>>>>> Nigeria Destination Inspection Scheme Presentation to the West Africa Trade & Transport...
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Transcript of >>>>> Nigeria Destination Inspection Scheme Presentation to the West Africa Trade & Transport...
![Page 1: >>>>> Nigeria Destination Inspection Scheme Presentation to the West Africa Trade & Transport Seminar Thursday 4 th May, London Sue Keen.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55144ab3550346494e8b4e10/html5/thumbnails/1.jpg)
>>>>> www.cotecna.com
Nigeria Destination Inspection Scheme
Presentation to the West Africa Trade & Transport Seminar
Thursday 4th May, London
Sue KeenDocumentation Manager, Cotecna UK
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>>>>> www.cotecna.com
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
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>>>>> www.cotecna.com
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”
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>>>>> www.cotecna.com
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
![Page 5: >>>>> Nigeria Destination Inspection Scheme Presentation to the West Africa Trade & Transport Seminar Thursday 4 th May, London Sue Keen.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55144ab3550346494e8b4e10/html5/thumbnails/5.jpg)
>>>>> www.cotecna.com
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
![Page 6: >>>>> Nigeria Destination Inspection Scheme Presentation to the West Africa Trade & Transport Seminar Thursday 4 th May, London Sue Keen.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55144ab3550346494e8b4e10/html5/thumbnails/6.jpg)
>>>>> www.cotecna.com
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”
![Page 7: >>>>> Nigeria Destination Inspection Scheme Presentation to the West Africa Trade & Transport Seminar Thursday 4 th May, London Sue Keen.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55144ab3550346494e8b4e10/html5/thumbnails/7.jpg)
>>>>> www.cotecna.com
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
![Page 8: >>>>> Nigeria Destination Inspection Scheme Presentation to the West Africa Trade & Transport Seminar Thursday 4 th May, London Sue Keen.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55144ab3550346494e8b4e10/html5/thumbnails/8.jpg)
>>>>> www.cotecna.com
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
![Page 9: >>>>> Nigeria Destination Inspection Scheme Presentation to the West Africa Trade & Transport Seminar Thursday 4 th May, London Sue Keen.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55144ab3550346494e8b4e10/html5/thumbnails/9.jpg)
>>>>> www.cotecna.com
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
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>>>>> www.cotecna.com
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
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>>>>> www.cotecna.com
![Page 12: >>>>> Nigeria Destination Inspection Scheme Presentation to the West Africa Trade & Transport Seminar Thursday 4 th May, London Sue Keen.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55144ab3550346494e8b4e10/html5/thumbnails/12.jpg)
>>>>> www.cotecna.com
![Page 13: >>>>> Nigeria Destination Inspection Scheme Presentation to the West Africa Trade & Transport Seminar Thursday 4 th May, London Sue Keen.](https://reader036.fdocuments.us/reader036/viewer/2022062618/55144ab3550346494e8b4e10/html5/thumbnails/13.jpg)
>>>>> www.cotecna.com
Image of a scanned container
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>>>>> www.cotecna.com
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
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>>>>> www.cotecna.com
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
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>>>>> www.cotecna.com
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
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>>>>> www.cotecna.com
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
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>>>>> www.cotecna.com
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
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>>>>> www.cotecna.com
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
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>>>>> www.cotecna.com
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
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>>>>> www.cotecna.com
Reasons for form M rejection
> 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)
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>>>>> www.cotecna.com
Reasons for form M rejection
> 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)
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>>>>> www.cotecna.com
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
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>>>>> www.cotecna.com
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
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>>>>> www.cotecna.com
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
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>>>>> www.cotecna.com
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
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>>>>> www.cotecna.com
Thank you