How To Set Up a Licensed Air Freight Forwarding Business in Nigeria

Aviation Law :- How To Set Up A Licensed Air Freight Forwarder Business In Nigeria

This article deals with how to set up a licensed air freight forwarding business in Nigeria, particularly the subtopics of :-

– The Regulatory agency in charge of licensing air freight forwarding businesses in Nigeria

– The procedure for air freight forwarding license applications

– The validity period of air freight forwarding licenses

– General & Specific licensing requirements for air freight forwarding in Nigeria.

What does an air freight forwarding business do?

Air freight forwarding involves the process of organizing and planning the transport of freight from one point to another by air.

Which regulatory agency is in charge of licensing air freight forwarding businesses in Nigeria?

Air freight forwarding businesses and licensing are regulated by the Nigerian Civil Aviation Authority (NCAA).

What is the procedure for licensing as an air freight forwarding business?

– An application for registration as Air Freight Forwarder shall be made in writing to the NCAA along with the following:-

– A non-refundable processing fee of N100,000 .

–    A completed application form to be returned to the NCAA.                                                                                                      

– A  Certificate of Incorporation of the company;

– A copy of the  Memorandum and Articles of Association of the company;

–  Curricula Vitae of the Directors/Operational staff;

–  Current Tax Clearance Certificates of the company and each of the Directors (originals should also be           submitted for sighting)      

–   Evidence of Agreement with Airline;

– Evidence of registration by the council for the regulation of freight forwarding in Nigeria;

– A   Corporate profile in respect of all aviation -related  services being performed by the applicant-                   company;

–  Audited Statement of Accounts for three years;            

–   Evidence of Insurance coverage for Agency and Air  Freight obligations in case of default, accidents and incidents; and

–    Details of the company’s proposed distribution channel(s).      

What are the General requirements for air freight forwarding businesses in Nigeria?                                

-The   minimum Authorized Share Capital for air freight forwarding businesses shall be Two million Naira (N2, 000,000). 

-Each applicant shall ensure preparedness for the inspection of its office and warehouse premises by            officials of NCAA.   

–  The applicant shall put in place adequate security at its office premises and warehouse to ensure  control and security of goods, to and from the airlines.              

-All personnel involved in cargo acceptance must be trained in Basic Cargo Skills and Procedures.                  They should, inter-alia, be able to:  

(i)      Calculate the transportation time;

(ii)     Calculate chargeable weight;

(iii)    Calculate relevant charges;

(iv)    Complete the Air Waybill (AWB) correctly;

(v)     Have knowledge of conditions of carriage and airline liability;

(vi)    Have basic knowledge of relevant characteristics of aircraft; and

(vii)   Make reference to and use relevant manuals. 

What are the specific requirements for air freight forwarding businesses in Nigeria as prescribed by the NCAA?     

– For handling Dangerous Goods and other special goods, the following additional requirements shall be fulfilled:

(I)  The applicant must have at least two qualified personnel with certificates on Dangerous Goods   Regulation (DGR) as appropriate (i.e. current within the validation period of 24 months).  

(II)  The applicant must be able to make reference to and use the Life Animal Regulation (LAR) and the  Air Cargo Tariff (TACT) Rules Manuals correctly.

(III) The applicant must be able to select special cargoes and have adequate knowledge on how to  handle them safely.

(IV)      The applicant must submit a copy of its dangerous goods manual for evaluation and approval.

(V)       The applicant must have current copy of the ICAO Technical Instructions, TI (updated every 2yrs)   or IATA manual, or other Dangerous Good regulatory manual.

(VI)      The applicant must ensure that shipments of dangerous goods are accepted and offered for transport             in accordance with the Nigerian CAR, Part 15 and ICAO Technical Instruction for the transport of dangerous goods.

(VII)       The applicant must make available emergency response guide for all shipments.