The importers of the following CBN 41 items have since 3 June, 2015 been discontinued from accessing foreign exchange at the Nigerian foreign exchange markets. The purpose is noble, that of allowing local production of these items to thrive.
CBN 41 ITEMS: REASON FOR RESTRICTION ON FOREX
In the circular referenced TED/ FEN/ FPC/ GEN/0 1/010 dated 3 June 2015, the CBN explains: “In the continuing effort to sustain the stability of the foreign exchange market and ensure the efficient utilisation of foreign exchange and the derivation of optimum benefit from goods and services imported Into the country. It has become imperative to exclude Importers of some goods and services from accessing foreign exchange at the Nigerian foreign exchange markets in order to encourage local production of these items. The implementation of the policy will help conserve foreign reserves as well as facilitate the resuscitation of domestic industries and improve employment generation.”
CBN 41 ITEMS: LIST OF ITEMS RESTRICTED FOR FOREX
Consequently, this article will walk you through how to import those items without hindrance.
The following are the list of affected items:
- Palm kernel/Palm oil products/vegetables oils
- Meat and processed meat products
- Vegetables and processed vegetable products
- Poultry chicken, eggs, turkey
- Private air-planes/jets
- Indian incense
- Tinned fish in sauce (Geisha)/sardines
- Cold rolled steel sheets
- Galvanized steel sheets
- Roofing sheets
- Head pans
- Metal boxes and containers
- Steel drums
- Steel pipes
- Wire rods (deformed and not deformed)
- Iron rods and reinforcing bard
- Wire mesh
- Steel nails
- Security and razor wine
- Wood particle boards and panels
- Wood Fibre Boards and Panels
- Plywood boards and panels
- Wooden doors
- Glass and Glassware
- Kitchen utensils
- Tiles-vitrified and ceramic
- Woven fabrics
- Plastic and rubber products, polypropylene granules, cellophane wrappers
- Soap and cosmetics
- Tomatoes/tomato pastes
- Euro-bond/foreign currency bond/ share purchases
CBN 41 ITEMS: HOW DO YOU IMPORT ITEMS?
To answer this question, let me first of all drop what I call free gift for you. The central bank of Nigeria in a circular referenced – TED/PFO/CIT/CON/01/083 dated 27 July, 2017 clarified that the above stated restriction does not apply to operators in in the Oil and Gas industry. However, such operators must present certificate from the Downstream Petroleum Resources (DPR). The DPR certificate shows certification as an operator of the Oil and Gas industry at the Form M application stage. Hence, Vagmon Integrated Services assist in processing DPR certificate/permit.
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CBN 41 ITEMS: ITEMS IMPORTATION METHOD FOR NONE OIL AND GAS OPERATORS
What if you are not an operator of the oil and gas, does it mean that the above items are automatically out of reach for your importation? No is the answer. In this situation, the following steps will see you through:
- First of all, with your pro forma invoice, SON PC or Import Permit or NESREA Permit (if the item is used), and the marine cargo insurance certificate, initiate Form M application on the Nigerian Single Window for trade.
- Furthermore, do a letter to your bank (the Authorised Dealer Bank, who processes your Form M) branch manager, stating that you will source foreign currency for the payment of the goods (among the 41 items listed above) via the parallel market. Also, mention the source of your funds and attach evidences of source of funds. Such evidences could be telex releases, bank account statements or any other.
- More so, attach the above letter (of course in your company letter head, signed and stamped) as one of the Form M documents on the single window for trade or otherwise send a scanned copy to the bank manager.
- Therefore, your Authorised Dealer Bank will then approach Central Bank of Nigeria (CBN) with your letter and the evidence of source of funds for approval to import the said item.
- The Central Bank reviews your letter, and communicates approval to your bank
- Finally, the bank validates Form M processing and sends to the Nigerian Customs Services, who then finalises Form M issuance.
- Certainly, all other normal import process will follow.
Read Also: FORM M NIGERIA: HOW TO PROCESS AND OBTAIN IT
CBN 41 ITEMS: SAMPLE CBN APPROVAL LETTER
Vagmon Integrated Services
NPA, Port Harcourt.
3 May 2018.
The Branch Manager
UBA Ikwerre Road,
Application for CBN Approval Letter to Import Items in the Attached Pro forma Invoice Number – Vag1234a# (with initiated Form M Number – MF2018xxxxxx)
We write to request your approval to import the items in the above stated pro forma invoice.
Our source of funds is from genuine business proceeds, devoid of any corrupt practices. Thus, it is from this proceeds that we hope to get foreign currency from the parallel market.
- Pro forma invoice containing said items
- Evidence of our source of funds.
For Vagmon Integrated Services.
CBN approval letter is needed to complete Form M process for listed 41 items. Oil and Gas Services and operators are exempt from this restriction. Thank you for taking time to read through this piece. Remember to like and share for the benefit of all.