Starting an import business can look complicated when you are seeing terms such as HS codes, Form M, customs valuation, freight, PAAR and import duties for the first time.
The good news is that you do not need to understand the entire international trade system before making your first shipment. You need to understand the process in the right order and know which costs and requirements to check before paying a supplier.
Nigeria’s official Trade Information Portal provides step-by-step import procedures, including registration, documentation and product-specific requirements. (NTIP – Nigerian Trade Information Portal)
Start With the Product, Not the Supplier
One of the biggest mistakes beginners make is finding a supplier first and only later asking whether the product can be imported profitably into Nigeria.
Start by choosing the product you want to sell.
Check:
- How much the product sells for in Nigeria
- How much suppliers charge
- Expected shipping cost
- Applicable customs duty and taxes
- Local delivery costs
- Demand and competition
- Product quality
- Import restrictions or approvals
You should also check whether the product is prohibited or subject to special controls before placing an order. Nigeria’s Trade Information Portal provides product-specific procedures, costs, documentary requirements and controls. (NTIP – Nigerian Trade Information Portal)
Choose Where to Buy From
Beginners commonly look at sourcing markets such as China, Dubai, the UK, India and the United States.
Your choice should depend on the product rather than simply choosing the country with the lowest advertised price.
Compare:
Supplier price + shipping + insurance + customs-related costs + local logistics = estimated landed cost
A product that costs less from one country can become more expensive after freight and import charges are included.
Verify Your Supplier
Never assume that a supplier is reliable simply because the product listing looks professional.
Before making a large payment, check:
- Supplier business information
- Product specifications
- Minimum order quantity
- Customer reviews where available
- Production or processing time
- Payment terms
- Shipping arrangements
- Return or dispute procedures
For a first order, many beginners are better off testing a supplier with a smaller quantity before committing a large amount of money.
Understand the HS Code
The HS code is one of the most important things a new importer needs to understand.
Goods are classified under the Harmonized System, and the classification can affect the applicable tariff treatment and other import requirements.
Nigeria Customs currently provides an official tariff and CET lookup system where traders can search classifications and review applicable tariff information. (NCS Tariff & CET Lookup Portal)
Do not guess an HS code simply because a supplier gives you one. Check the classification against the Nigerian tariff information and the actual characteristics and use of the product.
Understand Your Importer Registration Requirements
Commercial importing requires proper registration and documentation.
Nigeria’s current customs guidance identifies trader registration and a Tax Identification Number as important parts of the electronic customs process. Customs procedures such as Form M, PAAR and declarations are handled electronically through the current customs management system. (Nigeria Customs Service)
If you are starting a proper import business, make sure your business and tax information is properly arranged before your first commercial shipment.
Learn What Form M Is
You will probably encounter Form M early in the import process.
Form M is used for importing goods into Nigeria and is processed through an Authorised Dealer Bank. Nigeria Customs’ published service standards identify documents such as a proforma invoice, insurance certificate and applicable regulatory certificates for Form M registration. (Nigeria Customs Service)
Do not wait until your goods are already on the way before finding out what documentation your particular shipment requires.
Understand PAAR
Another term beginners encounter is PAAR, meaning Pre-Arrival Assessment Report.
Nigeria Customs’ published procedure identifies documents such as the registered Form M, regulatory certificates where applicable, Bill of Lading or Airway Bill, commercial invoice, packing list and certificate of origin for the PAAR process. (Nigeria Customs Service)
The exact requirements can depend on the nature of the shipment, so check the current official procedure rather than relying on an old checklist from another importer.
Choose Sea Freight or Air Freight
Your shipping method will have a major effect on your cost and delivery time.
Sea Freight
Sea freight is generally suitable for larger, heavier or less urgent shipments.
It can work well for:
- Furniture
- Machinery
- Wholesale products
- Building materials
- Large quantities of clothing
- Vehicles and parts
Air Freight
Air freight is generally more suitable for smaller or urgent shipments.
It can be useful for:
- Samples
- Small electronics
- Fashion products
- Spare parts
- Urgent stock
- Compact high-value goods
Do not choose based solely on the freight quotation. Compare the complete landed cost and the time required to receive your goods.
Calculate Your Landed Cost
This is probably the most important financial lesson for a beginner importer.
Your supplier’s price is not your final cost.
A basic calculation can include:
Product cost + freight + insurance + customs duty + applicable taxes/levies + port or airport charges + clearance + inland transportation + delivery
Nigeria Customs explains that customs valuation uses transaction value as the primary method under the applicable rules, with certain costs such as transport, handling and insurance potentially included in customs value where the rules require them. (Nigeria Customs Service)
Before ordering, work out your estimated landed cost per unit.
If you plan to sell an item for ₦20,000 but your actual landed cost is ₦17,000, your apparent ₦10,000 profit based only on the supplier price may disappear after local expenses and other business costs.
Prepare the Correct Documents
The exact documents vary according to the product and shipment, but beginners may encounter:
- Proforma invoice
- Commercial invoice
- Packing list
- Form M
- Bill of Lading for sea freight
- Air Waybill for air freight
- Certificate of Origin where applicable
- Regulatory certificates or permits where required
- Customs declaration documents
Keep the information consistent across your documents. Differences in quantity, product description or value can create questions during the clearance process.
Work With the Right Professionals
You do not have to personally handle every technical part of importing.
Depending on the shipment, you may work with:
- Supplier or sourcing agent
- Freight forwarder
- Shipping company or airline
- Customs agent
- Bank
- Relevant regulatory agency
- Local transport provider
Understand what each person is responsible for.
For example, a freight forwarder arranging transportation is not automatically the same thing as a licensed customs agent handling customs declarations.
Don’t Forget the Final Delivery
A beginner may calculate the cost of getting goods from China to Nigeria and forget about what happens after arrival.
If your cargo arrives at a Lagos port, you may still need transportation to your warehouse.
The same applies to air cargo. Once goods are released, they need to get from the airport to your shop, warehouse or customer’s location.
This final stage should be included in your landed-cost calculation.
How Travo.ng Can Help a Beginner Importer
Travo.ng can support the transportation and delivery side of the import process.
For example, after goods have been cleared and released, a beginner importer may need transportation from a port or airport to a warehouse, shop or another destination. Depending on the shipment, this may involve cargo transportation, delivery coordination or vehicle hire.
Travo.ng can help with relevant transportation arrangements so that the logistics process does not stop once the goods arrive in Nigeria.
Travo.ng is not Nigeria Customs Service, a port authority or a replacement for a licensed customs agent. Customs classification, valuation, declarations, duties and regulatory approvals remain separate responsibilities handled through the appropriate authorities and authorised professionals.
Common Beginner Importing Mistakes
Ordering Too Much on the First Shipment
A supplier offering a cheaper price for 1,000 units does not mean you should immediately buy 1,000 units.
Test the market and supplier first where practical.
Looking Only at Supplier Price
Always calculate landed cost.
Ignoring Import Restrictions
Check the current requirements for your exact product before paying.
Guessing the HS Code
Classification affects tariff treatment, so verify it carefully.
Using Outdated Information
Customs procedures, tariff rates and regulatory requirements can change. Use current official sources before making a shipment.
Forgetting Cash Flow
Your money can be tied up while goods are being manufactured, shipped and cleared. Plan your working capital around the entire cycle.
A Simple Beginner Import Checklist
Before paying for your first shipment, make sure you can answer these questions:
- What exactly am I importing?
- Is the product allowed into Nigeria?
- What is the correct HS classification?
- What regulatory approvals apply?
- Have I verified the supplier?
- What is my product cost?
- What will shipping cost?
- What duties, taxes and other charges may apply?
- What is my estimated landed cost per unit?
- How much can I realistically sell the product for?
- Which professionals will handle freight and customs?
- How will the goods get from the port or airport to my final destination?
If you cannot answer several of these questions, it is better to research them before sending money to a supplier.
Your First Import Should Be a Learning Exercise
The goal of your first shipment should not simply be to buy as much stock as possible. It should help you learn how your supplier, shipping method, customs process and Nigerian market actually work.
Start with accurate product information, calculate the complete landed cost, verify your supplier and understand the documentation before committing your money.
Once you understand the process, future shipments become easier to plan because you already know the costs, timelines and logistics involved.
