1 Graham Thorpe Trade Finance Manager (A UK incorporated and UK FSA regulated Bank) Nigerian Trade Finance -Impact of Changes.

2

Number of LCs issued 2005 ..SWIFTNumber of LCs issued 2005 ..SWIFT

South Africa 46154 Uganda 1406 Niger 342Nigeria 33380 Angola 1392 Mali 324Morocco 29288 Djibouti 1212 Togo 291Tunisia 25828 Burundi 1211 Eritrea 228Algeria 25383 Mozambique 1004 Gambia 220Ethiopia 16815 Malawi 995 Namibia 211Mauritius 12346 Cameroon 972 Guinea 146Sudan 10682 Rep. Democratique du Congo 937 Cape Verde 134Kenya 8727 Seychelles 751 Sierra Leone 104Libyan Arab Jamahiriya 5267 Burkina Faso 749 Equatorial Guinea 101Ghana 3950 Mauritania 743 Zimbabwe 86Madagascar 2999 Rwanda 712 Swaziland 64Reunion 2865 Benin 708 Chad 54Tanzania 2198 Zambia 702 Central African Republic 24Senegal 1570 Gabon 535 Lesotho 23Cote d'Ivoire 1439 Botswana 388 Congo 22

3

Correspondent Banker toCorrespondent Banker to

Intercontinental Zenith United Bank for Africa Guaranty Trust Access Oceanic Diamond IBTC CharteredEquitorial Trust First City MonumentPlatinum SterlingFidelity First Bank

4

3

4

6 10

9

NIGERIA CUSTOM SERVICE

SCANNING COMPANY

NIGERIANBANK

IMPORTER

NPA/FAAN TERMINAL

EXPORTERFBN BANK (UK) LTD

1 2

11a 12

11b11b

13

5

14

78 15

LC ADVISE

DOCS

DOCSLC ISSUANCE

SUBMISSION TO BANK

ENDORSE DOCS

REQUEST FOR CLEARANCE

REQUEST FOR CLEARANCE

ACCEPT /NOTIFY

REJECT

APPROVAL/ SUBMISSION

FORWARD DOCS

SHIPMENT

FORWARD FORM M

GENERATE RAR & SEND TO NCS

EXAMINATION (GREEN, YELLOW OR RED). EXTENT DEPENDS ON RAR

RELEASE OF GOODS

The Destination Inspection Process

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IssuesIssues

Manufacturer’s Certificate / Lab Test Certificate

14 days

CCVO

Direct documents / Document Control

Form M

Old transactions

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Manufacturer’s Certificate & Lab CertManufacturer’s Certificate & Lab Cert

3 original(s) of Manufacturer/Supplier's Certificate with standards adopted of goods

3 original Manufacturers Certificate of Production confirming the standard used for production

One original Manufacturer's Certificate of Production (stating the manufacturing standards adopted e.g. ISO,IES etc.) and 2 copies

Manufacturer's Certificate stating the standards adopted thereon i.e. British Standard –PD ISO, NIS, DIN ETC.

Laboratory Test Certificates (for chemicals, foods beverages pharmaceuticals electrical appliances and other regulated products

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14 Days….examples14 Days….examples

Certificate is required from the beneficiary confirming that …………….documents have been sent by their bankers directly

by courier to x bank

…….documents to be sent directly by courier to x bank within 14 days of shipment and a beneficiary certificate to that effect is required

……...to be dispatched by courier to x bank within fourteen days of shipment. A copy of the courier way bill for the dispatch of the documents is required.

One original beneficiary certificate, with original courier service airway bill attached certifying that documents in Field 47a (2) have been forwarded directly to X bank within14

days after shipment date

Form M no …… and the above LC number are to be quoted on all documents

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Good News ??Good News ??

“We wish to clarify that the Manufacturer Certificate was deleted because the product being imported is not a manufactured product”

“Please note that items of import on these LCEES are non regulated items and do not require Laboratory Test Certificate”

3/3 Original Bill of Lading to be presented

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CCVO ….examplesCCVO ….examples

3 original (s) and 1 copy(s) of Combined Certificate of Value and Origin (C.C.V.O.) as required for import into the Federal Republic of Nigeria

1original Combined Certificate of Value and Origin (CCVO) and 3 copies . The Combined Certificate of Value and Origin (CCVO) must state the adequate description of goods, port of destination, shipment identification, date of shipment, country of origin, country of supply.

3 original and 3 copies CCVO (form C16)

1 original Combined Certificate of Value and Origin (CCVO) and 3 Copies.

10

3

4

6 10

9

NIGERIA CUSTOM SERVICE

SCANNING COMPANY

NIGERIANBANK

IMPORTER

NPA/FAAN TERMINAL

EXPORTERFBN BANK (UK) LTD

1 2

11a 12

11b11b

13

5

14

78 15

LC ADVISE

DOCS

DOCSLC ISSUANCE

SUBMISSION TO BANK

ENDORSE DOCS

REQUEST FOR CLEARANCE

REQUEST FOR CLEARANCE

ACCEPT /NOTIFY

REJECT

APPROVAL/ SUBMISSION

FORWARD DOCS

SHIPMENT

FORWARD FORM M

GENERATE RAR & SEND TO NCS

EXAMINATION (GREEN, YELLOW OR RED). EXTENT DEPENDS ON RAR

RELEASE OF GOODS

Direct Docs / Doc Control / Form M

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Direct docs..a suggestionDirect docs..a suggestion

These documents may not be released to the Applicant unless you hold their Irrevocable authority to pay documents presented under your LC ref XXXXXXXXXXXXXX despite any discrepancies.

Please also give your specific approval by authenticated SWIFT to the advising / confirming / negotiating/ paying bank to effect payment despite any discrepancies.”

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Evolution of Nigerian LCsEvolution of Nigerian LCs

100% cash covered

Non operative unconfirmed

Clean Line

Usance Terms e.g. 90 days blading

Refinancing / discounting

UCP 600 July 2007 ?