Monthly Archives: May 2012

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What is ‘Form M’ ?

PreShipment Inspection Scheme – Form M & Bulk Form M

Requirement by the Nigerian importer to open a Form M:

The supplier’s proforma invoice showing description of goods, quantities and their measurements, FOB unit price, total FOB cost, total freight, total CFR, country of origin and country of supply. The importer has to also establish Nigerian Marine Insurance for the goods as required by Nigerian Law.

A Form M is usually issued for a particular supply contract and allows for part shipments. For large project, a Bulk Form M can be issued, which allows continuous part shipments throughout the validity of the Form M. A Form M is valid for six(6) months and can be extended once for another period of six(6) months.

The importer will fill in a Form M valid for foreign exchange (Confirmed and Unconfirmed L/C or Bill for Collection) or he will use a Form M not valid for foreign exchange(alternative financing arrangement where no money transfer from Nigeria to foreign through the central bank is involved).

The importer submits the Form M and proforma invoice to his commercial bank in Nigeria. Once accepted, the bank will dispatch the Form M to the Lagos office of the Pre-shipment Inspection Agent(PSIA) appointed by the Nigeria Government for the country of supply indicated on the Form M.

The PSIA will carry out a preliminary price verification and distribute copies of the Form M to the central Bank of Nigeria(CBN), the Nigeria Customs Service, the National Maritime Authority(NMA) – for seafreight and to the importer through his bank. One complete set of documents will be sent by electronic data transfer to the PSIA’s overseas office in charge of the country of supply.

The PSIA’s office overseas will then send out a Request For Inspection(RFI) to the supplier, physically inspects the cargo and carry out the final price verification. Within 72 hours after inspection, the supplier must submit his original final commercial invoice to the PSIA. The PSIA will apply the financial seal on the invoice, which becomes the negotiable documents for L/C and other money transfer purpose from Nigeria.
The supplier sends other documents required for import customs clearance to the importer which are Original B/L or AWB, C16, copy final invoice, and packing list.

NOTE: All goods irrespective of their nature, size or volume are subject to the pre-shipment inspection procedure including samples and humanitarian aid shipments.

Shipping Lines & Agents


Shipping Line
Local Agent in Nigeria
Gold Star Line Ltd-
Lagos And Niger Shipping Agencies Ltd (LANSAL)
Bacoliner-
Brawal Shipping (Nig) Ltd
Clipper Lines Ltd-
COMET Shipping Agencies Nig Ltd
COSCO Container Line-
SDV
CMA CGM-
Hull-Blyth (Formally Elder Dempster Agencies)
Grimaldi Group-
RORO Oceanic
O T Africa Lines-
Cross Marine Shipping
Ignazio Messina & C SPA-
Cross Marine Shipping
K – Line-
Hull-Blyth (Formally Elder Dempster Agencies)
Kien Hung Shipping Company Ltd-
Hull-Blyth (Formally Elder Dempster Agencies)
Mitsui O.S.K-
SDV
Mediterranean Shipping Company, S.A (MSC)-
COMET Shipping Agencies Nig Ltd
MAERSK-Sealand-
MAERSK Nig Ltd
P & O Neddloyd Line-
P & O Neddlloyd
West Africa Linien-Dienste GMBH, (WAL)-
Hull-Blyth (Formally Elder Dempster Agencies)
Torm Line-
SDV
Safmarine-
Safmarine
Pacific International Line
(PIL) PTE-
Hull-Blyth (Formally Elder Dempster Agencies)
China Shipping Line-
Panalpina World Transport (Nig) Ltd

Payment of Import Duty

Please find below the list of the banks appointed for the collection of Customs Revenue and other charges:

1.
ACCESS BANK PLC
2.
AFRIBANK GROUP
3.
CITIZENS GUARDIAN
4.
DIAMOND BANK
5.
ECOBANK
6.
ETB
7.
FCMB GROUP
8.
FIDELITY BANK
9.
FIRST BANK
10.
FIRST INLAND BANK
11.
GUARANTY TRUST BANK
12.
IBTC CHARTERED
13.
INTERCONTINENTAL BANK
14.
NIB/CITIBANK
15.
OCEANIC BANK
16.
PLATINUM HABIB BANK
17.
SKYE BANK GROUP
18.
STANBIC BANK
19.
STANDARD CHARTERED
20.
STERLING BANK GROUP
21.
UBA
22.
UNION BANK
23.
UNITY BANK GROUP
24.
WEMA BANK GROUP
25.
ZENITH BANK

Calculation of Import Duties

Payment of import duties, 7% surcharge, 1% administrative charge, 0.5% ECOWAS Trade Liberalisation Scheme(ETLS), and 5% VAT are to be made through one of the banks designated by the Federal Government for the Customs Area of Importation. This can be done by bank draft or by bank transfer.

Example with 20% import duty:

- FOB value 1000
- Freight 40
- CIF 1040
Import duty – 5% on CIF
52.00
7% surcharge on duty
3.64
0.5% TLS levy on CIF value
5.20
1% CISS fee on FOB
10.00
2% NAC levy on CIF (Applicable to vehicles)
20.80
5% VAT on all above + CIF
56.60
Total Payable to Customs
148.24

Banks to pay Import Duty

To enhance the monitoring of the import duty scheme, Shipping lines and Airlines are requested by law to always state the Form M and CRI Number for each consignment on the ship’s/aircraft’s manifest and on the bill lading or airway bill for all import shipment to Nigeria before such manifest are submitted to the Nigeria Customs Service Department.