te Head Of ntral Business Distri M.B. 0187, Garki, Abuja, FCT TRADE AND EXCHANGE DEPARTMENT 09 46237804 09 46237802 E-mail address:ted@cenbank.org TED/FEM/FPC/GEN/01/012 April 30, 2014 TO: ALL AUTHORISED DEALERS AND THE GENERAL PUBLIC RE: IMPORT GUIDELINES, PROCEDURES AND DOCUMENTATION REQUIREMENTS UNDER THE DESTINATION INSPECTION SCHEME IN NIGERIA This is to inform all Authorised Dealers and the general pub ic that the Federal Government has approved the revised Import Guidelines, Procedure and Documentation Requirements under the Destination Inspection Scheme. The approved document is herewith attached.

All authorised dealers are therefore advised to note and brir g the provisions of these guidelines to the attention of their customers for co npliance.

Please ensure compliance.

AJEWOLE Ag. DIRECTOR TRADE & EXCHANGE DEPARTMENT

Federal Ministry Of Finance Import Guidelines, Procedures And Documentation Requirements Under Thi Destination Inspection Scheme In Nigeri/

In pursuit of the Government decision to seamlessly transfer the Des ination Inspection Scheme for import from Scanning Service Providers (SSPs) to the Nigeria Customs Service (NCS) with effect from 1st December 2013, the following guicelines, procedures and documentation requirements shall apply in respect of import transactions with effect from that date.

A. Guidelines:

Any person intending to import physical goods into Nigeria shall in the first instance process e-Form 'M' through any Authorized dealer b nk irrespective of the value and whether or not payment is involved.

The initial validity period of an approved e-Form `M' for general merchandise shall be 180 days, which may be extended for 180 days by the Authc ized Dealer Bank.

For capital goods, the initial validity of an approved e-Form 'M shall be 365 days subject to a maximum extension of another 365 days. However, any subsequent request for revalidation of e-Form 'M' shall be forwarded to the Director, Trade and Exchange Department, Central Bank of Nigeria, for conside ation.

3- Supporting documents shall be clearly marked "VALID FOR FOREX" or "NOT VALID FOR FOREX" as appropriate i.e. whether or not foreign exchange remittance would be involved.

All applications for goods subject to Destination Inspection sl all carry the "BA" code, while those exempted shall include "CB" in the prefix of the numbering system of the e-form 'M'. Payments for goods exempted from Destination Inspection, under the Scheme, would not be carried out in the Foreign Exchange Market, without a prior approval from the Central Bank of Nigeria. The list of goods exempted from Destination Inspection shall be as approved by the Honourable Minister of Finance.

The e-Form 'M' and the relevant pro-forma invoice (which shall have a validity period of three months) shall carry a proper description of goods to be imported to facilitate price verification viz; Generic product name i.e. product type, category; i.

ii. Mark or brand name of the product, where applicable; iii. Model name and/or model or reference number, where at plicable;

Import Guidelines - December 201.

• FMF iv. Description of the quality, grade, specification, capacity, size, performance, etc; v. Quantity and packaging and/or packing.

e-Form 'M' shall be valid for importation only after registration by the Nigeria Customs Service (NCS). Consequently, Authorized Dealer Banl s are to confirm registration of the e-Form 'M' before proceeding with other import processes. Documents in respect of each import transaction shall carry the name of the 7.

product, country of origin, specifications, date of manufacture, batch or lot number, Standards to which the goods have been produced e.g. NIS, British Standards PD. ISO, IES, Din, etc).

All goods to be imported into the country shall be labeler in ENGLISH in addition to any other language of transaction; otherwise the goods shall be confiscated.

Where import items such as food, drinks, cosmetics, drugs, medical devices, chemicals, etc. are required for health or environmental reason! , they shall carry EXPIRY dates or the shelf life (minimum of half shelf life at the time of importation) and specify the active ingredients, where applicable 9.

10. Electrical appliances (fluorescent lamps, electric bulbs, electric ir ons and ties, etc) shall carry information on life performance while cables shall car y information on the ratings.

11. All electronic equipment and instruments shall carry: i.

Instructions Manual; ii. Safety information and/or safety signs; iii. A guaranty/warranty of at least six months.

12. Importation of products not properly labeled shall automatically jualify for seizure and destruction without warning, and subject to prosecution.

fraudulent misrepresentation of will result 13. Any false or facts in impoundment/seizures.

14. All imports into the country shall be accompanied by the following documents: Combined Certificate of Value and Origin (CCVO), which shall contain the a.

following information.

i.

e-Form 'M' No; Adequate description of goods; ii.

Import Guidelines - December 2013 - FMF 2 | Page Port of destination. (The actual port shall be specified e.g. Tin-Can, iii.

Apapa, Kano, Onne, etc); Shipment identification, date of shipment, Country of O igin, Country of iv.

Supply.

b.

Final/Commercial Invoice c.

Packing List.

d.

Shipped/Clean on Board Bill of Lading/Airway Bill/Railway B Il/Road Waybill.

e.

Manufacturer's Certificate of production, the Phytosanita y Certificate or Chemical Analysis Report, which shall state standards, v here applicable, should be made available.

f.

beverages, foo ls, chemicals, for certificates test Laboratory pharmaceuticals, electrical appliances and other regulated products, where applicable.

15. The following procedures shall be adopted for payments: i.

Letters of Credit transactions: All negotiating documents and/or shipping documents (as may be applicable), must be ro ted from the Beneficiary/Supplier through his/her bank to the issuin bank. For the avoidance of doubt, on no account must bank endorse or pay on documents that do not comply with the routing outlined above.

ii.

For Bills for Collection transactions, documents must be rou ted to the issuing bank either directly from the supplier's bank or through the offshore correspondence of the issuing bank.

iii. For 'Not Valid' for foreign exchange transactions, the suppl er should forward the documents directly to the applicant bank that validates the e-Form 'M'.

For transactions with Post Landing charges, a retention fee of 5- 15% of the project cost as agreed between the importer and the overseas supplier shall be indicated on both the Contract Agreement and the Pro-forma invoice wh ch shall form part of the supporting documents for the registration of relevan e-Form 'M'. In addition, i.

The stated fee shall not be remitted until a satisfactory evaluation of the project has been undertaken by the Industrial Inspector te Department of the Federal Ministry of Industry, Trade & Investment.

The Authorized Dealer Bank shall forward to the Nigeri Customs Service ii.

(NCS) Federal Ministry of Industry, Trade & Inve tment (Industrial Inspectorate Department) and Trade and Exchange D partment Central Bank of Nigeria, copies of the Contract Agreement and P o-forma invoice of such projects for monitoring purposes.

- Fmf Import Guidelines - December 2011

iii. The Nigeria Customs Service shall take cognizance of the value of shipment and Post Landing charges as would have been indicated ( n the Pre-Arrival Assessment Report (PAAR).

iv. The Industrial Inspectorate Department, Federal Ministry of Industry, Trade & Investment shall thereafter carry out an evaluation of the r roject and advise the Central Bank of Nigeria accordingly.

v.

On receipt of the report of the evaluation from the Federal Ministry of Industry, Trade & Investment (Industrial Inspectorate I epartment), the Central Bank of Nigeria shall advise NCS on the issuance o PAAR in respect of the retained value and the Authorized Dealer Bank advised to remit same to the beneficiary.

17. Buying Commission: The percentage of buying commission to be paid to agents or confirming house acting as intermediary between importers and exporters is subject to a maximum of 2% of the FoB value of the consignment, where applicable.

B. Import Procedures

Duly completed e-Form 'M' shall be submitted electronically to an Authorized 1.

Dealer bank with the following attached documents: a) Profoma Invoice b) Insurance Certificate c) Regulatory Certificate/Permits (e.g. NAFDAC, SON, DP ?, etc) 2.

However the originals of the Documents listed in (1) bove should be submitted to the processing bank prior to validation.

3- Upon receipt of duly completed and submitted copy of the e-Form 'M' from the importer, the Authorized dealer bank shall: a) ensure that the e-Form 'M' is duly completed.; b) compare the attached documents with the original; c) carry out proper Know-Your-Customer (K-Y-C) and be satisfied that all the relevant documents forwarded are genuine.

d) After completion of (a) to (c), the bank shall validate al d transmit the e- Forms 'M', to the Nigeria Customs Service (NCS)

C. Responsibilities Of Nigeria Customs Service

4 | Page Import Guidelines - December 2013 - FMF Upon receipt of the e-Form 'M' with other necessary pre-impor documents, NCS shall: 1.

Carry out a preliminary review of the application, using information provided therein and accept or reject the e-Form 'M' within one work ng day.

If "ACCEPTED", NCS shall register the e-Form 'M' on the sy tem.

3- However, if the e-Form `M' is "REJECTED", NCS shall state reason(s) for rejection and the e-Form 'M' automatically returned for necessary rectification.

After registration of the e-Form 'M' and the receipt of the Final Import documents from the Authorized Dealer Banks, NCS shall gr nerate Pre-Arrival Assessment Report (PAAR) within six (6) hours.

D. Responsibilities Of Importer

It shall be the duty of the importer to ensure that the suppl er makes available the pro-forma invoice in accordance with the imports procedure of the country. As a result, there must be no ambiguity in the description of the goods.

The importer shall also ensure that all the documents to b e forwarded to the Authorized Dealer Bank are genuine and verifiable.

The importer shall ensure that Final Documents are forwarded to the Authorised Dealer Bank by the Supplier before the arrival of the goods/consignment to facilitate quick clearance All the requirements listed under the imports procedure must be complied 4.

with before documents are submitted to the Authorized D ealer Bank. Upon registration of the e-Form 'M' by NCS, the impor er shall advise the 5.

supplier to arrange for the shipment of the goods.

E. Responsibilities Of The Supplier

i.

On consignment of goods for shipment, the overseas supplier shall make available two sets each, of original Combined Certificate of Value and Origin (CCVO); Transport documents (Bill of Lading, Airway Bil , Road Waybill, etc) and Packing list to his/her bank.

ii.

On receipt of the documents listed in (i) above, the supplier's bank shall forward them through the relevant correspondent bank to the Nigerian Authorised Dealer Bank for Letters of Credit transactions

Import Guidelines - December 2013 - Fmf

iii.

For transactions requiring the issuance of Certificate of C pital Importation and/or those involving supplier's credit, documents shall be forwarded by the supplier's bank to the Nigerian bank.

iv.

In the case of Bills for Collection transactions, two sets of o iginal documents should be forwarded to the Nigerian Authorised Dealer >ank through the supplier's bank or the offshore correspondent bank of the p ocessing bank.

v.

For transactions "Not-valid for foreign exchange" two sets of original documents should be forwarded by the supplier directly to the bank that validates the e-Form 'M'.

F. Responsibilities Of Authorized Dealer Banks:

Upon receipt of the documents listed in (E) above the / uthorised Dealer Banks shall endorse and upload them to Pre-Arrival A sessment Report (PAAR) system for issuance of PAAR.

For remittance in respect of imports, only the mount on the CCVO/Commercial Invoice/Final Invoice shall be remitted.

Carry out proper Know-Your-Customer (K-Y-C) and be sa isfied that all the relevant documents forwarded are genuine.

Authorised Dealer Banks are to ensure that shipping docur ents are received within 21 days after shipment and should retain evidence or the purpose of monitoring by CBN.

However, Authorised Dealer Banks are to refer any policy i: sue of which they are in doubt to the Director, Trade and Exchange Department for clarification in accordance with the provisions of Memorandum 27 («) of the Foreign Exchange Manual.

G. Responsibilities Of Shipping Lines And Other Cai Riers

It shall be the responsibility of Shipping lines and other carr ers to ensure that all goods being consigned for shipment to Nigeria are covel ed by appropriate e-Form 'M'.

The e-Form M number MUST be reflected on the Bill of Lacing, Airway Bill or Roadway bill for such goods.

An advance summary of the manifest of the cargoes must >e made available to the NCS electronically immediately the vessel departs th | last port of call.

H. Import Duty Payment

lmporter shall continue to pay an administrative charge of : % of FoB value of all imports based on the exchange rate on the approved e-F >rm 'M'.

Import Guidelines - December 2013 - Fmf

All imports shall continue to be assessed for duty at th : C.I.F. value of the goods using the rate of exchange on the approved e-Form 'M'.

It shall be the duty of the importer's bank through which the e-Form 'M' was processed to collect the amount of import duty as assessed if it is a designated bank. However, for e-Form 'M' transactions processed by nondesignated bank, payment of import duty shall be at an / of the designated banks while a copy of the duty payment receipt shall be m ade available to the processing bank by the importer.

For transactions in respect of dutiable personal effects p syment of duty can be made at any preferred designated bank.

The Designated bank will match printed assessmer : notice with the electronically received assessment notice for the SGD. If the information tallies, the bank will receive payments and issue signed Bank receipt.

The designated bank shall send an e-confirmation message to NCS acknowledging receipt of duty and taxes in respect of the SGD.

7- All payments shall continue to be electronically tr nsferred daily by designated banks to the respective pool accounts with CBN, failing which necessary sanctions shall apply.

Import Duty Dispute Resolution Mechanism Dispute arising from import duty payment shall be re olved through the following process: i.

Any discrepancy on declaration shall be entered into Inspection Act and appropriately modified.

ii.

If dispute persist, the importer shall be allowed to carry his goods on bank guarantee.

iii.

Importer shall thereafter apply for a tariff/valuatio decision.

iv.

If not satisfied with the decision, the importer may appeal to the World Customs Organization (WCO), Honourable Minister of Finance, Federal Republic of Nigeria and any Court of comp etent jurisdiction

L.

DOCUMENTATION REQUIREMENTS FOR IMPORT PAYMENTS UNDER THE DESTINATION INSPECTION SCHEME Confirmed Letters of Credit 1.

i.

Registered e-Form 'M' ii.

Combined Certificate of Value and Origin (CCVO) iii.

Manufacturer's Certificate with standards adopted st. ted thereon.

7 | Page Import Guidelines - December 2013 - FMF Clean/Shipped on Board Bill of Lading/Airway bill/Roa lway bill.

iv.

Final/Commercial Invoice v.

Packing List vi.

Letter of Credit instrument.

vii.

2. Bills for Collection Transactions Registered e-Form 'M' i.

ii.

SGD print out PAAR iii.

CCVO iv.

Manufacturer's Certificate v.

Shipped / Clean on Board Bill of Lading/Airways Bill / F oad waybill.

vi.

Final/Commercial Invoice.

vii.

viii.

Import Duty Payment receipt with SGD No. stated the reon.

Bill history ix.

Bill of exchange.

x.

xi.

Tally Sheet/Gate Pass.

Packing List.

xii.

DOCUMENTS TO BE SUBMITTED BY THE IMPORTER TO THE PROCESSING BANK AFTER CLEARANCE OF GOODS: i.

Pre-Arrival Assessment Report (PAAR).

ii.

Single Goods Declaration (SGD) Print out.

iii.

CCVO Packing List.

iv.

Import Duty Payment receipt with the SGD nun ber clearly stated thereon.

v.

Manufacturer's Certificate with Standards adopted st ted thereon.

vi.

Laboratory/Phytosanitary Test Certificate for chemicals, food, beverages, etc.

vii.

viii.

Terminal Delivery Order/Gate Pass. Bill of Lading/Airway Bill/Road Waybill, etc ix.

DPR Product Certificate for Petroleum products x.

SONCAP Certificate for SON regulated products xi.

Import Guidelines - December 201 - FMF j.

8 | Page

Clearance Procedures 1. Preparation Of Single Goods Declaration (Sgd):

a. Declarants prepare the SGD with information derived from relevant documents e.g. Final Invoice, CCVO, Bill of Lading/ \ir way Bill/Road waybill, Packing List, Permits (where necessary), Insulance, e-Form 'M', PAAR etc.

b. The SGD is prepared using a Private/Public DTIs** and · Capture SGD Information · Assess the SGD · Print the SGD and Assessment Notice **Direct Trader Input (DTI) is the unique procedure for submitting electr »nic declaration to Customs Note:

• While capturing the SGD, specify the bank at which Cu: toms Duty will be paid. It must be the bank indicated as the designated duty collection bank on the e-Form 'M'.

. If e-Form 'M' is not required, as in the case of dutiable personal effects, Importer/Agent can pay at any preferred designated bank.

· Take extreme care that the correct designated bank co le as indicated on the e-Form 'M' is captured to enable the system sen I the Assessment Notice to the appropriate bank.

· After capturing the SGD correctly the Assessment >ption should be selected, an electronic message will be sent to the des gnated bank with details of what should be paid as customs duty and other charges.

2. Payment At Bank

a. The Importer/Agent proceeds to the designated banl with the system generated Assessment Notice b. The Designated bank will match printed assessmen notice with the electronically received assessment notice for the SGD. If the information tallies, the bank will receive payments and issue signed pank's receipt.

c. The bank then sends an e-confirmation message to NV S acknowledging receipt of duty and taxes in respect of the SGD Customs Control

3-

At the customs control, the release of consignment vill be subject to selectivity of the Custom's Automated Risk Managen ent System after payment of duty.

9 | Page Import Guidelines - December 2013 - FMF

K. 4. Request For Release:

a. After payment of import duties and other charges at the bank, Importer/Agent will request for Customs release through DTI b. NCS will release after Scanning or Physical examination .

5. Release of Consignment by Terminal Operator (T/O) After Customs have cleared the consignment Terminal Operators shall issue Exit Note to NCS.

6. In the case of personal effects, the applicant shall forward relevant documents to the Nigeria Customs Service. However, who re dutiable goods are found to be in excess of the approved passenger conces sion, they shall be liable to the clearance procedure applicable to commercial joods.

TRADE RELATIONS DIVISION HOME FINANCE DEPARTMENT FEDERAL MINISTRY OF FINANCE CENTRAL AREA, ABUJA DECEMBER 2013