Clearing automobiles via Nigerian ports can be a time-consuming process. There are numerous issues to be aware of when clearing your vehicle from a Nigerian port, ranging from unlawful fines to lengthy processing waits. Every year, hundreds of thousands of vehicles are imported into the country; nevertheless, the billion-dollar business is not without challenges. You must be prepared to deal with system inefficiency, overbearing bureaucrats, and a variety of other issues.
Because of these variables, it is important that you understand the steps, associated expenses, and what to expect when clearing a car in Nigeria’s port.
Obtain the bill of lading
The bill of lading is a document that your overseas shipping agent will send to you. The shipping business or cargo carrier will issue the document in the form of a receipt to acknowledge that the desired vehicle is on board their ship. The bill of lading contains all of the vehicle’s details, such as the vehicle’s name, brand and model, weight, VIN, year of manufacture, and so on.
This document could be sent to you via courier services such as DHL and FedEx, or via email if you want to do “Print at Destination,” which will print a copy of the bill here in Nigeria. Remember that you will need this document to claim the vehicle.
Request an import duty valuation.
You will need to apply for an import duty valuation through reputable clearing firms. This is one of the most dangerous aspects of the clearing procedure because the clearing agency can determine whether the next steps will be easy or difficult. Choose a company that is registered and licensed to conduct client clearing services.
The clearing agency will submit an application on their firm letterhead with a copy of the bill of lading attached. This will be sent to the Nigeria Customs Service. In response to the application letter, the car’s monetary value will be determined. This is used to compute the surface duty, which is 35% for used vehicles and 70% for new vehicles. Take note that this rate does not include taxes, terminal fees, or shipping costs.
Input the value into the custom server.
The details must be entered into the custom server once the valuation is obtained from the custom command. This is known as “Direct Trader Input (DTI),” or more colloquially, “punching.”
This action can only be taken through the same registered agency that utilized the letterhead paper for the vehicle valuation. At this point, the consignee’s Tax Identification Number will be requested.
Print the DTI or Assessment Notice and the Single Goods Declaration Form once completed (SGD). The SGD describes the transaction as well as the type of vehicle and the contents of the vehicle.
Import duty must be paid.
Check the bank that was specified while punching to pay the import duty. You should bring the assessment notice with you because the bank will require it for import duty payment. The bank will give a bank receipt once the payment is made. You can also make the payment online, but you must pick up the proof of payment from the bank.
Physical inspection and customs clearance
Bring all of your documents to the customs office. The bank receipt, SGB, assessment notice, valuation copy, and bill of lading should all be included in the submission. When the paperwork are provided, they are registered, and a date for the vehicle’s physical examination is set. This allows customs to confirm that the information on the documents matches the description of the vehicle. They will confirm the vehicle’s make, year, and VIN/chassis. They will also verify and validate the amount of duty paid. They will then submit a report to the releasing office.
The shipping company’s print exit
Once released, give the SGD to the shipping business so they can print the exit copy.
Release at the shipping firm
To have the car released, you must provide all of your documentation. This comprises the original signed bill of lading, an exit copy, SGD, and a signed copy of the consignee’s identification (e.g International Passport, Drivers License, or National ID). You may be required to furnish Form C30, the unique document that allows clearing agencies to function. This should be accompanied by an authority letter from the agency whose information was utilized to apply for valuation. These documents will be scrutinized, and you will be charged for shipment and terminal fees.
Signage at the customer service desk
Another straightforward step. Register and sign in at the gate. You must give the unique release paperwork as well as the shipping company’s exit copy. They will inspect and verify that the duty was paid before stamping and signing the paperwork.
Gather TDO (Terminal Delivery Order)
To collect the TDO, you must present the shipping company’s payment receipt as well as a copy of the signed ate document.
The vehicle will be brought to the floor.
Documents can be provided so that the car is brought to the open floor and cleared to pass through the final gate.
Final customer payment
Before the car drives out of the port, a shipping business official and a customs office will complete their final checks on the floor. You may also be required to pay fees to customs officers on duty, the clearing agent’s association, and any other additional costs levied by local associations.
The procedure is time-consuming and may drastically increase the cost of purchasing an automobile. You might wish to explore buying directly from vehicle dealers rather than importing one yourself.