“EXPORT PROCEDURES AND DOCUMENTATION IN NIGERIA”

A PRESENTATION BY

OLUSEGUN AWOLOWOEXECUTIVE DIRECTOR/CEO,

NIGERIAN EXPORT PROMOTION COUNCIL

AT THE

“2nd NIGERIA NON-OIL EXPORTABLE PRODUCTS TRADE FAIR” AT NICON LUXURY HOTEL, ABUJA

ON 10th JUNE 2016

Introduction Presentation Outline:

Introduction

NEPC: VISION, MISSION & STRATEGY

Statutory Functions

What is Export?

Why Non-Oil Export?

Benefits of Export

Export Procedures

Export Documentation

Concluding remarks

Understanding is Export Trade

INTRODUCTION:

The Nigerian Export Promotion Council(NEPC) is the apex agency of the FederalGovernment solely responsible for thepromotion of non-oil exports. It wasestablished by Decree 26 of 1976 withsubsequent amendments in 1986 and 1992to perform certain key functions to diversifyand boost the national economy.

NEPC : Vision, Mission and Strategy

• VISION: To Promote Non-Oil Exports as the KEY DRIVER 0f the Nigerian Economy.

• MISSION: To Position the Export Market as the Growth Opportunity of Choice for Private Sector Earnings and Sustainable Economic Development.

• STRATEGY: Diversify the Productive Base of the Economy away from Oil and Foster Market -Oriented, Private Sector-driven Economy.

NEPC: Statutory Functions

Promote the development and diversification of Nigeria’s export trade;

Promote Human Capital Development in the Non-Oil Export Sector;

Assist in promoting the development of export related industries in Nigeria;

Spearhead the creation of appropriate export incentives and;

Articulate and promote the implementation of export policies and programmes of the Federal Government.

Understanding is Export Trade cont’

What is Export? Export is the provision of goods, services and knowledge

across national and international boundaries.

It is a type of business that involves the selling in a foreignmarket

It is a very highly competitive and highly knowledge-basedbusiness

Export is dynamic and requires regular update of informationabout products, market trends & trade regulations

There are Rules and Regulations to comply with in theexporting and importing countries

Nigeria offers a wide range of goods and services to theinternational market, which includes agricultural, semi-processed, manufactured and various kinds of services .

Why Non-Oil Export?

The dominance of oil as Nigeria’s main revenue earner has drastically changed. Hence, the urgent need to:

• increase economic activities and grow the GDP

• promote value addition of key agricultural products

• create jobs for our unemployed youths

• increase Capital Investment (increase in fixed assets)

• increase specialization, standards and competitiveness

• increase foreign exchange earnings

Some Benefits of Export:

• Generation of foreign exchange• Promotion of Made-in-Nigeria products• Access share of the global market• Contribute positively to the Nation’s Economy• Generate employment/Create jobs especially along value chains• Economic inclusion and empowerment especially for women & youths• Expansion of business• Ability to compete favourably in the global market• Reduction in dependency• Increased specialization in production, trade and services• Increased efficiency and productivity• Increased competitive advantage• Highly skilled and productive staff• Adapt technology and best practice techniques faster• Project the perception and image of Nigeria

Export Procedures in Nigeria:

Register Limited Liability Company with Corporate Affairs Commission (CAC)

Obtain the Nigerian Export Promotion Council (NEPC) Exporter’s Registration Certificate

Open a domiciliary account with any bank in Nigeria Bank to issue Exporter with Nigerian Exports Proceeds Form (NXP

Form) in sextuplicate (7copies) for completion in respect of each export transaction

Exporter to ensure export proceeds are repatriated and credited to domiciliary account within 300 days from the date of export

NXP Form to be utilized within six (6) months from the date of registration, subject to renewal for three (3) months by the dealing bank. Subsequent renewals to be approved by the Director, Trade and Exchange Department, Central Bank of Nigeria, otherwise it must be returned to the exporter’s bankers for cancellation

Export Procedures cont’d

All Non-Oil exports are subject to inspection by Inspection Agents appointed for that purpose by Government

- Cobalt International Services Ltd, Northern Zone- Carmine Assayer Ltd, South West Zone- Neroli Technologies Ltd, South East & South South Zones

The Inspection Agents shall inspect the quality, quantity and true value of the goods and issue a Clean Certificate of Inspection (CCI)

Exporter required to pay to a designated bank , the Nigerian Export Supervision Scheme (NESS) Administrative charge of 0.5% of FOB value of the intended non-oil exports. The designated bank shall remit this to the NESS fee account in the Central Bank of Nigeria

Exporter to submit the Single Goods Declaration (SGD) form to the Nigeria Customs Service

Where exports involve processed food, drugs, animals or plants, the relevant Government Agencies to be invited for certification

Export Procedures: Practical Steps

i. Get your products readyii. Identify a buyer & negotiate contractiii. Commence bank transaction activities (open domiciliary

account, obtain NXP, etc.)iv. Identify carrierv. Process and obtain all necessary Certificationsvi. Commence Packaging/Packingvii. Move goods to port of shipment for Customs inspectionviii. Commence loading of goodsix. Eventual shipmentx. Repatriate proceeds

Export Documentation in

Nigeria:

Documentation is the process of gathering, completing and putting together of all relevant documents in respect of export transaction

Different documents are required in handling export consignments. They vary depending on the type of product and export destination

Types of Export Documents/Permits/Certificates:

A. Exporter’s Registration Certificate

B. Commercial Documentsi. Pro- forma Invoice – required by importer to obtain import licence

or currency permits

ii. Final /Commercial Invoice - prepared by exporter in the name of importer or his agent for the purpose of assessing duties by the importing country Customs

iii. Consular Invoice – official form from the Consulate of the importing country to check or validate invoices

iv. Certified Invoice - required for independent verification

v. Packing List – supplements the Commercial Invoice

Types of Export Documents cont’d

C. Quality/Health Documents i. Certificate of Quality & Fumigation:• Certificate of Quality, Fumigation and Weight from Federal Produce Inspection Service (FPIS) for Primary

Agricultural Commodities• Product Quality Certificate from Standards Organisation of Nigeria (SON) for Manufactured Products

ii. NAFDAC Certificate - Certificate of Quality from NAFDAC for Foods and Drugs

iii. Phyto-Sanitary Certificate – required from National Plant Quarantine Service (NPQS) for export of Fresh Fruits, Vegetables, Flowers, Plants and Plant Products

iv. Clean Certificate of Inspection(CCI) – issued by a Government designated

pre-shipment inspection agent- Certificate of Quality from any other inspection agency nominated by the importer

v. Certificate of Analysis and Quality – required for processed commodities and mineral products

vi. Certificate of Age – normally required for spirits

Types of Export Documents cont’d

D. Shipping Documentsi. Billing of Ladingii. Airway Bill/Roadway Billiii. Single Goods Declaration (SGD) form

E. Financial Documents• i. Nigeria Export Proceeds Form (NXP) from CBN, Commercial Banks• ii. Certificate of Insurance for Cost Insurance & Freight (CIF)• iii. Letter of Credit • iv. Certificate of Commercial Export

Letters of Clearance/Permits:

• Export Permit from Department of Forestry, Federal Ministry of Agriculture for “Endangered Wild Life Species”, Wood & Wood Products

• Export Permit/Form J from Ministry of Mines & Solid Minerals for Mineral Products

• Letter of Clearance from Department of Veterinary Health Services for export of Animals/Animal Products & Pets

• Certificate of Clearance from National Museums & Monuments for export of Handicrafts & Artifacts

F. Tariff Concession Documents• Generalised System of Preference (GSP) – Nigeria Customs

Service• Exports to USA under AGOA – AGOA Certificate of Origin• Exports within ECOWAS under ETLS — ECOWAS Certificate of

Origin• Exports to the UK from Commonwealth Member States – The

Commonwealth Stand-Still Preference Certificate of Origin and Consignment

• Certificate of Origin – NACCIMA• Certificate of Commodity Export – Federal Ministry of Industry,

Trade & Investment

Note the Following:

- It is very important to note that all the documents mentioned in this presentation ARE NOT necessarily required for all exports. Only a few are generally required.- Others are to be used in conformity with the preferential

treatment, or for health or sanitary legislative requirements.- It is therefore, imperative that an exporter knows the

trade conditions of his products, masters the export procedures and the proper use of documents and accompanying certificates depending on their products- It is also advisable for an exporter to be aware of the

required documentation and the import regulations in his buyers country- The exporter can also engage the services of a forwarding

agent who is knowledgeable for a proper documentation

Concluding Remarks:You are all hereby encouraged to invest and engage inNon-Oil Export for it is a worthwhile and rewardingventure.

No better time to diversify the Nigerian economy than now; let’s seize on the opportunity!

The NEPC is urging you all distinguished participants to join hands with the Council to grow our Nation’s Economy. Consider export business from now on as it does not only earn you hard currency, but you will also be contributing to the economic of our great country.

info@nepc.gov.ngceo@nepc.gov.ng

Welcome to the World of

Non-Oil Exports!!!