PRESENTATION TO THE PRESENTATION TO THE MEMBERS OF MEMBERS OF

MANUFACTURERS MANUFACTURERS ASSOCIATION OF NIGERIA ON ASSOCIATION OF NIGERIA ON

DESTINATION INSPECTIONDESTINATION INSPECTION

BY YEMI ODUBIYIBY YEMI ODUBIYI

IMPORT DYNAMICS UNDER IMPORT DYNAMICS UNDER DESTINATION INSPECTIONDESTINATION INSPECTION

The Importer submits Form M to the BankForm M is approved with three copies

submitted to scanning companyRisk Service provider (Scanning Company)

accepts/rejects within 24hours with notification to the bank

The LC is processed/opened (if LC)Documents are present by exporter to his

bank/Confirming bank

IMPORT DYNAMICS UNDER IMPORT DYNAMICS UNDER

DESTINATION INSPECTIONDESTINATION INSPECTION Cont…Cont…The Offshore bank sends the documents to

Nigerian bankBank submits copy of the set of documents to

scanning companyScanning company generates a Risk

Assessment Report (RAR)NCS analyses the RAR and issues Assessment

NoticeImporter pays import duty based on

Assessment Notice and clears his goods

SUBMISSION OF FORM M TO SUBMISSION OF FORM M TO BANKBANK

The Importer is expected to submit completed form M to the bank with the following documents:

• Original Proforma Invoice (PFI)• Insurance Certificate• Other documents/Certificates (SONCAP,

NAFDAC, NEPA, ETC)

APPROVAL/SUBMISSIONAPPROVAL/SUBMISSION -FORM M-FORM M

Rejection returned to Bank Acceptance and notification of acceptance

to Bank Scanning company retains a copy of the

accepted (or valid) Form M and sends copy to the Nigeria Custom Service (NCS)

REASONS FOR FORM M REASONS FOR FORM M REJECTION BY SCANNING REJECTION BY SCANNING

COMPANIESCOMPANIES Detailed goods description of item of

import not stated Conflicting port of discharge on Form M

& pro-forma invoice FOB/CFR value on the Form M differs

from value stated on PFI

CONT…….CONT……. HS Code/Purpose code not stated Wrong currency filled on Form M Country of Origin & Supply not on

PFI/Form M Conflicting payment mode stated on

PFI/Form M No exchange rate and naira value on form

M RC Code or passport number not stated

on the Form M

TRANSACTION TYPES/MODE TRANSACTION TYPES/MODE OF PAYMENTSOF PAYMENTS

Letters of CreditBills for CollectionNot Valid for Foreign Exchange

PRESENTATION OF PRESENTATION OF DOCUMENTSDOCUMENTS

Shipping documents should be forwarded by the Exporter through Offshore bank for LC and BFC within 14days for B/L and 5days for AWBL

For Not valid for FX- Shipping documents should be sent directly from the Exporter to Nigeria bank

ISSUANCE OF RISK ISSUANCE OF RISK ASSESSMENT REPORT ASSESSMENT REPORT (RAR)(RAR)

WHAT IS RAR?WHAT IS RAR?

This is an acronym for Risk Assessment Report. A report issued by the scanning company after copies of the importers’ shipping documents received by the opening bank has been forwarded.

This report evaluates the level of risk on the item of import and gives an opinion on the duty assessable.

ISSUANCE OF RARISSUANCE OF RARDocumentation:-Documentation:-

Bill of Lading/Airway BillCombined Certificate of Value and Origin

(CCVO) -form C16Packing ListCommercial InvoiceManufacturers’ Certificate/Certificate of

Analysis

DELAY IN ISSUANCE OF DELAY IN ISSUANCE OF RISK ASSESSMENT RISK ASSESSMENT

REPORT (RAR)REPORT (RAR)

REASONS FOR THE DELAYREASONS FOR THE DELAYForm M No not quoted on the documentsDocuments sent to scanning company not

clearIncomplete documentation from the offshore

bank- e.g. no Packing list, Combined Certificate of Value and Origin (CCVO)

Description of goods on the packing list is different from the one on the form M

IMPORTERS COMPLAINTS ON IMPORTERS COMPLAINTS ON RAR ISSUEDRAR ISSUED

HS code used not appropriateDescription of goods on RAR differs

from Final Invoice/Form MInformation not transmitted quickly

to Customs on issuance of RAR

IMPORTERS COMPLAINTS ON IMPORTERS COMPLAINTS ON RAR ISSUEDRAR ISSUED

Cont….Cont….

Increase in value of goods. (i.e. the difference between the FOB invoiced and Assessed FOB)

Applicable cross rate for third currency (non USD) transactions

CLEARANCE OF GOODSCLEARANCE OF GOODS

NCS analyzes the RAR and takes a final decision on level of inspection required;

Inspection is then carried out where required and the Assessment Notice is printed

Importer collects a copy of the Assessment Notice which is used to pay for import duty and other taxes;

Final clearance is then done

PORT FAST TRACK BANK PORT FAST TRACK BANK GUARANTEEGUARANTEE

Customs Bond Customs Indemnity

PORT FAST TRACK BANK PORT FAST TRACK BANK GUARANTEEGUARANTEE

A customer of Sterling BankIf not, a counter guarantee from another

bank/financial institutionUnderlying Trade transactions. Importation through the bank

QUESTIONS???

Thank You!