Inspection Scheme – Form M & Bulk Form M
Requirement by the Nigerian importer to open
a Form M:
The supplier’s proforma invoice showing
description of goods, quantities and their measurements, FOB unit
price, total FOB cost, total freight, total CFR, country of origin
and country of supply. The importer has to also establish Nigerian
Marine Insurance for the goods as required by Nigerian Law.
A Form M is usually issued for a particular supply
contract and allows for part shipments. For large project, a Bulk
Form M can be issued, which allows continuous part shipments throughout
the validity of the Form M. A Form M is valid for six(6) months
and can be extended once for another period of six(6) months.
The importer will fill in a Form M valid for
valid for foreign exchange(Confirmed and Unconfirmed L/C or Bill
for Collection) or he will use a Form M not valid for foreign exchange(alternative
financing arrangement where no money transfer from Nigeria to foreign
through the central bank is involved).
The importer submits the Form M and proforma
invoice to his commercial bank in Nigeria. Once accepted, the bank
will dispatch the Form M to the Lagos office of the Pre-shipment
Inspection Agent(PSIA) appointed by the Nigeria Government for the
country of supply indicated on the Form M.
The PSIA will carry out a preliminary price verification
and distribute copies of the Form M to the central Bank of Nigeria(CBN),
the Nigeria Customs Service, the National Maritime Authority(NMA)
– for seafreight and to the importer through his bank. One
complete set of documents will be sent by electronic data transfer
to the PSIA’s overseas office in charge of the country of
The PSIA’s office overseas will then send
out a Request For Inspection(RFI) to the supplier, physically inspects
the cargo and carry out the final price verification. Within 72
hours after inspection, the supplier must submit his original final
commercial invoice to the PSIA. The PSIA will apply the financial
seal on the invoice, which becomes the negotiable documents for
L/C and other money transfer purpose from Nigeria.
The supplier sends other documents required for import customs clearance
to the importer which are Original B/L or AWB, C16, copy final invoice,
and packing list.
NOTE: All goods irrespective of their nature,
size or volume are subject to the pre-shipment inspection procedure
including samples and humanitarian aid shipments.
Exempted from pre-shipment inspection are personal
effects, some perishables, used vehicles, cargo destined to Onne
Ikpokiri Oil & Gas Free zone(For registered importers only)
while Diplomatic goods and goods imported under Temporary Importation
are exempted from both Form M and the pre-shipment inspection procedures.