Pre-Arrival Assessment Report (PAAR): A Comprehensive Guide

Introduction

The Pre-Arrival Assessment Report (PAAR) is an essential document used in the Nigerian import and customs process. It was introduced by the Nigeria Customs Service (NCS) to streamline and enhance trade facilitation by ensuring accurate valuation and classification of imported goods before their arrival in Nigeria. PAAR replaces the former Risk Assessment Report (RAR) and serves as a tool to improve transparency, efficiency, and compliance with customs regulations.

Objectives of PAAR

The PAAR system aims to:

1. Speed up clearance procedures – Reduce the time importers spend at ports.
2. Enhance transparency – Provide accurate valuation and classification of goods.
3. Minimize fraud and under-declaration – Prevent false declarations and revenue losses.
4. Boost trade facilitation – Align with international best practices.
5. Improve revenue collection – Ensure proper tariff and duty assessments.

PAAR Process: Step-by-Step Guide

To obtain PAAR, importers must follow these steps:

1. Submission of Import Documents

Importers or their authorized agents must provide the following documents to their Authorized Dealer Bank:

• Final Invoice – Detailed information about the imported goods.
• Bill of Lading or Airway Bill – Proof of shipment.
• Packing List – Breakdown of the shipment contents.
• Form M – An import declaration form issued by the Central Bank of Nigeria (CBN).
• Other supporting documents (e.g., SONCAP for regulated products, NAFDAC approvals for pharmaceuticals, etc.).

2. Processing by the Authorized Dealer Bank

The bank reviews the submitted documents for accuracy and compliance before forwarding them electronically to the Nigeria Customs Service (NCS).

3. PAAR Issuance by Nigeria Customs Service (NCS)

• NCS verifies the submitted documents, ensuring correct classification, valuation, and risk assessment.
• If approved, PAAR is generated and sent electronically to the importer’s bank and the Nigeria Integrated Customs Information System (NICIS).

4. Goods Arrival and Customs Clearance

Upon arrival of goods at the port:

• The importer or agent presents the PAAR along with other required documents to Customs.
• Customs verifies PAAR and conducts a physical or documentary examination if necessary.
• Payment of applicable duties and taxes is made before release of goods.

Benefits of PAAR

1. Faster Cargo Clearance – Reduces bottlenecks at ports.
2. Enhanced Revenue Collection – Helps Customs accurately assess duties and prevent fraud.
3. Improved Trade Compliance – Ensures adherence to international standards.
4. Paperless Transactions – Digital submission minimizes paperwork delays.
5. Reduced Costs – Eliminates delays that lead to demurrage and additional charges.

Challenges of PAAR

Despite its benefits, some challenges exist:

• System Downtime – Occasional technical glitches can delay PAAR issuance.
• Incorrect Documentation – Incomplete or inaccurate submissions lead to rejections.
• Under-invoicing and Misclassification – Some importers attempt to manipulate declarations, requiring stricter enforcement.
• Bureaucratic Delays – Although improved, delays can still occur due to human factors.

Conclusion

PAAR has significantly improved the efficiency of Nigeria’s import system, ensuring accurate customs valuation and duty collection. However, continuous improvements in infrastructure, automation, and compliance monitoring are necessary to fully optimize its benefits.

Written by Owoyomi Oluwatosin Adedapo (OOA)