Procedure for arranging Inspections for Non-oil commodity Exports

For those undertaking Non-Oil Commodity Exports, the procedures for arranging inspections are straightforward, and the following steps are provided for ease of reference.

STEP  1

Collect and fill the NXP form from the designated bank

Collect a NIGERIAN EXPORT PROCEEDS FORM (NXP Form) from your Bank, then complete and return the Form to your Bank for registration.

The Exporter should photocopy the NXP form so that it may be referred to in any correspondence with his bank, the CBN, or the Nigeria customs service, incase such a need arises.

Frequently Asked Questions

The Exporter will be required to attach

  • Pro-forma Invoice
  • Final/commercial invoice
  • The contract of sale
  • Packing
  • Bill of lading
  • Photocopy CAC
  • Photocopy NEPC reg
  • NESS receipt

The NXP form must be utilized within 6 months after its submission, subject to a renewal of 3 months by the dealing bank. Subsequent requests for renewals are to be approved by the director, Trade, and Exchange Department of the Central Bank of Nigeria, otherwise, it must be returned to the exporter’s bankers for cancellation.

No. An NXP can be used only for one type of item. E.g, if you want to export Hibiscus, Hides & Skin and Ginger, you will be required to use NXP forms.

However, you can use the same NXP for different grades of the same item.See section 4 of the NXP form

STEP  2

Pay the NESS fee

At the point of NXP form submission, the exporter will be required to pay the Nigerian Export Supervision Scheme (NESS) Administrative charge at a designated bank. A receipt will be issued to you.

Frequently Asked Questions

The NESS Administrative fee is 0.5% of FOB value for Non-oil export and 0.15% of FOB value for oil/gas export.

The Ness Fee is paid in Naira. The exporter is required to convert the FOB value of export to naira using the exchange rate on the NXP form. This is usually the CBN exchange rate at the date of collecting the NXP form.

See list of designated banks

Yes, you can, as long as you are paying into a designated bank.

STEP  3

Bank forwards NXP Form and NESS Receipt to Primary Inspection Agent

The NXP form comes in sextuplicate (6 copies). The Exporter’s Bank (the bank where you returned the NXP form to) will keep the original copy and forward the remaining 5 copies of the NXP Form together with a copy of the NESS Administration fee Receipt, to the Pre-shipment inspection Agent (Cobalt International) Area Office nearest to the point of inspection.

Frequently Asked Questions

Contact the cobalt area office closet to you click here for Cobalt area office contact addresses

This process takes between 24 to 72hrs

Your NXP will be sent to the Cobalt Office nearest to the location of the designated bank where you submitted your form.

STEP  4

Fill the “Request for Information” (RFI) Form

After completing the NXP form, the Exporter is required to collect a REQUEST FOR INFORMATION FORM (RFI Form) from the inspection agent (cobalt international services).

The RFI Form is designed to provide the PIA with general information to enable the inspection to be undertaken as efficiently as possible, such as where and when a particular consignment is due to be exported, contact details and shipping information etc. It will also enable the inspection company to coordinate with the exporter, a suitable time and place for the physical inspection. It is therefore essential that exporters provide all the required information in the RFI.

In specifying a preferred date of inspection, exporters should ensure to give the PIA a period of 10 days’ notice prior to the proposed date of inspection.

Frequently Asked Questions

You can download the RFI form from our website or you can pick one up from one our Area Offices.

STEP  5

Submit the completed RFI form

After completion, the RFI Form should be submitted to one of the Cobalt International Area Offices near you, with all the relevant documents.

Frequently Asked Questions

The Exporter should also provide Cobalt International with any other relevant documents relating to the export transaction, such as Contract of sale, Pro-forma Invoice and Letter of Credit details.

STEP  6

Schedule the Inspection

Upon receiving the exporter’s NXP from the bank, as well as the RFI and other relevant documents, the inspection agent will open a unique file for the export transaction.

Further, the Inspection agent will reach out to the exporter to agree on a fixed date to come and physically inspect the goods.

Frequently Asked Questions

Typically, cobalt will reach out to the exporter within 24hours of receipt of the NXP form from the bank.

Yes. Inspections should be completed within 10 days of submitting the NXP and RFI. However, this is subject to communication between the PIA and the exporter.

STEP  7

Inspection

The inspection will take place at the agreed location as specified on the RFI. This could be at a seaport, airport, terminals, or other points of dispatch, or at the point of production and/or storage.

The Exporter is required to provide all necessary support to enable the PIA to perform the inspection at the inspection site. This include ladder, fork-lift trucks, labor, etc, as the case may be. The inspector will verify that the quality, quantity, and price of the goods corresponds to the details provided in your NXP form earlier.

Where exports involve processed food, drugs, animals or plants, crude oil or any of its fractionates, the necessary government agencies shall be invited for certification as well.

 

Frequently Asked Questions

The PIA is responsible for transporting their Inspector to the point of inspection, as long as the location is reasonably accessible. Where, however, the location of inspection is difficult to navigate, the exporter will be required to support the inspector to get to the location of inspection.

Provide all required logistics that will enable the inspector to adequately appraise the items, e.g Ladder, fork-lift, relevant documentation, etc.

Ensure proper completion, registration, and lodgment of all the necessary documents – RFI, NXP, NESS Receipt, packing list, Invoice, Bill of Lading, etc.

Pay the current amount for the NESS Fee

STEP  8

Issue CCI or NNCI

Following a satisfactory inspection of the quality, quantity, and value of the Export, the PIA (Cobalt International) will complete the relevant portion of the NXP form and issue a CLEAN CERTIFICATE OF INSPECTION (CCI) within 3 working days which the Exporter should collect from the appropriate Area Office of Cobalt International.

In the event of uncovering discrepancies in the quality, quantity or price of goods inspected, that cannot be corrected immediately, the Exporter shall be issued with a NON-NEGOTIABLE CERTIFICATE OF INSPECTION (NNCI).

Frequently Asked Questions

  • Quantity Discrepancy: The quantity of items the inspector sighted is more or less than what you declared in the NXP. A discrepancy in quantity will imply a difference in total FOB value.
  • Quality Discrepancy: The quality of items the inspector sighted during inspection is not the quality of the item you declared in the NXP form. A discrepancy in quality will most likely imply a difference in unit price of the items, which will automatically affect the FOB value declared in the NXP.
  • Price discrepancy: The going market rate of the items the inspector sighted is different from the unit price you stated in your invoice/NXP form, which would imply that you are overvaluing or undervaluing your export value.

If the discrepancy is minor (to be determined at the discretion of the inspector), the exporter will be required to adjust the relevant submissions to reflect what the inspector saw.

Where there is an increase in FOB value after the updated calculations than that originally declared in the NXP, the exporter will be required to pay the additional NESS fee and an additional receipt will be issued to the exporter. Where there is a decrease in FOB value, the exporter will be able to apply the surplus in NESS fee paid to subsequent exports.

Where the inspector determines that there is a major discrepancy in goods inspected, the inspector will recommend that the exporter should be issued a Non-negotiable certificate of Inspection (NNCI).

An exporter issued a NNCI will not be allowed to export his product from the country. To avoid getting a NNCI, exporters should

  • Ensure that they complete the NXP form honestly and correctly.
  • Get necessary certifications from the relevant regulatory bodies such as SON, NAFDAC, DPR, etc
  • Avoid trying to export prohibited goods.

An exporter issued a NNCI will be required to start a new NXP application. However, the NESS fee paid on the previous NXP application will be eligible to be applied to offset all or part of the NESS Fee computed on the new application, as the case may be.

STEP  9

What’s next?

Cobalt will forward 4 copies of the updated NXP form to the Nigerian customs service and distribute copies of the CCIs to relevant agencies.

Exporters will be required to present their CCIs to the relevant authority before they can load their export cargo into a sea-going vessel or aircraft.

Exporters should be aware that once goods have been inspected and CCIs issued, any variation between goods presented for loading and those confirmed by the CCI will render the exporter liable to penalties in accordance with the laws of the Federal Republic of Nigeria.

Repatriation of Export Proceeds: All exporters are to ensure that the export proceeds are repatriated and credited to their domiciliary account opened with their bank in Nigeria.

Frequently Asked Questions