what is form M

What is Form M – 7 Basic Hacks/Questions you must know

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Import/Export

What is Form M? will comprise the primary focus of this article. If you own a business that deals with imported commodities, you will notice that the term Form M is a buzzword, especially when it comes to payment.

Even so, if you must use the official trade market to access foreign currency, additionally, if you must ship (import) at the official rate, you are obligated to use this paperwork, which is now required.

What Is Form M

what is form m?

A declaration of intent to import tangible items into Nigeria is made on Form M. Whether a payment is involved or not, it is a requirement that anybody planning to import physical products into the country fill out this form.

Form M is a document authorized by the Central Bank of Nigeria  (CBN) to control forex as it relates to import of goods. It is used to officially transact with a supplier. Whenever you are to transact with a supplier abroad, the first thing required is to open Form M with an authorized dealer (your Bank).

An Authorized Dealer may extend Form M for another 180 days (for general items) or 365 days (for plant and machinery) within the initial 180 days and 365 days of validity, respectively. Any such extensions must be made by the Central Bank of Nigeria (CBN).

The Federal Ministry of Finance and the Central Bank of Nigeria (CBN) have established an e-form M as a requirement for documentation. It is used to keep an eye on all imports entering the nation and to make it easier for the NCS to collect import taxes and levies at the ports on each commodity brought in. Nigeria Customs Services (NSC) issues the document through the single window for trade.

Form M can be valid for foreign exchange or not.

Valid Form M

If you run a business that requires you to repatriate funds after you must have imported the goods and sold, then your Form M must be VALID.

 Non Valid Form M

If after you import your goods, you do not have the need to repatriate funds, then your form M does not need to be Valid for Forex

How can Form M be accessed?

single window for trade

What does an importer require?

the requirements:

Importer registers/apply for Tax Identifier Number (TIN) at any FIRS office

  • The FIRS office is where importers who already have a TIN can update their data.
  • IOn the FIRS page of the Single Window for Trade portal, the importer registers and validates the TIN. 
  • Login information is sent to the importer at the registered email address.
  • To finish the validation procedure, the importer logs into the Single Window for Trade portal as “Importer.”
  • Now, an importer can access the portal at any time to start an e-Form ‘M’ application and check the progress of started Form ‘M’ applications.

What primary documents are needed to process an e-form M?

The maximum validity time for proforma invoices (PFI) is 90 days from the date of issuance. A digital insurance certificate for 110 percent of the invoice amount.

The following additional documents may be needed based on the imported item:

  • SON Product Certificate
  • NAFDAC certificate for all edibles, chemicals, and Pharmaceuticals
  • Department of Petroleum Resources Permit for petroleum oil products
  • PHCN permit for Generating Sets
  • Ministry of Agriculture, Department of Fisheries permit for the importation of fish
  • Pharmaceutical Certificate and Certificate of Retention of premises for the importation of medicinal drugs.
  • NESREA for used items
  • End User Certificate for explosives, fireworks, fertilizers, arms, ammunition, treated vehicles, personal security gadgets, etc.

What distinguishes the accepted form M numbers BA and CB prefixes from one another?

The BA prefix is used for imported goods that must be inspected upon entry into the country; this includes the majority of goods.

Items that are excluded from the inspection are placed in the CB, such as:

  • Vaccines
  • petroleum-based goods (except base oil). other things that the Finance Ministry has advised.
  • items intended for missionaries abroad in Nigeria.
  • military hardware.
  • Corpse.

Can Form M be modified after registration?

It is, indeed. After Form M has been accepted, several fields, such as the country of origin/supply and the port of discharge, can be changed.

To make changes to non-modifiable fields, such as Prefix, Bank Code, and Country of Origin, a new Form M must be opened.

Is it possible to handle a Letter of Credit or Bills for Collection form M on a Not Valid for FX basis?

Form M can be executed on the Not Valid for FX Basis. That is if you use your own forex domiciliary account funds for payments. This is employed when you do not plan to use official funds for payment on the Letter of Credit or Bills for Collection transaction

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Victor Akeke

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