What is Form M has often been an issue to some who requires more detailed explanation. Form M is a mandatory statutory document to be completed by all importers for importation of goods into Nigeria. Form M is inevitable and very fundamental to Customs clearance and freight forwarding services. As a logistics company in Lagos Nigeria, click here for our offered services.
The life span of a Form M is 180 days (for general merchandise) and 365 days (for plant and machinery), after which an extension of 180 days (for general merchandise) and 365 days (for plant and machinery) can be granted on the Form M by the Authorized Dealer. Any further extension has to be approved by the Central Bank of Nigeria (CBN).
It is therefore mandatory for all importers to complete and register Form ‘M’ with Authorized Dealers at the time of placing orders whether the transaction is valid for foreign exchange or not. This is currently initiated electronically on a Trade Portal provided by the Central Bank of Nigeria in conjunction with the Nigeria Customs Service.
This is put in place by the Federal Government of Nigeria through the Federal Ministry of Finance and the Central Bank of Nigeria (CBN), to monitor goods that are imported into the country as well as enable collection of import duties and taxes where applicable
The Form M process is triggered off with the supplier’s Proforma invoice showing description of goods, quantities and their measurements, FOB unit price, total FOB cost, total freight, total CFR Incoterms, 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 sometimes 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.
The importer will fill in a Form M valid for foreign exchange(Confirmed and Unconfirmed L/C or Bills 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). Form M for goods not valid for foreign exchange are to be submitted with the following documents (in addition to other regulatory permits where applicable):
- The pro-forma invoice from the supplier
- An insurance certificate (marine/cargo)
- Written confirmation from the authorized dealer/bank showing the source of funds and evidence of source of funds.
In addition, the Bank is required to send hard copies of the Forms ‘M’ and the required documents to the CBN for validation and approval, before such transactions not valid for foreign exchange can be processed. Trust the issue of what is Form M is well understood..
NOTE:
Diplomatic goods and goods imported under Temporary Importation are exempted from Form M. The question of what is Form M is not applicable in this context. We can equally provide you with ship agency services.
Let’s Work Together – CLICK ON LINK
Management Profile – Ronish Nigeria Limited