The Central Bank of Nigeria (CBN), on 28 October 2019, released a circular (“the Circular”) informing the public about the deployment of an automated e-form ‘NXP’ (the Form) to replace hard copy form ‘NXP’ – a requirement for commercial exports, with effect from 31 October 2019.
With the introduction of the e-form ‘NXP’, exporters are now required to log on to the trade monitoring system website, www.tradesystem.gov.ng, to process the Form. All exporters are to obtain a valid Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS) or the Joint Tax Board as a condition for processing the Form. Exporters would also pay a fixed fee of ₦5,000 (five thousand naira) for processing the Form, which is separate from all other associated bank charges.
For exporters who started processing hard copy form ‘NXPs’ prior to 31 October 2019, CBN has allowed a transitional window of 90 days to complete the process. After the window, all non-utilized hard copy form ‘NXPs’ shall be deemed cancelled and exporters will be required to process the Form to initiate exports.
The automation of the export process is a commendable initiative in improving the ease of doing business for exporters, as it will ensure that valuable time is saved in the export documentation process. The requirement for TIN would also help FIRS to monitor tax compliance of exporters and ensure that relevant taxes are collected.