What is Form M
PreShipment 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 supply.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.