Introduction
A customs declaration is a formal statement made by an importer or exporter to the Nigeria Customs Service (NCS) regarding the nature, quantity, and value of goods being imported or exported. It is a critical part of the customs clearance process, ensuring compliance with Nigerian trade laws, proper assessment of duties and taxes, and preventing smuggling or illegal trade activities.
The declaration process involves submitting required documentation, paying applicable duties, and obtaining customs clearance before goods are released.
Types of Declarations in Nigeria Customs
The Nigeria Customs Service requires different types of declarations based on the nature of the goods and the trade transaction. These include:
1. Import Declaration
This is submitted by importers or their authorized agents before goods arrive in Nigeria. It includes:
- Form M – The import approval document issued by the Central Bank of Nigeria (CBN).
- Pre-Arrival Assessment Report (PAAR) – Issued by NCS to determine correct classification and duty payable.
- Bill of Lading or Airway Bill – Proof of shipment details.
- Packing List – Breakdown of imported goods.
2. Export Declaration
For goods being sent out of Nigeria, exporters must declare:
- Nigeria Export Proceeds (NXP) Form – Ensures repatriation of export proceeds.
- Commercial Invoice – Provides value details.
- Bill of Lading or Airway Bill – Shipment details.
- Certificate of Origin – Confirms the origin of the goods.
3. Transit Declaration
Used when goods are moving through Nigeria to another destination. These goods are usually not subject to import duties but must be declared to ensure proper tracking and security.
4. Temporary Importation Declaration
For goods temporarily imported for specific use (e.g., construction equipment, exhibition materials). A bond is usually required to ensure re-exportation.
The Customs Declaration Process
Step 1: Submission of Import or Export Documentation
- Importers/exporters or their agents submit the required documents via the Nigeria Customs Integrated System (NICIS II).
- For imports, the Pre-Arrival Assessment Report (PAAR) is obtained before goods arrive.
Step 2: Customs Assessment and Verification
- Customs officers review submitted documents to verify compliance with import/export laws.
- If necessary, physical inspection of goods is conducted at the port.
- Customs assigns a risk level (Green, Yellow, or Red channel):
- Green Channel: Automatic clearance (low-risk goods).
- Yellow Channel: Document verification required.
- Red Channel: Physical examination of goods.
Step 3: Payment of Duties and Taxes
- Importers must pay Customs Duty, Value Added Tax (VAT), and other levies before clearance.
- Payment is made through authorized banks or the Nigeria Customs Portal.
Step 4: Customs Release and Clearance
- After payment and verification, Customs releases the goods for entry into Nigeria.
- Importers/exporters can now take delivery of their shipments.
Importance of Customs Declaration
- Ensures Legal Compliance – Helps the government regulate imports and exports.
- Determines Correct Duty and Tax Payments – Prevents under-declaration or evasion.
- Aids Trade Facilitation – Speeds up cargo clearance when done correctly.
- Prevents Smuggling and Illegal Trade – Ensures goods are legally documented.
- Supports National Revenue Generation – Customs duties are a major source of government revenue.
Challenges in the Customs Declaration Process
- Document Fraud – Some importers falsify invoices to evade duties.
- Corruption and Bureaucracy – Manual processes and delays can hinder clearance.
- System Downtime – Digital customs platforms sometimes experience issues.
- Inconsistent Valuation – Discrepancies in customs valuation of goods.
Conclusion
Customs declaration is a crucial aspect of Nigeria’s trade system. A transparent and efficient declaration process helps facilitate trade, ensure revenue collection, and maintain national security. Importers and exporters must comply with customs regulations to avoid penalties, delays, or seizure of goods.
Written by Owoyomi Oluwatosin Adedapo (OOA)