>>>>> nigeria destination inspection scheme presentation to the west africa trade...

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Nigeria Destination Inspection Scheme

Presentation to the West Africa Trade & Transport Seminar

Thursday 4th May, London

Sue KeenDocumentation Manager, Cotecna UK


Presentation Content

> Outline of DI scheme> Type of contract> Who is involved> How it works from start to finish

> Current issues (as we understand them)> Form M opening> Processing of final documentation


Agencies involved

> Three “Scanning and Risk Management Service Providers” (SC’s) have been appointed

> Each SC has a 7 year BOOT contract > Build Own Operate Transfer

> Each has been allocated specific ports of entry (sea, air & land) unlike PSI which was determined by “country of supply”


Agencies involved

> Cotecna > Seaports – Apapa,Tin Can Island> Airports – Kano, Abuja; Land Borders – Jibiya, Banki

> SGS> Seaports – Onne, Port Harcourt> Airport – Port Harcourt; Land border – Idiroko

> Global Scan Ltd> Seaports – Warri, Calabar> Airport – Ikeja (MMA); Land borders - Seme


Outline of process

> Exporter raises proforma invoice (PFI) and sends to Importer

> Importer raises form M at authorised dealer (bank) using PFI and other required documents (specific licences, insurance certificate etc)

> Authorised dealer sends the form M and associated paperwork to the relevant SC within 5 days of opening


Outline of process

> SC “approves” or “rejects” the form M application within 1 working day of receipt from authorised dealer

> SC returns “rejected” form M’s to the authorised dealer with reason (or reasons) for rejection

> Authorised dealer is responsible for informing importer – no goods can be imported until the form M is “approved”


Outline of process

> SC sends details of “approved” form M’s to Customs Headquarters and Customs Area Command at the relevant port of entry (sea, air or land)

> Goods shipped - exporter submits final documents – who to depends on specific details (ie valid for forex, personal effects etc)

> Authorised dealer sends final documents to the appropriate SC


Outline of process

> SC checks all final documents received and “approves” if acceptable or “rejects” if not acceptable

> If documents are rejected they are returned to the authorised dealer

> It is the authorised dealer’s responsibility to notify the importer and arrange rectification


Outline of process

> For “approved” final documents SC generates a “Risk Assessment Report” (RAR) > Within 5 days for sea shipments> Within 2 days for air / land shipments

> The RAR includes the SC’s opinion on: > customs classification> valuation> recommended intervention level


Possible intervention levels

> Green channel> No inspection – direct release

> Yellow channel> Scanning by SC responsible for that port of entry

(sea, air or land)

> Red channel> 100% physical inspection by Nigeria Customs

Service


Image of a scanned container


Outline of process

> RAR is printed on plain paper > Customs copy issued to port of entry (sea, air or land)> Importer’s copy sent to bank

> RAR data is also transmitted by EDT to NSC Asycuda system

> Importer collects RAR from their bank and submits Customs Entry to NCS


Outline of process

> NCS assess duties and taxes and any other charges payable

> They use the information in the RAR but do not have to accept the SC’s customs classification or valuation

> NCS determines the intervention level – they do not have to accept the recommendation made by the SC


Outline of process

> Consignment progresses through the chosen intervention level once the importer has paid the duties & taxes to the designated bank

> Green Lane – Direct Release> “Release Order” (RO) printed by Customs after

duties & taxes paid> Importer presents RO to Nigeria Ports Authority

(NPA) – pays port charges> Consignment released


Outline of process

> Yellow Lane – scanning > “Authorisation to Load for Scanning” (ALS) issued

by Customs after payments confirmed> Container scanned

> If discrepancy – container moves to “Red Lane” for full physical inspection by NCS

> If satisfactory – RO printed

> Importer presents RO to Nigeria Ports Authority (NPA) – pays port charges

> Consignment released


Outline of process

> Red Lane – physical inspection> If discrepancy – two options

> NCS may seize the cargo – importer loses goods which are either destroyed or sold at auction

> NCS issue an “Assessment Notice” (AN) detailing additional duties, taxes and penalties to be paid

> Importers pays additional charges; RO printed

> If satisfactory – RO printed> Importer presents RO to Nigeria Ports Authority

(NPA) – pays port charges to NPA> Consignment released


Current Issue – Form M rejection

> Cotecna rejections: > 1 Jan to 25 Apr – 23% of form M’s rejected> Reasons for rejection are varied

> Some problems stem from the authorised dealer; others are caused by the importers

> Some are caused by the exporter in the production and submission of their proforma invoice


Reasons for form M rejection

> Authorised dealer> Late submissions to the SC (after 5 days)> Not signed, dated, stamped (ie authorised)> Wrong bank code / numbering or prefix

(duplicates, too many or too few digits, exempt)

> Other required documents not provided> For example: NAFDAC, NEPA licences; SONCAP

paperwork; Insurance Certificates



> Conflicting information where details quoted on the form M do not match attached documentation> Exporter details

> (names, addresses, phone/fax numbers)

> Values (FOB, Freight etc)> Countries of origin and supply> Port of entry (sea, air or land)



> Proforma invoices not acceptable> Full exporter details must be given> Insufficient description of the goods

> Generic product name; brand name where applicable> Model name or number where applicable> Description of the quality, grade, specification, capacity,

size etc

> Other missing information> Quantity, packaging or packing; unit prices; freight> Country of Origin and/or supply

> PFI expired (now only valid for 3 months)


Proforma invoices

> Why do PFI’s have to be so detailed?> This is the only information the SC’s have to

complete price analysis and perform customs classification

> Failure to provide this detail may result in goods being incorrectly classified and valued

> This in turn may result in an incorrect RAR being issued which may delay clearance


Current issue – final documents

> Cotecna rejections> 1 Jan to 25 Apr – 23% rejected> Reasons for rejection are varied

> CCVO’s> Information inconsistent with form M (currency,

different exp/imp; higher quantities or values)> Do not add up correctly> No number or date; missing freight values> Missing or incorrect unit prices quoted


Current issues – final documents

> Transport documents> Missing completely> No dates or numbers> Container information not quoted> Name of vessel, port of loading and port of

discharge missing> Inconsistent with other documentation


What can exporters do to help?

> Improve the quality of data in proforma invoices> This will stop the form M’s being rejected > This will stop delays in L/C’s being opened> This ensures that goods can be shipped quickly

> Improve the quality of data in final documents> This will stop the documents being rejected > This will stop delays in the issuance of the RAR > This will stop delays to your customer getting his

goods


Thank you

>>>>> nigeria destination inspection scheme presentation to the west africa trade...

Documents

ncs slide

approved slide

outline of process sc

appropriate sc slide

rectification slide

importer importer

nigeria customs service

outline of process ncs