Export Guidelines

Presented By:
Ernest Dio
International Banking

©2003 Ernest Dio. All rights reserved.

Export Guidelines
„ Export prohibition List
„ All exports must be inspected
„ Pre-shipment Exemption
„ Mode of payment: L/C, Bills,Advance payment
„ Appointed Agent is Cobalt Int’l Services
„ Inspection Location:
„ Point of production or storage
„ Farm gates
„ Seaports,airports,terminals,other exit points
„ Form NXP must be completed by Exporter
©2003 Ernest Dio. All rights reserved.
Exports Guidelines)
„ Form NXP must be registered with a Bank
„ Documentary Requirements for NXP Form:
„ Completed NXP in Original & 5 copies
„ NEPC Registration Certificate
„ Pro-forma invoice/contract of sale/purchase order
„ Details of how proceeds are to be repatriated

„ Processing of NXP Form by the Bank:

„ Review the submitted documentation
„ Allocate a 15 digit Ref. Number to the NXP Form
(XXX/YYYY/ZZZ/0001
„ Endorse & stamp section 6 of the NXP Form
„ The Bank retains Original Endorsed NXP Form
„ Exporter is given Photocopy of endorsed NXP Form
„ 5 copies are forwarded to the Inspection Agent
©2003 Ernest Dio. All rights reserved.
Pre Shipment Inspection Process
„ Exporter
„ Obtains RFI (Request for Info.) & NXP Forms from Bank
„ Completes RFI & NXP Forms
„ submits RFI to Agent & NXP to the Bank for endorsement
„ pays NESS fees through Designated Bank
„ Exporter invites all relevant govt. agencies to Inspection
(E.g. NAFDAC,SON, Plant Quarantine, etc.)
„ Exporters Bank/Endorsing Bank
„ Processes/endorses the NXP form
„ Endorses NXP, Keeps original & fwds 5 copies to Agent
„ Designated Bank
„ forwards original NESS fees rcpt to Agent
„ Pays NESS fees to nearest CBN branch the next Monday
©2003 Ernest Dio. All rights reserved.
Pre shipment Inspection Process
„ Pre – Shipment Inspection Agent
„ Receives RFI from Exporter & NXP from the Bank
„ Promptly agrees Inspection Date with Exporter
„ Assesses quality,Quantity & Price of the goods
„ Seals the container & indicates seal No. on CCI
„ Container is sealed in presence of the govt. agencies.
„ Issues CCI (Clean Certificate of Inspection) for a satisfactory
inspection
„ Distributes 8 originals of CCI:
„ FMF,customs (area comptroller at shipment point),
NPA,exporter,shipper, Bank, CBN, NEPC,
„ Distributes 2 certified true copies to FOS & Customs (Head
quarters)
„ Updates the relevant section of the NXP Form
„ Keeps the duplicate & sends remaining 4 copies to customs

©2003 Ernest Dio. All rights reserved.

Pre shipment inspection process
„ Customs Service
„ After shipment of goods,customs update the
relevant section of NXP, retain duplicate and
distribute remaining 3 copies:
„ 4th Copy to CBN
„ 5th copy to NEPC

„ 6th Copy to Exporter

„ Exporter shall give a photocopy to his bank for their
records

©2003 Ernest Dio. All rights reserved.

Discrepant goods
„ Discrepancy in quality,quantity & Price
„ Non negotiable report of inspection is issued
„ Exporter is expected to correct discrepancies
„ On correction of discrepancy, CCI is issued
„ On non correction within 72 hours
„ Non negotiable Cert. Of Inspection (NNCI) issued
„ NNCI prohibits export of the goods
„ Discrepancy in Value
„ Discrepancy report issued for exporter to
make necessary amendments/payments
©2003 Ernest Dio. All rights reserved.
Others
„ The Exporter must
„ present a copy of the CCI to the shipping company
to facilitate shipment
„ submit a copy of the transport document (airway
bill,bill of lading,etc.) to the inspection agent after
shipment
„ Present to the bank, a copy of the NXP endorsed by
customs, this is proof of shipment
„ Submit all original Bills of Lading to the bank that
processed the NXP for ‘collection’. The bank must
then send the dox to it’s correspondent and follow up
to ensure that collection is effected within 90 days.

©2003 Ernest Dio. All rights reserved.

Exports Regulations ‘Cont’d’
„ NESS (Nig. Export Supervision scheme) Fees
„ I% of FOB value of the consignment (NXP)
„ Payable through designated Bank and receipted
„ Designated Bank must state NXP No. on NESS fee rcpt.
„ Duplicate rcpt given to Export & Original to PSI Agent
„ Triplicate Receipt is retained by Designated Bank
„ Designated Bank pays fees to neares CBN office the
following week Monday
„ The Bank must render monthly to:
„ CBN (Director Trade & Exchange)

„ The AGF

„ FMF (The Hon. Minister)

©2003 Ernest Dio. All rights reserved.

Export Proceeds
„ Exporter
„ must open Non-Oil Export Dom A/c with the
Processing Bank
„ Must repatriate Export Proceeds within 90 days

„ Processing Bank
„ Must Ensure that proceeds are repatriated within 90
days
„ For repatriated shipments, Must certify the original
NXP and submit same to CBN

©2003 Ernest Dio. All rights reserved.

 Financing the Exporter
„ Overdraft/term Loan
„ Accomodation Finance
„ Acceptance Credits
„ Advance Against Collection
„ Red Clause Letter of Credit
„ Factoring
„ Forfaiting
„ Negotiation

©2003 Ernest Dio. All rights reserved.

AFREXIM
„ African Export Import Bank
„ Owes it origins to ADB (1987 meeting)
„ Considerations for Establishment
„ Low level of Intra African Trade
„ Decline in Financial flows to Africa
„ Sharp reduction of lending to Africa by Foreign
banks
„ Worsening External Debt Situation
„ Need to spearhead intra & extra African Trade
©2003 Ernest Dio. All rights reserved.
Afrexim (Major Objectives)

©2003 Ernest Dio. All rights reserved.

Afrexim
„ Who Can Borrow from Afrexim
„ Members of Participating states
„ Govts have shares/have ratified the bank’s agreement
„ Shareholders in non participating states
„ Others only if the financing will be used to pay for
imports from a participating state
„ Financing Channels
„ Mostly through trade finance intermediaries
„ Central Banks,commercial banks, other Trade Finance
entities
„ Intermediaries selected after rigorous due diligence
„ Operational,Financial & Management Performance
„ Limited Direct financing of Exporters & Importers
©2003 Ernest Dio. All rights reserved.
AFREXIM
„ Financing Instruments
„ Lines of Credit
„ L/C Confirmation lines
„ Pre & Post Export Credit
„ Guarantees
„ Project related financing in support of export
projects

©2003 Ernest Dio. All rights reserved.

Afrexim Products & Services
„ Line of Credit Programme
„ Indirect lending thro credit worthy banks
„ For small & medium sized Exporters
„ Short term financing (tenor<=360 days)
„ Pricing:
„ linked to LIBOR & tied to country risk;Transaction risk &
mkt conditions. Commitment & facility fees also payable
„ Documentation:
„ Facility agreement, sales contract assignment & Security
assignment deeds

©2003 Ernest Dio. All rights reserved.

Afrexim Products & Services
„ Direct Financing Programme
„ Direct funding of Corporates with min. bal sheet size of $2mm
& min Export turnover of $10mm
„ Facilities:
„ Pre & post export financing up to 80% of sales contract
„ L/C issuance facility (Afrexim can lend to max. 70% of sales
contract)
„ Export Credit Guarantee
„ Documentation:
„ Facility agreement,sales contract,assignment,debentures
„ Assess
„ Apply to president of Afrexim with detailed info on
organization,ownership,history,mgt experience, 3 yr financials
as well as detailed info on the transaction for which financing is
sought, the country of operation, etc

©2003 Ernest Dio. All rights reserved.

Afrexim Products & Services
„ Syndications Programme
„ Risk sharing to attract other Int’l Banks
„ Forfaiting Programme
„ Trade in trade receivable on a without recourse basis
„ Special Risk Programme
„ Comfort to Int’l banks extending facilities to African Banks
„ It is a country risk guarantee facility
„ Factoring/Invoice Discounting Programme
„ Note Purchase/Discounting Programme
„ Project Financing Programme
„ For Imports of export manufacturing equipment
„ For essential govt. projects that positively impact the export
sector
©2003 Ernest Dio. All rights reserved.
Afrexim Products & Services
„ Financial Future-Flow Pre-Financing Programme
„ Future flow debt offerings that do not rely on receivables
generated from export of physical goods for repayment
„ Infrastructural Services Financing Programme
„ Financing to exporter of infrastructure services to Africa e.g.
electricity pending receipt of payment from the project
promoters/users in Africa
„ Investment Banking Programme
„ Export Advisory services to Banks/govts/corporates
„ Underwriting services for debt & equity backed by export
secured debt
„ Assist with valuation of companies for Initial public offerings
„ Assistance in securitization of receivables
©2003 Ernest Dio. All rights reserved.
NEXIM
„ Main Services
„ Rediscounting & Refinancing Facility
„ Assists banks to provide lcy financing to exporters
„ Foreign Input Facility
„ A Fcy facility payable in fcy –used for importation
„ Stocking Facility
„ Lcy facility for raw materials procurement
„ Treasury Operations
„ Counter guarantee funds
„ Funds managements/placements
„ Price Guarantee Contracts
„ A facility that insures against adverse changes in Price
„ Export Advisory Service & Market Information
©2003 Ernest Dio. All rights reserved.
Export Processing Free Zones
„ Objective
„ Promotion of the diversification of the nation’s
export base through the acceleration of export
business through loaded incentives
„ Players
„ industrial production, offshore banking,
insurance, int’l stock, commodities and
mercantile exchanges, commercial industrial
research, agriculture and agro-allied industry,
mineral processing, as well as international
tourist resort development and operations
©2003 Ernest Dio. All rights reserved.
Export Processing Free Zones
„ Incentives
„ Tax holiday relief
„ No Levies, duties and foreign exchange rules
„ Unrestricted remittance of profits and dividends
earned by foreign investors in EPZs
„ No import or export licenses required
„ rent-free land during construction of premises
„ Up to 100% foreign ownership of enterprises in
EPZs
„ Sale of up to 25% of production permitted in
domestic market
©2003 Ernest Dio. All rights reserved.
Export Processing Free Zones
„ Pioneer Status Companies
„ 3-5 YRS Tax Holiday (exports of at least 50% of annual
production)
„ Tax Relief on Interest Income
„ Interest on loans granted for export activities
„ Capital Assets Depreciation Allowance
„ 5% on plants & machinery (exports of at least 50% of annual
turnover
„ Investment Protection
„ Expropriation
„ NIPC decree guarantees against nationalization, expropriation
and compulsory purchase
©2003 Ernest Dio. All rights reserved.
Offences & Sanctions
„ Offences
„ Carriage of goods from Nigeria without a CCI
„ Export of goods not exempted from Inspection
without a CCI
„ Variation b/w goods presented for loading and those
confirmed by the CCI
„ Sanctions
„ Individuals: Twice the value of the goods
(Min.NGN50k) or 12 months imprisonment or both
„ Corporates: Twice the value of the goods (Min.
NGN100k)

©2003 Ernest Dio. All rights reserved.

THANK YOU

©2003 Ernest Dio. All rights reserved.