The Customs Authorities and inspection activities at the ports are inseparable, anytime, any day. And if you make any mistake in your record or documentation, you risk facing the snares of the Nigerian Custom Authorities during the valuation challenge process.
This is apparently one single most important reason why you need a reliable Customs Licensed agent that has an in-depth knowledge of the intricacies of Customs Clearing.
Need one? Speak with us here.
What is a Valuation Challenge (In Customs Clearing)
Valuation Challenge is a term used in customs clearing.
It is one of the processes where the customs officers/authorities assess the value of the imported goods for the purpose of ensuring total compliance.
Essentially, it is an inspection performed by customs authorities when they have caused doubt about the worth of your goods or the value of the customs.
It is in place to ensure that goods entering a country are correctly valued.
This situation can arise during the import process when the customs value of a shipment is disputed.
The importer, exporter, or another party may believe that the customs value has been assigned to the merchandise in an incorrect amount, and they may file a challenge in order to have the value adjusted.
Also Read: Everything you need to know about the Shipping Manifest Document
How does Valuation Challenge in Customs Clearing work in Nigeria?
After your shipment has been physically inspected, it may be selected for a valuation check. This means that customs officials will determine the value of your goods, and check for disputes.
Most of the time, the goods undergo this process whenever the customs value of your shipment invokes some form of inconsistency with the record.
You will need to provide documents to prove that the value of your goods is correct.
If your shipment is successfully challenged, it may be reassessed and subject to additional duties and taxes or otherwise, freed to go.
Apparently, this doesn’t sound good for business, which is why we recommend that you work with the right Customs Licensed Agent.
Is Valuation Challenge the same as other Normal Customs Inspection Procedures?
One thing is certain.
They are both inspections carried out by the customs authorities.
However, the different situation raises a need for one to continue over the other and are relatively dependent on some factors.
For example, A Valuation Challenge is carried out in the event that the customs authorities have doubts about the customs value of your cargo.
Usually, this happens after the normal customs inspection procedures have taken place. Your cargo is then separated from others in order to carry out the Valuation Challenge.
Normal customs inspection procedures, on the other hand, are carried out in order to assure that the quality and quantity of your items are properly verified and confirmed without a doubt that the items are good to go.
You’ll likely be left with a few questions. “What if things go bad?” What do you do? Can you stand the uncertainty of the end response of the customs authorities?
Most times, the customs value may be hiked beyond the initial expectations when a discrepancy is discovered.
In order to prove to Customs Authorities that your goods are correct, you will be required to provide supporting evidence. If your supporting evidence is strong enough to settle the discrepancy, disputes or whatever, you may be freed.
And that’s where we recommend that you work with a Customs Licensed Agent that has enough grip in the clearing business.
Documents Needed During Valuation Challenge
In a previous post, we shared with you various shipping documents. Now, in carrying out a Valuation Challenge, the customs authorities will require some import-export documents from you.
They are as follows:
- Bank statement – The bank statement which captures related details to the shipment as well as other details
- Sea freight Insurance Policy – This is a type of maritime insurance that protects products against the danger of loss, damage, or an accident such as a fire, collision, or explosion.
- Commercial invoice – it’s a very important document that is legally provided by the seller to the buyer. It acts as a contract and proof of sale between the two.
- Sale invoice – this document acts as proof of debt. It contains the amount the buyer owes the seller for the purchased products, the payment details like the exact date, invoice number, etc.
- Transport invoice – this document shows the total transport cost you owe.
- Purchase order – is a promise document the importer sends to the exporter stating that payment will be made on a designated date. It contains details of the product the quality and the type. It benefits both parties in that it guarantees the seller of payment and also the buyer is able to keep track of the order. The promise reminds them to adhere to the agreed date.
- Insurance invoice – this document highlights the insurance bill
- Bill of Lading – it is a document issued by the carrier to the shipper that contains the type of a product, quantity, and the final location of the goods. Ideally, it acts as a shipment receipt that normally goes along with your goods.
- Export declaration – it’s a document issued at the airport that contains details of the goods that are yet to be exported. It’s used by the customs authorities exporting goods out of the EU.
- Clearance order – this document is issued when your goods meet custom clearance entry formalities hence goods can then be released from customs to the importer.
- Direct representation – here the stated party appoints a representative like a carrier for example. The party transfers the right of provision via a message to the representative. The representative also carries out all activities relating to declarations associated.
Contact Bowagate Global Limited Today
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Give us a call: 08147068472. Our lines are open during business hours, so you can speak to a real person. Or send an Email: [email protected]. You can also visit www.bowagateglobal.com for more details.
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