We looked at how to obtain import license in Nigeria for non Oil and Gas goods, documentations and procedure of obtaining an import license in Nigeria. Import license document requirements, procedures and importation processes. Read for Oil and Gas import license in Nigeria.
HOW TO OBTAIN IMPORT LICENSE IN NIGERIA
An import license in Nigeria is issued by various agencies of government in Nigeria which regulates and determines the goods that can be brought into the country. There is no unified import license in Nigeria. Depending on the type of goods you want to import, there are various licenses from different regulatory agencies However, there are some documentations and processing that can be applied to all forms of import, these include the E- form and the Pre-arrival assessment report. The processing of the documents is done on the Nigeria single window trade portal.
THE E-FORM:
An E- form M is an electronic mandatory documentation process introduced by the Central Bank Central Bank of Nigeria (CBN) and the Nigeria Customs Service (NCS) to be completed by all importers for importation of goods into Nigeria. The form is requested by an importer through the NSW Trade Portal. The life span of a Form M is 180 days (for general merchandise) and 365 days (for plant and machinery), after which an extension of 180 days (for general merchandise) and 365 days (for plant and machinery) can be granted on the Form M by the Authorized Dealer. Any further extension has to be approved by the Central Bank of Nigeria (CBN).
Requirements for obtaining an E-form M.
In order to obtain an E-form M which is gotten on the Federal government of Nigeria Single window for trade portal, the importer must have fulfilled the following requirements:
- Registration and validation of a Tax Identification Number (TIN) at the Federal Inland Revenue Service (FIRS)
- Logging into the FIRS portal to register as an importer.
- The Bank/customer has logged on the portal to initiate the E-Form M.
- Forwarding all original documents (Pro forma Invoice, Insurance etc.) to the ADB for approval.
- Payment of the N1, 500 fee charge on the e-Form M.
How to obtain an E-form M.
- Obtain an E-Form M online from the NSW Trade Portal.
- Submit your E-Form M application online to an Authorized Dealer Bank along with the Proforma invoice, locally sourced Insurance Certificate and the Regulatory Certificates/Permits depending on the product.
- The Authorized Dealer Bank (ADB) reviews the submitted form and documents and validates it. The form is submitted to the NCS by the ADB.
- The Nigeria Custom Service (NCS) will review the application and either accept or reject it within one working day. If the application is accepted, the NCS will register the E-Form M in the Single Window Trade system and in the event that it is rejected, the NCS will state the reasons for rejection and the documents will be automatically returned for rectification.
- When the Form M is accepted by the NCS, the importer forwards a copy of the Form M to his exporter, who will in turn contact Cotecna, the International Accreditation Firm, with the following documents for the issuance of the SONCAP Certificate:
- Form M
- The Final Invoice
- Bill of Lading/Airway Bill
- The packing list
THE PRE-ARRIVAL ASSESSMENT REPORT:
A valid PAAR report approved by the Nigeria Custom Service (NCS) is required to also clear goods entering the country. Upon reception of final documents, the commercial bank having opened the Form M will complete on line an electronic PAAR Consignment form and will submit it to NCS via the Nigeria Single Window Trade Portal, together with scanned copies of final documents. The Pre-Arrival Assessment Report (PAAR) system is an online application designed and used by the Nigeria Customs Service (NCS) for the generation of the PAAR. The System cannot be used by individuals, only the Authorized Dealer Bank (ADB) can access and use the system.
The following are the procedures to obtain a PAAR:
- The NCS receives the Electronic form (E form) with other necessary pre-import documents from the Authorized Dealer Bank and carries out preliminary preview using the information provided. The e-Form M where accepted is registered on the system by the NCS. The pre-import documents are known as final documents and they are usually sent by courier directly to the bank that processed the form M.
- The Final import documents are sent by the Authorized Dealer Bank to the NCS. The documents referred to are:
- The final invoice.
- CCVO (Combined Certificate of Value and Origin).
- Transport Document (Bill of Lading/Airway Bill/Roadway Bill).
- Packing List
- The NCS generates the PAAR. Upon generation of the PAAR, it will be sent to the transacting bank while, the importer receives a copy through his mail. The importer then proceeds to his bank to collect his endorsed PAAR and other shipping documents. The PAAR, the final invoice, the Bill of Lading (with other final documents) in addition to the regulatory documents, are used in the clearance of goods at any Nigerian port
DOCUMENTATIONS AND PROCEDURE OF OBTAINING AN IMPORT LICENSE IN NIGERIA.
In order to obtain an import license in Nigeria, the following documentations and procedures are required:
- Registration with CAC: Registration with the Corporate Affairs Commission (CAC) in Nigeria and a certificate of incorporation as evidence of your registration
- Tax Identification Number acquisition: Obtain your Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS) for proof of tax payment with a valid email address attached to it
- Opening a Bank account: The importer must then proceed to opening a bank account with a reputable bank in Nigeria to act as the Authorized Dealer Bank (ADB). The bank will issue a form called Form-M/ PAAR which is a mandatory documentation that is required by the Federal Government through the Ministry of Finance and the Central Bank of Nigeria for the purpose of monitoring and keeping track of the goods imported into the country and to also facilitate the payment of import duties on the goods. The Authorized Dealer Bank (ADB) also initiates the clearance of the Form-M.
- Obtain permits from various regulatory agencies according to your product: The importer then proceeds to obtain the appropriate permit from various regulatory agencies in Nigeria depending on the kind of product that the importer intends to bring into the country. Regulatory bodies that can issue permits includes the following:
- SONCAP (Standard Organization of Nigeria Conformity Assessment Programme)
- NAFDAC (National Agency for Food Drug and Administrative Control)
- DPR (Department of Petroleum Resources)
- NERC (Nigerian Electricity Regulatory Commission)
- Nigeria Agricultural Quarantine Services (NAQS)
Registration on the Nigeria Single Window Trade (NSWT) portal:
The importer must also register as a client at the Nigeria single window trade portal, which is an intergovernmental site that encourages trade procedure between the government agencies and parties on the Federal Inland Revenue site. This is done by registering the PC on the single window trade portal. The Nigeria custom services created the Nigeria Single Window Trade (NSWT) portal in order to make the process of clearing goods in Nigeria stress free and time saving. The Nigeria’s Single Window Portal is a trade facilitation project of 12 Nigerian Government agencies involved in the customs clearance process. The Single Window Portal allows traders to:
- Access customs regulations online
- Submit customs documents electronically
- Track transaction status online
- Submit electronic payments.
CONCLUSION.
Obtaining an import license in Nigeria will differ depending on the goods or services that you are importing. Different agencies of government in Nigeria regulates and determines the goods that can be brought into the country. They also collect fees depending on the quantity or specification of goods that you are bringing into the country.