The Central Bank of Nigeria (CBN), in a new circular, has clarified its position on withdrawing third parties from the purchase of currency channeled through Form M, letters of credit and other forms of payment.
While reiterating its previous directive that payment to all M forms, letters of credit and other forms of payment should be made directly to the end product supplier; it provided for conditions that importers had to meet if they chose to use a purchasing company other than the main manufacturer.
It was disclosed in a circular bearing the reference number TED / FEM / FPC / GEN / 01/009, which was issued by the CBN to all authorized dealers and to the general public on November 18, 2020, and signed by its director of trade and exchanges, Dr. OS Nnaji. The circular follows the one published previously by the umbrella bank on the same subject in August 2020.
According to the previous CBN directive, the name of the final product supplier must be the payee on the M form, invoice, bill of exchange, instrument letter of credit and any other documents relevant to the transaction.
Final Product Supplier means the direct party who sells the goods to the importer, whether the party involved is the manufacturer or an internationally recognized company / supplier / purchasing agent.
The CBN Circular states that licensed brokers should ensure that payments are made only to the beneficiary whose name appears on the M form, invoice, bill of exchange, instrument letter of credit and any other relevant document.
It further clarifies that where it is unavoidable that an importer chooses to use a purchasing company, other than the primary manufacturer, the importer should make the following documents available, as appropriate, for review and approval by the CBN before opening the M form;
- Detailed KYC and profile of the purchasing company.
- 3-year audited financial statement of the purchasing company.
- Letter of reference from the banker of the buying company, indicating relationship and capacity.
- Home country transfer pricing policy and arrangements.
- Registration with the chamber of commerce of his country of origin.
- Proof of tax payments in the country of origin.
- Proof of authorization to act as agents and / or distributors to the original equipment manufacturer.
All authorized dealers are requested in the circular to ensure that the list of eligible third parties that meet the above requirements is submitted to the bank for authentication prior to integration.
This clarification and flexibility on the part of the umbrella bank on this new policy follows the outcry and criticism from importers and stakeholders over the feasibility of the policy, which they believe will have a negative impact on importers’ activities. even genuine.
This means that importers who wish to use third parties other than the primary manufacturers will have to undergo careful scrutiny and meet certain criteria before they can be considered eligible.
This CBN policy is seen as part of the continued efforts to ensure the prudent use of the country’s foreign exchange resources and should help eliminate the incidences of overcharging, transfer pricing, double processing fees and avoiding costs. which are ultimately passed on to the average Nigerian consumer.
What Are The Main Benefits Of Comparing Car Insurance Quotes Online
LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos
to request, modification Contact us at Here or [email protected]