CBN To Freeze Accounts Of Airlines, Shipping Companies Over Non-compliance With Export Guidelines

The Central Bank of Nigeria has threatened to impose heavy sanctions on shipping and airline companies that flout its guidelines on exports procedures.

The apex bank stated this in a circular titled: “Compliance with Export Procedures in Nigeria.”

The circular was signed by its Director, Trade and Exchange Department, Dr. Ozoemena Nnaji.

The CBN warned that henceforth, severe sanctions would be meted for such breach.

It listed some of the sanctions to include the refund of the forex for the value of goods illegally exported as well as post-no-debit on all bank accounts nationwide of any company caught in the act.

The Circular added, “For the avoidance of doubt, it shall be a breach of extant regulations for any shipping company or airline company to take on-board any cargo for which Form NXP is not duly completed and approved on the TRMS platform, failing which severe sanctions shall be meted for such breach, such sanctions shall include the refund of the forex value of goods illegally exported as well as post-no-debit on all bank accounts nationwide.”

The apex bank also directed shipping and airline companies to access the TRMS platform to generate ‘Form NXP’ numbers for capture on the Bill of Lading for export cargoes.

Consequently, it stated that all shipment or export cargoes from Nigeria would with effect from October 6, 2020, be in accordance with the aforementioned procedures.

It stated: “The CBN has observed with dismay the non-compliance by Shipping and Airline companies to the provisions of the Circular referenced TED/FEM/FPC/GEN/01/009 dated June 06, 2017, requiring that Bills of Lading/Airway Bill in respect of exports from Nigeria carry the Form NXP number in respect of the underlying cargos.

“Furthermore, the Circular referenced TED/FEM/FPC/GEN/01/003 dated October 28, 2019, which mandated electronic processing of Form NXP on the Trade Monitoring System and accessible at www.tradesystem.gov.ng has not been complied with.

Recall that the CBN, in the past, had also warned exporters conducting export activity against diverting foreign exchange from the export proceeds, instead of repatriating same home.

The Bank, in collaboration with the Bankers’ Committee, had threatened heavy sanctions against exporters who failed to repatriate foreign exchange proceeds from their international business.

The CBN stressed that its Foreign Exchange Manual provided that all exporters should repatriate export proceeds back to the country to support the local currency and boost the economy.