Saudi exporters can approach the regional offices of Intertek in Saudi Arabia, which is an approved IAF of the. SONCAP.
Contents 1.
Business environment Overview .................................................................................................................... 7
1.1
Ease of doing business ................................................................................................................................. 7
1.2
Business environment ................................................................................................................................. 7
1.1.1
Working hours .......................................................................................................................................... 8
1.1.2
Entry requirements in Nigeria for KSA nationals................................................................................................... 8
1.1.3
Key contacts in Nigeria for KSA nationals .......................................................................................................... 8
1.3
Financial Environment................................................................................................................................. 9
1.4
Legal Environment ..................................................................................................................................... 9
2.
Rules of Origin ........................................................................................................................................ 10
2.1
Rules of Origin between Nigeria & KSA ........................................................................................................... 10
2.1.1
Non-Preferential Rules of Origin- Nigeria ........................................................................................................ 10
3.
Trade Barriers ......................................................................................................................................... 11
3.1 Trade Barriers in Nigeria .................................................................................................................................. 11 3.1.1
Tariff Barriers.......................................................................................................................................... 11
3.1.1.1 Basic Customs Duty (Common External Tariff) .................................................................................................. 11 3.1.1.2 Additional Customs Duty (Levies) ................................................................................................................. 12 3.1.1.3 Value-Added Tax (VAT).............................................................................................................................. 12 3.1.1.4 Excise Duty ............................................................................................................................................ 12 3.1.1.5 Anti-Dumping Duty .................................................................................................................................. 13 3.1.1.6 Countervailing Duty ................................................................................................................................. 13 3.1.2
Non-tariff barriers .................................................................................................................................... 13
4.
Trade Remedies....................................................................................................................................... 17
4.1
Trade Remedies by Nigeria: Impact on Saudi Exporters ........................................................................................ 17
4.1.1
Anti-Dumping and Countervailing Measures .................................................................................................... 17
4.1.1.1 Tackling Anti-dumping measures in Nigeria ..................................................................................................... 18 4.1.1.2 Tackling Countervailing measures in Nigeria .................................................................................................... 18 4.1.2
2
Safeguard Measures ................................................................................................................................. 18
4.1.2.1 Tackling Safeguard measures in Nigeria .......................................................................................................... 18
3
5.
Key ports in Nigeria .................................................................................................................................. 19
5.1
Key Ports in Nigeria .................................................................................................................................. 19
5.2
Key airports in Nigeria ............................................................................................................................... 20
5.3
Accessing Key Inland Markets in Nigeria ......................................................................................................... 20
5.3.1
Accessing key cities in Nigeria ...................................................................................................................... 20
5.3.2
Inland Container Depots (ICD) ..................................................................................................................... 21
5.4
Shipping Lines used in KSA ......................................................................................................................... 22
5.4.1
Major shipping lines and lead time from KSA to Nigeria ....................................................................................... 22
5.4.2
Major Air transport routes and Lead Time from KSA to Nigeria ............................................................................... 22
5.4.3
Rates of Key Routes between KSA and Nigeria .................................................................................................. 23
5.4.4
Rates of key routes for air cargo between KSA and Nigeria .................................................................................... 24
6.
Key Logistics Facilities ............................................................................................................................... 24
6.1
Export Processing Zones in Nigeria ................................................................................................................ 24
6.1.1
Export Processing Zones Locations – Nigeria .................................................................................................... 24
6.2
Key Trade Related Incentives ....................................................................................................................... 26
6.3
Storage facilities / services provided at the ports in Nigeria .................................................................................... 27
6.3.1
Bonded warehouses – Government............................................................................................................... 27
6.3.2
Private Warehouses: Nigeria........................................................................................................................ 27
7.
Overall Import Process .............................................................................................................................. 28
7.1
Overall Import Process .............................................................................................................................. 28
7.2
Customs Clearance process ......................................................................................................................... 30
7.3
Lead Time and Cost involved for Overall Import Process....................................................................................... 33
8.
Key import documents .............................................................................................................................. 33
8.1
Summary Table of Key Import Documents ....................................................................................................... 33
8.1.1
Mandatory Documents .............................................................................................................................. 33
8.1.2
Additional Documents............................................................................................................................... 34
8.2
Documents Overview ............................................................................................................................... 35
8.2.1
Bill of Lading .......................................................................................................................................... 35
8.2.2
Commercial Invoice .................................................................................................................................. 35
8.2.3
Packing List ............................................................................................................................................ 35
8.2.4
Combined Certificate of Value and Origin ........................................................................................................ 36
8.2.5
Single Goods Declaration Form .................................................................................................................... 36
8.2.6
Delivery Order ........................................................................................................................................ 37
8.2.7
Pre Arrival Assessment Report...................................................................................................................... 37
8.2.8
Health Certificate/Phytosanitary Certificate ...................................................................................................... 37
8.2.9
Manufacturers Certificate of Production .......................................................................................................... 38
8.2.10 Letter of Credit ........................................................................................................................................ 38 8.2.11 SONCAP ............................................................................................................................................... 38 9.
Key Government Agencies involved in Import: .................................................................................................. 38
9.1
Summary table of Key Government Agencies involved in the Import Process: ............................................................. 38
9.2
Key Government Agencies involved for Import of all Types of Products ..................................................................... 39
10.
Key Standard Agencies and Their Approval Process – Nigeria ................................................................................ 40
10.1
Standard Agencies According to the Industry .................................................................................................... 40
10.2
Standards Organization of Nigeria................................................................................................................. 40
10.2.1 Process for Acquiring SONCAP certificate ........................................................................................................ 41 10.2.2 Key Documents Required ........................................................................................................................... 44 10.2.3 Costs Involved ........................................................................................................................................ 44 10.3
National Agency for Food and Drug Administration and Control ............................................................................. 45
10.3.1 NAFDAC Drug Registration Process ............................................................................................................... 45 10.3.2 Key Documents Required ................................................................................................................................................................................. 47 10.3.2 Lead Time.............................................................................................................................................. 47 10.3.3 Costs Involved ........................................................................................................................................ 48 10.4 NAFDAC Food Registration Process ................................................................................................................... 48 10.4.1 Key Documents Required ........................................................................................................................... 50 10.4.2 Lead Time.............................................................................................................................................. 50 10.4.3 Costs Involved ........................................................................................................................................ 50 10.5
4
NAFDAC Food Clearance Process .................................................................................................................. 51
10.5.1 Key Documents Required ........................................................................................................................... 52 10.5.2 Costs Involved ........................................................................................................................................ 52 11. Packaging and Labelling Regulations – Nigeria ....................................................................................................... 53 11.1
General Industries .................................................................................................................................... 53
11.1.1 Industry Regulator ................................................................................................................................... 53 11.1.2 Laws and Regulations................................................................................................................................ 53 11.2
Food Industry ......................................................................................................................................... 53
11.2.1 Industry Regulator ................................................................................................................................... 53 11.2.2 Laws and Regulations................................................................................................................................ 53 11.2.3 Labelling Requirements ............................................................................................................................. 53 11.3
Pharma industry ................................................................................................................................................................................................. 54
11.3.1 Industry Regulator.............................................................................................................................................................................................. 54 11.3.2 Laws and Regulations ........................................................................................................................................................................................ 54 11.3.3 Labelling Requirements..................................................................................................................................................................................... 55 11.4
Cosmetics Industry ............................................................................................................................................................................................. 55
11.4.1 Industry Regulator.............................................................................................................................................................................................. 55 11.4.2 Laws & Regulation.............................................................................................................................................................................................. 55 11.4.3 Labelling Requirements..................................................................................................................................................................................... 56 12
5
References ........................................................................................................................................................................................................... 58
Disclaimer
Saudi Export Development Authority “SAUDI EXPORTS” have prepared the Import Guide as a part of its continuous publication on countries. The purpose of this guide is to provide a high-level view of the country imports process, procedures, documentation requirements, stakeholders…etc., based on available public information. Its analysis, perceptions, and anticipations are subject to personal judgment. “SAUDI EXPORTS” is not liable for any consequences caused by the understanding and interpretation of any part of this guide. In general, the information in the report present a broad view of the imports environment of this country. Saudi exporters are encouraged to carry out further studies to be updated and more informed on the import process, procedures, and documentation requirements identified in this report.
6
1. Business environment Overview 1.1 Ease of doing business1 Nigeria has been ranked 169th in the world on the ease of doing business by Doing Business, World Bank. The ranking is based on certain key parameters that have been elucidated in Table 1 below. Table 1 Ease of doing business rankings S. No.
Topics
Doing Business Rank (2017)
1
Starting a Business
138
2
Dealing with Construction Permits
174
3
Getting Electricity
180
4
Registering Property
182
5
Getting Credit
44
6
Protecting Minority Investors
32
7
Paying Taxes
182
8
Trading Across Borders
181
9
Enforcing Contracts
139
10
Resolving Insolvency
140
1.2 Business environment2 The cultural differences among people and companies might pose several challenges for Saudi exporters in conducting business in a foreign country. For ease of doing cross border businesses, Saudi exporters must not only understand but also strategize to accommodate significant culture differences between KSA and Nigeria. Business dealings in Nigeria are done face to face and will require follow up visits from Saudi Exporters. Business appointments can be made by reaching Nigerian counterpart over phone, as with emails its usually slower. English is the official language in Nigeria; Hausa, Yoruba and Igbo are other widely spoken languages. Business cards are exchanged after the initial introductions using both hands. Saudi exporters are advised to get their business cards printed in English, It will also be helpful to include any advanced degree which Saudi exporters may have on the business card.
1 2
7
Doing Business Export.gov
Saudi exporters should share the agenda of meeting in advance, as business counterpart may require consulting with key stakeholders prior to the meeting. Saudi Exporters are advised to indulge in conversation at a personal level, as it’s a standard practice in Nigeria to develop personal relationships. 1.1.1 Working hours The general business hours of Nigeria vary from KSA. Different businesses operate between varied dates and timings as mentioned below in Table 2 below. Saudi Exports advises the exporter to recheck with their business partner prior to scheduling business travel. Table 2 Working Hours - Nigeria Working Days
Working Hours
Monday to Friday
8 am – 4 pm
1.1.2 Entry requirements in Nigeria for KSA nationals Saudi exporters who intend to visit their trading partners in Nigeria can obtain a business visa for Nigeria from Nigerian embassy in Riyadh. Saudi exporters can contact and obtain information regarding visa process, checklist and cost by contacting Nigerian Embassy in Riyadh, Saudi Arabia. For contact information Saudi Exporters can visit the link provided below: https://nigeria.org.sa/ 1.1.3 Key contacts in Nigeria for KSA nationals In Nigeria, the embassy of Saudi Arabia is the first point of contact for Saudi Exporters which is in Abuja. Working hours of the embassy is from 9 am to 4 pm. The embassy provides information on the rules and regulations of Nigeria, and other services to Saudi nationals in Nigeria, can also be contacted for solving any issues faced by the Saudi exporters. For more details like the head of mission, contact information, etc., Saudi exporters can visit the link provided below: http://embassies.mofa.gov.sa/sites/Nigeria/en/Pages/default.aspx Saudi Exporters can obtain the services provided by the embassy from the link provided below: http://embassies.mofa.gov.sa/sites/Nigeria/EN/ContactDiplomaticMission/Pages/ContactWithDiplomaticMission.aspx
8
1.3 Financial Environment Central Bank of Nigeria is responsible for the regulation and supervision of domestic and foreign banks operating in Nigeria. For more information on banks operating in Nigeria, Saudi exporters can visit the link provided below: https://www.cbn.gov.ng/supervision/Inst-DM.asp Saudi exporters can use confirmed irrevocable letters of credit, bills for collection and open account to receive payment for the goods exported to Nigeria. Saudi Exporters are should use irrevocable letters of credit or advance payment for receiving payment, due to higher credit risk in receiving payments from Nigeria. For more details, Saudi exporters can visit the link provided below: https://www.export.gov/article?id=Nigeria-Methods-of-Payment
1.4 Legal Environment3 Nigerian legal system stands on 3 pillars of English Law, Islamic Law and Nigerian Customary Law. The national judicial system in Nigeria constitutes of multiple tiers (elaborated in the links below), Saudi exporters can seek legal recourse from these entities in the event of breach of contract. For more details on compensation, dispute resolution process and structure of judicial system, Saudi exporters can visit the links provided below: https://www.globallegalinsights.com/practice-areas/litigation-and-dispute-resolution/global-legal-insights-litigation-anddispute-resolution-6th-ed/nigeria Saudi Exporters can obtain the list of lawyers in Nigeria from the link provided below: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/648483/Nigeria_Lawyers_List_2017.odt As of 2017, Nigeria is ranked 140th for enforcing contracts by Doing Business, World Bank. It takes up to 447 days and 62% of the claim amount (e.g. it would cost SAR 62,000 for a claim amount of SAR 100,000) for resolving a commercial dispute through court in Nigeria.4
3 4
9
Export.gov Doing Business, World Bank
2. Rules of Origin 2.1 Rules of Origin between Nigeria & KSA5 Nigeria and KSA do not have any bi-lateral trade agreements with each other that provide for the application of preferential treatment of Saudi imports into Nigeria. As such, non-preferential rules of origin will apply to Saudi imports into Nigeria. 2.1.1 Non-Preferential Rules of Origin- Nigeria6 The Rules of Origin (RoO) for goods imported into Nigeria are derived from the provisions laid out in the Customs Services Act. As per the Act, goods are considered to have originated in a country if: 1. Goods are “wholly-obtained” in a country, and falls within the categories mentioned below: (a) Mineral products extracted from its soil, territorial waters or sea-bed; (b) Vegetable products harvested or gathered in that country or territory; (c) Live animals born and raised in that country or territory; (d) Products obtained from live animals in that country or territory; (e) Products obtained from hunting or fishing conducted in that country or its territorial waters or sea-bed; (f) Products obtained by maritime fishing and other products taken from the sea by a vessel of that country or territory; (g) Products obtained aboard a factory ship of that country or territory solely from products of the kind covered by paragraph (f) of this subsection; (h) Products extracted from marine soil or subsoil outside that country’s or territory’s territorial waters, provided that the country or territory has sole rights to work that soil or subsoil; (i) Scrap and waste from manufacturing and processing operations and used articles collected in that country or territory and fit only for the recovery of raw materials; or (j) Goods produced in that country or territory solely from the products referred to in paragraphs (a)-(i) of this subsection. 2. Goods that are manufactured in more than one country are deemed to originate from the country in which it underwent the “last substantial transformation” (from a manufacturing operation) which resulted in a change in tariff classification. 3. The Customs Service may require documentary evidence of country of origin (Certificate of Origin (CoO)) upon importation of goods into a country. Saudi exporters can obtain CoOs from the Directorate of Supplies at the
5 Customs Services Act- Nigeria 6 Customs Services Act – Nigeria
10
Ministry of Commerce and Industry or from branches of the Ministry in key cities. Saudi Exporters can use the electronic services for obtaining the Certificate of Origin.7 For more information on the electronic services for CoO, Saudi Exporters can access the link provided below: http://mci.gov.sa/en/ServicesDirectory/Pages/Other-services-2015-02.aspx
3. Trade Barriers 3.1 Trade Barriers in Nigeria Countries trading with one another usually encounter many trade barriers; these include tariff (most common) and non-tariff barriers. As a member of the Economic Community of West African States (ECOWAS), some of the trade barriers that exist in Nigeria are based on the ECOWAS provisions that apply commonly to external non-ECOWAS trading partners. 3.1.1 Tariff Barriers 3.1.1.1 Basic Customs Duty (Common External Tariff)8 •
Basic Customs Duty is a tariff imposed on goods that are transported across international borders.
•
Nigeria’s Basic Customs Duty/ Common External Tariff aligns with the ECOWAS CET that is applied to all imports into the West African Community region from non-ECOWAS countries, including KSA. This is provided for by the CET Tariff Act No.4.
•
Nigeria applies different tariff bands to different categories of goods; the details of which are provided below: o 0% duty on capital goods, machinery, and essential drugs not produced locally o 5% duty on imported raw materials o 10% duty on intermediate goods o 20% duty on finished goods o 35% duty on goods that are classified within the sector that the Nigerian government wants to protect.
•
To access the complete Nigeria CET tariff list, allocated according to the Harmonized System (HS) of goods classification, Saudi exporters are requested to kindly visit the link provided below:
7 U.S. – Saudi Arabian Business Council 8 Office of the United States Trade Representative
11
https://www.customs.gov.ng/Tariff/sections.php - From the webpage, please select the category of goods to be exported and once the tariff list for the same opens up; the abbreviation ‘ID’ indicates the percentage of basic customs duty that will be charged on the goods upon importation into Nigeria. 3.1.1.2 Additional Customs Duty (Levies)9 •
The Nigerian government also charges additional customs duties / levies on certain categories of goods, in excess of the CET already being levied.
•
As of 2015, there were around 171 tariff lines of goods upon which levies could be charged.
•
For more information regarding levies, Saudi exporters are requested to kindly visit the link provided below: https://ustr.gov/sites/default/files/files/reports/2015/NTE/2015%20NTE%20Nigeria.pdf
•
Further, Saudi exporters are also advised to kindly visit the link provided below for more information on the exact percentage of levies charged and on what categories of goods. https://www.customs.gov.ng/Tariff/sections.php - Please select the category of goods that is to be exported, and when the tariff list for the same opens, the abbreviation ‘LVY’ indicates the percentage of additional customs duty that will be charged on the goods upon importation into Nigeria.
3.1.1.3 Value-Added Tax (VAT)10 •
With a few exemptions, Value-Added Tax (VAT) is applied to the goods and services that enter the Nigerian market for free circulation, either by way of imports or local production.
•
The imposition of VAT, extent of VAT duties charged, and the list of goods and services that enjoy VAT exemptions are governed by The VAT Act Cap V1.
•
As per Section 4 of the Act, VAT is set at 5% of the value of imported goods; the value of the imported goods is calculated as the price of the imported goods, coupled with the customs duties, levies, and any other charges that are applicable.
•
Certain goods are subject to VAT exemptions; for example, pharmaceutical products and agricultural pest control products. Saudi exporters are requested to kindly visit the link provided below for more information about the VAT exemptions in Nigeria. http://lawnigeria.com/LawsoftheFederation/VALUE-ADDED-TAX-ACT.html
3.1.1.4 Excise Duty •
Excise Duty is an indirect tax charged on the import of certain goods into Nigeria.
9 Office of The United States Trade Representative 10 VAT Act Cap VI, Nigeria
12
•
The Customs and Excise Management Act provides the basis for the administration of excise duties in Nigeria.
•
For more information about Excise Duties imposed on imports into Nigeria , Saudi exporters are kindly requested to visit the link provided below: https://www.customs.gov.ng/Guidelines/Excise/index.php
3.1.1.5 Anti-Dumping Duty11 • Goods imported into Nigeria at an export price that is less than the fair market value price of the goods in the origin country might be subject to Anti-Dumping duties, , if the importation of these goods negatively impact the Nigerian local industry. •
More information on the imposition of anti-dumping measures in Nigeria is provided in Section 4.1.1 of this guide.
3.1.1.6 Countervailing Duty12 • Countervailing Duty is imposed on goods imported into Nigeria when the countervailing subsidies (financial incentives- such as tax relief etc.) provided to it by the Nigerian government is found to cause material injury, the threat of material injury, or harm to the Nigerian local industry. •
More information on the imposition of countervailing measures in Nigeria is provided in Section 4.1.1 of this guide.
3.1.2 Non-tariff barriers 3.1.2.1 Import Prohibitions, Restrictions, and Licensing13 • Nigeria administers two systems for import prohibitions; the Absolute Import Prohibition List and the Import Prohibitions List. Furthermore it prohibits specified goods (rice since 2013 and vehicles since 2016) through land borders in order to combat smuggling. A waiver to import or re-export items on the prohibition lists may be granted •
by the President upon the recommendation of the Minister of Finance
•
The Absolute Import Prohibitions List mainly identifies goods that are prohibited from being imported into Nigeria for reasons of health, safety, and morality; examples of such goods include manilas, matches made from phosphorous. For the exhaustive Absolute Import Prohibitions list, Saudi exporters are requested to kindly visit the link provided below: https://www.customs.gov.ng/ProhibitionList/import_2.php
•
The Import Prohibitions List identifies goods that are prohibited from being imported into Nigeria for the protection of the local industry; examples of such goods include cocoa butter, fruit juice in retail packs. For the exhaustive Import Prohibitions List, Saudi exporters are requested to kindly visit the link provided below: https://www.customs.gov.ng/ProhibitionList/import.php
11 Customs Duties (Dumped and Subsidized Goods) Act (1958 No.9) 12 Customs Duties (Dumped and Subsidized Goods) Act (1958 No.9) 13
13
Nigeria Trade Policy Review, World Trade Organization
•
Applications to import prohibited / restricted goods into Nigeria should be made at least 3 months before the intended date of shipment.
•
All imports of food, pharmaceuticals, cosmetics, and pesticide into Nigeria is to be accompanied by certificates from producers and competent national authorities attesting that these products are safe for human consumption.14
3.1.2.2 Import Quotas15 •
Nigeria might impose quantitative restrictions (import quotas) on the import of certain goods to protect the domestic industry; examples of goods upon which import quotas apply include frozen fish.
3.1.2.3 Standards16 •
The standards set in Nigeria are established on the basis of the provisions made by the Standards Act of Nigeria Act 56 of 1971, 20 of 1984, and 18 of 1990 as amended.
•
The Standards Organization of Nigeria (SON) is the nationally recognized body for the preparation and application of standards (Nigerian Industrial Standards (NIS)) and establishment of a quality assurance system; it is a statutory body established under the Standards Act of Nigeria Act 56 of 1971, as amended in 1990.
•
The Standards Directorate of SON formulates standards that can be applied to products within a wide range of fields, including chemical engineering, civil engineering, textiles and leather technology. Standards for local and imported food and food products, and pre-packaged water are devised by SON, in conjunction with the National Agency for Food and Drug Administration and Control (NAFDAC). 17
•
SON is a member of international organizations such as: o International Organization for Standardization (ISO), o International Electro technical Commission (IEC) o
•
African Regional Organization for Standardization (ARSO)
If SON has not devised standards for goods belonging to any particular product category, the standards set by ISO and IEC for the same are adopted and applied by SON.
•
More information on Standard approval process is provided in Section 10 of this guide.
14 Office of the United States Trade Representative 15 Office of the United States Trade Representative 16 Standards Organization of Nigeria 17 Nigeria Trade Policy Review, World Trade Organization
14
3.1.2.4 Technical Regulations18 •
There are a number of laws and regulations in Nigeria that impose technical regulations on certain products. The main piece of legislation is the Standards Organization of Nigeria Act, 2015
•
Technical regulations (TRs) and standards on products are considered as compulsory in Nigeria and imported products should comply with the set requirements.
•
Standards Organization of Nigeria (SON) is the World Trade Organization (WTO) - Technical Barriers to Trade(TBT) enquiry point for disseminating information and making decisions on standards, technical regulations, and certification. The Federal Ministry of Commerce and Industry is responsible for notifying the WTO regarding changes made to national standards and technical regulations.
•
Standards established by SON are called Nigerian Industrial Standards (NIS). Products currently covered include chemicals, civil engineering, electrical engineering, mechanical engineering, processed food, and textiles and leather. All Nigerian technical regulations are available in SON's library, link to which is as following: http://library.son.gov.ng/
3.1.2.5 Certification and Conformity Assessment19 •
All regulated goods imported into Nigeria , such as medical devices, toys, textiles and leather products, have to satisfy a pre-shipment verification of conformity process ( to assure alignment with Nigerian Industrial Standards and Technical Regulations) in the country of origin prior to being exported to Nigeria. This program is known as the Standards Organization of Nigeria Conformity Assessment Programme (SONCAP) and is implemented by the Nigerian government, in partnership with certain approved Independent Accredited Firms (IAFs) in the country of origin of imports.
•
Saudi exporters can approach the regional offices of Intertek in Saudi Arabia, which is an approved IAF of the SONCAP.
•
Products that pass through SONCAP are subject to physical examination, testing, sampling and laboratory analysis, confirmation of documentary compliance, and audits of product processes and systems in the country of origin.
•
Saudi exporters are requested to kindly visit the link provided below to access the complete list of products that need to pass through the SONCAP process prior to being imported into Nigeria. http://www.exports2nigeria.com/do-i-need-a-certificate
•
Certain goods such as food and pharmaceutical products are exempt from SONCAP (import permits for the same have to be obtained from NAFDAC); Saudi exporters are requested to kindly visit the link provided below for more information regarding the same.
18 Nigeria Trade Policy Review, World Trade Organization 19 Standards Organization of Nigeria
15
http://son.gov.ng/soncap/ - Please select the option ‘Essential Features of the New SONCAP Regime’. . •
More information on Conformity Assessment procedures is provided in Section 10 of this guide.
3.1.2.6 Accreditation20 •
Nigeria does not currently have a functional National Accreditation Body for the accreditation of testing laboratories in the country.
•
The Standards Organization of Nigeria operates 5 testing labs around the country within the fields of food technology, electrical engineering, chemical technology, etc. which are approached for product certification. For more information on their service offerings, Saudi exporters are requested to kindly visit the link provided below: http://son.gov.ng/son-services/laboratory-services/
•
Further, product testing and certification services are also provided by other multi-national or local organizations that are accredited by IAF or ILAC.
•
The Nigerian government established the Nigeria National Accreditation Services (NiNAS) in 2016 to accredit certification bodies, testing and calibration laboratories in Nigeria, in accordance with ISO standards. However, the body has not commenced operations as yet. Saudi exporters are requested to kindly visit the link provided below for more information on NiNAS. http://ninas.ng/
3.1.2.7 Labelling21 •
Labelling requirements in Nigeria are set out by the provisions contained within: o Drug Labelling Regulations Nigeria 2005 o Pre-Packaged Food (Labelling) Regulations 2005 o Guidelines for Change of Product Package Label Design of all Regulated Products in Nigeria
•
Goods must be labelled in English.
•
There are specific labelling requirements for food, pharmaceutical products, and electronic appliances.
•
More information on Labelling is provided in Section 11 of this guide.
20 Nigeria National Accreditation Services 21 Nigeria Trade Policy Review, World Trade Organization
16
3.1.2.8 Sanitary and Phytosanitary (SPS) Requirements22 •
Sanitary and phytosanitary requirements have to be met prior to importing plants and plant products, animals and animal products, and food into Nigeria.
•
National Agency for Food and Drug Administration and Control (NAFDAC) is the enquiry point for any SPS-related queries in Nigeria.
•
Laws it’s based on are Food and Drug Act 2004), the Food, Drugs and Related Products (Registration, etc.) Act (2004), the Animal Disease (Control) Act (2004), and the Agriculture (Control of Importation) Act (2004):
•
The SPS requirements of the import of fresh plant and products are regulated by the Nigeria Agricultural Quarantine Services (NAQS).
4. Trade Remedies 4.1 Trade Remedies by Nigeria: Impact on Saudi Exporters23 Trade remedies are tools that facilitate the Nigerian government to take remedial action against exports causing material injury to the domestic industry. The below mentioned trade remedies can be imposed upon Saudi exporters under certain conditions. 4.1.1 Anti-Dumping and Countervailing Measures The Customs Duties (Dumped and Subsidized goods) Act 1958 outlines the conditions under which anti-dumping and countervailing duties can be imposed in Nigeria. Generally, the provisions of the Acts are applied if there is an identified threat to the local industries in Nigeria. Further, anti-dumping duties are imposed on goods that are considered to be dumped by companies and countervailing duties are imposed if the products are subsidized in the export country. Since 1998, Nigeria has not submitted any notifications on anti-dumping or countervailing duties to the WTO. However indications to protect the local industries from dumping and unfair trade practices was given in the 2004 budget statement. Currently a Bill on anti-dumping and countervailing measures is under preparation. The new bill will specify the measures to determine dumping, injury caused, formation of an anti-dumping panel, limitations and steps for conducting investigations and imposing measures. Saudi Exporters may view the Customs Duties (Dumped Subsidized goods) Act by visiting the link provided below: http://lawsofnigeria.placng.org/print.php?sn=104
22 Nigeria Trade Policy Review, World Trade Organization 23 World Tarde Organization
17
4.1.1.1 •
Tackling Anti-dumping measures in Nigeria
Prior to exporting, Saudi exporters must understand the complete production cost of the product and its market price in KSA.
•
For avoiding imposition of quantitative restrictions on products imported from KSA, Saudi Exports advises the Exporters to price the exported products not lesser than the price of that product and/or the production cost in KSA.
•
Saudi Exporters must also have prima facie evidence to prove that the products are not imported or priced at a price lower than the production cost of the product in that country.
•
Saudi Exports advises Saudi exporters to exercise caution while disclosing prima facie evidence and to share only the needful.
4.1.1.2 Tackling Countervailing measures in Nigeria •
For avoiding imposition of quantitative restrictions on products imported from KSA, Saudi Exports advises the Exporters not to undertake predatory pricing techniques using the subsidy provided in KSA for production and export.
•
Saudi Exporters must also have prima facie evidence for defense to prove that the subsidy provided by KSA has not benefited them for reducing the price of the products in the Nigeria.
•
Saudi Exports advises Saudi exporters to exercise caution while disclosing prima facie evidence and to share only the needful.
4.1.2
Safeguard Measures
Nigeria does not have a specific legislative framework in place for the application of safeguard measures against its trading partners. Nigeria has not taken any safeguard measure in recent times. However, based on reference prices, the supplementary protection act is allowed under ECOWAS and it resembles a safeguard duty. 4.1.2.1 Tackling Safeguard measures in Nigeria •
Prior to exporting, Saudi exporters must carry out an extensive research on the market to forecast the supply and demand of the imported products in the Nigeria.
•
In cases where the supply is higher than demand, Saudi Exports advises the exporters to reduce the volume of exports in a way that it does not affect the domestic industries.
•
Saudi Exporters must also have prima facie evidence to prove that the volume of products imported will not harm or injure the competitiveness of the domestic industries.
18
•
Saudi Exports advises Saudi exporters to exercise caution while disclosing prima facie evidence and to share only the needful.
5. Key ports in Nigeria 5.1 Key Ports in Nigeria Nigeria has 6 key ports located along its 853 km coastline. The Nigerian Ports Authority (NPA) is the federal government body that manages, operates and administrates all ports in Nigeria. The 6 ports under the governance of the NPA are: The Lagos Port Complex (Apapa), Tin Can Port Complex (Lagos), Calabar Port, Delta Port, Rivers Port (at Port Harcourt) and Onne Port. An expansion project has been by the Port of Nigeria and the shipping industry to the substantial growth of Nigeria’s trade and commerce. 24 The NPA works in collaboration with the Nigerian Shippers Council and the Ministry of Transport to improve efficiency and turnover of shipments. The major ports operated by the Nigerian Ports Authority and key information is summarized in the Table 3 below: Table 3: Ports in Nigeria Port Rivers Port Complex Onne Port Complex Delta Ports Complex Calabar Port Complex Lagos Port Complex (Apapa) Tin Can Island Port
24 Nigerian Ports Authority
19
Cargo Handled Petroleum Products, Cement and construction materials Oil and Gas
Website http://nigerianports.gov.ng/rivers/
Short distance haulage, domestic and regional cargoes Oil and Gas, Petroleum Products Oversize Cargoes, Oil and Gas, Containers and General Commercial Cargo Wet and Dry Bulk, Containers and General Commercial Cargo
http://nigerianports.gov.ng/delta/
http://nigerianports.gov.ng/onne/
http://nigerianports.gov.ng/calabar/ http://nigerianports.gov.ng/lagos-port/ http://nigerianports.gov.ng/tincan/
5.2
Key airports in Nigeria
FAAN (Federal Airport authority of Nigeria) is responsible for developing, managing and promoting airports in Nigeria. Nigeria has 6 international airports that cater flights from all around the globe. For importing cargo, 3 key airports for handling cargo are: Murtala Mohammed, Nnamdi Azikwe and Kano airports. For more information, Saudi exporters can visit the link provided below: http://www.faan.gov.ng/international-airports/
5.3
Accessing Key Inland Markets in Nigeria
5.3.1 Accessing key cities in Nigeria According to the Central Intelligence Agency, the key cities in Nigeria are Lagos , Kano, Ibadan , ABUJA; Port Harcourt & Benin City. More information about the nearest port and their distance to the mentioned cities are summarized in Table 4 below: Table 4 Accessing Key cities in Nigeria Distance Key Cities
Nearest port
to city
from the port (Kms)*
Rail
Road
Lagos
Lagos Port Complex
Same city
-
-
Kano
Lagos Port Complex
1027
✓
✓
Ibadan
Lagos Port Complex
132
-
✓
Abuja
Lagos Port Complex
740
✓
✓
Port Harcourt
Port Harcourt
Same city
-
-
Benin CIty
Lagos Port Complex
316
-
✓
*Distances were calculated using maps.google.com
20
Transportation from port
5.3.2 Inland Container Depots (ICD) Inland Container Depots (ICDs) are dry ports that are designed for the temporary storage of cargoes, both empty and containerized. Their function is to provide port services to customers based in the hinterland, making it conveniently located to their place of business. The Nigerian Government works with Inland Containers Nigeria Limited through a Public Private Partnership (PPP), a completely indigenous company that is tasked with governing ICD’s in Nigeria.25 A list of operational ICD are mentioned in the Table 5 below: Table 5: ICD's in Nigeria Inland Terminals Location Port of Apapa, Lilypond ICD Lagos
Relevant Information Capacity of 7000 TEUs and 120000 sqm space
ICD-Kaduna
Kaduna State
Declared as a Dry Port of Origin and Final Destination
ICD-Kano
Kano State
Maintained by Inland Containers Nigeria (PPP)
Furthermore, there are 6 approved locations for Inland Container Depot and Container Freight Stations, which have been commissioned to private companies by the Ministry of Transport; however some of these are still not operational.26 The 6 locations are as follows: 1.
IsialaNgwa, Aba
2.
Erunmu, Ibadan
3.
Heipang, Jos
4.
Zawachiki, Kano
5.
Zamfarawa, Funtua
6.
Jauri, Maiduguri
25 Inland Containers 26 Nigerian Shippers Council
21
5.3.2.1 Services offered at Inland terminals27 The following services are offered at Inland terminals: •
Examination and clearance checks.
•
Rail lines and truck parks for the domestic transport of goods
•
Bonded terminals for road or rail transport
•
Nigerian Customs officers located at terminals
•
Shipment tracking with government escort for domestic transport
5.4
Shipping Lines used in KSA
5.4.1 Major shipping lines and lead time from KSA to Nigeria There are many shipping lines that offer maritime transport services from ports in Saudi Arabia to Nigeria. According to Linescape,28 King Abdullah Port, Jeddah, King Abdulaziz Port (Dammam) and Jubail are the ports of call in KSA for container ships going to Nigeria. Table 6: Lead time for shipping lines
Lead Time (Days) Jeddah King Abdullah King Abdulaziz (Dammam) Jubail
Tin Can Island 23-94 24-78
Rivers Ports -
Onne 30-46 33-40
Apapa 22-44 36-43
Delta -
Calabar 21-34 22-30
36-80 35-47
-
40-45 39-44
36-44 35-45
-
-
5.4.2 Major Air transport routes and Lead Time from KSA to Nigeria Goods can be exported by air from Jeddah, Dammam and Riyadh airports to Murtala Mohammed, Nnamdi Azikwe and Kano airports which are major airports in Nigeria. Table below provides the lead time for transporting goods by air from the major airports in KSA to major airport in Nigeria.
27 Inland Containers Nigeria 28 LineScape
22
Table 7 Lead Time from KSA to Nigeria Major Airports in KSA
Riyadh
Dammam
Major airports in Nigeria
Jeddah
Duration (hrs)
Murtala Mohammed
5-6
6-7
4-5
Kano
4-5
5-6
3-4
Nnamdi Azikwe
5-6
5-6
4-5
5.4.3 Rates of Key Routes between KSA and Nigeria The cost of shipping from ports in KSA to Nigerian Ports are summarized in the Table 8 below. T he shipping costs are estimated using http://worldfreightrates.com/en/freight Table 8: Lead cost for shipping lines to Nigeria
Ports in Nigeria
Tin Can Island
Rivers Ports
Ports in KSA King Abdullah
Onne
Apapa
Delta
Calabar
Cost of Transportation (SAR)* -
-
-
-
-
-
20,24029,100
20,10028,900
-
-
Jeddah
20,34029,250
King Abdulaziz (Dammam)
18,07025,980
-
17,96025,830
17,82025,620
-
-
Jubail
18,07025,980
-
17,96025,830
17,82025,620
-
-
*Cost assumptions: 1) Method of shipping selected is Ocean. 2) Costs were estimated based on the industries available on World Freight Rates. 3) The value of all products calculated was priced at 100,000 USD (SAR 375,000). 4) Full Container Load (FCL) was selected and 40 FT containers 5) None of the accessorial charges (Hazardous or Insurance) were selected. 6) The cost of transportation is a rough estimate. 7) The range is based on Agriculture and Jewelry as the commodities to be used, for lowest and highest number respectively.
23
5.4.4 Rates of key routes for air cargo between KSA and Nigeria The costs of air cargo from KSA airports to the Nigeria airports are estimated in the Table below. Please note that the estimates were based on certain assumptions which are also provided in the table below. The freight costs were estimated using http://worldfreightrates.com/en/freight Table 9 Air cargo rates from KSA to Nigeria Transportation costs (SAR) Type of product exported Jeddah/ Riyadh/ Dammam/ Medina/ Taif/ Al Qassim
Murtala Mohammed, Nnamdi Azikwe and Kano airports Frozen food 11,430– 12,633
Frozen meat 11,475 – 12,900
*Cost assumptions: Method of shipping selected is air Costs were estimated based on the industries available on World Freight Rates The value of all products calculated was priced at 100,000 USD Load was selected at 210 kg/cm and dimensions as 140*100*90 None of the accessorial charges (Hazardous or Insurance) were selected The cost of transportation is a rough estimate
6. Key Logistics Facilities 6.1 Export Processing Zones in Nigeria The Nigerian Export Processing Zones Authority (NEPZA) is a Federal Government Agency under the supervision of the Federal Ministry of Industry, Trade & Investment, and was established in 1992 following the enactment of the Nigeria Export Processing Zones Act 63, of 1992.29 NEPZA has a mandate to promote and facilitate international and local trade through Export processing zones (Free Zones) in Nigeria. The Export Processing Zones also serve the purpose of enabling exporters to set up a transshipment hub in Nigeria for PanAfrican Trade. 6.1.1 Export Processing Zones Locations – Nigeria There are currently 34 Free Zones in Nigeria, key zones are summarized in the Table 10 below. For more information and updates, Saudi exporters may visit the link below: http://www.nepza.gov.ng/freezones.asp
29 NEPZA
24
Table 10: EPZ - Nigeria Name
Ogindigbe Gas Revolution Industrial Park (GRIP)
25
Location
Industry Focus
Delta
Petrochemical, Fertilizer, Manufacturing and Gas Processing related activities Leisure, real estate, shopping malls and corporate business, commerce Oil & Gas, Fabrication, Oil & Gas Vessels, Logistics Financial institutions (local and international) leisure, real estate, shopping malls and corporate business, commerce
Centenary City
Centenary City
Ogogoro Industrial Park
Lagos
Nigeria International Commerce city
Lagos
Lagos Free Trade Zone Abuja Tech. Village Free Zone
Lagos Federal Capital Territory
Calabar Free Trade Zone (CFTZ)
Cross River
Kano Free Trade Zone (KFTZ)
Kano
Science & Technology Manufacturing, Oil & Gas, Logistic Services Manufacturing, Logistic Services, Warehousing
ALSCON EPZ
Akwa Ibom
Manufacturing
Brass LNG Free Zone
Bayelsa
Ladol Logistics Free Zone
Lagos
Liquefied Natural Gas Oil & Gas, Fabrication, Oil & Gas Vessels, Logistics
Badagry Creek Integrated Park
Lagos
Nigeria Aviation Handling Company (NAHCO)
Lagos
Fabrication Cargo Hub, Trans shipment and Warehousing
Snake Island Int. Free Zone
Lagos
Steel Fabrication, Oil & Gas, Sea Port
Ondo Industrial City
Ondo
Petro-Chemical & Manufacturing
Airline Services EPZ
Lagos
Food Processing and Packaging
Sebore Farms EPZ
Adamawa
Oils Integrated Logistics Services Free Zone
Lagos
Manufacturing Oil & Gas, Petrochemical Marine, Logistics, Support Services for offshore Oil Repairs
Maigatari Border Free Zone
Jigawa
Manufacturing, Warehousing
Manufacturing Oil & Gas, Petrochemical
Lekki Free Zone
Lagos
Manufacturing, Logistics
6.2 Key Trade Related Incentives Locating in any Free Zone in Nigeria automatically confers upon the investor certain advantages, benefits and incentives which have been strategically designed by the Federal Government of Nigeria to create a business-friendly environment for the investor and to be competitive. These incentives, established by Act No. 63 of 1992 and which have been improved even more in subsequent legislation, are the following: •
Complete holiday from all federal, state and local government taxes, rates, and levies.
•
Duty free importation of capital goods, machinery/components, spare parts, raw materials and consumable items in the zones.
•
100% foreign ownership of investments.
•
100% repatriation of capital, profits and dividends.
•
Waiver of all imports and export licenses.
•
Waiver on all expatriate quotas.
•
One-stop approvals for permits, operating license and incorporation papers.
•
Permission to sell 100% of goods into the domestic market (However, when selling into the domestic market, applicable customs duty on imported raw material shall apply).
•
For prohibited items in the custom territory, free zone goods are allowed for sale provided such goods meet the requirement of up to 35% domestic value addition.
26
•
Waiver on all expatriate quotas for companies operating in the zones.
•
Minimize delays in the movement of goods and services.
•
Rent free land during the first 6 months of construction (for government owned zones).
6.3 Storage facilities / services provided at the ports in Nigeria30 A government warehouse is a facility provided by the Nigerian Government and designated by the Nigerian Customs Service for the deposit of seized or forfeited goods and for other import-related purposes relating to the enforcement of the Customs and excise laws.31 For more information on storage facilities at Nigerian ports, Saudi exporters are requested to visit: http://nigerianports.gov.ng/terminals/
6.3.1 Bonded warehouses – Government The Nigerian Customs Service offers Bonded Warehouses and importers have to meet certain requirements to obtain a license. For more information on requirements for obtaining a warehousing license, Saudi exporters should visit: https://www.customs.gov.ng/Stakeholders/bonded_warehouses_rqm.php
6.3.2 Private Warehouses: Nigeria The Nigerian Ports Authority along with the Nigerian Shippers Council have worked together to facilitate Public Private Partnerships for Warehouse leasing. Various private companies have been given permission to offer storage options such as bonded warehousing, container handling and inventory management to exporters.32
30 Nigerian Ports Authority 31 Journalng 32 CMA CGM
27
7. Overall Import Process 7.1 Overall Import Process33 According to Chapter 84 of Customs and Excise Management Act (CEMA) 1959, goods can be imported into Nigeria for the following purposes: 1. For use in Nigeria. 2. For warehousing 3. For transit 4. For transshipment. For more information about the Act, Saudi exporters can visit the link provided below: https://www.customs.gov.ng/Statutory/management_act_ch84.php The Overall Import process for Nigeria is illustrated in the Figure 1 below Illustrative import process via Sea Port I
II
III
Pre-Import Arrangements
Ship Arrives
Bill of Entry via EDI and Payment of Duties
Zoll Douane
VI
Customer/Importer
V
Logistics & Transportation
IV
Customs clearance at port
Figure 1: Overall Import process
28
= Process stage
Stage I: Pre Import Arrangements There are pre-import arrangements that are to be made by the importer before the arrival of the goods. The importer has to obtain the following 1. An e- form “M” from an authorized bank dealer. 2. A Pre Arrival Assessment Report (PAAR) from the Nigeria Customs service. For importing restricted goods, the importer must obtain an import permit from the relevant authorities. Stage II: Ship arrives Once the ship leaves the last port of call, an E-manifest must be filed online by the shipping line. As the ship enters the port, the goods from the vessel are unloaded to the examination bays under the supervision of a proper officer. Note: E- manifest can be completed online on the Nigeria Customs Service (NCS) website. For more information on E-manifest procedure, Saudi Exporters are encouraged to visit the link provided below: https://www.customs.gov.ng/Guidelines/eManifestProcedure/ Stage III: Bill of Entry via Electronic Data Interface and Payment of Duties The importer/ authorized agent completes the Bill of Entry/Single Goods Declaration (SGD) and submits the documents required for customs clearance via Electronic Data Interface (EDI) to the customs office. Following the assessment and analysis of the SGD, an Assessment Notice along with the duties and charges that needs to be paid is generated. The importer/ agent provides the designated bank with the Assessment Notice and the bank cross verifies the details provided with its database. The importer/ agent pays the customs duty, taxes and bank charges for the imported goods at the Bank. The bank notifies the NCS by sending a confirmation message. Note: EDI of Nigeria follows the Automated System for Customs Data (ASYCUDA World).
Stage IV: Customs clearance at port Once the payment is done, the importer or agent sends a request for release of goods to the NCS via the EDI. The NCS risk management system will determine the process for customs clearance and customs clearance will be done accordingly by the NCS. Once the goods are cleared, an electronic notification will be sent to the terminal operator and the SGD will appear as customs cleared. The importer submits the SGD folder to the Terminal operator and collects the exit note from the Terminal operator34.
33Central Bank Of Nigeria 34 Nigeria Customs Services
29
Stage V: Logistics and Transportation Importer arranges for the logistics and transportation of the goods from the customs area. A customs offer at the gate will obtain the Exit Note and update that the consignment has exited the port in the NCS system. Stage VI: Importer / Customer Imported goods are received by the importer/customer.
7.2 Customs Clearance process For importing goods into Nigeria, the importer must declare the goods and obtain clearance from the Nigeria Customs Service (NCS). The customs clearance process of Nigeria is illustrated in the Figure 2 below: Illustrative Customs Process I
II
III
Prior to filing Bill of Entry
Bill of Entry Via EDI and Payment of duties
Evaluation of documents
V
IV
Release order is issued
Inspection of imported goods = Process stage
Figure 2: Customs clearance process Stage I: Prior to filing Bill of Entry. 1.
Prior to filing e form M, importer has to fulfill the below mentioned requirements: a)
30
Importer must have an incorporated/registration company in Nigeria
b)
Importer must be registered with the Federal Inland Revenue services and have an updated tax payment and a Tax Identification Number (TIN) that is tagged to his/her email.
2.
Importer obtains all the relevant documents for customs clearance from the exporter.
3.
The importer completes the e-form “M” electronically and submits the documents along with the form within 21 days of shipment to the Authorized Dealer Bank35. The documents that are to be submitted are mentioned below36 a) Pro- forma Invoice b) Insurance certificate c) Regulatory certificates/ permits.
Saudi exporters can obtain the form M from the link provided below: http://www.exports-to-nigeria.com/~/media/VOC/Documents/Nigeria/E-Form%20M.ashx?la=en 2. Import documents must carry the details mentioned below: a)
Name of the product and specifications
b)
Country of origin
c)
Date of manufacture, batch or lot number
d)
Standards under which the goods have been produced
3. If foreign exchange remittance is involved, “Valid for Forex” must be marked in the supporting documents else “Not valid for Forex “must be marked. 4. “BA” code must be indicated in the prefix for destination inspection of goods and “CB” must be indicated in the prefix if the goods are exempted from inspection. 5. The Bank evaluates the submitted form and documents. On satisfactory evaluation, the bank sends the e- form “M” and documents to the NCS. 6. NCS evaluates the application form and the documents provided. 7. On satisfactory evaluation, the e form “M” is accepted or rejected by the NCS within a day. If accepted the e form M is registered in the system. If rejected the documents are returned for corrections. 8. Once the E form M is registered and the import documents are submitted to the bank, a Pre Arrival Assessment Report (PAAR) is generated by the NCS. 9. Once the PAAR is generated, the importer asks the exporter to ship the goods. 10. Once the ship leaves the last port of call, manifest must be submitted to NCS electronically via the Direct Trade Input (DTI)37.
35 Central Bank of Nigeria 36 Nigeria Customs Services 37 Nigeria Customs Services
31
Note: An E form M for merchandise goods is valid for 180 days which can be extended for another 180 days and for capital goods it is valid for 365 days with an extension of 365 days. Extensions will be forwarded to the Director, Trade and Exchange Department in Central Bank of Nigeria for consideration38. Stage II: Bill of Entry via EDI 1. Importer/ customs agent completes the Single Goods Declaration electronically via DTI or a DTI cafe. 2. SGD must consist of the details about the necessary documents, duties payable and the designated bank for the payment of duties and charges. 3. Importer assesses the information provided and select the assessment option to send an electronic notification to the bank after SGD’s acceptance. 4. Once the SGD is accepted, an assessment notice is provided to the importer and a notification is sent to the bank. 5. Importer/ customs agent prints the SGD and compiles the folder with the necessary documents. 6. Importer presents the assessment notice to the bank and the bank cross evaluates the assessment notice with their database. 7. Importer pays all the duties in the bank and the bank sends a notification of payment to the NCS. Stage III: Review of Documents and clearance route determination39 1.
Once the payment is done, importer requests for release of consignment electronically via ETI.
2.
Importer submits the SGD folder to the customs officers
3.
The NCS risk management system will determine the route for goods clearance of goods.
4.
Imported goods can be cleared in four routes as mentioned below: a)
Green
b)
Blue
c)
Yellow
d)
Red
Note: Consignments in Green and Blue lanes are cleared by customs and are ready for dispatch. Stage IV: Inspection of imported goods40 1.
Consignments in Green and Blue lanes are cleared directly by the customs without any document verification or physical inspection.
38 Nigeria Customs Services 39 Nigeria Customs Services 40 Nigeria Customs Services
32
2.
For consignments in yellow lane, the documents are verified by the officers. Consignments are sent to the scanning site and the findings of the scanning is compiled into an inspection report. The consignment is re-routed to green lane. Inspection report is entered into the EDI and an assessment notice for any additional payments is provided to the importer.
3.
For consignments in Red lane, inspectors from customs and competent agencies examine the consignments. The findings are entered into an inspection report and the consignment is re-routed to the green lane. Customs issues an assessment notice for additional payments.41
Stage V: Release order is issued42 4.
Once the customs clear the consignment, SGD will be notified as “Customs Cleared” and a notification will be sent to the terminal operator stating that the goods are ready for release.
5.
Terminal operator will collect the SGD folder issue the exit note on the NCS system.
6.
Importer collects the consignment and submits the exit note to the customs officers.
7.3 Lead Time and Cost involved for Overall Import Process43 According to the World Bank, the associated time and cost of import for a standard goods shipment are listed in the Table 11 below: Table 11: Lead time and Cost S. No Import Procedure 1 Documents preparation 2 Customs clearance and inspections Total:
Lead Time (Hours) 173 284 457
8. Key import documents 8.1
Summary Table of Key Import Documents44
8.1.1 Mandatory Documents Seven mandatory documents are required for importing goods into Nigeria.
41 Nigeria Customs Services 42 Nigeria Customs Services 43 Doing Business 44 Nigeria Customs Services
33
Cost (SAR) 2,115 4,040 6,155
Table 12: Mandatory Documents for Import # Document 1 Bill of Lading 2 Commercial Invoice Combined Certificate 3 of Value and Origin (CCVO) 4 Packing List Single Goods 5 Declaration 6 Delivery Order 7
Pre-Arrival Assessment Report
Procured for
1
Customs
✓✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Customs
✓✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Customs
✓✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Customs
✓✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Customs
Customs
✓✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Shipping company
Customs
✓✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Customs
Customs
✓✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Procured from Shipping Company Exporter Competent authorities in origin country Exporter
2
3
4
5
6
7
8
9
Note: 1 - Building Materials, 2 - Chemicals & Polymers, 3 - Food Products, 4 - Packaging,- Consumer Durables, 6 - Heavy Machinery & Electronics, 7 - Precious Metals & Jewelry 8- Pharmaceuticals, 9 – Textiles
8.1.2 Additional Documents A number of additional documents are generally required for customs clearance, details of which are provided below in Table 13 Table 13: Additional documents for import Procured Procured # Document 1 2 3 4 5 6 7 8 9 from for Competent Certificate of 1 authority in Customs ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Production origin country 2 Letter of Credit Bank Customs ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ SONCAP Independent certificate/ 3 Accredited Customs ✓ ✓ ✓ ✓ ✓ ✓ ✓ certificate of Firm (IAF) conformity Health Competent 4 certificate/Phytosan authority in Customs ✓ itary certificate origin country Note: 1 - Building Materials, 2 - Chemicals & Polymers, 3 - Food Products, 4 - Packaging, 5 - Consumer Durables, 6 - Heavy Machinery & Electronics, 7 - Precious Metals & Jewelry 8 - Pharmaceuticals, 9 – Textiles
34
8.2 Documents Overview 8.2.1 Bill of Lading The Bill of Lading as defined by the International Trade Centre (Intracen) acts as45, 1. A receipt where the carrier acknowledges that he has received the carriage and acts as an evidence for the contract of carriage. 2. A transferable document of title where the goods are delivered by handing over a bill of lading provided the shipment was consigned ‘to order’ and all the following validations are in order
Figure 3: Bill of Lading sample 8.2.2 Commercial Invoice Proforma Invoice is issued by the exporter or seller to the importer or buyer and specifies the trade features of the sales contract46.
Figure 4: Commercial Invoice sample 8.2.3 Packing List47 Packing lists provide detailed information about the shipment. An international packing list contains details about the seller, buyer, shipper, invoice number, date of shipment, mode of transport, carrier, and itemizes quantity, description, the type of
45 International Trade Center 46 Nigeria Trade Info Center 47 Delight movers
35
package, such as a box, crate, drum, or carton, the quantity of packages, total net and gross weight (in kilograms), package marks, and dimensions.
Figure 5: Packing list sample 8.2.4 Combined Certificate of Value and Origin CCVO serves as an invoice and declaration for the goods imported into Nigeria. It carries the details about the actual duties and taxes that has to be paid for the goods. CCVO is provided by the manufacturer or the Saudi exporter for the goods that are mentioned in the invoice. 48 CCVO must hold the details about the e form M number, description of imported goods, destination port, date and identification of shipment, origin and supply country.49
Figure 6: CCVO sample 8.2.5 Single Goods Declaration Form50 Single Goods Declaration provides information about the goods imported into Nigeria. Importer has to declare the imported goods via EDI to the customs department and the customs department issues the SGD.
48 Exports to Nigeria 49 Nigeria Customs 50 UN Stats
36
Figure 7: SGD sample 8.2.6 Delivery Order51 Delivery order is issued by the shipping line for customs clearance and collection of the import goods from the warehouse. Delivery order is issued in exchange of the original Bill of Lading.52
Figure 8: Delivery Order sample 8.2.7 Pre Arrival Assessment Report53 Importer can electronically submit the documents required for importation of goods (to Nigeria Customs Service) prior to the arrival of the cargo. Using PAAR, the importer can calculate the duties and charges to be paid for the import of different types of good from a particular country in question. 8.2.8 Health Certificate/Phytosanitary Certificate54 Phytosanitary / health certificate is issued by the competent authority of the exporting country to certify that the goods has been inspected and complies with the phytosanitary and sanitary requirements of the importing country.
51 International Chamber of Commerce 52 Shipping and Freight resource 53 All Africa 54 Canadian Government
37
8.2.9 Manufacturers Certificate of Production55 Certificate of production provides the details about the processes and regulations under which the goods are manufactured. Certificate of production is issued by the manufacturer and must be aligned with the information provided in the Letter of Credit. 8.2.10 Letter of Credit56 Letter of Credit is a method of payment for importation of goods. A bank provides undertaking for its customer stating that the bank would pay the stated amount in the prescribed time upon presentation of documents57. 8.2.11 SONCAP58 SONCAP is issued by the Standards Organization of Nigeria to verify that the products imported into Nigeria conforms to the applicable approved standards. SONCAP has to be obtained prior to the shipment of goods from International Accredited Firm (IAF) and is required for the customs clearance process.
Figure 9: SONCAP Certificate sample
9. Key Government Agencies involved in Import: 9.1 Summary table of Key Government Agencies involved in the Import Process: There are number of government entities who are involved in the import process in Nigeria. These entities or agencies are summarized with their roles in the import process and website in Table 14
55 Point to point 56 SON 57 GTbank 58 SON
38
Table 14: Key Government agencies involved in import Key government agencies Federal Ministry of Industry, Trade and Investment Nigeria Customs Service Nigerian Ports Authority
Role Responsible for facilitating trade and increasing trade volumes. Responsible for establishing bilateral and multilateral trade agreements. Responsible for collecting import duties and charges. Responsible for import clearance process. Responsible for development, management and operations of ports.
Central Bank of Nigeria
Responsible for providing procedures for obtaining form M
Nigerian Export Processing Zones Authority
Responsible for establishing and regulating Free zones in Nigeria
Website http://www.fmiti. gov.ng www.customs.go v.ng http://www.niger ianports.org https://www.cbn. gov.ng http://www.nepz a.gov.ng
9.2 Key Government Agencies involved for Import of all Types of Products There are a number of other governmental entities or agencies involved in the import process in Nigeria based on the type of industry or products. A list of key entities or agencies along with the information such as the industry/ product types they serve, role in the import process, and websites are given in Table 15 below: Table 15: Key standard agencies for types of products Government agency
39
Product/I ndustry
Standards Organization of Nigeria
All products
National Agency for Food and Drug Administration and Control
All products
Federal Ministry of Health
Food, cosmetics and Drug products
Function/Role Responsible for developing specifications and technical regulations for products. Responsible for ensuring quality of imported goods imported products. Responsible for regulating the imports of food products. Responsible for inspection and certification of food products Responsible for monitoring and implementing national drug policy. Responsible for developing guidelines for food, drugs, cosmetics and medical devices
Website
http://son.gov.ng
http://www.nafd ac.gov.ng http://www.healt h.gov.ng
10.
Key Standard Agencies and Their Approval Process –
Nigeria 10.1
Standard Agencies According to the Industry
Saudi Exporters in the nine industries identified by Saudi Exports are to obtain certificates for their products exported to Nigeria from the standard agencies provided for in Table 16 below: Table 16: Key standard agencies for type of products S. No 1 2
Standard Agency Name Standards Organization of Nigeria National Agency for Food and Drug Administration and Control
1
2
3
4
5
6
7
8
9
Web link
✓✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ http://son.gov.ng ✓ ✓
http://www.nafdac. gov.ng
Note: 1 - Building Materials, 2 - Chemicals & Polymers, 3 - Food Products, 4 - Packaging, 5 - Consumer Durables, 6 Heavy Machinery & Electronics, 7 - Precious Metals & Jewelry - Pharmaceuticals, 9 – Textiles
10.2
Standards Organization of Nigeria59
Standards Organization of Nigeria (SON) was established in 1971 under the Act no 56 of 1971 and is the competent authority for developing standards and ensuring compliance of goods intended for free market circulation in Nigeria. Nigerian Standards are called as Nigerian Industrial Standards and SON is responsible for developing these standards along with the respective competent authorities. Prior to importing, the goods must undergo verification and testing in an Independent Accredited Firm (IAF) in the origin country. A SONCAP (Standards Organization of Nigeria Conformity Assessment Program) certificate must be obtained by the exporter. Intertek is an Independent Accredited Firm for providing Certificate of Conformity. Saudi Exporters can obtain the CoC from Intertek in Saudi Arabia. Saudi exporter can obtain more information about Intertek by visiting the link provided below: http://www.intertek.com/contact/ema/saudi-arabia/
59 SON
40
10.2.1 Process for Acquiring SONCAP certificate SONCAP certificate confirms the quality and conformity of the imported goods as per Nigerian standards. Prior to obtaining SONCAP certificate, the exporters must obtain a certificate of conformity from the IAF in the country of origin. The certificate of Conformity must confirm that the products comply with the applicable Nigerian technical regulations and standards. In cases of Non conformity, a non-conformity report will be issued to the exporter. Standards Organization of Nigeria has provided three routes for obtaining the SONCAP certificate depending on the registration status of the product and manufacturer. Route A: Unregistered or unlicensed goods imported by Saudi Exporters will be individually verified for conformity by the IAF. Every shipment will be inspected and tested to confirm the quality and standard of the goods. A product certificate is issued with a validity of six months and a COC will be issued to the exporter valid only for the consignment. Prior to the CoC issuance, the consignment will be sealed by the IAF. Saudi Exporters who do not import to Nigeria frequently can use this route. Route B: If Saudi Exporter is exporting IAF registered products, then a CoC will be issued by route B. Imported products can be registered with the IAF upon satisfactory inspection of manufacturing site. Prior to the CoC issuance, samples of the imported products are obtained and tested by the accredited laboratories and a product certificate valid for 1 year is issued. On satisfactory testing, a COC is issued and the containers are sealed by the IAF. If Saudi Exporters demonstrate acceptable level of compliance in Route A and if they are frequent exporters, route B can be followed to obtain CoC after COC issuance these products are examined and tested for at least 40% of shipments per quarter Route C: If the Saudi Exporter is exporting licensed products, then a CoC can be obtained by the Route C. Products can be licensed after testing and factory audit is performed by the IAF. After COC issuance, these products will be under regular surveillance and a pre-shipment verification will be done twice a year to ensure the conformity of the product. On satisfactory testing of products, a CoC is issued and the containers of the shipment are sealed. If Saudi Exporters demonstrate high level of compliance in route B, the products qualify for Route C. The process to acquire SONCAP certificate is illustrated in Figure 10:60 Stage I: 1. Saudi exporter must complete and submit the request for product certificate form to the IAF. 2. Saudi exporter must also submit the relevant documents for obtaining the product certificate. Saudi exporters can obtain the application form and the documents required for product certificate from the link provided below: http://www.exports2nigeria.com/resources 60 Exports to Nigeria
41
3. The fees for obtaining the Product certificate is paid by the Saudi exporter. Stage II: The IAF will assess the application form and the documents submitted. Stage III: 1. IAF may inspect the manufacturing site (depending upon the route) and may obtain samples. 2. Product samples will be tested by an approved laboratory. 3. Result of the sample testing is compiled into a report Stage IV: 1. IAF evaluates the test report 2. On successful evaluation, a product certificate is provided with a validity of 6 months to 1 year depending on the type of route selected by the exporter. Stage V: 1. Saudi exporter must complete and submit the Request for Certificate of conformity form to the IAF. 2. Saudi exporter must also submit the relevant documents for obtaining the Certificate of conformity. 3. The fees for obtaining the Certificate of Conformity must be paid by the Saudi exporter. Application form for CoC and the list of documents required can be obtained from the link provided below: http://www.exports2nigeria.com/resources Stage VI: 1. IAF evaluates the application form and the documents submitted and cross verifies whether the product certificate is obtained for all products. 2. At this stage, depending upon whether the product has been registered / licensed, IAF might carry out further
physical inspection, sampling / testing, if deemed necessary. 3. IAF supervises the loading of the goods to the container and seals the container.
42
Illustrative process for SONCAP certificate I
II
Application Form and Payment of fees
III
Assessment of Application
Testing and Inspection of products
$
$
IV
V
VI
Inspection of shipment
Application Form and Payment of fees
Product Certificate is issued
VII
SONCAP certificate is issued Figure 10: Process for SONCAP certificate
= Process stage
Stage VII: 1. Once the container is sealed and all relevant information are provided, the Certificate of Conformity/ SONCAP certificate is issued by the IAF to the exporter
43
10.2.2 Key Documents Required The Key documents required to obtain Product certificate are mentioned below: 1. Completed request for product certification form. 2. Factory Audit report 3. Product identity declaration 4. QMS and accreditation certificate 5. Manufacturers testing certificate 6. Test reports 7. MSDS 8. Technical data sheet The Key documents required to obtain Certificate of Conformity/ SONCAP certificate are mentioned below: Completed request for certificate of conformity form 1. Bill of lading 2. Product certificate obtained from the IAF 3. QMS certificates 4. Test reports 5. Proforma invoice 6. Packing lists 7. Photographs of products 8. IDF 10.2.3 Costs Involved61 Table 17: Costs for SONCAP certificate S. No
Contents
Cost (SAR)
1 2 3 4 5 6
Product certificate for unregistered product Product certificate for registered product Product certificate for licensed product SONCAP Certificate/ CoC Non Conformity report Certificate Amendment
1,125 1,125 4,875 1,125 1,315 375
61 Exports to Nigeria
44
Additional model (SAR/copy) 112.5 225 225 -
10.3 National Agency for Food and Drug Administration and Control62 The National Agency for Food and Drug Administration and Control (NAFDAC) is the authority for regulating and controlling food, drug, chemicals, cosmetics and medical devices in Nigeria. The authority was established under the Decree 15 of 1993 and regulates products under Cap N1 of National Agency for Food and Drug Administration and Control Act, 2004. NAFDAC ensures that the importer products comply with the necessary requirements. Prior to importation, drug and food must be registered with the NAFDAC. 10.3.1 NAFDAC Drug Registration Process The NAFDAC drug registration process is illustrated in Figure 12 below6364: Stage I: 1. Saudi Exporter appoints a registered pharmaceutical company in Nigeria to complete the drug registration process who is then responsible for the safety, quality, and efficacy of the product in Nigeria. 2. Saudi exporter must provide a power of attorney to the local company for completing the process. Note: The original power of attorney must be notarized by a notary public in the country of origin. Stage II: 1.
An application letter requesting import of samples is submitted by the local company to the Director (Registration & Regulatory Affairs).
2.
Local company submits the required documents and pays the fees for the obtaining an import permit for importing drug samples.
Note: Separate applications must be submitted for different products. Stage III: The submitted application and documents are evaluated by the authorities. Stage IV: On successful evaluation, an import permit to import samples is issued to the applicant. Saudi exporter ships the drug samples along with the import permit.
62NAFDAC 63 WHO 64 NAFDAC
45
Illustrative Process for Drug Registration I
Appoint a registered company in Nigeria
II
III
Submission of application, fees payment and samples
Application is Evaluated
$
$
VI
GMP of Manufacturing site is verified
VII
Clinical trial of Drug
V
Submission of application, fees payment and samples
IV
Import permit is issued
VIII
Drug is registered
Figure 12: Drug registration process
= Process stage
Stage V: 1. An application form for drug registration must be submitted to NAFDAC. 2. The dossier for the drug and the imported samples must be submitted to NAFDAC for evaluation. 3. Applicant pays the fees for registering the drug and clinical trials.
46
4.
An invitation letter to visit the manufacturing site from the Saudi Exporter/ manufacture must be submitted along with
other documents. Stage VI: 1. Authorities from NAFDAC will inspect the manufacturing site to check whether the manufacturing facility complies with the Good Manufacturing Practices regulation. 2. A detailed report of inspection is compiled and evaluated for registering the drug products. Stage VII: 1. The samples are tested in the laboratory for ensuring compliance with the standards and specifications. 2. The test report is compiled and provided to NAFDAC. Stage VIII: 1. If the product complies with all requirements, NAFDAC grants Certificate of registration for the drug. 2. A NAFDAC registration number is provided to the applicant. 3. Certificate of registration is valid for a period of five years. 10.3.2 Key Documents Required The Key documents required to register drug are mentioned below: 1. Duly filled application form 2. Power of Attorney from the exporter 3. GMP certificate 4. Certificate of Pharmaceutical Product 5. Model stability report for Active pharmaceutical ingredients 6. Nonrefundable fee 7. Trade Mark approved from Federal Ministry of Commerce in Nigeria 8. Annual license of a pharmacist issued by pharmacist council of Nigeria 9. Certificate of analysis 10. Current Certificate of Registration Retention of Premises issued by the Pharmacists Council of Nigeria 11. 3 samples of drugs 10.3.2 Lead Time 1. Once the samples are submitted, NAFDAC requires up to 100 days for the applicant to register drug in Nigeria.
47
10.3.3 Costs Involved Table 18: Costs for drug registration S. No Contents 1 Application for registration of a pharmaceutical product 2 Registration of Over The Counter medicines* 3 Registration of Prescription medicines* 4 Registration of orphan drugs* Note: * exclusive of 5% VAT
Cost (SAR) 6 11,880 2,970 950
10.4 NAFDAC Food Registration Process65 Stage I: 1. Saudi Exporter appoints a registered company in Nigeria to complete the registration process for Food. 2. Saudi exporter must provide a power of attorney to the local company for completing the process. Note: The original power of attorney must be notarized by a notary public in the country of origin. Stage II: 1.
An application letter requesting import of food samples is submitted by the local company to the Director (Registration & Regulatory Affairs).
2.
Local company submits the required documents and pays the fees for the obtaining an import permit for importing food samples.
Note: Separate applications must be submitted for different products. Stage III: 1.
The submitted application and documents are evaluated by the authorities.
2.
On successful evaluation, an import permit to import food samples is issued to the applicant.
3.
Saudi exporter ships the food samples along with the import permit.
Stage IV: 1. An application form for food registration must be submitted to NAFDAC. 2. The documents for registering food and the imported samples must be submitted to NAFDAC for evaluation. 3. Applicant pays the fees for registering the food products and clinical trials. 4. An invitation letter to visit the manufacturing site from the Saudi Exporter/ manufacture must be submitted along with other documents. 65 NLIPW
48
Illustrative Process for Food Registration
II
III
Submission of application, fees payment and samples
Application is Evaluated
I
Appoint a registered company in Nigeria
$
$
VI
GMP of Manufacturing site is verified
VII
Clinical trial of Food samples
V
Submission of application, fees payment and samples
IV
Import permit is issued
VIII
Food product is registered
Figure 13: Food Registration process
= Process stage
Stage V: 1. Authorities from NAFDAC will inspect the manufacturing site to check whether the manufacturing facility complies with the Good Manufacturing Practices regulation. 2. A detailed report of inspection is compiled and evaluated for registering the drug products.
49
Stage VI: 1. The samples are tested in the laboratory for ensuring compliance with the standards and specifications. 2. The test report is compiled and provided to NAFDAC. Stage VII: 1. If the product complies all requirements, NAFDAC grants Certificate of registration for the food products. 2. A NAFDAC registration number is provided to the applicant. 3. Certificate of registration is valid for a period of five years. 10.4.1 Key Documents Required The Key documents required to register a food product are mentioned below: 1. Duly Filled application form 2. Power of attorney from manufacturer. 3. License of manufacturer in country of origin authorized by the country’s Nigerian embassy or consulate or any Commonwealth country consulate or West African country consulate. 4. Certificate of manufacture and free sale in the country of origin 5. Certificate of incorporation of importer 6. Proof of Trade mark from Ministry of commerce in Nigeria 7. Certificate of analysis of the product. 8. Permit to import samples 9. Letter of invitation from the manufacturer to visit the manufacturing site 10. Three sets of samples of the product 10.4.2 Lead Time 1. It requires up to 80 working days to register a food product in Nigeria. 10.4.3 Costs Involved 1. Food registration form will cost 3 SAR. 2. Registering a food product in Nigeria will cost 8,900 SAR (exclusive of 5% VAT)
50
10.5 NAFDAC Food Clearance Process66 Illustrative Imported Food Clearance Process at Port I
II
Importer obtains the Prerequisites
III
Importer completes customs declaration and submits documents
Authorities examines documents and goods
$
✓ IV
Clearance of goods Figure 14: Food clearance process at port
= Process stage
Stage I: Importer must register the food product as given in section 10.4. Further, importer has to obtain all the required documents including the phytosanitary certificate from the exporter. Note: Import process of food must be initiated by the company that registered the food products. If the importer is different, then a letter of authorization must be provided by the registered company to import the food products. Stage II: Importer completes the Single Goods Declaration form online. Importer submits the required documents for customs clearance process of food products. Documents for pre-release first stamp must be submitted indicating the evidence of payment and the address of warehouse where the products is to be stored. 66 NAFDAC
51
Stage III: Documents submitted will be evaluated by customs officers. Authorities from NAFDAC will inspect the products and samples will be obtained from the consignment. A laboratory analysis will be done by a NAFDAC laboratory within 24 hours and the test reports will be evaluated. Stage IV: On satisfactory testing, the imported goods are cleared by the customs authorities. 10.5.1 Key Documents Required The Key documents required to import food products are mentioned below: 1. Single Goods Declaration (SGD) form. 2. Commercial Invoice 3. Risk assessment report 4. Form M 5. Bill of lading 6. Packing list 7. Certificate of analysis 8. Phytosanitary certificate 9. Irradiation analysis certificate (if applicable) 10.5.2 Costs Involved Table 19: Costs for food clearance process Consignment type Finished food products Bulk food products (sugar, rice, salt and fish) Containerized food (Frozen fish, raw materials and meat) Note: All costs are exclusive of 5% VAT
52
Cost of Inspection per container (SAR) 238 594
Cost of Laboratory analysis per product (SAR) 594 594
Irradiation test per product (SAR) 298 298
238
594
594
11. Packaging and Labelling Regulations – Nigeria 11.1 General Industries67 11.1.1 Industry Regulator The regulator for the general industries is the Standards Organization of Nigeria. For more information about the regulator, Saudi exporters may visit the link provided below: http://son.gov.ng/ 11.1.2 Laws and Regulations The laws and regulations are set by the Federal Republic of Nigeria, under the “Act no 56 of 1971” For more information about the laws and regulations, Saudi exporters may visit the link provided below: http://son.gov.ng/wp-content/uploads/2016/11/SON-ACT-2015.pdf
11.2 Food Industry68 11.2.1 Industry Regulator The food industry regulator is the National Agency for Food and Drug Administration Control in Nigeria. For more information about the regulator, Saudi exporters may visit the link provided below: http://www.nafdac.gov.ng/ 11.2.2 Laws and Regulations NAFDAC devises Regulations relating to the Labelling of pre-packaged food, as provided under the “Pre-Packaged Food (Labelling) Regulations 2005”. For more information about the laws and regulations, Saudi exporters may visit the link provided below: http://www.nafdac.gov.ng/images/REGULATIONS/Food_Imports/20%20PREPACKAGED%20FOOD%20_LABELLING_%20REGULATIONS%202005.pdf 11.2.3 Labelling Requirements69 The labelling requirements for food products are listed in the Table 20 below:
67 SON 68 NAFDAC 69 NAFDAC
53
Table 20: Food labelling requirements # 1
Category Name of the food product
2
Name and address
3
List of ingredients
4
Trade mark
5
Expiry date
6 7 8
Batch number Storage conditions Registration number
9
Nutritional labelling
10
Directions for use
Information required
Address of the manufacturer, packer, distributor, importer, exporter or vendor must be specified on the label. Country of manufacturing or the last transformation country must be indicated in the label. Complete list of ingredients must be provided in descending order of their proportion More information must be declared for ingredients causing hypersensitivity. Date of expiry must be indicated with the words “Best Before” or “Use By” or “expiry” in day, month and year format.
Requirements
Labels must be clear and legible to the consumer and must be written in English
Required special storage conditions must be specified. Registration number from NAFDAC must be indicated Energy value Amounts of Protein, carbohydrate and fat Amounts of other nutrients
11.3 Pharma industry 11.3.1 Industry Regulator70 The pharma industry is regulated by the National Agency for Food and Drug Administration Control in Nigeria. For more information about the regulator, Saudi exporters may visit the link provided below: http://www.nafdac.gov.ng/ 11.3.2 Laws and Regulations “Drug Labelling Regulations 2005” provides information about the labelling and packaging requirements of drugs. For more information about the laws and regulations, Saudi exporters may visit the link provided below: http://www.nafdac.gov.ng/images/REGULATIONS/DRUGS/4%20DRUG%20LABELLING%20REGULATIONS%202004.pdf 70 NAFDAC
54
11.3.3 Labelling Requirements71 The labelling requirements for pharma are listed in the Table 21 below: Table 21: Drug labelling requirements S. no
Category
1
Name or Brand Name
2
Name and address
3 4 5
Net content Trade mark Identification marks Non Nutritive sweeteners declaration
6 7
Warnings
Information required Generic name must be indicated. Active ingredients, strength and dosage of drugs must be indicated. Must indicate the complete address with wordings “Manufactured by….. For” or “Manufactured for…… by…” Weight of the unit
Requirements
Labels must be clear and legible to the consumer and must be written in English. Labels may have other languages.
For capsules, tablets etc. Must be indicated in Milligram per dosage unit Warning statements must be provided “Keep this medicine out of children reach”
11.4 Cosmetics Industry 11.4.1 Industry Regulator The Cosmetics industry is regulated by the National Agency for Food and Drug Administration Control in Nigeria. For more information about the regulator, Saudi exporters may visit the link provided below: http://www.nafdac.gov.ng/ 11.4.2 Laws & Regulation “Cosmetics Labelling Regulations 2005” provides information about the labelling and packaging requirements of drugs. For more information about the laws and regulations, Saudi exporters may visit the link provided below: http://www.nafdac.gov.ng/images/GUIDELINES/COSMETICS%20GUIDELINES/IMPORTS/GUIDE37_GUIDELINES%20FO R%20REGISTRATION%20OF%20IMPORTED%20COSMETICS%20IN.pdf
71 NAFDAC
55
11.4.3 Labelling Requirements72 The labelling requirements for pharma are listed in the Table 22 below: Table 22 Cosmetics Labelling Requirements S. no
72 NAFDAC
56
Category
1
Product Characteristics
2
List of ingredients
3
Net content
4
Manufacturer
5
Trademark
6
Expiry date
Information required The outer and inner labels of a cosmetic shall be required to bear the name of the cosmetic product which shall indicate the accurate nature of the cosmetic. A complete list of ingredients used in preparing the cosmetic product shall be declared on the outer label and inner label where appropriate in decreasing order of predominance Average net content of every cosmetic product shall be declared on the inner and outer label in the metric system Name, Address and country The trade mark shall be displayed on the label such that the trade mark shall not give a wrong impression of the nature, quality or substance of the cosmetic product The batch number shall be indicated on both the inner and outer labels (where present) of all Cosmetic products and where it is impossible, for reasons of size, for details of the batch number to appear on both the primary container and outer packaging, the details shall be given on the outer packaging.
Requirements
Labels must be clear and legible to the consumer and must be written in English in addition to any other language.
57
7
Batch number
8
Guidance to use
9
Registration number
10
Manufacturing date
11
Storage conditions
12
Warnings
The batch number shall be indicated on both the inner and outer labels (where present) of all Cosmetic products and where it is impossible, for reasons of size. Directions for use, including reconstitution, where applicable, shall be included on the label to ensure correct utilization of the cosmetic produ Every cosmetic product shall bear on its label its Registration Number issued on Registration in such a manner as prescribed by the Agency. The required special storage conditions shall be specified on both the inner and outer labels (where present). The outer label and inner label of every cosmetic product shall carry clear and adequate warning to prevent any danger in the use of the product.
Labels must be clear and legible to the consumer and must be written in English in addition to any other language.
References Footnote 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
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Links http://www.doingbusiness.org/data/exploreeconomies/nigeria https://www.export.gov/article?id=Nigeria-Business-Customs https://www.export.gov/article?id=Nigeria-Dispute-Settlement http://www.doingbusiness.org/data/exploreeconomies/nigeria#enforcing-contracts http://www.journalngonline.com/2016/08/18/nigeria-customs-service-act-2013-explanatorymemorandum/ http://www.journalngonline.com/2016/08/18/nigeria-customs-service-act-2013-explanatorymemorandum/ http://www.us-sabc.org/i4a/pages/index.cfm?pageid=3318%20 https://ustr.gov/sites/default/files/files/reports/2015/NTE/2015%20NTE%20Nigeria.pdf https://ustr.gov/sites/default/files/files/reports/2015/NTE/2015%20NTE%20Nigeria.pdf http://lawnigeria.com/LawsoftheFederation/VALUE-ADDED-TAX-ACT.html http://lawsofnigeria.placng.org/print.php?sn=104 http://lawsofnigeria.placng.org/print.php?sn=104 https://www.wto.org/english/tratop_e/tpr_e/s356_e.pdf * https://ustr.gov/sites/default/files/files/reports/2015/NTE/2015%20NTE%20Nigeria.pdf https://ustr.gov/sites/default/files/files/reports/2015/NTE/2015%20NTE%20Nigeria.pdf http://son.gov.ng/frequently-asked-questions/ https://www.wto.org/english/tratop_e/tpr_e/s356_e.pdf * https://www.wto.org/english/tratop_e/tpr_e/s356_e.pdf * http://son.gov.ng/soncap/ http://ninas.ng/ https://www.wto.org/english/tratop_e/tpr_e/s356_e.pdf * https://www.wto.org/english/tratop_e/tpr_e/s356_e.pdf * https://www.wto.org/english/tratop_e/tpr_e/tp347_e.htm* http://www.nigerianports.org/ http://inlandcontainers.net/ http://shipperscouncil.gov.ng/inland-dry-port http://inlandcontainers.net/# http://www.linescape.com/ http://www.nepza.gov.ng/default.asp http://www.nigerianports.org http://www.journalngonline.com/2016/08/18/nigeria-customs-service-act-2013-explanatorymemorandum/
32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62
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https://www.cma-cgm.com/static/eCommerce/Attachments/Nigeria%20031115.pdf https://www.cbn.gov.ng/out/2014/ted/ted.fem.fpc.gen.01.012.pdf https://www.customs.gov.ng/Guidelines/Destination_Inspection/ec-cus-clear-procedures.php https://www.cbn.gov.ng/out/2014/ted/ted.fem.fpc.gen.01.012.pdf https://www.customs.gov.ng/Guidelines/Destination_Inspection/import_procedures.php https://www.customs.gov.ng/Guidelines/Destination_Inspection/responsibilities_ship-companies.php https://www.customs.gov.ng/Guidelines/Destination_Inspection/guidelines.php https://www.customs.gov.ng/Guidelines/Destination_Inspection/ec-cus-clear-procedures.php https://www.customs.gov.ng/Guidelines/Destination_Inspection/ec-cus-clear-procedures.php https://www.customs.gov.ng/Guidelines/Destination_Inspection/cus-clear-procedures.php https://www.customs.gov.ng/Guidelines/Destination_Inspection/ec-cus-clear-procedures.php http://www.doingbusiness.org/data/exploreeconomies/nigeria#trading-across-borders https://www.customs.gov.ng/Guidelines/Destination_Inspection/import_procedures.php http://www.intracen.org/coffee-guide/logistics-and-insurance/bills-of-lading-and-waybills http://nigeriatradeinfocenter.com/index.php/proforma-invoice-and-imports-into-nigeria/ http://delightmovers.com/forms/qatar/Qatar%20Guide%20Lines%20%20Import%20to%20Qatar.pdf http://www.exports-to-nigeria.com/en/news/ccvo https://www.customs.gov.ng/Guidelines/Destination_Inspection/guidelines.php http://unstats.un.org/UNSD/trade/WS%20AddisAbaba04/Country%20presentations%20on%20pape r/CountryPresentationStatisticsNigeria.pdf http://www.iccwbo.org/chamber-services/trade-facilitation/certificates-of-origin/what-is-a-certificateof-originhttp://shippingandfreightresource.com/what-is-a-delivery-order/ http://allafrica.com/stories/201503120734.html http://www.inspection.gc.ca/plants/exports/phytosanitarycertificates/eng/1299872808479/1299872974262 http://point-point.com/manufacturers-certificates-of-production-for-nigeria/ http://son.gov.ng/soncap/ http://www.gtbank.com/index.php/letters-of-credit-bills-for-collection http://son.gov.ng/soncap/ http://son.gov.ng/soncap/ http://www.exports2nigeria.com/resources, http://www.exports-to-nigeria.com/en/certificationprocess http://www.exports-to-nigeria.com/en/faq http://www.nafdac.gov.ng/index.php/about-nafdac/nafdac-act
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http://apps.who.int/medicinedocs/documents/s17115e/s17115e.pdf http://www.nafdac.gov.ng/images/GUIDELINES/DRUG%20GUIDELINES/IMPORTS/GUIDE32_GUIDE LINES%20FOR%20REGISTRATION%20OF%20IMPORTED%20DRUG%20PRODUCTS%20IN%20NIG ERIA.pdf https://nlipw.com/wp-content/uploads/GUIDE38_GUIDELINES-FOR-REGISTRATION-OF-IMPORTEDFOOD-PRODUCTS-IN.pdf http://www.nafdac.gov.ng/images/PDF_DOCS/Guidelines/Food_Imports/GUIDE11_GUIDELINES%20 FOR%20CLEARANCE%20OF%20IMPORTED%20REGULATED%20FOOD%20PRODUCTS.pdf http://son.gov.ng/soncap/ http://www.nafdac.gov.ng/ http://www.nafdac.gov.ng/images/REGULATIONS/Food_Imports/20%20PREPACKAGED%20FOOD%20_LABELLING_%20REGULATIONS%202005.pdf http://www.nafdac.gov.ng/ http://www.nafdac.gov.ng/images/REGULATIONS/DRUGS/4%20DRUG%20LABELLING%20REGULA TIONS%202004.pdf http://www.nafdac.gov.ng/images/COSMETIC_PRODUCTS_LABELLING_REGULATIONS_2005_15.pdf *Kindly copy and paste this link on a web browser to know more information and for updates
