Transcript INTRODUCING BONDS - Nigerian Exporter

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!