FREQUENTLY ASKED QUESTIONS (FAQ)

How is Pre-shipment Inspection organized?
What happens if I ship my goods without inspection?
Are there any goods exempted from Pre-shipment Inspection?
As the exporter what must I do or have to pay
Can I pack my goods prior to inspection?
How do I arrange the inspection?
What is Custom Classification?
What do I have to pay?
What is Custom Valuation/Price Verification?
As an exporter what type of certificate will I receive from SCI?
What type of Certificate will SCI issue to the Importer?
To issue the CRI/Certificate Invoice, what documents is one required to have?

EXAMINATION OF GOODS
PRESHIPMENT INSPECTION PROGRAMME FOR NIGERIA

APPENDIXES

C. LIST OF PIONEER INDUSTRIES/PRODUCTS
D. SOLID MINERALS IN NIGERIA

HOW IS PRESHIPMENT INSPECTION ORGANIZED?

Upon receipt of the Form M and supporting documents (Including the letter of credit, if applicable) from the Importer, the Authorized Dealer Bank will process and deliver it to the SCI office in Lagos, who will analyze them and load them into the system. For your information, the Form M is available from regional SCI offices overseas as well as Nigerian embassies, Authorized Dealer Banks etc.

Should there be no reason to reject the documentation, SCI will transmit the information electronically to the Issuing Office responsible for arranging inspections in the country of supply. Hard copies of the electronic information will also be distributed to the relevant offices.

After receiving the information, the SCI will fax the exporter with a Request for Information (RFI) notification. This will request information required to perform the inspection.

The Exporter must respond promptly to our RFI letter, not forgetting that 3 full working days of advance warning are necessary in relation to the required date for inspection. Simultaneously, at the Issuing Office, SCI experts will perform preliminary analysis of the prices and customs tariffs codes.

After arrangements have been made, the SCI inspectors will perform the physical inspection at the requested site and mutually arranged time. We recommend that the Exporter’s final invoice be sent to the 10 on the same day that the exporter responds to the RFI.

WHAT HAPPENS IF I SHIP MY GOODS WITHOUT INSPECTION?

Where a customs declaration is made without a valid Claim report of Inspection (CRI), the Importer’s goods will be required to undergo destination inspection which will be carried out by SCI, under the supervision of Nigerian Customs Officers. Shipments subject to destination inspection may also suffer a delay in clearance and a fine amounting to 50% of the assessed value of the consignment.

ARE THERE ANY GOODS EXEMPTED FROM PSI?

Yes. Please refer to the list shown in appendix B, where you will also find the list of prohibitions.

AS THE EXPORTER WHAT DO I HAVE TO DO?

Upon receipt of the Form M, proforma invoice and Letter of Credit from the Importer, and after having processed the information in these documents, the SCI Liaison Office (LO) in Lagos will transfer the data to the SCI Issuing Office (IO) which will handle your file. The IO will contact you in writing, usually by fax. The letter is referred to as the RFI (Request for Information) and will ask you for the information we require in order to carry out our physical inspection of your goods and to perform customs classification and price verification. The RFI letter will detail pertinent references including a unique RFI locator number, for example SCI 123456, Please quote the unique RFI number in all communications with SCI so the file record can be immediately located and the swiftest possible action be taken.

If any company other than the Exporter named on the Form "M" is to request inspection or act in any way on your behalf, their authority to do so must be confirmed by you as the named Exporter.

WHAT DO I HAVE TO PAY?

The fee is paid by the Federal Republic of the Government of Nigeria. However, where a discrepancy is detected on the first inspection and an additional inspection visit is required SCI reserve the right to charge the Exporter for the second inspection.

HOW DO I ARRANGE THE INSPECTION?

As soon as you have received the RFI letter from SCI (and if your goods are ready) you should submit a written request for inspection to SCI. We ask for a minimum advance notice of 3 full working days for the requested inspection date, although we will always try to accommodate you when an urgent inspection is required. Your written inspection request should detail the following:

The relevant SCI reference number
Desired date and location of the inspection
The name of the person to be contacted at the inspection site with their telephone and fax numbers.
Full details of the goods to be inspected.
At the time of making your inspection request, if possible, please provide a copy of your final invoice.

SHOULD I PACK MY GOODS FOR EXPORT PRIOR TO INSPECTION?

Goods should be presented along with the export packaging which will be used. Where packaging must be opened to perform physical inspection, the packaging will be observed at the time of inspection.

Where goods are to be exported by full container load, SCI are required to witness loading and seal the container with an SCI seal. For this to be done, Exporters will be required to present goods for physical inspection at a time and place such that, upon the same visit, the SCI Inspector may properly inspect the goods, witness container stuffing and perform sealing.

WHAT IS CUSTOM CLASSIFICATION?

All goods can be classified under a customs tariff code which determines the rate of duty payable for the goods upon importation. SCI is required to determine the correct tariff code in accordance with the requirements other Nigerian tariff book and all other relevant regulations published by the Ministry of Finance in Nigeria. SCI will determine the correct tariff code by review of documentation taken in consultation with the results from the physical inspection of the goods. The Nigerian Customs tariff is based on the Harmonized System (HS).

WHAT IS CUSTOMS VALUATION/PRICE VERIFICATION?

The customs valuation/price verification undertaken by SCI seeks to determine whether the price being charged by the seller, as declared to us in the final invoice, corresponds within reasonable limits with export prices generally prevailing in the country of supply.

Where weight and insurance charges are not presented to the 10 by the exporter, SCI will assess values for these for customs valuation purposes only.

The reference date for customs valuation/price verification will be the date of the order or proforma invoice.

Where our customs valuation indicates that your prices are significantly below the reasonable limit for the export prices prevailing in the country of supply, you will be contacted and given an opportunity to comment. Our assessment of the fair market value will only be amended if you can provide us with information which will cause us to change our opinion. In the case of overpricing, you may be asked to reduce your final invoice in line with the fair market value.

Price data and all related information supplied to SCI is held in the strictest confidence.

AS AN EXPORTER, WHAT TYPE OF CERTIFICATE WILL I RECEIVE FROM SCI?

The Exporter will receive a certified invoice with a hologram label or sticker affixed to it. This will be returned to the Exporter by the normal postal service, unless a specific request is received for it to be sent by courier service. If the Exporter does request for it to be sent by courier the cost will be for the Exporters account.

WHAT TYPE OF CERTIFICATE WILL SCI ISSUE TO THE IMPORTER?

SCI will issue the Importer (via the dealer bank) with a Clean Report of Inspection (CRI). The CRI will include SCI’s assessment of the customs value and tariff classification.

The CRI will be issued to the Importer, provided the following conditions have been met:

An accepted Inspection Report has been issued by SCI to confirm that the quality and quantity of the goods meet the specification submitted to SCI.
The Exporter has submitted correct final documentation to SCI.
TO ISSUE THE CRI/CERTIFIED INVOICE, WHAT DOCUMENTS DO YOU NEED FROM ME?

We need a clean invoice as early as possible in the PSI process for CRI issuance, as it will enable early customs clearance of the Importer’s cargo. The clean final invoice must detail the following information:

EXAMINATION OF GOODS

The importer or his authorized agent can commence the duty assessment process on or before the arrival of the goods using among others, the Final Invoice/CCVO and Single Goods Declaration (SGD) Form.

The examination of goods at the ports shall be done by the Nigerian Customs Service jointly with the relevant Destination Inspection Agent in the presence of importer or his agent. Where the attention of a specialized agent such as National Food and Drug Administration and Control (NAFDAC) is required, the agency shall be available at the time of examination of goods.

False declaration of goods is forbidden and could lead to seizure and prosecution.

PRESHIPMENT INSPECTION PROGRAMME FOR NIGERIA

In September 1999, the Federal Republic of Nigeria re-introduced the pre-shipment programme for inspection of imports.

Swede Control/Intertek (SCI) is one of four Pre-shipment inspection companies chosen to participate in the program. The territories appointed to SCI are shown in Appendix A.

These guidelines summarize the changes and their impact upon Exporters.

Should you have any queries, please kindly contact your nearest SCI office where trained SCI personnel will be happy to assist, or the Nigeria High Commission, Ottawa.

You will find our offices, addresses, telephone and fax numbers, throughout the world on Appendix C.

All forms ‘M’ raised on or after September 1st 1999 are subject to pre-shipment inspection.

APPENDIX C

LIST OF PIONEER INDUSTRIES/PRODUCTS

S/NO INDUSTRIES PRODUCTS
1. Cultivation, processing and preservation of food crops and fruits, refined sugar, tomato puree/juice, etc. Preserved canned food stuff and fruits, tea, coffee
2. Integrated dairy production Butter, cheese, fluid milk and powder, ice cream (by-products, livestock, minor edible products)
3. a) Deep sea trawling and processing
b) Coastal fishing and shrimping Preserved sea foods, fish and shrimps, fish meal
4. Mining lead, zinc, and iron ores by underground mining methods Lead, zinc and iron ore
5. The manufacture of iron and steel from iron ore Iron and steel products
6. The smelting and refining of non-ferrous base metal and the manufacture of their alloys Refined non-ferrous base metals and their alloys
7. Mining and processing of barytes, bentonites and associated minerals Barytes, bentonites and associated minerals
8. Manufacture of oil well drilling materials containing a predominant proportion of Nigerian raw materials Barytes, bentonites and associated minerals
9. The manufacture of cement Cement, clinker
10. Manufacture of glass and glassware Sheet glass, pharmaceuticals and laboratory glassware's
11. Manufacture of lime from local limestone Lime
12. Quarrying and processing of marbles Marbles and processed marbles
13. Manufacture of ceramic products Refractory and heat insulating constructional Products, laboratory ware.
14. Manufacture of Basic and Intermediate industrial chemicals from predominantly Nigerian Raw Materials i) Basic and Intermediate organic chemical;
ii) Basic and Intermediate in- organic chemical;
iii) Fertilizers;
iv) Petro-chemicals;
v) Caustic soda and chlorine;
vi) Pesticide and insecticide
15. Formulation and manufacture of pharmaceuticals Pharmaceuticals, health, vitamins
16. Manufacture of yeast, alcohol and related products Yeast, industrial alcohol and related products
17. Manufacture of paper pulp Paper pulp
18. Manufacture of yarn and man-made fibres Yarn and synthetic fibres
19. Manufacture of machinery involving the local manufacture of substantial proportion of components thereof Office and industrial machinery, equipment and Apparatus (whether or not electrical)
20. Manufacture of products made wholly or mainly of metal Pipes and tubes structure metal products
21. Manufacture of nets from local raw materials Fishing nets, mosquito nets and related products
22. Manufacture of gas cylinders Gas Cylinders
23. The processing of local Wheat Flour Materials Flour and Offal
24. Rubber Plantation and Processing Rubber
25. Rubber plantation and processing Gum Arabic
26. Manufacture of fertilizers Superphosphate and nitrogenous fertilizers, Ammonia, Urea
27. Vehicle Manufacture Motor Vehicles and Motorcycles, Tri-cycles and Automotive components
28. Oil Palm plantation and processing Palm Oil, Palm Kernel and Offals
29. Manufacture of automotive and other components Automotive and other components
30. Book Printing Books
31. Large Scale Mechanised Farming Wheat, Maize, Rice and Sorghum
32. Cattle ranching and piggery of not less than 500 herds Cattle and pigs of not less than 500 herds
33. Manufacture of Gypsum Gypsum
34. Re-fining or re-cycling of waste oil Low power oil
35. Manufacture of electrical appliances/ equipment/components and parts Generators, transformers, meters, controls, pressing Irons, switch gears, test equipment, ballasts/starters/lighters, discreet components, resistors/capacitors/colls/Semi conductors/conductors.
36. Ship building, repairs and maintenance Ships, boats and barges
37. Manufacture of computer and computer chips Computer hard and software and chips
38. Manufacture of cameras, photographic equipment and other materials Cameras, photographic equipment or any components thereof
39. Diving and underwater engineers Underwater engineering services
40. Local fabrication of machinery equipment Machinery
41. Manufacture of tools Machines and hand tools
42. Installation of facilities for aircraft manufacture and maintenance and the maintenance and manufacture of aircraft Aircraft maintenance and manufacture
43. Installation of scientific instruments and communication equipment Scientific instruments, radio, audio playback/recorders, loudspeaker units, amplifying systems, microphones, videoplayback/recorders, PBX,telephone, hand sets, teleprinters, transceivers, autophones/aerials
44. Manufacture of gas and gas distribution Gas and gas distribution
45. Manufacture of solar energy powered equipment and gadgets Solar panels, refrigerators, water pumps,Calculators, etc
46. Large-scale inland fishing farms Fish and shrimps
47. Bitumen mining and processing Bitumen
48. Salt production Salt
49. Manufacture of Fire fighting equipment and detection systems Fire fighting equipment and detection systems
50. Manufacture of cables Electrical, telephone and other cables
51. Manufacture of medical equipment x-ray, oxygen equipment etc
52. Mineral oil prospecting and production Petroleum
53. Manufacture of lubricants Grease, hydraulic/engine oil, gear oil, etc
54. Manufacture of flat sheets Flat sheets
55. Manufacture of ovens, cookers, cold rooms, refrigerators, fridges, freezers, air conditioners Ovens, cookers, cold rooms, refrigerators, fridges,freezers, air conditioners
56. Manufacture of agricultural machinery and equipment Ploughs, harvesters, threshers, planters, etc
57. Manufacture of materials handling equipment Cranes, forklifts, etc
58. Establishment of foundries Moulds, casting etc
59. Manufacture of alum Alum
60. Manufacture of enzymes Enzymes
61. Manufacture of concentrates Food/fruit concentrates
62. Manufacture of welding electrodes Welding electrodes
63. Manufacture of nails Nails, related items
64. Manufacture of iron rods Rods from billets
65. Manufacture of hops Brewing hops

APPENDIX D

SOLID MINERALS IN NIGERIA

S/NO MINERAL LOCATION/KNOWN DEPOSIT RESERVES (MT)
1. Kaolin All states 30 billion
2. Barytes Nassarawa, Benue, Cross River and Taraba 500, 000
3. Bentonite Imo, Yobe/Borno -
4. Gold Osun, Edo, Niger, Kebbi, Kaduna and Sokoto States 2 million
5. Limestone Enugu, Cross River, Ogun, Benue, Bauchi/Gombe, Sokoto, Abia, Edo and Ebonyi States 800 million
6. Marble Kogi, Katsina and Plateau States -
7. Dolomite FCT, Kogi and Edo States 1.5 million
8. Talc Osun, Kogi and Niger States 40 million
9. Gemstones In large commercial quantities in some States- Kaduna,Benue, Kano, Plateau, Oyo and Osun -
10. Columbite Jos Area 500,000
11. Tantalite Jos Area 20,000
12. Phosphate Sokoto, Ogun, Anambra, Imo and Edo States N/A
13. Diatomite Yobe State 10 million
14. Gypsum Yobe, Sokoto, Adamawa, Anambra, Ogun, Imo, Edo, Benue and Bauchi States -
15. Zircon Odegi (Trace) -
16. Magnesite Adamawa State -
17. Coal Enugu, Benue, Kogi, Nassarawa, Ebonyi, Cross River, Imo, Anambra, Delta, Edo etc 2.75 billion
18. Bitumen Edo, Ondo and Ogun 42 million barrels