Nigeria Ports Information

NIGERIAN PORTS AUTHORITY
COMMERCIAL SERVICES AND PORT PROMOTION
IMPORT & EXPORT PROCEDURES

INTRODUCTION

In furtherance of the efforts to enhance the efficiency of the maritime
sector and port operations in Nigeria, the Federal Government
introduced a port reform package in 1996. in response to this
initiative, the management of Nigerian Ports Authority took immediate
steps to streamline and simplify its operational procedures.
Vital NPA operations, including the billing system were computerized;
while documentation and delivery processes were unified and
streamlined. These have positively changed the procedures for the
shipping and clearing of goods. Deliberate policies have also been
put in place to create a better operating environment for all customers
and port operators.

A shipping company intending to bring cargo into a Nigerian sea port
has to clear the ship by obtaining Ship Entry Notice (SEN) two
months in advance from the Operations Department of Nigerian Ports
Authority. The customer, in the alternative, could obtain clearance
through a registered and licenced agent based in Nigeria. This is
without prejudice to all other regulations guiding the operations of
other relevant government agencies and international laws regulating
maritime operations.

The procurement of a Ship Entry Notice is a guarantee that a vessel
would have berthing facility on arrival in Nigeria. This is essence
means that the ship does not come to queue and thus incur
demurrage.


IMPORT PROCEDURE
TYPE OF CARGO AND REQUIREMENTS
There are two categories of goods for the purposes of this guideline:
(a) Merchandise and Raw Materials
(b) Personal Effects.
It is no longer mandatory that the consignee engages the services of
a registered Freight Forwarders/Clearing and Forwarding Agent in
respect of merchandise and raw materials. In such cases, the
consignee may opt for self clearance as is the case with personal
effects, where the owners may clear the cargo when familiar with the
clearing procedure.


BILL OF LADING
The consignor/shipper sends the Bill of Lading in advance of the
arrival of the ship to the consignee/importer. This document contains
the following vital information:
(a) The name of the ship carrying the goods
(b) The description of the goods along with their marks and
numbers.
(c) The date of departure from port of loading
(d) The weight of cargo
(e) The terms of contract of affreightment.


PROCEDURE: IMPORT
The importer/consignee takes the Bill of Lading to the NPA Central
Office for Planning and Information (C.O.P.I) of the appropriate port
for details about the arrival date of the ship and her allocated berth.
This information can also be obtained from the shipping company.
• The importer or his agent completes the Bill of Entry and
registers it with the Nigerian Customs Service.
• The consignee or importer proceeds to the shipping
company to effect Shipping Company Release of the goods.
• There, the Bill of Lading is cross-checked and compared
with the ship’s manifest. After certifying the correctness of
consignee’s documents, a blank form called Delivery Order
(D.O.) supplied to the Shipping Company by the Nigerian
Ports Authority, is then issued to the importer.
• The consignee or his agent completes the Delivery Order
and returns same and the Bill of Lading to the shipping
company.
• The Shipping Company then scrutinizes the details on the
Delivery Order, endorses it and withdraws the original of the
Bill of Lading from the consignee or his agent. Thereafter,
the lower portion of the Delivery Order is detached and
handed back to the importer who holds it as evidence of
shipping company release.
• The main body of the Delivery Order is sent to the Terminal
Operator at the specific Port.
• The Terminal Operator then raises all necessary bills trough
a computerized system, after which customer proceeds to
bank for payment. On receipt of bank confirmation, Terminal
Delivery Order is raised and the necessary delivery sets are
produced using information contained in the Delivery Order.
• The documents are subsequently transferred to the transit
shed or delivery point.
• The consignee or his agents then proceeds to the
appropriate shed or delivery point to effect delivery. After
loading, cargo pass is issued to the consignee or his agent
who then proceeds to NPA gate for security checks and final
exit.


EXPORT PROCEDURE
Following the liberation policy of the Federal Government, the
Produce Boards were scrapped and most Nigerian non-oil exports
are uncontrolled. By this, such goods as cocoa, rubber, cotton, palm
oil, palm kernel, groundnut etc. hitherto regarded as controlled and
exported through the scrapped Produce Marketing Boards can now
be exported by companies which have such goods for exports.

However, a few exportable items are controlled and monitored.
These include, among others:
- Crude oil
- Works of art and artifacts
- Endangered species (flora and founa), i.e., animals and
plants.

Controlled export gods are those on which there are restrictions,
while uncontrolled export goods are those on which Government has
not placed any form of restriction. A prospective exporter needs to be
conversant with the foreign exchange and banking regulations of the
country to which the goods are to be shipped. In Nigeria, the
exporter needs to be conversant with Central Bank’s guidelines
pertaining to export proceeds. Among other things, exporters are
expected to open domiciliary account with any bank in Nigeria and
ensure that the export proceeds are paid into the account.

Preshipment inspection of the all goods including oil and non-oil
goods exported from Nigeria is also mandatory.
Government agencies relevant to export operations in Nigeria among
others include:
(a) Corporate Affairs Commission
(b) Nigerian Export Promotion Council
(c) Nigeria National Petroleum Council (NNPC)
(d) Nigerian Export Supervision Scheme


PROCEDURE: EXPORT
• Armed with the above information, an exporter goes to the
port of loading to obtain and complete the Shipping Note
along with the Customs Bill of Entry. The Shipping Note
calls for the following information among others:
(a) The name of the exporter
(b) The name of the ship to load the goods
(c) The description, quantity as well as the
weight/measurement of the goods to be loaded, etc.

The essence of completing the Bill of Entry, which is obtainable at the
customs office is to enable the Nigerian Customs Service
examine/release the goods. It serves as an authority to process and
ship consignment. Preshipment inspection by the appropriate
designated authorities is mandatory.
Goods to be exported may be stored within the port pending
shipment or brought direct for shipment.
• when the goods arrive at the port by rail, road or water
conveyance, the way bills forwarding the goods are received
and used for the following purposes:
(a) To cross-check the quantity
(b) To prepare the Shipping Note
(c) To prepare the Export Tally Sheet
(d) To prepare Debit Note

The goods are examined by customs to ascertain the accuracy of the
information supplied by the exporters in the Bill of Entry and Shipping
Note. If customs service is satisfied, it endorses and stamps the
Shipping Note which is immediately dispatched to the Export Office.
• The Nigerian Ports Authority raises necessary debit note
reflecting all charges and dues which the exporter or his
agent pays to designated bank. All payments are confirmed
and covered by NPA receipts. Export Tally Sheets are
prepared and despatched to the area where the nominated
ship is berthed. In the process of loading, the following
parties have their representatives who jointly tally (record)
the goods as they are loaded into the ship:
(a) Nigerian Ports Authority
(b) Shipping Company
At the completion of each set of tally sheet, the shipping company
endorses NPA Export Tally Sheet to confirm receipt of cargo.
• At the end of the loading exercise, the exporter/agent
received his copy of the Bill of Lading from the shipping
company/agent while the consignee at the port of destination
is sent his own copy (usually the original). The Bill of Lading
as a document of title performs three main functions
amongst
Others:
(a) It is an acknowledgement of receipt of cargo into the s hip
(b) It is a document of title to the goods to whoever holds the
original copy
(c) It serves as an evidence of the contract of affreightment
between the shipping company and the exporter.


FACILITIES FOR EXPORTS
The Nigerian Ports Authority provides standard warehouses for
storage of export goods in transit. Warehouses and open storage
areas are available in the ports for lease for the storage of export
gods in transit. The importance of these facilities is that they help to
speed up operations is loading and thus eliminate delays and
consequent payment of demurrage. Dock labour and plants are
available to work in specified areas on request. Exporters are
therefore advised to take advantage of these services.

The Nigerian Ports Authority also raises charges for the different
facilities and special services it provides. The services may include
requests for off loading of cargo, rebagging, sorting and palletisation
of the export items.

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