Changing Nomenclatures in Import Documentation– Risk, Compliance, Cost

Changing Nomenclatures of Imports- Will It Really Reduce Clearing Costs in Nigeria?

Tariff classification has long been one of the most misunderstood processes in international shipping, especially for first-time importers or businesses new to the Nigerian customs landscape. While it's easy to think of it as just “coding” your item, choosing the wrong nomenclature or HS code, whether deliberately or ignorantly, can have long-lasting financial and reputational consequences.

What Does “Changing Nomenclatures” Really Mean?

In Nigerian import processes, changing the nomenclature refers to the act of selecting an incorrect or loosely related tariff heading (HS code) for imported goods; either to avoid regulatory obligations or reduce the applicable duty rate. This is usually done during the preparation of import declaration documents, such as Form M, Pre-Arrival Assessment Report (PAAR), or Bill of Lading/Airway Bill.

Whether it’s a mistake or a calculated decision, the implications are the same. As the law often says, “Ignorance is not an excuse.” Regulatory agencies like Customs, NAFDAC, SON, NDLEA, and others interpret this as an attempt to manipulate procedures, and the penalties can be severe.

Case Study: Medical Wipes Importation

Imagine you’re a medical director importing medical wipes (2 CBM) for in-house hospital use. Your supplier in India doesn’t have a NAFDAC certificate, and you're told the product requires it. To avoid this “hurdle,” your freight forwarder suggests reclassifying the item under a different HS code, perhaps one that falls under general-purpose tissue or industrial cleaning material.

While this might sound like a harmless hack, what you’re doing is opening the door to multi-agency scrutiny and potential sanctions. Here’s what could go wrong:

NAFDAC could issue a seizure or delay release due to product misclassification.

Customs may raise red flags during inspection, flagging the consignment for an audit.

You may face penalties, demurrage, and possibly loss of goods, especially if post-clearance audits discover inconsistencies.

Your Form M and shipping documents could be flagged, halting the clearance procedures.

In contrast, if you had declared the shipment properly, the only agency you’d need to engage would be NAFDAC—limiting risk exposure.

The Hidden Risk: Relying on Luck

Many agents who suggest such shortcuts do so hoping to meet an inexperienced or compromised port official. But luck is not a sustainable compliance strategy. When it fails, you as the importer will bear the consequences, not the agent.

If your import procedures look too good to be true, then they probably are—and that’s good for the syndicates, not for you (importer).

A Safer & Smarter Approach

Work with licensed and compliant freight agents who understand the classification process and how to manage regulatory for you, to achieve your import goals, save cost and secure your imports.

Seek product-specific regulatory advice before shipment.

Always prioritize compliance over cost-cutting shortcuts.

Ask for documentation proof and regulatory requirement clarity.

By making informed decisions, you not only safeguard your shipment but also preserve your organization’s credibility with customs and regulatory agencies in Nigeria.

Final Word

At Valuehandlers International Limited, we’ve seen both the success stories and the horror stories. Import success starts with accurate classification. Whether you’re importing medical wipes, construction equipment, oil rigs parts, pharmaceutical goods, or general merchandise, don’t gamble with nomenclature. The system may be complex, but with expert advice, you can always be compliant and cost-effective.

Prince Adetayo George-Adewoye

Supply Chain Management Consultant

Freight Broker | Customs Licensed Agent

Managing Director, Valuehandlers International Limited

www.valuehandlers.com

Changing Nomenclatures in Import Documentation – Risk, Compliance & Customs Clearing Costs in Nigeria

Discover the risks of misclassifying imports in Nigeria. Learn why changing nomenclatures (HS codes) to cut clearing costs can backfire and how to stay compliant for smooth customs clearance. Insights by Chief Adetayo George-Adewoye, MD, Valuehandlers.