CBN Halts Manual Process For Non-Oil Export

The Central Bank of Nigeria (CBN) yesterday announced the stoppage of manual processing of the Form NCX (Non-commercial Exports), directing that processing of the document shall only be done electronically on the Trade monitoring System.

The policy became effective on November 30, 2021.

The apex bank, in a circular dated November 29, 2021, that was addressed to all authorised dealers, including the Nigeria Customs Services (NCS), shipping lines and airlines, National museums and monuments and members of the public, stated that the e-Form ‘NCX’ shall replace the hard copy Form NCX for non-commercial exports.

It further mandated all authorised dealer banks to ensure that their customers obtain a valid Tax Identification Number (TIN) from Federal Inland Revenue Service (FIRS)/Joint Tax Board (JTB) adding that TIN remained a prerequisite for customers to access the Trade System for e-Form ‘NCX’ application.

According to the circular, signed by the CBN Director, Trade and Exchange Department, Dr. O.S. Nnaji, which was posted on the CBN’s website, the e-Form ‘NCX’ is web-based and allows non-commercial exporters to initiate the form from their offices/homes and submit same to the authorised dealer bank.

The CBN also explained that a charge of N5, 000.00 as fee per declaration of e-Form ‘NCX’ would be applicable with effect from November 30, henceforth.

It said, “There will be a direct debit of the processing bank’s current account for each declaration which should be recovered from the customer by the bank. However, the charge on the customer for the e-Form ‘NCX’ should be separated from other bank charges.”

The central bank also said all hard copies of Forms “NCX’ established on or before November 30, 2021 (prior to the commencement of the e-Form ‘NCX’) shall be utilized within 90 days of the establishment of the Form, warning that all established hard copies of the document for which shipment had not taken place within the transition period of 90 days shall be deemed cancelled.

The CBN further enjoined all authorised dealer banks to inform their customers of the latest development for compliance.

Essentially, Non-commercial Exports (NCX) form shall be completed by shippers or their agents and submitted to the bank for approval subject to the stipulated guidelines in the foreign exchange manual when payments are not expected for goods to be shipped to any destination outside Nigeria. Before now, the Form NCX was still completed manually.

Goods classified as non-commercial Includes gifts and personal effects, trade samples and printed business matter, machinery and equipment for repairs and return, machinery and equipment for replacement, trans-shipments.