How  to Process PAAR in Nigeria |Bowagate Global Limited

PAAR saves you from unwanted stress with Port Agencies in Nigeria Port.

With the Following shipping guidelines, you will find out the meaning of PAAR, How to Process PAAR, How long it takes in processing, and Nigeria Customs Import duty.

WHAT IS PAAR?

PAAR stands for Pre-Arrival Assessment Report. A valid PAAR report approved by Nigeria Custom Service (NCS) is required to clear goods entering Nigeria. Upon reception of final documents, the commercial bank having opened the Form M will complete on line an electronic PAAR Consignment form and will submit it to Nigeria Custom Service (NCS) via the Nigeria Single Window Trade Portal, together with scanned copies of final documents.

PAAR PROCESSING:

1. The Nigeria Custom Service (NCS) receives the E-Form M with other necessary pre-import documents from the Authorized Dealer Bank and carries out preliminary preview using the information provided.

2. The E-Form M where accepted is registered on the system by the Nigeria Custom Service (NCS)

3. Final import documents are sent by the Authorized Dealer Bank to the Nigeria Custom Service (NCS). The documents referred to are:

·         The final invoice

·         CCVO (Combined Certificate of Value and Origin).

·         Transport Document (Bill of Lading/AirwayBill/Roadway Bill)

·         Packing List

4. Nigeria Custom Service (NCS) generate the PAAR

5. The PAAR, the Final Invoice, the Bill of Lading (with other final documents) in addition to the regulatory documents, e.g. the SONCAP Certificate (where the item is SON regulated), are used in the clearance of goods at any Nigerian port.

HOW LONG WILL IT TAKE TO PROCESS PRE ARRIVAL ASSESSMENT REPORT (PAAR)?  It does not take much time to process PAAR, provided you have all the documents required.

Nigeria Custom Import duty & other taxes

​Import duty and taxes are due when importing goods into Nigeria whether by a private individual or a commercial entity.  The valuation method is CIF (Cost, Insurance and Freight), which means that the import duty and taxes payable are calculated on the complete shipping value, which includes the cost of the imported goods, the cost of freight, and the cost of insurance. In addition to duty, imports are subject to sales tax and other taxes specific to certain commodities such as excise, sugar levy, rice levy, cigarettes levy, and automotive levy.

Duty Rates

Duty rates in Nigeria vary from 0% to 35%, with the average duty rate at 16.96%.  Some products can be imported free of duty (e.g. books).  

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Sales Tax

VAT is levied on imports at a standard rate of 5% on the sum of the CIF value, duty, and excise and other taxes if applicable.

Minimum Thresholds: There is no minimum threshold in Nigeria. Therefore, imports are subject to duty and taxes regardless of their value.

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About us: Bowagate Global Limited is a professional Freight forwarder specializes in Air & Sea shipping, Customs clearing and cargo delivery from and to Nigeria for Packages, Item, Equipment, Machines, Raw materials, Dangerous goods, Personal effects, trucks and Cars. Call 08147068472,08186078330 for PAAR Processing in Nigeria.

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MODE OF SHIPPING

Most people are not always sure when asked about the shipping mode they want for their cargo. And this has caused many issues with logistics industry. That is why BOWAGATE GLOBAL LIMITED is educating us on the various mode of shipping.

The term SHIPPING can be used to refer to various modes of transporting cargo and other goods through land, sea or air. Although it is most commonly used to refer to the transportation of object and cargo by sea, it can also refer to air and land transportation of goods.                                                                                                                                                All different modes of shipping take the cargo and deliver it to its destination. A supplier or consignee may choose any mode of shipping to deliver goods and cargo depending on several factors (time, type of goods and budget). If it is within the same country, land transportation is normally used as it is typically cheaper than air shipment. Shipment from the shipper’s place directly to the destination is known as door to door shipment.

TYPES OF SHIPPING MODE

SEA (SHIP)

Shipping freight through sea is an economical way of exporting or importing goods overseas. Sea freight accommodates all types of freight but the major drawback of this mode is that it takes a longer period. The goods/cargo that gets transported by sea are usually with large volume and can be packaged into boxes, cases, pallets and barrels etc. over a long distance. Sea shipping can transport anything from clothing, technological gadgets, shoes, cars, raw materials, heavy machinery. Sea shipping has less environmental pollution and accommodates bulk capacity. Thus, in considering moving your cargo on the sea as the mode of shipping for businesses weigh your reasons.

AIR (FREIGHT)

There are special freight and cargo planes available for carrying commodities all over the world. It is used as a quick delivery mode and best considered for fragile and perishable commodities such as food, flowers and medicines. These air freight services can also deliver almost anything besides extremely big items that may not fit in the plane. Most food items and postcards/letters are transported through air freight as they are time sensitive and require quick delivery as special aircraft have been developed to support air cargo transportation. This form of shipping is most expensive mode of shipping.

LAND (ROAD)

The land or road freight is the most common route for transporting goods of small and medium-sized, when it is done within the country. Trucks are used as a mode of transportation usually full of goods and are driven by expert drivers. It can transport almost any size of goods or any items that one may buy off internet which are usually transported through land shipping, unless the origin of the product being bought is at a country which is across the ocean from the destination country. Even still, land shipment would still be used to bring the goods to the persons’ house. Land shipment is involved in both sea and air shipment to bring the goods to the destination. Using trucks to transport goods via land is the most common mean of transportation. Trucks allow bulky and big items to be transported over long distances such as construction material and even crane.

RAILWAY 

The most suitable mode to transport large and heavy goods is through railways, it is said to be a green transportation system. There is still an extra cost associated with rail system, as road vehicles will be needed to transport the goods from the station to the desired destination.  Railway routes are effective way of shipping heavy freight to neighboring countries.

Conclusion

Any of the modes of shipping is very important in today’s economy and society. They each offer benefits that the other might not offer that support different purposes and applications. Most shipping providers in today’s time also provide services such as tracking of the shipping item being delivered which allows the customer to know exactly where his or her items are. Shipping was, is and would always play a crucial role in the trading and other industries.

 You need a freight forwarder to assist you choose the right shipping mode for your cargo feel free to contact us on 08147064872 or send an email to us at info@bowagateglobal.com or visit www.bowagateglobal.com

DIFFERENCE BETWEEN AIR WAYBILL AND BILL OF LADING

DIFFERENCE BETWEEN AIR WAYBILL AND BILL OF LADING

What Is an Air Waybill (AWB)?

An air waybill (AWB) is a document that accompanies goods when shipped by an international air courier and it provides detailed information about the shipment, and also allows it to be tracked.

The AWB has multiple copies so that parties involved in the shipment can document it.

An air waybill (AWB), also known as an air consignment note, is a type of bill of lading.

What Is a Bill of Lading (B/L or BoL)

A bill of lading (BL or BoL) is a legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried.
A bill of lading also serves as a shipment receipt when the carrier delivers the goods at a predetermined destination.
This document must accompany the shipped products, no matter the form of transportation, and must be signed by an authorized representative from the carrier, shipper, and receiver.

DIFFERENCE BETWEEN AIR WAYBILL AND BILL OF LADING

AIR WAYBILL (AWB)	BILL OF LADING (B/L)
Non negotiable	Negotiable (if issued to order of….)
Air Waybill is issued after a completed shipment is received	Bill of lading is issues after consignment is shipped on board a vessel
This document is issued in at least 9 copies	This document is issued in full set (3 original/3copies)
This document is used for Air shipments	This document is used for Sea shipments
Not used with FAS, FOB, CFR and CIF incoterms	Can be used with all incoterms defined in incoterms rules 2010
AWB is subject to Warsaw convention, Hague amendment< Montreal convention.	B/L Is subject to Hague rules, The Hague-Visby rules and US COGSA (US Carriage of Goods by Sea Act 1936)

  

 

1.  Document
Air waybill, when issued is always a non-negotiable transport document.
Buyers could collect the consignment from the carrier at the airport of destination by simply proving their identities against the company information stated on the consignee part of the air waybill.

Bill of lading on the other hand, when issued in negotiable form, represents title to the goods.
For this reason at least one original copy of the bill of lading must be surrendered to the carrier's nominated agent at the port of discharge in order to collect the goods.

2.  Time of issuance
Air waybill is issued by the air cargo carrier, after the complete consignment has been received by the carrier and the aircraft departs from the airport of departure.

Bill of lading should be issued by the carrier, after the goods shipped on board a vessel and the vessel departs from the port of loading.

3.  How many originals and copy issued
It is a standard practice in international container transportation to issue bills of lading in full set, 3 originals and 3 copies.

Air waybills, on the other hand, issued by the air cargo carrier in 9 originals.
On below figure, you can find how many air waybills issued per each air shipment and how all these copies will be distributed among the various parties of that particular transaction. 

How many Air waybills issued per transaction
Number of Originals	Print color	Used by	Aim of Issuance
1st Original	Green	Issuing carrier	For documentary evidence of the contract of carriage and for accounting purpose.
2nd Original	Pink	Consignee	To be tendered to the consignee on delivery at the final destination
3rd Original	Blue	Shipper	For proof of goods received and documentary evidence
4th Original	Yellow	Transferring carrier	For receipt of delivery as evidence of the carrier’s completion of contract of carriage
5th Original	White	Airport Destination	For use at the Airport of destination
6th Original	White	3rd Carrier	For settlement among the participating carriers
7th Original	White	2nd Carrier	For settlement among the participating carriers
8th Original	White	1st Carrier	For settlement among the participating carriers
9th Original	White	Agent	For agent or carrier executing the AWB

4.  Mode of Transport.

Bill of lading should be used with port-to-port sea shipments, whereas air waybill should be used with air shipments.

5.  Applicable Incoterms:

Bill of lading is a transport document, which is issued in sea shipments. According to Incoterms 2010 rules all incoterms can be used with sea shipments. On the contrary, air waybill is a transport document, which is issued in air shipments and FAS, FOB, CFR and CIF incoterms cannot be used with air shipments according to Incoterms 2010 rules.

6.  Governing International Regulations:

Bill of lading and air waybill are issued subject to different governing international rules. 

·         Governing International Regulations of Air Waybill: Warsaw Convention, Hague amendment, Montreal Convention. 

·         Governing International Regulations of Bill of Lading: Hague Rules, The Hague-Visby Rules and US COGSA (US Carriage of Goods by Sea Act 1936).