The Manufacturers Association of Nigeria (MAN), has stressed the need for the Central Bank of Nigeria (CBN), to consult widely with stakeholders before going ahead with the planned implementation of the electronic valuation and invoicing for importers and exporters.
The manufacturers argued that this is necessary in order to accommodate constructive inputs of stakeholders, especially those whose businesses would be negatively impacted by the new policy.
A circular dated January 21st, titled: “Guidelines on the Introduction of e-Valuation, e-Invoicing for Import and Export in Nigeria,” commences implementation today.
However, in a statement issued yesterday by its director-General, Segun Ajayi-Kadir, MAN identified outstanding issues that need to be resolved before the take-off of the electronic invoicing policy.
The Association, like the Lagos Chamber of Commerce and Industry (LCCI), is asking for at least a 90 days moratorium, saying that 11 days’ notice from the date of issue to the implementation of the policy “is rather hasty.”
In MAN’s opinion, “A circular on monetary or fiscal guidelines requires adequate adjustment time.
“This is more so when it involves international trade and transactions; where a minimum of 90 days allowance of time is normally required, as many operators would have opened Form M and concluded deals either for import or export.”
They also sought exemption for transactions already embarked upon before the commencement of the guidelines and should be granted 90 days too.
MAN expressed concern that any Form M or NXP that bears a unit price in excess of 2.5% of the verified global checkmate price will not be approved.
“It will checkmate the opportunity of our exporters to derive higher value for their exports. Besides, we are worried about the determination of the global price verification mechanism and benchmark prices,” they said.
The policy will lead to several challenges on valuation down the line including a floodgate of valuation issues with Nigeria Customs Service (NCS) in the event of lower competitive prices.
Annual subscription fee of $350 per authentication by suppliers on the portal to maintain the system is a clear disincentive to suppliers of imports to Nigeria, particularly raw materials and spares for manufacturers.
Clarification on directives
The Association further requested for clarification on paragraph D of the guidelines, which directs that “the content of the electronic invoice authenticated by Authorized Dealer Banks is only advisory for the Nigeria Customs Service (NCS).”
Since both are agencies of government, it advised that CBN and NCS harmonized their functions; else “members will be subjected to paying unnecessary and additional FOB upliftment by the Nigeria Customs Service.”
Furthermore, the manufacturers believe the transmission of authenticated invoices through the CBN appointed Service Provider to the Nigeria Single Window portal could introduce unnecessary bureaucracy with attendant multiple charges.
Besides, they argued that the annual subscription fee of $350 per authentication by suppliers on the portal to maintain the system “is a clear disincentive to suppliers of imports to Nigeria, particularly raw materials and spares for manufacturers.”
Against this backdrop, MAN re-echoed the call by lawmakers last week, urging the CBN to suspend the policy for now until all the issues have been considered and addressed through adequate dialogue, while also asking for “a clear, step-by-step process of transaction under the guidelines.”
