The Pre-Arrival Assessment Report (PAAR) is at the heart of how import duty is calculated in Nigeria. If you have ever wondered why two importers of similar goods pay different duties, the answer usually lies in valuation and the PAAR. Here is what you need to know.
What is the PAAR?
The PAAR is a document issued by the Nigeria Customs Service after reviewing your Form M and final shipping documents. It confirms the customs value of your goods, the HS classification, the duty rate, and applicable levies — before the cargo arrives, so clearance can begin without delay.
How customs valuation works
Nigeria applies the WTO Valuation Agreement, which prioritises the transaction value — the price actually paid for the goods — adjusted for freight and insurance to arrive at the CIF (Cost, Insurance, Freight) value. Duty is then charged on that CIF value.
Charges built on the customs value
- Import duty (varies by HS code)
- VAT at 7.5% of (CIF + duty + other charges)
- 1% CISS (Comprehensive Import Supervision Scheme) fee
- ECOWAS levies and any product-specific surcharges
Why valuation disputes happen
If Customs believes the declared value is too low or the documentation is inconsistent, it can apply an alternative valuation method — which raises your duty. Strong, consistent documentation and correct HS classification are the best defence.
How to keep your PAAR clean
- Declare realistic, defensible transaction values
- Ensure the Form M, invoice and bill of lading agree
- Use the correct HS code from the start
As an NCS-licensed customs broker, JBV Logistics handles classification and valuation so your PAAR is issued cleanly and your duty is correct — not inflated. Explore our advisory services or request a consultation.
