Post by Trade Coach on Dec 14, 2020 19:33:08 GMT 1
N868b Worth Of Export Bound Goods Stuck At Nigerian Seaports Because Of Form NXP Problems
Agro-Export commodities and other goods worth about N868 billion are currently at the risk of being wasted at Nigerian Seaports owing to the inability of some Nigerian exporters to register with the Nigerian Export Proceeds Agency. Reports have it that the Central Bank of Nigeria has repeatedly warned exporters to register with the agency before embarking on exporting their goods. However, many of the exporters have failed to meet up with registration deadlines; this failure has resulted in their agro-export cargoes being held at the seaports.
Though exporters had in the past appealed to the Central Bank of Nigeria, the apex bank that gave the instruction, to allow the registration be in phases so that budding and small scale export entrepreneurs will meet up, but the Central Bank stood its ground, hence this deadly impasse.
Imagine goods worth close to N1.0tr about to go bad at the seaports. Reports reaching us from the ports reveal that goods on top of trucks cannot be offloaded due to high levels of congestion there. We are asking, is it not possible to have a meeting point between the various parties involved in order to avoid this looming catastrophe.
The question you may be asking now is what is Form NXP? The Form NXP is a statutory document that all exporters shipping goods outside the country are mandated by law to complete and return to the agency saddled with the responsibility or the bank that processed it for the exporter.
Any enterprise in Nigeria interested in carrying out the business of export in the country is required by law to register with the Nigerian Export Promotion Council; you cannot carry a business of export of any product without this registration certificate. So also you cannot carry out export business without obtaining and completing the Form NXP from the appropriate agency or any bank of your choice.
Apart from the mandatory forms and documents described above, the following documents are also required by the government before a company or other agencies can carry out the business of exporting goods from Nigeria:
Certificate of Incorporation from the Corporate Affairs Commission (C.A.C)
A duly completed Form NXP
A Proforma Invoice
Nigerian Export Promotion Council (NEPC) Certificate
Request for information (R.F.I) form
Shipping documents (Bill of Lading, Commercial Invoice, Packing List, etc.)
Certificate of quality issued by one or more of government recognized inspection agencies like, SGS, Cotecna
Certificate such as Form EUR-1 for goods going to European countries
Certificate of origin
Why is proper documentation important for export business? Export business is essentially an international business which requires proper documentation. Those who have had problems with their shipments in the past with their export proceeds hanging or missing completely will understand the great importance to be attached to proper documentation.
The buyer needs proper and genuine documents to clear his goods on arrival in his own country. The exporter will require documents to make sure he gets paid for his goods. This is the main reason the government is interested and strict about proper documentation before allowing goods to be exported outside the country.
The main objectives of completing and returning the NXP form are for the government to be sure that the exporter has met the buyer’s specifications. That only goods that met the buyer’s contract terms had been shipped to him. It is also to make sure that proceeds from the export is duly repatriated within 90 days of shipment and credited to the Export Proceed Account of the exporter maintained with an authorized agent that processed the form initially.
Agro-Export commodities and other goods worth about N868 billion are currently at the risk of being wasted at Nigerian Seaports owing to the inability of some Nigerian exporters to register with the Nigerian Export Proceeds Agency. Reports have it that the Central Bank of Nigeria has repeatedly warned exporters to register with the agency before embarking on exporting their goods. However, many of the exporters have failed to meet up with registration deadlines; this failure has resulted in their agro-export cargoes being held at the seaports.
Though exporters had in the past appealed to the Central Bank of Nigeria, the apex bank that gave the instruction, to allow the registration be in phases so that budding and small scale export entrepreneurs will meet up, but the Central Bank stood its ground, hence this deadly impasse.
Imagine goods worth close to N1.0tr about to go bad at the seaports. Reports reaching us from the ports reveal that goods on top of trucks cannot be offloaded due to high levels of congestion there. We are asking, is it not possible to have a meeting point between the various parties involved in order to avoid this looming catastrophe.
The question you may be asking now is what is Form NXP? The Form NXP is a statutory document that all exporters shipping goods outside the country are mandated by law to complete and return to the agency saddled with the responsibility or the bank that processed it for the exporter.
Any enterprise in Nigeria interested in carrying out the business of export in the country is required by law to register with the Nigerian Export Promotion Council; you cannot carry a business of export of any product without this registration certificate. So also you cannot carry out export business without obtaining and completing the Form NXP from the appropriate agency or any bank of your choice.
Apart from the mandatory forms and documents described above, the following documents are also required by the government before a company or other agencies can carry out the business of exporting goods from Nigeria:
Certificate of Incorporation from the Corporate Affairs Commission (C.A.C)
A duly completed Form NXP
A Proforma Invoice
Nigerian Export Promotion Council (NEPC) Certificate
Request for information (R.F.I) form
Shipping documents (Bill of Lading, Commercial Invoice, Packing List, etc.)
Certificate of quality issued by one or more of government recognized inspection agencies like, SGS, Cotecna
Certificate such as Form EUR-1 for goods going to European countries
Certificate of origin
Why is proper documentation important for export business? Export business is essentially an international business which requires proper documentation. Those who have had problems with their shipments in the past with their export proceeds hanging or missing completely will understand the great importance to be attached to proper documentation.
The buyer needs proper and genuine documents to clear his goods on arrival in his own country. The exporter will require documents to make sure he gets paid for his goods. This is the main reason the government is interested and strict about proper documentation before allowing goods to be exported outside the country.
The main objectives of completing and returning the NXP form are for the government to be sure that the exporter has met the buyer’s specifications. That only goods that met the buyer’s contract terms had been shipped to him. It is also to make sure that proceeds from the export is duly repatriated within 90 days of shipment and credited to the Export Proceed Account of the exporter maintained with an authorized agent that processed the form initially.
