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Friday, October
16, 2020 / 4:24 PM / by KPMG Nigeria / Header Image
Credit: NEPC
The Nigerian Export Promotion Council (NEPC) on
Wednesday, 14 October 2020 issued Circular No. EDM/EEG/ BASELINERATEs/ 2013/
Vol. 3/ 175, providing guidelines to all registered and interested
exporters for submission of baseline data and application claims for Export
Expansion Scheme (EEG) in preparation for the official launch of the EEG web
portal. The baseline data and application claim will cover exports in
2019 and 2020 and must be submitted in both hard and soft copies from Monday,
19 October 2020 to Friday, 20 November 2020.
Consequently, registered and interested exporters are required to submit the following information/ documents to the NEPC:
1. Completed baseline Forms 1A, 1B, 1C and their annexes (click here to access the forms).
2. Original copies of signed audited Financial Statements (AFS) which must include value-added statements for the respective base years (photocopies must be duly endorsed with the Company's Statutory Auditor's seal, otherwise they will not be accepted).
3. Companies submitting their baseline data for the first time should, in addition to the signed AFS of the base year, submit copies of AFS for the two (2) years preceding the base year, if applicable.
4. Newly incorporated companies are to submit Audited Statement of Affairs, current year management account and projected statements for 2020 and 2021 financial years.
5. Additional notes required for the application (which must conform with the AFS and baseline forms) include:
(i) Analysis of turnover into local and export sales.
(ii) Analysis/ schedule of total export sales (in ₦) showing the
conversion rates used.
(iii) Details
of addition to fixed assets during the year.
(iv) Breakdown/
analysis of cost of sales into local and foreign input (raw materials and
packaging)
6. Tax Clearance Certificates and Export Expansion Plan in line with the Revised EEG Scheme.
7. Export Schedule for each year of application.
8. Baseline
application and all accompanying documents must be scanned in a single PDF
file, saved in a flash drive and forwarded with the application.
The completed
application and relevant documents (hard and soft copies) should be forwarded
to the Council with a cover letter addressed to the Executive Director/ CEO,
NEPC.
Comments
It is very important that all government agencies
continue to leverage technology to streamline their processes and improve the
ease of doing business in Nigeria. Therefore, the migration of
baseline data submission and claims application by the NEPC to a web-based
platform is a step in the right direction. The collection of the
baseline data prior to the launch of the portal will serve to validate the
information provided by the exporters to ensure data integrity when the portal
is eventually deployed and functional. Further, it will provide
easy and reliable information on Nigeria export activities that will enable
both the government and other relevant stakeholders to make robust fiscal and
investment decisions, respectively.
However, the 30-day timeline given by the NEPC for the
submission of baseline data and related information may not be sufficient given
the specific nature of information and documents required. For
instance, some exporters may not have finalised the statutory audit of their 2019
accounts as a result of delay caused by the lockdown due to Covid-19 pandemic.
The NEPC may, therefore, consider extending the timeline to ensure that
all interested and registered exporters meet the requirements provided in the
guidelines.
Nonetheless, exporters who already have the required
information/ documents available are encouraged to adhere to the NEPC's
submission guidelines to avoid being disqualified.
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