In this blog, we will explain in details, step by step guidelines for the Importation Of Petroleum Products into Nigeria. It will include Eligibility, Application Process and requirements, licensing and statutory fees.
These Guidelines are made pursuant to Paragraph 4(1) of the Fourth Schedule to the Petroleum Act CAP P10 L.F.N 2004 and are intended to clearly define the regulatory requirements for the issuance of Petroleum Products Importation Permit and the administration of Vessel Arrival Notification & Cargo Discharge at Jetties.
A. ELIGIBILITY
All companies duly registered under the Corporate Affairs Commission (CAC) as providers of goods and services in the downstream sector of the Nigerian oil and gas Industry are eligible to apply for Import Permit of Petroleum Products subject to having access to appropriate Storage Facilities which could be owned or leased from third parties.
Get: Company formation or Registration Service in Nigeria
B. APPLICATION CONDITIONS FOR ISSUANCE OF PETROLEUM PRODUCTS IMPORT PERMIT
1) Application for Import Permit shall be made through the designated online portal at DEPARTMENT OF PETREOLEUM RESOURCES (DPR) official.
2) The following documents shall be uploaded with the application at the online portal:-
i. A copy of the Certificate of Incorporation of the applicant’s company
ii. A copy of the company Article and Memorandum of Association
iii. A Copy of the current Storage/Sales license issued by the DPR (where applicable)
iv. A Bank reference with committed and explicit statements
v. Tax Identification Number (TIN)
3) The following fees payable in respect of an application for import permit shall be made through the applicable electronic payment system on the portal:-
i. An application fee of Seventy Five Thousand Naira only (N75,000.00 / 30 MT)
ii. Processing fee of Two Hundred and Ten Thousand Naira only (N210, 000. 00 / Application)
C) SPECIAL NOTICE ON APPLICATION FOR PETROLEUM PRODUCT IMPORT PERMIT:-
i. All documents submitted online would be verified and if found acceptable a permit will be issued to the applicant
ii. Every Import Permit shall have a duration of 90 days from the date of issue
iii. For every new application for a permit, the permit granted to a company for a previous importation would be recertified on System
iv. All imported Petroleum Products must meet the National Quality Standard specifications as approved by the Department of Petroleum Resources
v. Each importer of petroleum products shall be required to submit returns on System on the previous importation for which permit was issued, upload copies of all relevant invoices and shipping documents, before any subsequent application for an Import Permit to be approved.
Documents to be submitted shall include:-
a) Relevant Invoices
b) Bill of Lading
c) Photocopy of Approved Form “M”
d) Clearance or Import duty payment from Nigeria Customs & Excise
e) Import Clearance Form duly certified by DPR representative at the jetty.
f) Detail cargo information, such as direct shipment, ship-to-ship, name of mother vessel, certificate of quality, last port of call etc.
g) A copy of the “Certificate of Quantity” and “Certificate of Quality” of previous imported and delivered products duly authenticated by DPR (to be made available (for renewal of import permit))
h) Evidence of utilization of the quantity of products for which import permit was previously granted.
Read: Steps & Permits You to Start Oil & Gas Business in Nigeria
D) VESSEL ARRIVAL NOTIFICATION
Clearance of vessels for discharge at receiving facilities shall be duly implemented upon the importer notifying the Department at least 7 days prior to the arrival of the vessel at a Nigerian Port and providing the following documents at the designated online portal:
i. Certificate of Quality of the consignment issued by the exporting refinery or a competent authority in the country of origin is submitted to the DPR
ii. Copy of Certificate of Quantity
iii. Copy of “Form M” raised for the transaction
iv. Copy of Letter of Credit for the transaction
v. Letter from a bank attesting that the transaction was funded through the bank
vi. Copies of all relevant invoices
vii. Copy of Cargo Manifest
viii. Copy of Ullage Report
An importer shall pay a Vessel Notification processing fee of Two Hundred & Twenty Thousand Naira only (N220,000:00) to the Department of Petroleum Resources through the designated electronic payment system on the Petroleum Product Import Permit electronic portal of the Department.
E) CONDITIONS FOR CARGO DISCHARGE AT THE JETTIES
A vessel laden with imported Petroleum Products shall only be allowed to discharge at the indicated jetty where:
i. There is an evidence of import permit for the product.
ii. The imported product has been fiscalised in the presence of a DPR official
iii. A re-certification analysis of the product composite sample is conducted in the presence of a DPR official and the result certified on- spec.
A Vessel shall therefore not Discharge until the Laboratory Re-certification of a Product is conducted
iv. Documents received from the vessel are not in conflict with those earlier uploaded by importer of the product
A Certificate of Quantity will be issued by the DPR representative that witnessed the Discharge based on the shore tank receipts from the vessel.
Get: DPR Permit Support & Service
F) PRODUCT CERTIFICATION FOR FOREX RETURNS
For product certification to importers that utilized CBN funded FOREX, the following documents must be submitted on online for processing of product discharge certification letter to CBN.
i. Copy of import permit used for the cargo
ii. Bill of lading (Mother/Daughter Vessel)
iii. Certificate of Quantity (Mother/Daughter Vessels)
iv. Certificate of Quality
v. Letter from financing bank (addressed to DPR)
vi. Copy of Form M
vii. Invoices (Proforma & Commercial)
viii.Letter from Supplier (Addressed to DPR)
ix. Sovereign Debt Guarantee (SDG)
x. Vessel Report/clearance form (Issued by DPR)
xi. Certificate of Quantity issued by DPR at discharge point
xii. Returns on product importation for which permit was granted, including DPR endorsed copies of trucking records and bank records of collections.
Documents would be verified and if found satisfactory, a Product certification letter will be issued.
Read: How to obtain Your Company Tax Clearance in Nigeria
G) MISCELLANOUS
i. An importer shall be charged an expeditionary fee of One Hundred & Sixty Five Thousand only (N165, 000:00) upon any variation of Vessel arrival from the approved Vessel Arrival Date Scheduled with the Department of Petroleum Resources
ii. The Director of Department of Petroleum Resources shall propose an appropriate Administrative fee for payment by an importer for the breach of any Provisions of these Guidelines.
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Source: Department of Petroleum Resources