International Services Department staffed is comprised of several units designed to serve you and create value for your business.  We are a dynamic, highly qualified and experienced team committed to exceeding our customer’s Trade and Domiciliary Account Management requirements by providing innovative value-laden solutions. We are responsible for foreign currency transactions – FCY transfers, Imports, Exports, etc.  We also interface with service providers like Custom and the scanning companies on behalf of our customers.

SOME DAY TO DAY SERVICES AVAILABLE TO YOU….!

•      Domiciliary Account  Management Services – FCY transfers

•      E-Form M, Form NXP, Form NCX & Form A processing

•      Issuance of Import Letters of Credit

•      Processing of Export Letters of Credit

•      Document negotiation

•      RAR processing

•      Bills for Collection

•      Invisible remittances (Form A) – School fees, PHR, Medical Bills, etc.

•      SBLCs and Bank Guarantees

•       E.T.C

What is International Trade?

International trade: Exchange (Import and Export) of capital, goods, and services across international borders or territories. It is either visible or invisible. Visible Trade relate to import and export of physically tangible goods, e.g. spare parts, machinery, tiles, cars, etc.;  while Invisible Trade relates to intangible goods such as school fees, medical bills, personal home remittances.

Regulatory Forms

Form M is used for importation of visible goods, Form NXP is used for exportation of commercial goods, Form A is used for invisible transactions

Form M

Form M is an application to import visible goods and also serve as a statistical tool for the government in policy formulation. It is mandatory for all importers to complete and register Form ‘M’ with Authorized Dealers at the time of placing orders whether the transaction is valid for foreign exchange or not. This is currently initiated electronically on Trade Portal provided by the Central Bank of Nigeria in conjunction with the Nigeria Customs Service. Supporting documents for submission of Form M includes PFI (proforma invoice), Insurance Certificate covering 110% of the item of import.  Depending on the item of import, other regulatory documents such as NAFDAC permit, SONCAP product certificate, DPR Import Permit, PCN licence, etc.; will also be required

Methods of Payment in International Trade

CASH IN ADVANCE

This trade payment method is prevalent for transactions where the seller has a much higher bargaining power than the buyer. The buyer sends cash ahead of receipt of goods.  The inherent risk in the transaction is borne by the buyer

DOCUMENTARY CREDITS (Letter of Credit)

‘Any arrangement, however named, or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honour a complying presentation’…….. (UCP600 Article 2)

DCs, more commonly known as letters of credit are a widely used method to effect payments in domestic and international trade.  A written undertaking is issued by a bank (usually referred to as the issuing bank) on the instructions of the buyer of goods to the seller. The payment is made under conditions stated in the undertaking. Payments are always up to a stated limit and against stipulated documents.

A DC can be confirmed or unconfirmed.

DOCUMENTARY COLLECTION (BILLS FOR COLLECTION)

Documentary collection popularly referred to as Bills for Collection simply suggests that … a credit facility (supplier’s credit) is extended by a party to a trade contract (in this case the supplier/exporter) to another party (the buyer /importer) for an agreed period of time at an agreed rate of interest (which may be zero rate) within which payment should be made for goods supplied.

OPEN ACCOUNT

The entire risk in the transaction is borne by the seller since the payment is made by the buyer only after the latter has taken possession of the goods. Seller’s risk is therefore of non-payment or delayed payment. In an open account trading scenario, the buyer has a much greater leverage than the seller.

FORM NXP REGISTRATION DOCUMENTATION

The following are the basic documentary requirements for an export transaction

A.  AT THE POINT OF REGISTRATION OF THE NXP FORM

I.             A duly completed FORM NXP which much be completed in sextuplicate (6 copies)

II.            A Proforma Invoice issued by the exporter

III.           A sales contract (agreement) where applicable

IV.          NEPC (Nigeria Export Promotion Council) registration certificate

B. AFTER SHIPMENT OF GOODS

I.             Clean Certificate of Inspection (CCI), where applicable

II.            Shipping documents e.g Bill of Lading, Bill of exchange etc

III.           Other certificates

INVISIBLE TRADE TRANSACTIONS

This is basically the Import of services. Examples are as follows:

•           Travels- PTA, BTA, Medical travel, Pilgrimage

•           Education outside Nigeria

•           Medical bill / expenses

•           Personal home remittance (PHR)

•           Dividend/profit remittance

•           Sundry payments

•           Miscellaneous payments, etc.

With the exception of travel allowances, all other eligible payments require the completion of Form A amongst other documents.

PTA

Personal, Business and Pilgrimage Travel Allowance

Allowable limit for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) is $4,000.00 and $5,000.00 (or equivalent in other Foreign currency) per quarter respectively

Documents Required for PTA purchase

•      Valid International passport with relevant Visa

•      International return ticket

•      Letter of request from customer

NOTE:

  1. Nigerian Students in overseas institutions who are on holiday in Nigeria, Nigerian residents who have won overseas visa lotteries and Nigerians who carry foreign passports shall be allowed to purchase PTA with a ONE-WAY ticket subject to presentation of the relevant documents.
  2. Foreign Nationals shall be allowed to purchase PTA with a one-way ticket subject to presentation of work/resident permits
  3. Foreign Exchange to intending pilgrims is subject to the documentation requirements and exchange rate determined  from time to time by the Federal Government

Documents Required for BTA purchase

•      Valid International passport with relevant Visa

•      International return ticket

•      Letter of request from the corporate body stating the purpose of the visit

•      Certificate of business registration/incorporation

We will like to hear from you, please contact us via our group e-mail: InternationalServices@hbng.com

HOTLINE FOR INQUIRIES: 234-1-2704029

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