The process of getting foreign exchange Forex Forms ‘A’ for invisible trade transactions, form ‘NXP’ for export and form ‘NCX’ for non-commercial exports fully automated has begun, the Central Bank of Nigeria (CBN) has said.
Speaking at the GTBank Settlement Customer Forum in Lagos, CBN Director, Trade and Exchange, Musa Batari, said with globalisation and development in information, communication technology, trade settlements have been enhanced and documentation partially made electronic.
He said to address the challenges of documentation, the CBN started automation of some of the Forex Forms. The form ‘M’, which indicates the intention to carry out import transaction, was automated last December.
This, he said, was achieved with combined efforts of the CBN, banks, Messrs Webb Fontaine, Nigeria Customs Service and Federal Inland Revenue Service.
Already, the CBN has announced the commencement of self-submission of the e-Form ‘M’ on the Nigerian Single Window for Trade Portal by importers and traders using foreign exchange.
It said the self-submission was necessary after the banking watchdog successfully deployed trade portal.
The e-Form ‘M’ is web-based and allows importers, traders to initiate the Form from their offices/homes and submit same to the authorised dealer.
The CBN advised importers and traders to begin self-submission of the e-Form ‘M’ on the Trade portal in line with design and objective of the scheme.
The e-Form ‘M’ is completed by importers while bidding for foreign exchange for importation of goods. Before now, Form ‘M’ was manual, making it difficult for banks to process forex transactions for their customers.
He said the full automation gives banks the opportunity to adapt fully to the process and master the challenges that come with the e- version of the process.
Despite the achievement of full e-version of the process, Batari said banks still face challenges bothering on Tax Identification Number (TIN), discrepancies in e-mail address, network instability, high down time frequency among other factors.
“The automation of the e-forms will enhance transparency; reduces cost transaction; eliminate delays; provide reliable data for monitoring and planning purpose; and achievement of overall efficiencies of trade processes,” he said.
Batari advised importers to ensure that they have valid TIN, e-mail address provided at the point of registration, which should be maintained to avoid problems in completing the form. Besides, he said the vendor and other stakeholders should ensure the stability of the system to avoid disrupting the processing of trade transactions.
He explained that the process allows the importer to complete and submit the form ‘M’ online. It also allows for the attachment of supporting and regulatory documents. For Initiation and Submission of the e-Form M on the system, TIN is required to access and register the e-Form M on the system.
He said importers with valid TIN can access the Single Window Trade Portal and register as importer under the Federal Inland Revenue Services window.
Batari explained that international trade is the exchange of goods and services. It therefore, implies that settlement has an important role to play in trade. “The banks are the major institutions responsible for settlement of trade transactions except where such trades are done informally. The health of the banking industry is a necessary condition for enhancing and fostering trade,” he said.
