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THE ROLE OF THE COUNCIL IN NON-OIL EXPORTS, REGULATORY PROCEDURES AND DOCUMENTATION BY MR OLUSEGUN AWOLOWO EXECUTIVE DIRECTOR/CEO NIGERIAN EXPORT PROMOTION COUNCIL at NIGERIAN-GERMAN BUSINESS ASSOCIATION FORUM LAGOS. 21 ST May, 2019. OUTLINE. What is export trade?
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THE ROLE OF THE COUNCIL IN NON-OIL EXPORTS, REGULATORY PROCEDURES AND DOCUMENTATIONBY MR OLUSEGUN AWOLOWOEXECUTIVE DIRECTOR/CEONIGERIAN EXPORT PROMOTION COUNCILatNIGERIAN-GERMAN BUSINESS ASSOCIATION FORUMLAGOS 21ST May, 2019
OUTLINE • What is export trade? • Zero Reject Initiative - Background • Export Regulatory Framework/Policy Guidelines • Requirement for Registration as an Exporter • Export Documentation • NEPC Strategic Initiative Projects • List of Prohibited Items. • Conclusion
The Nigerian Export Promotion Council (NEPC) as a Federal Government Agency, was established by Decree 26 of 1976 with subsequent amendments in 1986 and 1992 to perform the following key functions: • Promote the development and diversification of Nigeria’s export trade. • Assist in promoting the development of export-oriented industries. • Play a leading role in the creation of export incentives to support the export sector • To actively articulate and to promote the implementation of export policies and programmes of the Nigerian Government
VISION; To Make The World A Market Place • For Nigerian Non-oil Products . • MISSION; To Spearhead The Diversification Of • The Nigerian Economy By Expanding • And Increasing Non-oil Exports For • Sustainable And Inclusive Economic • Growth • In both the Vision and Mission statements of NEPC, the expected role of development and promotion of non-oil exports are clearly stated.
WHAT IS EXPORT TRADE? • Export trade is simply exchange of goods and services or a combination of both between two businessmen in different countries
WHO IS AN EXPORTER? • An Exporter is one who engages in the trade of goods and services with buyer(s) in a foreign market. Exporters are classified as follows;- • (a) Export Agent/Broker • (b) Export Merchant • (c) Manufacturing Exporter
WHY DO WE EXPORT? • To earn foreign exchange • To increase profit levels • To gain access to bigger markets • To gain access to more developed technology and enhance quality of production • To reap economies of large scale production
ZERO-REJECT INITIATIVE: THE BACKGROUND • Need to create awareness on compliance with regulatory requirements. • Repeated issuance of Rapid Alert System for Foods and Feeds(RASFF) and subsequent initial 6-month ban on export of Nigerian beans to the UK/EU • NEPC spearheaded an inter-agency fact-finding visit to food regulatory agencies in the UK. • NEPC convened a 21 member inter-agency committee on non-oil export • Committee submitted a comprehensive report laying out a road map for all classes of exportable products
ZERO-REJECT INITIATIVE: THE BACKGROUND- CONT’D • Extension of 6-month ban by the EU to 3years • Adoption of NEPC facilitated inter-agency report • Formation of inter-ministerial committee to consider the report and other matter on non-oil export • Adoption of the concept of Conduit of Excellence (CoE) by the committee • Formation of Integrated Export Control Plan(IECP)
ZERO-REJECT INITIATIVE: THE BACKGROUND- CONT’D • FOCUS OF THE INITIATIVE; • AN EXPORTER MUST BE AWARE OF: • EXPORT PROCEEDURE: A formal process in the conduct of International Trade • DOCUMENTATION: pre-requisite records necessary to facilitate Export of Goods and Services. • REGULATORY REQUIREMENTS: Compliance with requirements on quality standards, certifications and legal issues.
EXPORT REGULATORY FRAMEWORK/ POLICY GUIDELINES • EXPORT GUIDELINES • Registration with Nigerian Export Promotion Council (NEPC). • All exports be subjected to inspection by Inspection Agents appointed for that purpose by Federal Government of Nigeria. • Exporter shall Obtain a Nigeria Export Proceeds Form (NXP Form) from his/her Bankers. • The Exporter shall complete the NXP Form in sextuplicate, and submit it to his Bankers along with a contract of sales or pro-forma invoice, and details of how the proceeds are to be remitted for each export transaction. • The Inspection Agents shall ensure the quality, quantity and the true value of the goods to be exported to the consignee and shall, if satisfied, issue a Clean Certificate of Inspection (CCI) in respect of such goods.
Products exported from Nigeria to Germany • Cocoa beans, cocoa cake and butter, hibiscus flower, rubber, leather, ginger, shea butter, chillie pepper, coffee, lead ore and concentrates, cotton lint, sesame seeds and gum arabic, Lubricants e.t.c
Products imported from Germany to Nigeria • Machinery, vehicles, plastics, electrical and electronic equipment, articles of iron and steel, tanning and dyeing extracts, organic chemicals, modified starch, sulphur, spirits and vinegar, prefabricated materials, isotopes, musical instruments, photographic and cinematographic goods.
Nigeria - Germany Trade Balance Position(,000). (2016-2018) Source: ITC calculations based on COMTRADE Statistics SHOWING BALANCE OF TRADE Position.
Graphical Presentation Nigeria - Germany Trade Balance Position(,000). (2016-2018)
REQUIREMENTS FOR REGISTRATION AS AN EXPORTER • Limited liability, Co-operative societies, NGO, and Govt Agencies. • Obtain Registration Form N1000, Processing Fee-N10,000 • On-line registration N13,500, On-line registration and profiling; N36,000 • Replacement for loss of certificate N10,000, Renewal fees N5000 • (A ) LIMITED LIABILITY • Certificate of Incorporation • Certified true copy of Memorandum & Articles of Association • Certified true copy of Form CO7 • Company Rubber Stamp/Seal. (B)CO-OPERATIVE SOCIETIES • Certificate of Registration • Bye-Laws • Co-operative Rubber Stamp/Seal. ( C ) GOVERNMENT & NON-GOVERNMENT ORGANIZATIONS • Certificate of Registration by CAC. • Articles of Association. • Law establishing the agency in the case of government organization. • Rubber Stamp/Seal. • Original documents to be presented for sighting.
RENEWAL OF EXPORTER’S CERTIFICATE • The certificate has no limited life span except by default. It must however be revalidated every “ two year”. An exporter must produce evidence of revalidation on demand. • Any company that fails to revalidate its registration six (6) months after shall be required to register afresh or pay fine unless acceptable reason(s) are given for the delay. • REQUIREMENTS FOR RENEWAL • Application for renewal written on the company’s letter headed paper should be addressed to the NEPC office nearest to you. • Original of the Exporter’s Registration Certificate • Certified True Copy of Form CO7 (Particulars of Directors) in case of Limited Liability Company (Original for Sighting )
EXPORT WAREHOUSE CONTAINER STUFFING FINAL INSPECTION AT THE PORT BEFORE SHIP LOADING SHIP LOADING AFTER INSPECTION
NEPC INTERVENTION PROJECTS • Expanding Nigeria’s exports of Sesame Seed and Sheabutter through SPS Capacity building for Public and Private Sector in eight states (Borno, Taraba, Benue and Kogi for Sesame Seed and Oyo, Kwara, Niger and Kebbi for Sheabutter). • The intervention on quality issues through the Standard Trade Project Facility (STDF 172) is a collaborative effort between the World Trade Organization and NEPC.
NEPC INTERVENTION PROJECTS- cont’d • Common Facility Centers in Aba, Benue State and Agoa training office in Lagos. • Establishment of Common Facility Center (CFC) on leather to enhance value-addition in Aba. • Establishment of Human capital Development centre(HCDC) in Lagos for training of production of clothing for the US market
LIST OF PROHIBITED ITEMS FOR EXPORT • Maize • Scrap metals • Rough or Sawn Wood • Wild animals • Artifacts • Raw Hides and Skin • Unprocessed rubber
PACKAGING OF MANGOES FOR EXPORT • Scrap metals • Rough or Sawn Wood • Wild animals • Artifacts • Raw Hides and Skin • Unprocessed rubber
PACKAGING OF BANANA AT ILAWE IN EKITI STATE PACKAGING OF BANANA IN CAMEROUN
Website;www.nepc.gov.ng • E-mail: info@nepc.gov.ng Export Business... Tomorrow's Business