On
arrival of cargo to the Nigeria airport, the next question would be ‘what next’?
Recall
that at the port of take-off, some important documentation processes took place
to ensure due process.
At last,
your cargo arrives at the airport of destination. At this point, another
process requiring documentation begins. After this, the items are released.
This is
what we regard as the Airport Customs Clearance process.
What
Is Customs Clearance?
Customs
clearance is a work process that involves preparing and submitting required
documents for the facilitation of exports or imports into the country.
At the
point of clearance, the information provided must come with enough details to
represent the client during customs examination, payment of duty, other
assessment processes.
The
clearing process requires the following documents
1. Commercial invoice
The commercial invoice is a legal document between the supplier
and the customer that clearly describes’ the sold goods and the amount due to
the customer. The commercial invoice is one of the main documents used by
customs in determining customs duties.
According to Business Dictionary, It is a document required
by customs to determine true value of the imported goods, for assessment of
duties and taxes. A commercial invoice (in addition to other information), must
identify the buyer and seller, and clearly indicate the (1) date and terms of
sale, (2) quantity, weight and/or volume of the shipment, (3) type of
packaging, (4) complete description of goods, (5) unit value and total value,
and (6) insurance, shipping and other charges (as applicable).
2. Air Way Bill (AWB) – serves as the contract
between the owner of the goods and the carrier. An air waybill (AWB) is a
document that accompanies goods shipped by an international air courier to
provide detailed information about the shipment and allow it to be tracked. The
bill has multiple copies so that each party involved in the shipment can
document it.
3. Certificate of origin –
This document declares which country the commodity was manufactured. The
certificate of origin contains information regarding the product, its
destination, and the country of export. The CO is an essential form because it
can help determine whether certain goods are eligible for import, or whether
goods are subject to duties.
4. Power of Attorney – the
document authorising the freight forwarder to act on behalf of the owner.
Read Also: Basic Import Document required in Nigeria
The
Customs Clearing Process
After the items have been verified good to go, the receiving freight
forwarder receives the documents from the
handling agent to clear them through customs. This is why it is important to
choose a freight forwarder who has certified
customs brokers to process this for you.
What happens during the clearing process of goods?
Due to the rigorous stages involved in the process of clearing
goods, many businesses have been stuck in fear of doing international shipping.
As a matter of fact, this
is one of the reasons behind the high rate of involvement with unqualified
freight forwarders. This can be avoided by seeking the right people to handle
your freights.
But here,
we need to know exactly what takes place during the customs clearance of goods.
Let me explain how it works. This makes it easier to follow even
if you want to handle the process all by yourself.
So, what exactly happens when your shipment arrives in customs?
1. The paperwork for your shipment will be looked at.
Earlier we defined commercial invoice and its importance. It is
the bill for the goods from the buyer to the seller. This document is so
important that all international shipments need to present to custom for
clearing purpose. This document lists both the shipper and the receiver’s
contact information. It also have the export date and airway bill number and a
description of the item and its total value.
2. Taxes and Customs Duties Payment Evidence will be Requested
Customs Duty is a tariff or tax imposed on
goods when transported across international borders. The purpose
of Customs Duty is to protect each country’s economy, residents,
jobs, environment, etc., by controlling the flow of goods, especially
restrictive and prohibited goods, into and out of the country. If these have
not been settled, This is where the option of DDU (Deliver Duty Unpaid) and DDP
(Deliver Duty Paid) comes into effect.
If a shipment is marked as DDP, this means that payment of the
taxes and duties have already been paid for. Some express couriers have their
own customs brokers who can process this payment for you, and they offer these
services at a fixed price when you pay for your label.
However, if the shipment is marked as DDU, customs will forward
the package to an independent customs broker to collect the required amount.
This is where it can get very expensive, as all brokers are
independent and each charge a different fee structure. Different fees such as
brokerage, storage, and late payment fees may apply, making it impossible to
tell the customer what their final amount will be.
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