Post by Trade facilitator on Nov 20, 2021 21:20:51 GMT 1
EXPORT
Exports are goods and services that are produced in one country and sold to buyers in another country. Exports have been described as catalysts for overall development and increase the earnings of the country thereby creating an avenue for growth by raising the national income of the country.
Exportation is therefore needed by an economy to boost revenue and usher in growth in the economy. When the demand for exports is high, more production is required, this therefore creates more employment, raises national income and also helps attain a favourable balance of trade and balance of payment position for the exporting economy. This underlines the importance of exports in the growth of an economy.
The body responsible for export operations in Nigeria is the NIGERIAN EXPORT PROMOTION COUNCIL (NEPC).
NON OIL EXPORT
Non oil exports are those commodities excluding crude oil (petroleum products), which are sold in the international market for the purpose of revenue generation. The Nigeria’s non exports sector is structured into four broad constituents which are;
Agricultural exports
Manufactured exports
Solid mineral exports
Services exports.
The non oil export products are unlimited as they include agricultural crops, manufacturing goods, solid minerals, services such as entertainment and tourism etc. It covers agriculture, industry, solid minerals and the services sub-sector, which includes transport, communication, distributive trade, financial services, insurance, government, etc.
According to data from the Nigerian Export Promotion Council (NEPC), some of the major non-oil export products include cocoa beans, sesame seeds, cashew nuts, ginger, gum arabic, cotton rubber, urea, cigarettes, bitter kola, finished leather, soya bean meal, cocoa butter, processed frozen shrimp and crabs, among others.
In line with the Federal Government’s efforts at diversifying the economy, the Nigerian Export Promotion Council said 11 more products had been added to the non-oil products that the country exported to the global market between 2013 and now.
The new products, according to the NEPC, are educational books, robusta coffee, double folded dust sheets, ice making machine, mica muscovite and leather furniture. Others are high density polyethylene, aluminium ingots, reduced iron and iron pellets, garments and yam and the primary markets and destinations for these newly added products are Sierra Leone, Spain, the United Kingdom, Ghana, India, Republic of Benin, Japan, Bulgaria and the United States, while high density polyethylene is exported to the Economic Community of West African States member countries.
EXPORT EXPANSION GRANT (EEG)
The Export Expansion Grant (EEG) aims to support active exporters; expanding their international businesses. It is a post-shipment incentive designed to encourage Nigerian exporters to expand export volume, value and improve global competitiveness of Nigerian products.
The Federal Government in its determination to drive growth in the non-oil sector has put in place certain policy frameworks such as the Export Expansion Grant (EEG) scheme is a fiscal policy instrument implemented and issued by the Federal Ministry of Finance and enforced by the Nigerian Export Promotion Council (NEPC), the apex agency responsible for the administration of the policy in conjunction with other key implementation agencies such as the CBN and Nigeria Customs.
The export grant is given to exporters to cushion the impact of infrastructural disadvantages faced by Nigerian exporters and make our exports competitive in the international market.
The fund is only available to exporters who have repatriated in full the proceeds from their export transactions, which must be certified by the CBN as eligible.
Interestingly, the present EEG Policy underwent clinical reform in 2006 during the first term of Dr. Ngozi Okonjo-Iweala, the then Finance minister. With technical assistance from international consultants PriceWaterHouseCoopers (PWC), the scheme was streamlined to make it more effective by categorizing the export products according to degree of value addition and processing and rewarding those companies which generated higher export growth and new investment in export capacity building.
Besides the EEG, the Export Adjustment Scheme (EAS), Export Processing Zone, the Nigeria Import Export Bank (NEXIM), among other instruments have been put in place to ensure a hitch-free export trade.
The EEG Scheme has facilitated the further integration of the informal sector into the main stream economy through the proper documentation and repatriation of export proceeds by beneficiaries.
The use of value addition has contributed to significant investments in processing of raw produce as well as an increase in exports of downstream oil derivatives. Nigerian non-oil products like processed leather articles, cashew, cocoa, ginger, rubber, sesame seeds, and textiles have earned a distinction in several quality- conscious markets like the European Union (EU) and USA. Many companies have utilized their EEG to procure more machinery to expand their production for export, and thereby generating more employment
REASONS FOR EXPORT EXPANSION GRANT
To encourage expansion of exports
To encourage businesses to export certain types of goods or services;
To make or keep domestic products competitive in the global market;
To facilitate greater market penetration and encourage domestic value-Addition
Increased international competition and the demand for foreign markets.
EXPORT EXPANSION GRANT (EEG) ELIGIBILITY
To qualify for participation in the EEG Scheme, an exporter must be:
▪ Registered with the NEPC;
▪ Registered with the CAC;
▪ Have a minimum annual export turnover of N5 million;
▪ A manufacturer/producer or merchant of products of Nigerian origin;
▪ Show evidence of confirmed repatriation of export proceeds into a domiciliary Account in Nigeria and,
▪ Submit their baseline data which should include Audited financial Statements and information on operational capacity to the NEPC.
APPLICATION PROCEEDURE AND DOCUMENTATION
Exporters submit baseline Data which includes Audited financial statements and information on operational capacity
Baseline data is used to determine the EEG rate for one year only
The rate so determined is applied to EEG applications for that particular year only
▪EEG applications are then submitted after baseline data pending the commencement of the automation of export procedures and incentives processing, the following export documents are forwarded to the Council:
▪Forms NXP duly certified by processing bank; Nigeria Customs Service and the Pre-shipment Inspection Agents.
▪Bill of Lading.
▪Final Commercial Invoice.
▪Single Goods Declaration (SGD) Forms, duly endorsed by Nigerian Customs Service, both at front and back
Evidence of full repatriation of export proceed (CBN confirmation of repatriation of proceeds by exporter)
▪(Include Schedule of Confirmation of Repatriation of Export Proceeds)
▪Clean Certificate of Inspection (CCI) to include quality certification
▪NEPC non-oil Export Certificate
▪ Certificate of Manufacturer (where applicable)
▪Scanned Report
▪Any other documentation as may be required by NEPC from time to time.
Exports are goods and services that are produced in one country and sold to buyers in another country. Exports have been described as catalysts for overall development and increase the earnings of the country thereby creating an avenue for growth by raising the national income of the country.
Exportation is therefore needed by an economy to boost revenue and usher in growth in the economy. When the demand for exports is high, more production is required, this therefore creates more employment, raises national income and also helps attain a favourable balance of trade and balance of payment position for the exporting economy. This underlines the importance of exports in the growth of an economy.
The body responsible for export operations in Nigeria is the NIGERIAN EXPORT PROMOTION COUNCIL (NEPC).
NON OIL EXPORT
Non oil exports are those commodities excluding crude oil (petroleum products), which are sold in the international market for the purpose of revenue generation. The Nigeria’s non exports sector is structured into four broad constituents which are;
Agricultural exports
Manufactured exports
Solid mineral exports
Services exports.
The non oil export products are unlimited as they include agricultural crops, manufacturing goods, solid minerals, services such as entertainment and tourism etc. It covers agriculture, industry, solid minerals and the services sub-sector, which includes transport, communication, distributive trade, financial services, insurance, government, etc.
According to data from the Nigerian Export Promotion Council (NEPC), some of the major non-oil export products include cocoa beans, sesame seeds, cashew nuts, ginger, gum arabic, cotton rubber, urea, cigarettes, bitter kola, finished leather, soya bean meal, cocoa butter, processed frozen shrimp and crabs, among others.
In line with the Federal Government’s efforts at diversifying the economy, the Nigerian Export Promotion Council said 11 more products had been added to the non-oil products that the country exported to the global market between 2013 and now.
The new products, according to the NEPC, are educational books, robusta coffee, double folded dust sheets, ice making machine, mica muscovite and leather furniture. Others are high density polyethylene, aluminium ingots, reduced iron and iron pellets, garments and yam and the primary markets and destinations for these newly added products are Sierra Leone, Spain, the United Kingdom, Ghana, India, Republic of Benin, Japan, Bulgaria and the United States, while high density polyethylene is exported to the Economic Community of West African States member countries.
EXPORT EXPANSION GRANT (EEG)
The Export Expansion Grant (EEG) aims to support active exporters; expanding their international businesses. It is a post-shipment incentive designed to encourage Nigerian exporters to expand export volume, value and improve global competitiveness of Nigerian products.
The Federal Government in its determination to drive growth in the non-oil sector has put in place certain policy frameworks such as the Export Expansion Grant (EEG) scheme is a fiscal policy instrument implemented and issued by the Federal Ministry of Finance and enforced by the Nigerian Export Promotion Council (NEPC), the apex agency responsible for the administration of the policy in conjunction with other key implementation agencies such as the CBN and Nigeria Customs.
The export grant is given to exporters to cushion the impact of infrastructural disadvantages faced by Nigerian exporters and make our exports competitive in the international market.
The fund is only available to exporters who have repatriated in full the proceeds from their export transactions, which must be certified by the CBN as eligible.
Interestingly, the present EEG Policy underwent clinical reform in 2006 during the first term of Dr. Ngozi Okonjo-Iweala, the then Finance minister. With technical assistance from international consultants PriceWaterHouseCoopers (PWC), the scheme was streamlined to make it more effective by categorizing the export products according to degree of value addition and processing and rewarding those companies which generated higher export growth and new investment in export capacity building.
Besides the EEG, the Export Adjustment Scheme (EAS), Export Processing Zone, the Nigeria Import Export Bank (NEXIM), among other instruments have been put in place to ensure a hitch-free export trade.
The EEG Scheme has facilitated the further integration of the informal sector into the main stream economy through the proper documentation and repatriation of export proceeds by beneficiaries.
The use of value addition has contributed to significant investments in processing of raw produce as well as an increase in exports of downstream oil derivatives. Nigerian non-oil products like processed leather articles, cashew, cocoa, ginger, rubber, sesame seeds, and textiles have earned a distinction in several quality- conscious markets like the European Union (EU) and USA. Many companies have utilized their EEG to procure more machinery to expand their production for export, and thereby generating more employment
REASONS FOR EXPORT EXPANSION GRANT
To encourage expansion of exports
To encourage businesses to export certain types of goods or services;
To make or keep domestic products competitive in the global market;
To facilitate greater market penetration and encourage domestic value-Addition
Increased international competition and the demand for foreign markets.
EXPORT EXPANSION GRANT (EEG) ELIGIBILITY
To qualify for participation in the EEG Scheme, an exporter must be:
▪ Registered with the NEPC;
▪ Registered with the CAC;
▪ Have a minimum annual export turnover of N5 million;
▪ A manufacturer/producer or merchant of products of Nigerian origin;
▪ Show evidence of confirmed repatriation of export proceeds into a domiciliary Account in Nigeria and,
▪ Submit their baseline data which should include Audited financial Statements and information on operational capacity to the NEPC.
APPLICATION PROCEEDURE AND DOCUMENTATION
Exporters submit baseline Data which includes Audited financial statements and information on operational capacity
Baseline data is used to determine the EEG rate for one year only
The rate so determined is applied to EEG applications for that particular year only
▪EEG applications are then submitted after baseline data pending the commencement of the automation of export procedures and incentives processing, the following export documents are forwarded to the Council:
▪Forms NXP duly certified by processing bank; Nigeria Customs Service and the Pre-shipment Inspection Agents.
▪Bill of Lading.
▪Final Commercial Invoice.
▪Single Goods Declaration (SGD) Forms, duly endorsed by Nigerian Customs Service, both at front and back
Evidence of full repatriation of export proceed (CBN confirmation of repatriation of proceeds by exporter)
▪(Include Schedule of Confirmation of Repatriation of Export Proceeds)
▪Clean Certificate of Inspection (CCI) to include quality certification
▪NEPC non-oil Export Certificate
▪ Certificate of Manufacturer (where applicable)
▪Scanned Report
▪Any other documentation as may be required by NEPC from time to time.
