Air Freight, Sea Freight Shipping to Nigeria, Customs Clearing: September 2019

Thursday, 26 September 2019

Importing From China to Nigeria

Now, you have developed an interest in importing your products, and China comes to mind beside Dubai or the US.

It is no more news that China is the center of many large scale manufacturers. A country now regarded as home to all forms of eCommerce activities. A place from where buying items at cheap prices and reselling at self-determined markup prices for maximum profit, prevail.

Introduction

Besides shipping from other countries in the global network, Bowagate Global also ship from China. With over 25 years of experience in handling importation to Nigeria from over 40 countries in the world, there is a lot to learn from our wealth of experience.

In an earlier post, we wrote extensively, about Sea Freight Shipping and Air Freight Consolidation, which I think you might find interesting.

In this post, you’ll be exposed to all you need to know about importing from China to Nigeria which includes The Basics of Importing from China to Nigeria, the Limits to the Opportunities there are in Importing from China, Rules and Regulations involved, Cost of Shipping from China to Nigeria, and more interesting facts.

Apart from shipping from China to Nigeria by Air, we also render services in Sea Freight Shipping to Nigeria, an experience we’ve had for 25 years. Bowa Gate Global offers both Air and Sea Freight Shipping from China. So whichever one suits your financial capability, time determination, as well as convenience, we are ready to work with you. Simply give us a call and we’d answer all questions as related to China Freight Shiping.

Before importing from China to Nigeria, know these.

Importing process from China is not an easy venture. It is complex and thus, requires some important understanding of stages and processes. As a newbie, you should expect that the process might not be a rosy one, however, with this guide, you are sure to hit the road running to expertise level.

So before you import from China to Nigeria, you must understand the basics.

The Basics of Importing from China to Nigeria

One thing to know is that China products are widely known to be affordable. Importing these products from China has over the years, become a preferred means of making huge profits by Short and Medium Enterprises (SMEs).

Take a look around you!

China markets are the global manufacturing and trading hub worldwide. According to research, it is the world second-largest exporter, trading, manufacturing and major purchasing powerhouse globally, today. It is the major powerhouse for purchasing products such as clothing, shoes, home furnishings, phones and gadgets, accessories, electronics so many more.

All these things are produced and assembled in China.

Is there a limit to which Importation from China can go?

Basically, you can import to any part of the globe from China. All the countries may not be listed here. But China ships to almost every country and area in the world. Despite lots of thousands of miles across the globe, countries like the USA, Canada, the UK, Japan, Australia, Russia, Mexico, Africa, etc have, and are still engaging in importation and trading from China.

Africa seems to be one of the largest continents but has many landlocked nations in it. Therefore, ocean freight doesn’t seem to be the best mode of shipping goods to Africa from China. It takes a much longer period on the sea, to arrive on the shores. Despite that, Ocean freight is the most popular means of shipping from China to Africa, Nigeria inclusive.

The reason why Sea Freight is commonly used is that it offers low shipping cost and carries a larger volume. Another reason is that it offers more alternative modes of shipping such as Full Container Loads (FCL), Less than Container Loads (LCL), Groupage, RORO, and so on.

Despite the advantages of shipping by sea being the first choice for small and medium enterprises, shipping from China via Air Freight is a no brainer.

Importing from China to Nigeria, like any other countries in Africa is much easier done by air freight. However, due to

Nonetheless, countries such as South Africa, Kenya, Nigeria, Angola, Morocco, and Egypt have recorded significant figures regarding imports from China, both by air and sea.

Africa, Nigeria, in particular, has found treasure in investing in the China market without limitation. Africa is taking advantage of importation or trading with China and shipping via sea to Nigeria in is possible with the right shipping guides.

Do you want to ship from China to Nigeria? Request a Quote, you’d be contacted by one of our professionals for premium advice.

Import Rules and Regulations in China

There are several guiding principles around the importation of products from China to any parts of the world. So, you want to import goods from China to Nigeria? Find the below information about how the rules and regulations are applied, as they’d likely save you heartache.

They include Import License, Special Trading Zones, Importing Documents and Paperwork, Import Duties and Taxes, and Prohibited, Restrictions, and Quotas

1. Obtain Import Licenses

According to Study.com, an import-export license is mandated by various federal agencies, and it identifies what products are shipped or delivered between international locations. A license may or may not be required for importers or exporters, depending on the product.

In order to import from China, some paperwork, licenses or other documentation are required. The rules come with different processes, depending on what you are importing. The various import licenses that are of key necessity are Product-Specific, Business, and Export Licenses.

i. Product-Specific License

If you are importing food, drugs or medical devices, you may need to get a product-specific license. Otherwise, it will be pretty hard for you to import these kinds of goods from China.

ii. Business License

In order to import from China without difficulties, you’d be required to apply and obtain a business license. This indicates the government’s authorization that you could set up an import company in China.

iii. Export License

In addition to setting Business License, if you are importing from China, you will more likely be needing an export license. According to Wikipedia, “Import licenses are considered to be non-tariff barriers to trade when used as a way to discriminate against another country’s goods in order to protect a domestic industry from foreign competition. Each license specifies the volume of imports allowed, and the total volume allowed should not exceed the quota.”

Procedure for Applying an Import from China

The procedure for applying an import from china license is as follows;
File your foreign trade operator filing at the Ministry of Commerce People’s Republic of China
Register with the Chinese Customs Authority
Register with the Chinese Inspection and Quarantine Bureau
Register with the e-port
Make a foreign exchange registration with the local state administration of foreign exchange

2. Special Trading Zones

Read more about Special Trading Zones, otherwise regarded as Free Trade Zones in China Here

3. Importing Documents and Paperwork

When you’re importing goods from China, it is entirely apparent that you must obtain all the relevant documentation and paperwork. At various stages of the importation, you’ll realize that you’ll need to submit such documents, either copy of original documents.

Documentation that you may need when importing from China include;

Bill of lading, Airway bill, Commercial invoice, Packing list, Proforma invoice, Country of origin certificate, Import/export declaration

Tuesday, 24 September 2019

1 Why you should consider Air Freight Consolidation

Have you ever been stuck at a stop spot because your freight volume couldn’t fit in with the cost of full air cargo load? Are you a company who ships products? Do you spend too much to move your inventory? Or maybe you are searching for cheaper air freight services.

Maybe you already knew, or maybe not!

BowaGate Global can guide you through the entire process of a Cheaper Air Freight Consolidation, and at best, most reliable.

Based on that, having gathered over two decades of experience and expertise, we are in a good position to educate our readers on what Air Freight Consolidation is about.

In our earlier post on Groupage (LCL) freight shipping, it was clear that grouping shipment is a cheaper means of freight shipment. You should take a look at the post here.

While Groupage (LCL) is a ‘grouping service’ that pertains to Sea Freight Shipping, Freight Consolidation is a term particularly used for Air freight. And while Container is used for Sea Shipping, Cargo Console is a term which applies to Air Freight.

What Is Air Freight Consolidation?

Air Freight consolidation is an air freight shipping in which a freight forwarder combines several small individual shipments at the place of origin, bundles them into a full busload, a truckload, cargo load, heading the same location and ships them together.

This arrangement allows the goods to be shipped as containerized-cargo that offers greater security at lower shipping rates.

The shipments are registered in a manifest which carries details of everyone who has a consignment in the cargo. with individual consignees details in the collection.

Why Air Freight Shipping is Considered Best Alternative to Others

At the destination airport, the shipment is ‘degrouped’, that is, separated back into the original individual consignments for delivery to their consignees. This step is also called ‘deconsolidation’, also regarded as Group Shipment.

Another name for Freight Consolidation is Cargo Consolidation or Consolidation shipping. No matter what is called, it still serves the same concept.

Air Freight Consolidation service can be beneficial both to the customer and to the freight forwarder, in many ways.

4 Reasons Why You Should Consider Air Freight Consolidation

It lowers freight costs: Combining your freight in a single cargo a cost-effective way of shipping by air. In this, you no longer have to pay for empty cargo space in the aircraft because you’re not shipping you don’t have enough shipment to fill the entire mass. Partnering with other companies offers a cheap way of shipping by air. In this case, you only pay for the space your cargo takes up and nothing more. Air Freight shipping is quite expensive than other modes of shipping, so Air freight consolidation makes it much of a relief. You can split your shipments and fill them up in various cargoes.
Safety Advantage: Air Freight shipping comes with huge advantage, one of which is Safety and transparency. Since your products are coming in Air Freight, however, consolidated, it accords you the same advantages as a full cargo load. Odd things happen during shipping. But freight consolidation actually reduces the risks. Another factor to note is that items in consolidation don’t have to be moved with too many transfers, as it comes through the Aircraft
Improve Customer Satisfaction & Improve Customer Relationship: Apart from especially having reliable Shippers and Clearing Agents available, it ordinarily improves satisfaction, reliefs, and balance customer relationship.
Customs Clearance Cost and Process Time Reduced: Importers in Nigeria always encounter some challenges when it comes to Customs Clearance involvement as well cost of clearing. The requirements by Nigeria customs service and other government agencies could be really problematic.

So, with Air Freight Consolidation, there is an obvious reduction in Customs Clearance Costs due to cut-cost on the customs benchmark charges for each shipment. The more the weight of the goods in tons the less the customs agencies pay for clearing the goods at the airport.

Let’s do some calculations.

Let us assume that an importer buys 50kg of goods from China. the rate he or she supposed to pay for the goods will depend on the Harmonized System (HS) code import duty of the goods. And the rate will also depend on the invoice value of the goods.

Let’s say he buys it with the value of 50, 000 USD and the import duty is 20% HS code

Import duty is 10,000 USD @ N365 NGN = 3, 650, 000 NGN

Port Surcharge 7% of import duty = 255,500 NGN

CISS 1% of CIF = 500 USD @ N365 = 182,500 NGN

ETLS 0.5% of CIF = 500 USD @ N365 = 91,250 NGN

VAT 5% = 2,500 USD @ 365 = 912,500 NGN

Total = N5,091,750

NB: Calculated at exchange rate of N365 per $1 (9th Sept. 2019)

Other charges at the port are warehouse charges, airline advice charges, agencies charges, FAAN charges.

Wednesday, 18 September 2019

How to Process and Obtain Form M in Nigeria

In this post, we put together a simple guide on how to process a Form M, why it is important for importation, how it is processed and obtained in Nigeria.

Though the process of obtaining and processing the Form can be quite easy, it requires adequate steps to get through. It also accessing the right channels to avoid falling into the wrong processing.

As a Customs Licensed Clearing Agent, we can help you with all import documentation processes. Reach us for all your Freight Forwarding/Logistics related challenges. We’d make it easy with affordable packages.

Reach BowaGate Global Here.

Table of Contents

What Is Form M (E-Form M)?

Form M is a mandatory statutory document to be completed by all importers for the importation of goods into Nigeria. This simply implies that without the form, goods can not be approved for importation into Nigeria.

The documentation process is put in place by the Federal Government of Nigeria through the Central Bank of Nigeria (CBN) and the Nigeria Customs Service (NCS).

For the record, e-Form M means Electronics Form M (an Online Form)

A Form M is usually issued for a particular importation contract. It allows the importer to access part shipments through the use of Bulk Form M for a large project. And throughout the validity of the form, it allows continuous part shipment.

Why Is Form M Important For Importation

The importance of the mandatory document, as early denoted, has so much to do with proper monitoring of incoming goods. It also enables the collection of import duties where applicable.

Form M is useful for the purpose of import clearance. And strictly, without it, an importer would definitely not be able to import their goods into Nigeria.

Important Facts About Form M

1. It is a Mandatory Document. It is a mandatory step in the importation process.

2. The form is the first official document needed to initiate shipment into Nigeria

3. It is an application to import. Without it, no importation.

4. The Form is an important license that must be processed with or without payment of processing fee.

5. It must be processed before the goods to be imported is shipped into Nigeria.

6. Importers are expected to complete and register the Form with Authorized Dealers at the time of placing orders whether the transaction is valid for foreign exchange or not.

7. It is an Electronics Form (e-Form) process Form M is an e-form. This replaces the hard copy for procedures in order to reduce corruption while limiting human interference.

8. With the Form, goods imported into the country are easily monitored.

9. Initiation and Approval of Form M is now on Trade Portal

10. It also exits to enable or facilitate collection of import duties where applicable.

11. The form is only transmitted to the Nigerian Customs Service (NCS) for approval after it has gained endorsement by the authority.

12. The validity or lifespan of an approved Form M is 180 days for general merchandise and 365 days for plant and machinery. It can be extended.

13. An extension of another 180 days for general merchandise and 365 days for plant and machinery can be granted by an Authorized Dealer Bank.

How To Obtain Form M

In obtaining form M, the following procedures are to be followed:

Submit your Form application online to an Authorized Dealer Bank along with the following attached documents:

Pro forma invoice
Locally sourced Insurance Certificate
Regulatory Certificates/Permits. Depending on your product this may be a Product Certificate* (for all products regulated by Standards Organization of Nigeria – SON) or a National Agency for Food and Drug Administration and Control (NAFDAC) Certificate (for food and drugs).

The completed form is submitted to the Nigeria Customs Service (NCS) through the designated bank of the importer, for approval.
Upon receipt of the form with the necessary attached pre-import documents as detailed above, the NCS will review the application and either accept or reject it within one working day.

If accepted, the NCS approves the request of the importer to import the goods
If rejected the NCS communicates the reason(s) for rejection and the documents will be automatically returned for rectification.

When the Form has been accepted by the NCS, the importer will inform his exporter to begin shipment preparation for products regulated by SON. This includes inspection, testing, and certification in order to get a SONCAP Certificate (SC) required for the Customs clearance of goods at any Nigerian Port.

For more information about this process kindly follow us on our social media platforms

Facebook: bowagateglobal
Instagram: bowagateglobal
LinkedIn: bowagateglobal
Email: info@bowagateglobal.com

Sea Shipping to Nigeria, a cheaper alternative shipping Method.

If you’re thinking of starting to import goods to Nigeria, you’ll need to compare your options for both sea freight and other methods of shipping. Most importantly, you may want to take advantage of sea shipping to Nigeria in order to save some money while shipping large goods to Nigeria.

Table of Contents

Shipping Goods To Nigeria By Sea

Deciding on the best mode of transport for import of your goods can be very tricky. Cost, speed, reliability, as well as transparency, need to be considered so as to maximise profit for your business.

Having said so, it would not be out of place to conclude that shipping goods to Nigeria by sea is a great choice for large quantities of consumer goods. This method of shipping is often used when importing from manufacturers based in the far Eastern parts of the world.

Within the last few decades, shipping goods to Nigeria by sea has been the most popular method as well as the most cost-effective means of shipping. It is a great choice to consider also where time is not a necessary factor.

Business decisions are as crucial as their entire existence. Hence the need to understand how using Sea Freight for shipments to Nigeria can affect your business.

What Is Sea Freight Or Sea Shipping

Sea Freight is the transportation of goods by sea. Goods are packed in large cargo containers, loaded to a vessel and sailed to the destination country by sea.

NB: Freight, Cargo and Shipping are words that may be used interchangeably as they have similar meanings.

Sea freight is a common method of transporting goods across the world using large cargo ships. It is by far the most widely recognized method of transport that merchants and exporters use.

A typical cargo vessel can carry 18,000 containers (TEU), exactly what fits a 20ft container.

Why Sea Freight Is The Cheapest Method Of Transportation

Let’s break this down in bits, especially if all of this is new to you.

The total volume in a 20ft container is 33cubic metre (cbm). This can accommodate a sizeable amount of products, for example, as much as about 100 washing machine. Notwithstanding, there may be space for more items.

Your supplier should be willing to provide what your products dimension is in order to determine what size of container could fit. Otherwise, we can handle the collection of all necessary details if you’d like our professional recommendations.

Inside the cargo, products are pressed in transportation holders, the cargo forwarder books the space or compartment with the ship operator, freight is trucked to the delivery vessel at the port of root and sent abroad to the shipper at the destination port.

Sea Shipping requires the services of professional individuals that are guided by recognized body and standard all over the world. The service is used for international trading and will always take a longer time than traditional air freight and road freight services.

There are a number of different forms of sea freight, including:

1. Full container load (FCL) in which a single shipment is loaded into a container which might be from 20 – 45 feet long.

2. Less than container load (LCL) where several shipments share a container and are split at their destination

3. Roll-on roll-off (RORO) in which wheeled products like cars, lorries and other vehicles drive onto the ship with their cargo, are safely secured for the journey, and then simply drive off at their destinations.

4. Dry bulk shipping, used for commodities such as metals or aggregates, which can be dropped or poured into the hold of a ship rather than being loaded on in containers.

Read

Also: Groupage Freight Shipping

The two major types of Sea Freight are, however, Full Container Load (FCL) and Less than Container Load.

What Are The Advantages Of Sea Freight?

As earlier defined, sea freight is a popular method of importing and exporting goods and commodities, particularly consumer goods moving long distances. It has a number of advantages:

Sea freight is a cost-effective method of shipping for heavy or large loads. It is cheaper than air freight.
Duty charge and VAT can also be less expensive when using sea freight compared to air freight because it’s calculated as a percentage cost of the cost of goods plus the export cost
Several different shipping options, (e.g. FCL, LCL, RORO & Bulkbreaking), including taking an entire container, or sharing one between several different loads
Specialist operators can ship goods from more or less anywhere in the world using sea freight
Sea freight is typically more environmentally sound than air freight.
Bigger items, such as vehicles, furniture, washing machines, etc, can be shipped by sea.
There is little or no limitation to what can be shipped). However, some countries may place a ban on certain items, yet they still get shipped notwithstanding.

What Are The Disadvantages Of Sea Freight?

Though the above advantages seem quite mouth watery, it does not leave out the fact that there are no disadvantages. Sea freight does have a few downsides which make it unsuitable in some cases:

It is time-consuming – it can take several weeks to move goods using sea freight. It can take almost or more than a month to reach the destination port.
Small loads suffer from the pricing structure. It is usually less suitable.
Sea freight may be exposed to damage on products during movement compared to air freight.

Based on the above, you might want to consider trying air freight instead, if sea freight isn’t right for you. Check out our post about sending goods by air. Let us know which one works for you here.

Also for you:

China Freight Shipping

USA Freight Shipping to Nigeria

India Freight Shipping

Air Customs Clearing

What Are The Costs Of Sea Shipping To Nigeria?

While there are lots of other sea-freight costs you might bump into in the course of shipping via sea, you’ll likely pay for freight itself first.

There are however some key steps to take in the import process.

First of all, FCL (full container load) and LCL (less than container load) both come with different freight rate flexibility conditions. While FCL is more likely to subject your rate to fluctuation, where LCL may not.

Sea Freight Rates

Sea freight rates are controlled by the shipping lines. They dictate how much sea freight using their vessels will cost you at any given time. The issue with these freight rates, however, is that they’re known to be flexible. This fluctuation is as controlled by the shipping lines.

If you want to get a rate, contact us to seek consultation for proper professional guides on rates.

How Sea Freight Works

Due to the complexity of customs processes, companies and individuals commonly involve a specialist in shipping, which is helpful and relieving.

The specialist’s responsibility is usually to arrange the company’s sea freight and have their goods moved from the supplier safely and legally, to the company or individual rendered the service.

With the help of our specialists or professionals, a lot of mistakes are greatly avoided. Seeking the services of a professional shipping agent or freight forwarders may be challenging.

So, it is recommended that you seek licensed agents involved. This will help in managing the risks and ensuring the process goes smoothly from start to finish.

Conclusion

The fact that Air Freight is a faster, more secured, reliable and transparent mode of shipping has not ruled out the advantage of Sea shipping to Nigeria. Sea freight shipping is a cheap and reliable method that has been and would continue to be the solution to many business ultimate needs.

Which would you prefer? Airfreight Shipping or Sea Shipping?

Contact Bowagate Global Limited Today

Want to learn more about our Sea Freight shipping or talk to us about your Shipment?

Give us a call: 08147068472. Our lines are open during business hours, so you can speak to a real person. Or send an Email: info@bowagateglobal.com. You can also visit www.bowagateglobal.com for more details.

For your expert and professional freight forwarding, contact BOWA GATE GLOBAL LIMITED. We offer cheap (affordable), fast (swift) and reliable quality cargo services that include Import, Export, Freight, Clearing/Customs Duty Brokerage, Groupage Freight, Warehousing,Consolidation, Air Freight Consolidation, Shipping Globally, Door to Door Freight Shipping, etc.

Request a QuoteHERE. For more information, write to us HERE. To have a chat with us directly via Whatsapp, clickHERE.

Air Freight, Sea Freight Shipping to Nigeria, Customs Clearing