Shipping Guidelines: How to Process PAAR in Nigeria | Valuehandlers

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Shipping Guidelines: How to Process PAAR in Nigeria | Valuehandlers

What is PAAR?

PAAR is an acronym for Pre- Arrival Assessment Report.
It is a document (or Clean Report of Inspection document) which confirm conformity of the import to importer's country set criteria and or import guidelines. It provides timely, multi-dimensional risk analysis at every stage of customs processes. 

PAAR is also a document that determines the rate of duty to be paid on a particular item / Group of items imported. it also show clearly the exchange rate at the time of transaction.
On Dec, 2012 the then controller general (CG) of Nigeria customs introduced Pre-Arrival Assessment Report (PAAR) as a replacement for RAR ( Risk assessment Report) .

                          See 5 simple steps to obtaining Form M

Requirements for PAAR Processing:

  1. Final Invoice

  2. Packing List

  3. Original Bill of Lading

  4. CCVO (Combine Certificate of Value and Origin)

  5. Son Cap Certificate.

PAAR Procedure by Customs.

1. The importer contacts his supplier to make the above documents which are also known as final shipping documents available.

2. The final shipping documents is courier directly to the importer’s transacting bank i.e where the Form M was established.

3. The bank receives the documents and then upload to Nigeria Customs Service platform for final PAAR processing.

Note: Nigeria Customs reserve the right to uplift the value, insurance or the freight, if the product is under-valued or the CIF is low.

It is also important to note that, the HS Code can be change if it does not tally with the description of the product declared.  

4. Once the PAAR is finally processed, it will be sent to the transacting bank while, the importer receives a copy through his mail.

5. The importer then proceeds to his bank to collect his endorsed PAAR and other shipping documents which, he will then hand over to Customs broker/clearing agent for clearing process to take place.


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).  

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.

About us: Valuehandlers 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 08032241768 for Form M and PAAR Processing in Nigeria

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