It’s not hard to get the shipping process wrong. In fact, it’s pretty easy to make a mistake that will delay your shipment or even cost you money. International trade can be complex, and so, requires strict focus on important things from the beginning to avoid some shipping mistakes, especially the shipping document mistakes.
When trading internationally, it is important for an exporter to be aware of the documents that need to be prepared and issued. When you export goods to another country, your exporter must provide you with a series of documents that are used for clearing the goods at their port of delivery. These documents are usually agreed upon in advance by your importer and your exporter. Some details may be required by their customs authorities; others may not.
To make sure you’re doing everything correctly when shipping your goods to a foreign buyer, it’s important to avoid all forms of shipping document mistakes as none is to be overlooked. This includes ensuring all documents are in order, that the goods are packaged properly, and that you have the necessary shipping insurance.
By taking care of these preparations, you can help ensure a smooth transaction – from start to finish as this also helps to reduce unnecessary delays at the delivery port or at customs.
Here are seven (7) shipping mistakes to avoid when shipping to Nigeria (or to any part of the world from anywhere).
1. Failing to include a packing list or commercial invoice
For benefit of clarity, you need to really understand what a packing list is. You also must know what a commercial invoice is.
What is the Packing List and Commercial Invoice?
A packing list is a document required by customs in declaring the list of items that you imported. It can include anything from clothes to toiletries to electronics, and any other item being shipped. Packing lists vary depending on the type of trip you are taking and the climate of your destination.
On the other hand, a commercial invoice is a customs document that is used to declare the value of goods being imported into a country.
When importing or exporting goods, it is important to have an accurate and complete packing list and be able to declare the value of your goods properly. This packing list document lists all of the items that are being shipped, along with specific information about each item. The packing list can be used as a reference to ensure that nothing is left behind in the shipping process.
There are a few key pieces of information that should be included on every packing list for import and export such as the name of the shipper, the name of the consignee, the bill of lading number, the weight and dimensions of each package, a description of each item in each package, etc.
When you fail to include the packing list or the commercial invoice in your import-export shipment, it becomes difficult for your freight forwarder and clearing agent to know what is inside the package. This can lead to confusion and delays at the port since your shipment might be inspected to verify that the contents match what was declared.
2. Incorrectly listing the product’s value on the customs declaration form
The custom procedure requires that the value of goods on the customs declaration form must be correct. The negative implication of not taking this seriously is that it soon has an effect on your time and costs you money as well as your reputation.
The value of the goods being shipped should be listed accurately on the customs declaration form, whether that is a paper or electronic one. This information allows customs officials to determine the correct duties and taxes owed when your package arrives in its destination country.
If you list too low, you may be charged additional fees by customs officials when unloading your shipment from its transport vessel. If you list too high, it can result in fines and penalties equal to at least twice the amount of duty owed if your shipment is seized because it was overvalued.
Read About: How to Avoid Demurrage, Detention and Valuation Challenge in Importation
Undervaluing your goods by even just $1 could mean paying an extra $50 in taxes at customs! The best way to avoid this is by getting familiar with how much your products should be worth according to their retail price (not wholesale).
Your listing should include all relevant details about each item in your shipments, such as the items, their quantity, size and color. Failing to do so could result in delays at customs or additional fees being charged by carriers or freight forwarders who have no way of knowing what they’re shipping unless they receive this information from importers like you!
3. Not declaring all items on the commercial invoice
The commercial invoice is a document that contains information about all the items being shipped. This includes the number of items and their value like the products being shipped, including quantity, value, and description. It also contains information about the sender and recipient of the goods being shipped. The commercial invoice can be used for taxation purposes or to track your shipment through customs.
In order to avoid any complications with customs officials, you must include all items being shipped in this document. If you forget to do so, you can risk losing your shipment which will result in financial losses for both parties involved in the transaction.
Remember that the commercial invoice should include the Name and address of the shipper and consignee, and the details of each item being shipped (including quantity, price per unit, value per unit and total value). In fact, ALL PERTINENT INFORMATION about each item must be declared.
It must also declare any hazardous goods being shipped. The declaration must extend to any items that may be hidden inside a box or bag (such as a laptop computer). If an item isn’t declared on the invoice, it could be considered contraband by customs officials in your destination country.
Additionally, always remember to affix a commercial invoice to the outside of their package. When you’re shipping internationally, this is mandatory by law. If you don’t do it, your parcel could get stuck at customs and delayed before it reaches its final destination.
Another common mistake is using an old commercial invoice if your shipment has changed significantly since then. For example, if you’re sending five packages instead of two like last time, use a new invoice with updated information for each shipment instead of combining them into one document as this could lead to confusion down the line and may trigger additional taxes as well as other charges that could be avoided if proper procedures were followed in the first place!
4. Shipping prohibited items
This is one of the shipping mistakes that you should avoid. You might be sending a package to your friend or family, but if they receive something they are not supposed to receive, it can be really hard to explain the situation.
The best way to avoid this mistake is by checking what you are going to ship before sending it. It’s very easy to check if something is prohibited or not. You can either search for it on Google or ask your local post office about that specific item/goods.
If you are not sure about what your shipment contains or if it contains any prohibited goods, then you should check this with your customs agent before sending it off. In addition, if you want to ship something via air freight then make sure it is not classified as dangerous goods by IATA (International Air Transport Association), otherwise, they will not allow it on board their aircraft.
Some prohibited items/goods (contraband), includes certain drugs, firearms and ammunition, explosives, etc., as well as foodstuffs such as perishable meat products, fruits and vegetables. It’s also important to make sure that everything in your shipment complies with all applicable laws regarding export restrictions on certain strategic items like diamonds or technology-related goods.
The International Trade Administration (https://trade.gov) in one of their data page listed in the Country Commercial Guide (Nigeria) Details items that are prohibited in Nigeria. Check it out before importing that item you’re not sure about yet.
5. Failing to get an export license, when necessary
An export license is an official document that allows you to export your goods from one country to another. It’s usually issued by a government agency in your country and it ensures that you are legally allowed to ship your products abroad. You can apply for an export license online or offline depending on the requirement of your country.
Without an export license, your shipment may be delayed or even confiscated by customs officials who suspect that it contains illegal items such as drugs or weapons. In fact, the need and use of documentation in import-export can never be overemphasized in any circumstance. It’s important to note that you will need a valid permit before shipping your products to Nigeria. An export license can be obtained from the Nigerian Export Promotion Council (NEPC).
Read Also: Everything you should know about the Nigerian Export Promotion Council
6. Not using a registered or qualified freight forwarder
You can’t avoid this if you really want to sleep with your eyes closed.
A freight forwarder is an independent company that acts as an agent between you and your shipper. This means they will ensure your shipment has been correctly packaged, that it is insured and that it arrives on time at its destination. They also deal with customs clearance, port authorities and other procedures required for international shipping. If your shipment travels over the sea then they will arrange for a representative to meet the ship at its arrival port.
You need to find a reputable company that has been around for a long time and has good experience in handling international shipments. This way, they will know exactly how to handle your shipment so that it doesn’t get damaged or delayed.
A qualified freight forwarder with years of experience in the industry always knows exactly what to do when it comes to getting your goods from point A to point B safely and securely. They will also know how much money you can expect to pay for shipping costs, which makes them invaluable when it comes to budgeting for your project.
The most reliable ones are duly registered with several bodies across the globe. This helps them have a good grip in navigating the complex processes of freighting and clearing and ensures that your shipment arrives safely at its destination.
7. When All Inspection Documents Dates Are Before The Shipping Date On The Bill of Lading
The Bill of Lading is what you will use to pick up your shipment at port. It is a crucial document that details all the information pertaining to your shipping. It is used by customs officials to verify whether a shipment has been cleared or not. This document also helps in determining whether there are any discrepancies between the actual weight and declared weight on the invoice.
One important thing to note when importing goods into Nigeria is that all inspection documents should have been completed before the date stated on the bill of lading. If an inspection document has been completed after this date, it may raise questions for customs officials as to why it was done later than expected. This could result in delays during clearance even if everything else seems fine.
The date of inspection must be before the shipping date to prove that all regulatory requirements before the cargo was loaded in a container and shipped from origin. Although the date of issuing the document may be after the date of shipping.
Conclusion
There are a lot of other common errors that should be avoided such as not marking packages as “fragile” if they are breakable or delicate items that need special handling; not providing complete information about each item being shipped (including serial numbers); not securing items properly so they don’t shift around inside your container while it is being transported; including hazardous materials in shipments without following proper protocols; failing to provide accurate contact information for the shipper, and failing to obtain written approval from carriers before transporting hazardous materials.
In all, the most important thing to do is to ensure that you avoid every form as much as you can. On this note, what I recommend for importers to do is to get reliable help from qualified freight forwarders to handle their shipments from start to finish. They guide and offer professional consultations.
Have you ever encountered any challenges with your shipments? Let’s hear them in the comment section. We may be of help.
