The Network of Practicing Non-oil Exporters of Nigeria has decried the impact of the pre-export procedures introduced by the Central Bank of Nigeria, which requires electronic Nigeria Export Proceed Form from exporters.
It stated that the requirement is creating a lot of bottlenecks in the export of products.
NPNEN in a statement signed by the President, Ahmed Rabiu, noted that the transaction dynamics as being implemented, is doing more harm than good by creating a lot of bottlenecks, causing undue delays and consequently encouraging corruption.
The new procedure by the CBN requires that an export transaction be initiated through eNXP processing on the Trade Monitoring System, after which the Pre-shipment Inspection Agent, the Nigeria Customs Service and other designated government agencies carry out their pre-export inspections.
The PIA is expected to issue a Clean Certificate of Inspection while the Customs issues the Single Good Declaration.
Citing a recent report of N868bn worth of goods bound for export that are stuck at the ports, the Association stressed on the need for urgent attention to reverse the ugly trend.
It added that the several layers of activities are generating serious problems in the new process and are now constituting a disincentive to formal exports out of Nigeria.
It said, “We acknowledge the CBN’s desire to ensure that all exports out of Nigeria are documented in order to ensure that the proceeds of such exports are repatriated.
“However, the reality on the field shows that the process is causing undue delays and consequently, encouraging corruption.
“For example, for the PIA to issue the CCI, the exporter is required to upload a Certificate of Origin as one of the supporting documents for the eNXP.
“The PIA is also required to upload the CCI to the TRMS(M) and until this is done, Nigeria Custom Service will not issue the SGD. After issuing the SGD, the NCS is further required to upload it into the TRMS before the goods are allowed to be gated into the port and loaded on the vessel by the shipping line.
“First of all, asking for CoO as a compulsory requirement for pre-export documents when the agency issuing this document requires a copy of the Bill of Lading (a document obtained after shipment) is a contradiction.
“To get the Bill of Lading number and container number means that an exporter will remain stuck if he does not find a way to get these Bill of Lading details from the shipping line before the original is issued.
” Another problem is that there is no timeline given to the PIAs and Customs to issue and upload this document.”
The Association said the lack of capacity, high exchange rate, protracted delays caused by the new processes has led to deterioration and losses for Agro commodity exporters.
This, it stated, had forced many exporters to miss their allocated shipment periods, and consequently, loss of future business opportunities.
It added, “What CBN did not realise is that as the exchange rate of Naira to dollar is rising, the local market price for the products are also rising but the export market price remains stable or even declines from the impact of COVID-19.
“For someone exporting a Hibiscus flower that used to export a tonne at about N380,000 when exchange rate was N360 to a dollar now has to pay about N445,000 per tonne to export the same products due to increase in cost of products and logistics while the export market has largely remained stable.
“This means that the only way to break-even is to leverage on the exchange rate differential. However, a situation where the exporter is forced to sell at N380 via the I&E window will mean a loss to the exporter and this will be a disincentive to use NXP or the bank in their export process.”
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