How to complete the Automation of NXP Form for Exportation in Nigeria
NXP Form – The Federal government of Nigeria on Monday 28 Oct, 2019 mandated that Nigerian exporters must complete their export documents through the Trade Monitoring System platform order than completing manual document.
The Trade Monitoring System is a web based portal designed and developed for the automation of the export Trade Forms (NXP) accessible onwww.tradesystem.gov.ng
I’m writing this guide to ensure Nigerian exporters of whatsoever goods are abreast of the current changes and how to go about completing their export documents hence-forth without hitting the brick walls.
What is “NXP Form”
This is in plain language called “Nigerian Export Proceeds Form.” This is a mandatory statutory document you ought to complete as a Nigerian exporter to enable you ship goods outside Nigeria.
Recall, we have “Form M” for importers while Form NXP is for exporters, as simple as that, serving alternate purposes in their context.
In line with CBN objectives of automating all trade processes, this portal will eventually eradicate the manual processing of Form NXP.
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Objectives of NXP Form portal
- Speedy processing of documents as the stakeholders have been integrated on the portal processing, approval of forms will come faster and handy.
- It saves time
- Saves resources, endless paper documentation is eliminated hence reducing unnecessary cost
- Easy storage and retrieval of documents as documents are now stored online
- Online real time processing is enabled
Functions/Duties of exporters on the portal
Exporters are expected to initiate or fill the Form NXP on the portal and in addition can perform the following function on the public portal
- You can create and fill Form NXP, the exporter is required to fill in all relevant details required for the bank to process his/her application.
- You can save, update and delete an application if need be
- Search, you can search for Form on your dashboard on the portal.
- Request can either be cancelled or extended.
- Modification of rejected application form.
How to complete the automation of NXP Form/Process flow and dynamics
Having performed your own side of the bargain by inputting on the portal www.tradesystem.gov.ng , the bank then has to follow up from where you stopped in the below order.
The bank have three major functions/roles to play with respect to Form NXP as follows:
1) Approval or rejection from the Exporter: In this process, the Authorized Dealer Bank (ADB) is required to review the application of an exporter. This includes reviewing all supporting documents such as the pro-forma invoice attached by the exporter.
2) Imputing NESS Levy paid by the Exporter: Designated banks are required to collect the Nigerian Export Supervision Scheme (NESS) Levy before the exporter can be issued a Clean Certificate of Inspection by the pre-shipment inspection agents. Hence amount of NESS levy paid and receipt for the payment must be attached.
3) Updating the TRMS with amount repatriated: Every exporter is expected to repatriate the proceeds of his export to the country within a 90-day window for oil export and 180-day window for non-oil export. The authorized dealer bank is mandated to update the system with the exact amount received on behalf of the exporter.
Note: Processing banks are only allowed to process NXP Form for exports while designated banks have the mandate to collect the NESS levy on behalf of the Federal Government.
It’s however possible for a bank to be both a designated bank and processing bank.
As an Example: POLARIS BANK LTD is a processing and designated bank.
Working on NXP Form by the Processing Bank
The Trade Management System Portal (TRMS) requires 2 authorized users (the reviewer and the supervisor) from the bank to approve or reject an application and as such, this segment will is divided into 2 groups
- The reviewer group and
- The Supervisor group
This is the first level authorization. These users are in charge of thoroughly reviewing an application alongside all supporting documents (PFI, NEPC CERTIFICATE, COI, RFI, DPR for oil) attached to it and recommending such application for either approval or rejection.
This is the user required to provide the final input on behalf of the ADB. Every form reviewed by the reviewing officer comes to the assigned supervisor for final approval, this could be accepted or override.
Working on NXP Form by the Designated Bank
As stated before now, designated banks are the only banks mandated by law to collect the NESS levy from the exporters. Not all processing banks are designated bank, but every designated bank is a processing bank.
This is equally divided into
- Reviewer groups
- Supervisor groups
This is the first level authorization and this user group is in charge of inputting the NESS levy due/uploading the receipt for payment on the system, the reviewer thereafter makes recommendation for either a rejection or an approval.
This group provides the final authorization from the designated bank.
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Repatriation of export proceeds
The Central Bank of Nigeria in their circular of the 19th of February, 2015 and also FEM manual specify that:
- Proceeds of oil and non-oil exports are to be repatriated into the export proceeds domiciliary accounts of their respective exporters’ accounts within ninety (90) days from the Bill of Lading date for oil exports and One hundred and eighty days (180) from Bill of Lading date for non-oil exports.
- Where an exporter fails to repatriate the proceeds into the domiciliary account within the stipulated period, the exporter will be barred from all banking activities in Nigeria.
- It is the responsibility of the Central Bank of Nigeria to monitor Authorized Dealers on the repatriation of all export proceeds.
Updating the TRMS with the amount repatriated
The expectation of CBN is that TRMS portal will automatically be updated once the inflow drops in customer’s export proceed account.
However, if there is no proper handshake with the banks CBA it is expected that the reviewer inputs the amount received which could be partial, full or joint and the supervisor thereafter authorizes.
At this point the status of the form changes to completed which marks the end of the circle for NXP processing via TRMS portal.
Raphael Orji is a freelance writer, professional blogger and a content marketing consultant. I work with small businesses, startups and entrepreneurs in building their brand image with high quality blogging and content marketing strategy.
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