAFDAC import permit for food and related items. You may also need other certifications like DPR certificate, depending on what you are importing.
Pro forma invoice of the item of import
Marine cargo insurance

PAAR

The regular documents required for PAAR are:

The Packing List
The Commercial Invoice
The Bill of Lading for sea shipment or the air waybill for air freight
The Combined Certificate Of Value and Origin – CCVO
METHODS OF APPLICATION:
http://www.clearingandforwardingnigeria.com/form-and-paar-requirement-in-brief/

Seed importation into Nigeria is usually for research or consumption or commercial reasons. This importation requires importation permit from both the National Agricultural Seeds Council (NASC) and the Nigeria Agricultural Quarantine Services (NAQS) and not the usual SONCAP requirements in Nigeria used to import a range of items.This article will put readers through on how to import seeds and grains into Nigeria.

Read Also: HOW TO GET NAFDAC IMPORT PERMIT NIGERIA

DOCUMENTS NEEDED TO PROCESS SEED IMPORT PERMIT:

Certificate of incorporation from the corporate affairs commission
Seed license certificate
List of crop to be imported and variety
Letter of reference from bank
Country of importation
Quantity of seeds to be imported in Kg per variety
Classes of seeds
APPLICATION PROCEDURE:

http://www.clearingandforwardingnigeria.com/how-to-import-seeds-and-grain-to-nigeria/

In my article for ‘what is a bill of lading in Nigerian context?’ I did mention that instead of arguments on what is the definition for the bill of lading and what is not, an effort focused on the content of the bill of lading that makes it acceptable in a place is well placed. For example, the Nigerian Customs authority requires that Form M numbers be added to the shipping document, and no international definition is able to cover this point, till the time of making this post. So, the article sighted above focused on the compulsory content of the bill of lading. This article will now look into what form of bill of lading is acceptable to secure cargo release in Nigeria. The purpose is to enable the consignee or importers know what to ask for from the forwarder agent or shipping company.

Read Also: WHAT IS COMPLETE SET OF CLEARING DOCUMENTS IN NIGERIA

THE HOUSE BILL OF LADING –HBL:

This document contains the information as to the real shipper and consignee, the shipment detail as well as the information of the freight forwarder or his agent and even shipping terms. The House Bill of Lading is issued after the cargo is loaded on the ship by the freight forwarder to the shipper. The document serves the following purposes

As a proof of contract of contract of carriage between the forwarder and his ‘customer’
As a proof for goods shipped
As a title document, enabling the consignee or importer in Nigeria to do import cargo clearance and cargo release and delivery from the local office of the freight forwarder as he hands over the original House Bill of Lading
Ensure the House Bill of Lading has the following:
http://www.clearingandforwardingnigeria.com/what-bill-of-lading-is-acceptable-in-nigeria/

In my article for ‘HOW MUCH TO CUSTOMS CLEAR AIR FREIGHT IN NIGERIA’ I discussed sample conventional air freight clearance cost, beginning from the very first stage. Again, in another article titled ‘HOW TO ESTIMATE CARGO IMPORT CLEARANCE COST IN NIGERIA’ insight was given on what the cost would be handling the cargo on a direct assessment basis – shipped without the Form M and associated SON PC and SONCAP requirements. As is typical of my kind of person, both articles gave a rather practical example of work done by us directly instead of junks of theories that may not be applicable in everyday way of doing things. In like manner, this article will present typical conventional sea freight for your consumption. Feel free to drop your comments and perception of what you read; in that way we are encouraged to keep doing what we do.

Read Also: HOW TO MAKE QUOTATION FOR SHIPPING JOBS IN NIGERIA

SAMPLE CONVENTIONAL AIRFREIGHT CLEARANCE COST:
http://www.clearingandforwardingnigeria.com/what-is-the-cost-of-import-cargo-clearance-nigeria/

The SONCAP was implemented to give assurance to the Nigerian end-users or consumers of the quality, safety and standard of goods, and also make international trade easier. Traders within the Nigerian country are expected to comply with this requirement from the Standard Organisation of Nigeria (SON). Virtually all goods except are relative few require the use of SONCAP before being cleared into the Nigerian environment. Failure to comply with the SON Conformity Assessment Program could result to penalties or at the worst case return of imported goods back to supply country.

Majorly, three companies are approved and accredited by the Standard Organisation of Nigeria – SON to regulate and issue the SONCAP on its behalf. The reason for this arrangement is because the items or products or consignment imported are tested for Nigerian standard and technical regulations and even approved international or regional standards at the originating locality or supply. Since SON cannot operate everywhere in the world, it has to accredit some firms to carry out tests on its behalf. The 3 firms in use by SON are COTECNA, INTERTEK and SGS.

This article will help you know how to reach the SON agents nearest to you with ease, to enable you comply with the SONCAP arrangement. What we shall do in is split the article into 3 to accommodate all 3 agencies (COTECNA, INTERTEK and SGS). Hence, we shall give the contacts and addresses of COTECNA in this article, and treat that of INTERTEK and SGS in subsequent articles.
http://www.clearingandforwardingnigeria.com/how-to-contact-son-agents-for-soncap-nigeria/

Call it commercial invoice, shipping invoice, or final invoice, the nomenclature used has nothing to add to the content. The commercial invoice is a real invoice, issued by the exporter or shipper to the importer of goods, containing specific actual information that helps the Nigerian Customs determine import duties. It defers from the pro forma invoice in that it is a customs document, and thus contains factual information in terms of goods detail, shipping and costs, shipping costs and terms of supply and payment. In addition, the commercial invoice must contain Form M numbers on it (MF/BA). Typically, the commercial invoice contains the following information:

Read Also: CARGO SHIPPING TO NIGERIA

Supplier’s Addresses and Contact Detail (consignor’s address/contact): the commercial invoice must contain the address of the seller, supplier or exporter, depending on who is responsible at the country of supply. Other means of reaching the supplier; such as the email address, phone number, fax, website, contact person, etc. may be stated on the invoice as well.
Buyer Or Receiver’s Address and Contact Detail (consignee’s address/contact): the commercial invoice must contain the address of the buyer or receiver, depending on who is responsible at the destination country. Other means of reaching the buyer; such as the email address, phone number, fax, website, contact person, etc. may be stated on the invoice. It is important that the buyer’s detail agree with what is embedded on his page at the single window for trade.
Invoice Number: the invoice must contain a unique number that differentiates it from all other invoices. This could be just numbers like ‘12344’ or a combination of numbers and alphabets like ‘ABC1235’ or an alphanumeric and symbols like ‘VAG123#’ or just any code.
http://www.clearingandforwardingnigeria.com/what-is-a-commercial-invoice-in-nigeria-context/

Virtually all products to be handled within Nigerian import-value-chain are subject to SONCAP with the exception of some few items stipulated in the Standards Organisation of Nigeria (SON) circular reference SON/SONCAP/EX/Vol. I/005 of April 25th 2013 and is updated regularly in the current SONCAP Guidelines via SON website. What this article will do is show how to get regulatory certificates besides the SONCAP requirement in Nigeria. So I urge you to read through all things and also check links presented.

Read Also: HOW TO PROCESS SON IMPORT PERMIT IN NIGERIA

EXEMPTED ITEMS AND HS – CODES DESCRIPTION

ITEM GROUP HS-CODE RANGE
Food Products 0101100000-2309000000
Drugs (Medicine) 3006100000-3006800000
Chemicals used as raw materials 2510100000-2707000000 2711000000-2713000000
2715000000-2716000000 2801100000-2942000000

3201100000-3207400000 3301120000-3403910000

(Excluding paint),

3501100000-3507900000 3801100000-3825900000

Military wares and equipment 3601000000-3606900000, 9301110000-9307000000
Used products except automobiles –
Products included in the Prohibited Goods List
Medicals except equipment and machines
Branded products with minimal quantity meant for gift/promotional items may be exempted from SONCAP
http://www.clearingandforwardingnigeria.com/how-to-import-items-exempt-from-soncap-nigeria/

In my article for how to estimate cargo import clearance cost in Nigeria I did promise that I was going to do another article on how to handle conventional cargo clearing cost estimate. Here in this article, we shall look at the case study of an air freight job handled by us. Spare a good time to read all things so you can have a holistic understanding of the process.

Read Also: HOW TO ESTIMATE IMPORT DUTY AND CLEARING COST IN NIGERIA

SAMPLE CONVENTIONAL AIRFREIGHT CLEARANCE COST:

Client Writes:

Dear Vagmon,

We intend to import 3 pieces of pneumatic pressure gauge equipment with an overall gross weight of 900kg. Look through the description below and the attached document to let us have your competitive import clearance cost.

Item Description:

Internal Pneumatic Line-Up Clamp (16″-18″) with self-propel

Dimensions 2840 x 600 x 720 mm x 3 (300 Kg Each)

Packages 3 Packages

Country of Origin of the Goods: China

Country of Supply: China

Shipping Terms: CPT

Mode of Shipment: Air

Payment Terms: 30% with PO

Country of Final Destination: Lagos, Nigeria

Port of Loading: China

Also give to us the acceptable invoice format in a template

Our Response:

Dear client thanks for the above job offer.

Kindly use the below format pro forma invoice and see our quote.

We hope to hear from you shortly, so we can commence the process.

Invoice Template:

Read Also: WHAT IS A PRO FORMA INVOICE IN NIGERIAN CONTEXT?

Copy and paste on the exporters letter head paper, stamp and revert to us.

http://www.clearingandforwardingnigeria.com/how-much-to-customs-clear-air-freight-in-nigeria/

The concern of every importer is how much he would spend besides the cost of items of import to get his goods to a destination of interest. What is the duty cost for instance, and how much will the import clearance and handling take overall? In this article we shall looking at import clearance cost in Nigeria, using sample cases for a Direct Assessment cargo import. Subsequent articles will look at the conventional cargo clearing cost estimate.

Read Also: HOW TO IMPORT ITEMS RESTRICTED FOR FOREIGN EXCHANGE IN NIGERIA

SAMPLE DIRECT ASSESSMENT JOB AND CARGO IMPORT CLEARANCE COST:

Client Writes:

Dear Vagmon,

I am a new importer with the Nigerian logistics market, and have read your articles on import options in Nigeria. Due to the urgency and other matters best known to me, I like to clear the items I have imported on direct assessment cargo import basis.

Kindly look through the goods detail below and advise the import clearance cost in Nigeria by direct assessment method.

Item description:

Size: 42 inch Voltage/Hertz: 220V/50Hz Colour: Sand nickel colour Energy efficiency grade: No Power: 55W Blades: 4 ABS hidden blades Reverse function: No Usage area: 9-12 square meter Motor: 153*15mm Light: 32W LED Switch: Remote control Stick length: 12.5cm & 25cm Unit price: $33.75 Quantity: 10 Amount: $337.50.

Give me the invoice format in a template, also advise on whom to use as the consignee as I do not have a registered company or Tax Identification Number (TIN) in Nigeria yet.

Our Response:
http://www.clearingandforwardingnigeria.com/how-to-estimate-cargo-import-clearance-cost-in-nigeria/

In this article I will give explicit information on cargo clearing in Nigeria. The article will reveal all steps importers can take to initiate cargo clearing process in Nigeria, and consequently reduce clearing costs. You can feel free to reach me on the contacts us page, should you require more information or should any step be unclear to you.

Step 1: decide on Tax Identification Number – TIN

You can either choose to import goods in your company name or in the name of another company, preferably your clearing agent. The following steps are to be taken if you want the cargo to be in your name or your own company name instead of that of the clearing agent. Otherwise, if you want to use the company owned by a clearing agent as though the agent is the owner of the import, kindly skip this entire step 1.

Approach the Corporate Affairs Commission CAC to register a company, be it an enterprise or a Ltd., or any other acceptable by law if you do not have one already. Not that if you are a tax payer with a tax identification number, you can as well import goods as a person instead of as a company.
Take your company certificate (the 3 certificates given at CAC) to any office of First Inland Revenue Services – FIRS to apply and activate yourTax Identification Number (TIN), so that you become visible on the Federal Government of Nigerian Single Window for Trade, where the clearing business documentation is done.
Use the TIN (username) and the password so created with the FIRS to login to your page on the trade window website, just to view your page and appreciate what you can do with your company .Vagmon Integrated Services can help process all things for you.
What you see from your page looks like below image.





Step 2: pre-importation documents – Form M

Form M is the first initial official document needed before shipping can be done following a standard conventional importation method in Nigeria. Documents needed to open a form M are: the Pro forma Invoice, Marine Insurance Certificate, and the Standard Organisation of Nigeria (SON) Product Certificate or SON Import Permit (NESREA Import Permit can be used for used items). Let us look at these documents in detail.

Pro forma invoice: request the seller or manufacturer of the goods or items you want to import to issue you with a pro forma invoice. A pro forma invoice is an estimated quotation of items of import. It is issued for Customs purposes only, does not represent the actual invoice, and cannot be a demand or request for payment. We shall talk about the actual or commercial invoice as we move on. In a separate article, I will give template pro forma invoices that could be adopted.Nigerian Customs acceptable pro forma invoicemust basically contain items description, unit prices of items, total amount of items, country of origin of goods, country of supply of shipment or cargo, means of transport (air,road, or sea), estimated freight cost, seller or shipper’s(or consignor’s) address and contact detail, buyer or consignee’s address and contact detail (consignee could be you the importer or the clearing agent or someone else designated by you, depending on whose TIN is used as explained in step 1 above).
Marine or cargo insurance: There are a host of insurance companies in Nigeria. Popular ones include AIICO Insurance PLC, NEM Insurance, Zenith Insurance, etc. Simply make contact with one and request for Marine Cargo Insurance Coverage. Otherwise Vagmon Integrated Services can help you out on which insurance serves you the best.
Obtain Standard Organization of Nigeria – SON product Certification (PC). The SON PC is the SON confirmation that the products conform to Nigerian standards and technical regulations....
http://www.clearingandforwardingnigeria.com/how-to-clear-cargo-shipment-into-nigeria-at-a-reduced-fee/

Before now, sometimes around the year 2015, I had some ugly experience 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. Upon careful researches and studies, I found to my surprise that the banks had got 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. I will explain to you how the free zone cargo clearance works. Then in my next article I will guide you on how to register for a licence as an oil and gas free zone user.

Free zone shipments come to the zone without Form M, and in theory the DMS of the free zone are expected to issue a set of transit documents that would harmonise the Form M and the PFI. In practice however, DMS issue nothing. So how did I solve the above 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 oil and gas free zone come into the zone without Form M, 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.

What really is an oil and gas free zone?
http://www.clearingandforwardingnigeria.com/how-to-clear-free-zone-shipment-into-nigeria/

In this article, I am giviving a brief bullet points guide on how to import to Nigeria from any part of the world. Vagmon Integrated Services is a cargo clearance vendor that will walk you through.

The importer must be registered with the Corporate Affairs Commission (CAC) or otherwise use someone else company on agreement for your imports.
Open and maintain a bank account with any commercial bank of choice. This bank will be the one mediating with the Customs to help you obtain import documents. I will tell you why I prefer UBA much later.
Approach the First Inland Revenue Services with the certificates as given by CAC to register for Tax Identification Number (TIN)
Contact the seller to give you pro forma invoice with proper description of goods of import
Get an insurance certificate to cover the conveyance of goods.
Check which regulatory certificate(s) that apply. Virtually all items of import require SON certifications. If SON applies, liaise with the seller to process SON Product Certificate (PC). Read also: HOW TO PROCESS SON PC/SONCAP (CLEARING DOCUMENTS IN NIGERIA)
Once the PC is issued, activate it as described in my earlier article for SON.
Opens a Form M on the Nigerian Trade Platform (Single Window system) attaching the required documents, the Pro forma Invoice, the Product Certificate (for products regulated by SON), and the Insurance Certificate. See my article on how to process and obtain Form M.
Once the Form M is issued by the Nigerian Customs Services, forward a copy of the Form M to your exporter or seller, who will add Form M detail to all other documents such as Commercial Invoice, the Bill of Lading or Air waybill or Telex Releases, and the packing list and in turn contact SON agents, the International Accreditation Firm, with all these documents to obtain SONCAP Certificate.
The supplier or you arrange a shipping line or airline or automobile for road shipment. The cargo is shipped.
The liner then submits manifest to the Nigerian Customs Online
Activates the SONCAP Certificate and on the SON activation link as stated in my article for SON Certificates, and apply for PAAR issuance by sending a set of what is referred to as final documents to your bank. The final documents are: activated SONCAP, Bill Lading or Air Waybill or Telex Releases, Combined Certificate of Value and Origin (CCVO).
The clearance of his goods commences as the PAAR is issued. At this point the clearing agent comes in.
The Clearing agent takes all final documents [Bill of lading (BL) or Air Waybill (AWB), the Commercial Invoice (CI), the Packing List (PL), the Combined Certificate of Value and Origin (CCVO), the SONCAP Certificate (SC) and the PAAR] to a Direct Trade Input (DTI) cafe, to data capture information relating to the shipment
The DTI generates Single Goods Declaration (SGD) document and the Duty Assessment Report
The clearing agent or vendor gives the Duty Assessment to consignee or whoever is responsible for the cargo to make payment via Customs approved commercial bank
Once payment is made and confirmed, the agent proceeds with physical examination and finishes up.
Taking the above steps reduces the amount of money spent on clearing your goods. Vagmon Integrated Services can help you from ground zero to the delivery of your items to ensure minimal expense.
http://www.clearingandforwardingnigeria.com/step-by-step-guide-on-how-to-import-into-nigeria/

Sometimes, the purpose of import is tied to a particular project, or is for a predefined set of products over a protracted period of time like in the case of a producer who intends to import machinery or related spare parts for their manufacturing. In such cases, the importer considered as Bona fide manufacturer, is advised to apply to the Standard Organisation of Nigeria for SON Import Permit to enable them import at their own pace. Once approved, the Import Permit will be used for to obtain form M and PAAR for needed for initiation and Customs cargo clearance in Nigeria in any given batch of import.

For an importer to be recognised as a bona fide manufacturer, it must be registered with the Manufacturers Association of Nigeria (MAN). If unregistered with MAN the company would have to apply for the SON PC and SONCAP for importations.

Read Also: HOW TO PROCESS SON PC/SONCAP (CLEARING DOCUMENTS IN NIGERIA)

What I will do in this article is to walk you through the application process. You will see more images than write-ups in this article.

What Documentation Do You Need To Obtain SON Import Permit?

Before you jump into the application and realise that your documents are not complete, I like to inform you to keep the following documents ready:

Company certificate of incorporation
MAN membership Certificate for manufacturing organisations and related industries. Other companies like oil servicing need not have MAN but DPR certification.
MANCAP Certificate; this stands for Mandatory Assessment Programe, and is issued by SON. The purpose of MANCAP is to ensure that all goods produced in Nigeria meet all Nigeria Industrial Standard (NIS) before being presented to the open market or exported. I will go deep on MANCAP in a separate article.
MAN current subscription
Sample proforma invoice with some of items of import with seller’s detail
An excel sheet of all items to be imported for the period stated in the format I shall show you down the article.
Step 1:
http://www.clearingandforwardingnigeria.com/how-to-process-son-import-permit-in-nigeria/

When the term shipping is used in international logistic trade, it means the movement or transport of goods from one place to another. The goods so transported are thus referred to as shipment or consignment or cargo. Like every other trade, this movement of cargo from one country to another comes with its on jargon or languages often called shipping terms or Incoterms (International commercial terms). These terms have meanings assigned to them by the International Chamber of Commerce (ICC), with international application, but may vary slightly in semantic and practice among countries. Seeing that the application vary among country spaces, this article is intended to explain the usage and application of the terms consignee, Importer, Customer, and The Clearance Vendor in the Nigerian trading space. The importance of articles like this is that they keep you updated with the usage and application of terms in the import and export business.

CONSIGNEE:
This is the person or company that receives the cargo at the destination of interest. The consignee is either the actual buyer of the goods or someone or entity designated by him to perform the cargo receipt functions. To stand as a consignee in Nigeria, the entity (person or company) must have a Tax Identification Number (TIN) and a presence in the Nigerian Single Window for Trade. This is of high importance because without the TIN and such access to the trade window, the entity would be unable to process Form M for instance which is the first official document to initiate the import conventionally.

IMPORTER:
The importer is the actual buyer of the cargo, the company or person who owns the cargo. As stated above, the importer need not necessarily present himself as the consignee. The benefit of using someone else may be a subsidiary company or the import clearance vendor is enormous. Let’s say there is an issue around under payment of duty resulting from use of wrong HS Code, your company remains in operation since any other company could be used again, while the issue is being resolved.

THE CLEARANCE VENDOR:
http://www.clearingandforwardingnigeria.com/understanding-shipping-terms-in-nigeria/

Making a quotation for a shipping job is a function of the role to be played, that which is to be quoted for. What role does the importer want you to play as a Customs House Broker? Again what is the contract for the shipping, for instance are we talking about an Ex Works or a DAP kind of shipping terms? This article will present a sample quotation for a cargo handling job for an ex work arrangement, where the importer/consignee has allowed the Customs House Broker (The Clearance Agent as they are often called in Nigeria) to take full charge from the supply’s warehouse. This means that the Cargo Clearance Agent would have to arrange for a freight Forwarder (assuming a less-than-container-load), who in turn takes care of all export haulage, and export handlings and clearance, since the Agent lives in Nigeria and has no local presence at the origin of cargo or country of supply. In this example, the importer has said to the Agent; ‘hey’ look I am busy with other important matters, work with the supplier and get my goods delivered at my warehouse. Read on as we show you how it is done because this is typical of our work.

Read Also: SHIPPING TO NIGERIA
http://www.clearingandforwardingnigeria.com/how-to-make-quotation-for-shipping-jobs-in-nigeria/

IMPORTER’S PROPOSITION:

Dear Vagmon Integrated Services,

We intend to ship a 2 x 40 FT containers from supplier’s warehouse – IBSL Ltd, Unit 14D, Delaval Trading Estate, Double Row, Seaton Delaval, Northumberland, NE25 0QT, United Kingdom up to Onne Rivers State Nigeria. Kindly advise your best offer for the following services

Transportation from Supplier’s Warehouse to Port of Loading (Port nearest to Supplier’s Warehouse and calls Onne Port) – advise Shipping line and transit time as well as container detention free days. Also confirm schedule
Sea freight charges to Onne Port Rivers State Nigeria
Export formalities at origin Port
Import formalities at destination port
Delivery cost within Warri city
VAGMON INTEGRATED SERVICES’ FIRST RESPONSE:

Dear Client (name removed),

Many thanks for your email above. We shall review all things and get back to you in soonest.

RESPONSE FROM OUR SHIPPING COMPANY:

“Please see below:

Assume you want to travel from Aberdeen city centre say from the front of Primark shopping mall to somewhere in Garth Dee like Robert Gordon University campus, without a personal car. Two options are open to you; either you join the public bus transport provided by FIRST transport company or you take a taxi with more comfort and more cost implication. Assuming you are one of the guys that love comfort zone like myself, and would not consider the option of mass bus transit at all, and yet you are limited by the amount of money in your hand. What if there are 2 or 3 friends in the same situation may be you want to pull resources together to pick the taxi. This arrangement would ensure that you enjoy the desired comfort with even lesser cost burden on all friends. A similar arrangement is made in international shipping by customers of freight Forwarders. This article is focused on shipping to Nigeria of Less-than-Container-Load (LCL). We shall begin by understanding the shipping term LCL.
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In international commerce, there are a lot of jargon or terms often abbreviated as INCO terms and sometimes referred to as trading terms. The terms SGD, PAAR, FOB, CNF, C&F, DAP DDU, DAT, FCA, Ex Works, Shipper, Exporter, Importer, Consignee, Consignor, Shipping Line, etc. are often used wrongly, and could cause some shipping documentation complication down the trading line. This article will provide meanings in Nigerian contest of national and international shipping trading terms, abbreviations and acronyms. The reason for writing the article is to enable importers, and exporters or anyone who trade in the Nigerian space avoid costly mistakes resulting from wrong usage of terms, and hence enhance cargo clearing with the Nigerian Customs.

FREE ON BOARD (FOB):

In INCO terms, the term FOB is used to describe an arrangement or agreement in which the seller or supplier of goods pays for all expenses and risks involved in bringing the goods on board at the port of departure. This means the seller pays for export haulage, export documentation, export clearance and handlings at the supply country till the cargo is loaded on-board. Once loaded, the seller is free from every other risk down the line. The buyer assumes costs, the risk of any damage or loss, import haulage, import Customs clearance, and even loading and unloading at the arrival port. In Nigeria, the buyer must pay and obtain marine insurance certificate under this arrangement before he can process documents necessary to clear his imported goods.
http://www.clearingandforwardingnigeria.com/shipping-terms-and-meaning-in-nigeria/

When the term shipping is used in international logistic trade, it means the movement or transport of goods from one place to another. The goods so transported are thus referred to as shipment or consignment or cargo. Like every other trade, this movement of cargo from one country to another comes with its on jargon or languages often called shipping terms or Incoterms (International commercial terms). These terms have meanings assigned to them by the International Chamber of Commerce (ICC), with international application, but may vary slightly in semantic and practice among countries. Seeing that the application vary among country spaces, this article is intended to explain the usage and application of the terms consignee, Importer, Customer, and The Clearance Vendor in the Nigerian trading space. The importance of articles like this is that they keep you updated with the usage and application of terms in the import and export business.
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Terms and Definitions

FOB: this term which stands for free on board, refers to all costs incurred to bring the goods or items of import to the terminal for shipment. FOB = Total Ancillary Charges + Total Value of Goods. The pro forma invoice always states what the FOB value is.
Freight Cost: this is the estimated cost of transporting item from the terminal in the supply country to the port in the destination country.
Insurance: by this we mean the premium paid to the insurance company for issuing marine certificate or insurance certificate to the importer. Each insurance company has its premium rate, which must be agreed with the importer. Insurance = [FOB + Freight + 10% (mark-up)]*Premium rate. No worry about this, an example will clarify the matter just keep reading.
CIF: this stands for Cost Insurance and freight. CIF = FOB Value + Insurance Value +Freight Value
Surface Duty (ID): this is often commonly referred to as import duty, which is how the abbreviation – ID came about. Its duty based on the kind of item imported. The value depends on the HS Code – usually 5%, 10%, 20%, etc. of the CIF Value. ID = x% of CIF Value.
Surcharge: this is an additional tax levied on importation of goods, and meant for port development. Surcharge = 7%*ID.
CISS: this stands for Comprehensive Import Supervision Scheme. CISS = 1%*FOB Value.
ETLS: This means ECOWAS Tax Liberalisation Scheme often referred as ECOWAS levy for short. It is tax imposed on goods imported from non-ECOWAS member countries into ECOWAS member country. The monies so raised is used to run the commission’s office and for community development. ETLS = 0.5%*CIF.
VAT: Value Added Tax is tax for value addition or services rendered. VAT = 5%*(CIF+ID+Surcharge+CISS+ETLS).
Example Duty Estimation or Calculation
http://www.clearingandforwardingnigeria.com/how-to-estimate-import-duty-and-clearing-cost-in-nigeria/

Digital technology is creating business opportunities for people to live, work, and play better in Nigeria. Could you be among the makers, thinkers, and doers, who are disrupting the nation, harnessing its ever-increasing population, and creating new opportunities for progress? Have you been limited by the common notion that you do not have money or enough money to blaze a trail? Do not worry again. The answer is here with you. In my article for e-commerce opportunity in Port Harcourt, I did promise that I was going to give a freebie to my ardent readers on how to run an online shop without money. Yes, I mean no money, no product of your own. Here is the fulfilment of that promise; keep reading and thank me later.

Online Shop:

Have you asked why my article for e-commerce opportunity was focused in Port Harcourt and not Lagos, Abuja, or other cities or places in Nigeria? Well the same principle can be applied to any place so long there is internet network. However, Lagos like Abuja is full, if not oversaturated with such things. It is for the reason we have Jumia and Konga doing most of their deliveries in Lagos for free of charge, because Lagos is their physical headquarter. From our researches on the digital technology trend in Nigeria, we found that Port Harcourt is a field green and ripe for harvesting. We encourage you to take advantage of the city. Let us now go into the business opportunity proper.

Notice in my articles that I am more practical than theoretical; that means that for example I will not define what online shop is but show you how to own one as quickly as you like to. Let me divide online shop ownership into two categories.

Opening your shop on existing and known website
Creating and managing your own website.
In this article, we are focusing on the first; opening a shop on an existing website. The reason is as I promised in my article for e-commerce opportunity in Port Harcourt; you want to own a shop for free. Free of what? Did I say free of charge before? Now add free of a lot of risks and associated management problems. Let me now delve into the step-by-step way you could exploit this business opportunity.

How to Open an Online Shop on an Online Shopping Website:

Tools and apparatus you need:

Internet services network
Smart phone or tablet or laptop
Where to get the commodity you want to sell; you do not need to own the commodity.
The existing online shop; this article takes a case study on Jumia and later articles on Konga.
Let me walk you through using the following pictorial illustrations:
https://www.clearingandforwardingnigeria.com/how-to-start-a-shop-online-without-money-in-nigeria/

The utmost desire of every businessman is to position his organisation or products and services in the market place in such a way as to give distinctive identity. Branding is a core part of this process. In my words, I define branding as the process of determining how customers see you and your products or services. It is the strategies and activities needed to build a strong brand. A brand therefore is an identity, a personality, that which distinguishes a company or its products from that of competitors, and thus enabling customers to recognise and form attachment to it. This article highlights how branding can improve your company, be it an e-commerce or any other business.

The Elements of a Brand

The major elements of a brand that makeup the brand’s identity is: name, logo, symbol, colour, design and the process to create brands itself.

Brand name: – this is the word or group of words, or acronyms or abbreviations used to identify an organisation, product, service, or concept For example, MTN for a network company.
The Logo: – the logo is a visual trademark that shows the brand. MTN logo is easily known across Nigeria and the rest of the world.
A Tagline or Catchphrase: – this is a short but emotionally motivating phrase or sentence that is intended to give reason for buying from you. For example, Silver Bird 93.7 has as a tagline ‘this radio station has been altered to make you happy.’ ‘No other station does it better’
Graphics: – these refer to the images that identify your products or services. For example, if you are a documentation specialist, perhaps you want to include a key board with human finger on it as your graphics. A cargo clearing agent may want to add a vessel loaded in an open sea or an aeroplane in his graphics.
Colours: – the colour you use could become associated to your products and services. For example, MTN uses the yellow white combination
Tastes: what tastes are you selling to the public, quick satisfaction like indomie noddle? Or durability like in Mercedes Benz? This should reflect in your brand or product personality.
Benefits of branding:

A brand serves both functional and emotional benefits.

Functional benefits of a brand: the brand serves to state the products and services delivered by the organisation and how it works better than other organisation.
Emotional benefits of a brand: the brand serves to elicit strong feelings of customers to develop loyalty. For example, MTN has as a slogan “everywhere you go” this sends the information quickly of uninterrupted network even in remote villages – everywhere. This appeals to the emotions of network users and makes them stick to the MTN network. UBA has the tagline “Africa’s largest bank” sending the message that your investment or savings with the bank is safe.
Importance of Building a Brand:

What are some common brands you know? MTN, GLO, UBA, Channels TV? All have something in common – they convey personality, and are easily recognizable. There are a lot of advantages in making your company or company products or services branded. The following are some of the basic benefits of a brand.

Higher sales
Increased market share
Customer loyalty
Higher growth

http://www.clearingandforwardingnigeria.com/how-branding-can-help-your-business/

Virtually all products imported into the Nigerian territory are regulated under the SONCAP programme, and would have to undergo a two-step certification for SON Product Certificate and SONCAP Certificate respectively. However, a few items listed below are exempted from this programme, and are therefore treated differently. Importers of such goods or products would have to obtain either a NESREA Clearance Permit or SON Import Permit, or even NAFDAC Permit. This article shall deal heavily on NESREA Environmental Clearance Permit. I shall treat Import Permit and NAFDAC Permit in a separate article.

HOW TO PROCESS NESREA CLEARANCE PERMIT

NESREA is an acronym for National Environmental Standards and Regulations Enforcement Agency. First and foremost, let me list all the goods regulated by this agency, then I can walk you through on how to process and obtain the permit. These are categorised as follow:

LIST OF ITEMS REULATED BY NESREA:

1. Large household appliances (White goods)

Large cooling appliances
Refrigerators
Freezers
Other large appliances used for refrigeration, conservation and storage of food
Washing machines
Water Heaters
Clothes dryers
Dish washing machines
Electric Cooking Utensils
Electric stoves
Electric hot plates
Microwave ovens
Other large appliances used for cooking and other processing of food
Electric heating appliances
Electric radiators
Other large appliances for heating rooms, beds, seating furniture
Electric fans
Air conditioner appliances
Other fanning, exhaust ventilation and conditioning equipment
2. Small household appliances (White goods)

Vacuum cleaners
Carpet sweepers
Other appliances for cleaning
Appliances used for sewing, knitting, weaving and other processing for textiles
Irons and other appliances for ironing, mangling and other care of clothing
Toasters
Fryers
Grinders, coffee machines and equipment for opening or sealing containers or packages
Electric knives
Appliances for hair-cutting, hair drying, tooth brushing, shaving, massage and other body care appliances
Clocks, watches and equipment for the purpose of measuring, indicating or registering time
Weighing Scales
3. ICT and telecommunications equipment (Grey goods)

Mainframes
Minicomputers
Personal computers
Laptop computers
Notebook computers
Notepad computers
Printers
Copying equipment
Electrical and electronic typewriters
Pocket and desk calculators
Other products and equipment for the collection, storage, processing, presentation or communication of information by electronic means
User terminals and systems
Facsimile
Telex
Telephones
Pay telephones
Cordless telephones
Cellular telephones
Answering systems
Other products or equipment of transmitting sound, images or other information by telecommunications
4. Entertainment and Consumer equipment

Radio sets
Television sets
Video cameras
Video recorders
Hi-fi recorders
Audio amplifiers
Musical instruments
Other products or equipment for the purpose of recording or reproducing sound or images, including signals or other technologies for the distribution of sound and image than by telecommunications
5. Lighting equipment

Luminaries for fluorescent lamps with the exception of luminaries in households
Straight fluorescent lamps
Compact fluorescent lamps
High intensity discharge lamps, including pressure sodium lamps and metal halide lamps
Low pressure sodium lamps
Other lighting or equipment for the purpose of spreading or controlling light with the exception of filament bulbs
6. Electrical and electronic tools

Drills
Saws
Sewing machines
Equipment for turning, milling, sanding, grinding, sawing, cutting, shearing, drilling, making holes, punching, folding, bending or similar processing of wood, metal and other materials
Tools for riveting, nailing or screwing or removing rivets, nails, screws or similar uses
Tools for welding, soldering or similar use
Equipment for spraying, spreading, dispersing or other treatment of liquid or gaseous substances by other means
Tools for mowing or other gardening activities
7. Toys, leisure and sports equipment

Electric trains or car racing sets
Hand-held video game consoles
Video games
Computers for biking, diving, running and rowing
Sports equipment with electric or electronic components
Coin slot machines
8. Medical devices (with the exception of all implanted and infected products)

Radiotherapy equipment
Cardiology equipment
Dialysis equipment
Pulmonary ventilators Nuclear medicine equipment
Laboratory equipment for in-vitro diagnosis
Analysers
Fertilization tests equipment
Other appliances for detecting, preventing, monitoring, treating, alleviating illness, injury or disability
9. Monitoring and control instruments

Smoke detector
Heating regulators
Thermostats
Measuring, weighing or adjusting appliances for household or laboratory equipment. Other monitoring and control instruments used in industrial installations (for example, in control panels)
10. Automatic dispensers

Automatic dispensers for hot drinks
Automatic dispensers for hot or cold bottles or cans
Automatic dispensers for solid products
Automatic dispensers for money
All appliances which deliver automatically all kind of products
11. Others

Generators
Transformers
CATEGORIES OF CHEMICALS

Agrochemicals
Pesticides
Herbicides
Fertilisers
Industrial Chemicals / raw materials
Inorganic Chemical Reagents
Organic Chemicals & Solvents
Thickeners
Pigments
Colorants
Corrosion inhibitors
Retardants
Anti-microbial
Organic Solvents.

HOW TO APPLY FOR NESREA CLEARANCE PERMIT

http://www.clearingandforwardingnigeria.com/how-nesrea-clearance-permit-replaces-soncap/

Nigeria is one of the most momentous places to live in, earning a living on day-to-day basis can be extremely challenging. Issues range from convulsive electricity supply affecting over 80 per cent of the populace, never-ending fuel shortage causing high traffic in major cities, and steadily rising population of over 189 million people. Amidst these daunting challenges, Vagmon Integrated Services has discovered that there are huge opportunities that abound in Nigeria. A teaming group of entrepreneurs are working constantly to make Nigeria a more comfortable place to live and do business. Irrespective of the town, city, locale or social group, there is a huge array of e-commerce opportunity yet untapped.

This article will narrow down to an untapped e-commerce opportunity spotted in Port Harcourt Rivers State Nigeria. For those who have been following me online on different platforms, you would have noticed I am not a too-much-theory kind of guy. So I like to go straight right now and expose you to what I call empowerment.

Connecting Local Traders with Technology

Port Harcourt is one of Nigeria’s largest open-air markets, sprawling across several streets, and is home to thousands of vendors selling medley of fabrics, fashion, shoes and more. Besides the [/b]popular Mile 1 Market and Mile 3 Market, there thousands of smaller pockets market interspersed here and there in the ever-busy city located in the heart of oil-rich Niger Delta region. The e-commerce opportunity here is that of taking on the considerable challenge of creating an online home for Port Harcourt vendors, in order to scale their reach beyond everyday foot traffic....

https://www.clearingandforwardingnigeria.com/e-commerce-opportunity-in-port-harcourt-nigeria/ [b]

As is the practice internationally, for every single shipment to Nigeria as the destination, there are a number of must-take handling and cargo clearance steps to bring the process to completion. Each of those steps has to be clearly understood by the supplier or seller of the goods, the importer or the buyer, especially as there are cost implications embedded in all stages. This article will focus on the cargo handling and clearance steps from the seller’s position or location to the point of exit at the departure port in the supply country. Notice that I have consistently tried to avoid using the terms country of origin and country of supply interchangeably in my articles. The reason is because goods are not always supplied from origin. In my next article I shall deal with the rest of the handling stages till deliverance at the buyer’s position or location of interest.

EXPORT HANDLING/CLEARANCE
1. Finding A Freight Forwarder:to be arranged for you by the supplier unless you have local presence in the country of supply.

2. Movement of Goods from Supplier’s Location to Freight Forwarder: this movement which is mostly on land is often done with trucks or by train and can be for hours. Who pays for this cargo transfer to the forwards warehouse depends on what has been agreed. If the consignee or importer is to pay for this haulage, the using international Commercial (Inco) terms, we say the agreement is ex works (direct from point of manufacture or factory) or free carrier (named place or FCA). Most often than not, freight forwarder arranges on behalf of the buyer for this export haulage, unless otherwise the buyer has a local presence in the country of supplier and can arrange trucking by himself. Sometimes, the haulage is simply from the supplier’s warehouse to the port of loading directly. As part of its services, Vagmon Integrated Services negotiates for best freight forwarders and export haulage from a wide range of countries.

3. Customs Clearance at The Country of Supply: this is called export customs clearance, and is often done by a Customs licensed Clearance vendor or broker. What is best is for the shipper or consignor to arrange with the freight forwarder or the clearance vendor, unless the consignee has a local presence in the supply country, and then the agreement can be otherwise. Essentially, the financial implications that need be defined here are in the form of the following:
i. Customs examination, Inspection and associated fees , for example movement of the container or freight to the inspection bay
ii. Customs duties and taxes if applicable
iii. Quarantine inspection
iv. Fees for treatments as ordered by Government Quarantine Inspection Service
v. Payment of any Customs duties, taxes, storage, demurrage, detention or insurance fees
Hence your agreement with the seller should be detailed to include all of the above.
4. Export documentation:
i. For commercial shipments what are usually required are copies of the supplier’s invoice and packing list. These can either be faxed or post copies.
ii. The importer and shipper will also supply the clearance vendor or freight forwarder (depending on who is agreed to run this process) with the VAT registration number (TIN number mostly in use in Nigeria).
iii. Marine cargo insurance; this is optional, and may be arranged and paid for.
iv. The responsible Customs agent or freight forwarder can also arrange consular documents, certified invoices and certificates of origin etc., and charges for such paperwork will be quoted separately.

5. Further cargo handling at the supply country: the freight forwarder or an agent of his continues with range of other activities normally referred to as cargo handling. This activity begins with receipt and unloading of cargo from truck, counting, staging, validation against booking, issuance of the forwarder’s receipt, etc. Again, the freight forwarder would have to stack the cargo and all other shipment going on the same container before moving it to the shipping line container, and to the vessel at the port. Agreement should reveal who pays what at all stages to avoid some pleasant surprises.

6. Sipping: the freight forwarder may also be in the business of shipping proper, and has a shipping line or vessel. Otherwise he contracts a liner (a company that owns or hires vessel to move cargos), who does the actual vessel movement. A house bill of lading is issued by the freight forwarder, and states the vessel and voyage number. It does not matter if the cargo will be trans-loaded from one vessel to another along its route. The freight cost is paid by the consignee depending on the importation agreement.
With this article, we have discussed cargo handling and clearance steps from the country of supply to the exit at the departure port. We have seen that every commercial shipment to Nigeria undergoes; export haulage, documentation, export cargo clearance, supply handling and freight forwarding, with cost implications at each stage. The importer and exporter are wise to take a holistic look at the process cost and draw a workable agreement, including who pays what.

http://www.clearingandforwardingnigeria.com/shipping-to-nigeria/