PRESENTATION TO THE MEMBERS OF MANUFACTURERS ASSOCIATION OF NIGERIA ON DESTINATION INSPECTION BY YEMI ODUBIYI

IMPORT DYNAMICS UNDER DESTINATION INSPECTION The Importer submits Form M to the Bank Form M is approved with three copies submitted to scanning company Risk 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 DESTINATION INSPECTION Cont… The Offshore bank sends the documents to Nigerian bank Bank submits copy of the set of documents to scanning company Scanning company generates a Risk Assessment Report (RAR) NCS analyses the RAR and issues Assessment Notice Importer pays import duty based on Assessment Notice and clears his goods

SUBMISSION OF FORM M TO BANK 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/SUBMISSION -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 REJECTION BY SCANNING COMPANIES 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……. 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 OF PAYMENTS Letters of Credit Bills for Collection Not Valid for Foreign Exchange

PRESENTATION OF DOCUMENTS 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 ASSESSMENT REPORT (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 RAR Documentation:- Bill of Lading/Airway Bill Combined Certificate of Value and Origin (CCVO) -form C16 Packing List Commercial Invoice Manufacturers’ Certificate/Certificate of Analysis

DELAY IN ISSUANCE OF RISK ASSESSMENT REPORT (RAR)

REASONS FOR THE DELAY Form M No not quoted on the documents Documents sent to scanning company not clear Incomplete 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 RAR ISSUED HS code used not appropriate Description of goods on RAR differs from Final Invoice/Form M Information not transmitted quickly to Customs on issuance of RAR

IMPORTERS COMPLAINTS ON RAR ISSUED 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 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 GUARANTEE Customs Bond Customs Indemnity

PORT FAST TRACK BANK GUARANTEE A customer of Sterling Bank If not, a counter guarantee from another bank/financial institution Underlying Trade transactions. Importation through the bank

QUESTIONS??? Thank You!