NEPC processes 10-year Export Expansion Grant claims

There is good news for exporters whose businesses were hit by frequent suspensions of the Export Expansion Grant (EEG) in the past as the Nigerian Export Promotion Council (NEPC) is already processing a backlog of claims between 2007 and 2016, Olusegun Awolowo, executive director / CEO, NEPC, said at a stakeholders’ forum in Lagos.
“The NEPC has taken a proactive step to start the processing of the backlog claims of years 2014, 2015 and 2016 in which promissory notes would be issued to cover these years, in addition to the outstanding of 2007 to 2013,” Awolowo said recently.
The EEG Scheme was introduced by the Federal Government in 1986 to improve the competitiveness of Nigerian products and commodities. The scheme operated with the Negotiable Duty Credit Certificates (NDDCs). The essence of the scheme is to ensure the country earns more foreign exchange through the non-oil export sector. The scheme, however, has been badly hit by uncertainty, having been suspended seven times, with the last being in August 2013 by the immediate past administration on the claims that there was an abuse of the scheme by exporters.
The Federal Government recently lifted the technical suspension on the EEG but has now revised most of the provisions and introduced the use of tax credits.
The redesigned guidelines make provisions for the review of the scheme every five years.
Applicants to EEG are now expected to submit forms NXP, duly certified by processing bank, the Nigeria Customs Service and the pre-shipment inspection agents.
Other documents that must be submitted to the NEPC include bill of lading, final commercial invoice; single goods declaration (SGD) duly endorsed by Nigerian Customs Service, both on the front and the back.
There should equally be evidence of full repatriation of export proceeds, which must be confirmed by the Central Bank of Nigeria, submission of Clean Certificate of Inspection (CCI) to include quality certification; NEPC non-oil Export Certificate, Certificate of Manufacturer (where applicable) and Scanning Report.
The scheme will operate through the ‘Weighted Eligibility Criteria’, which will have four bands: 15 percent, 10 percent, 7.5 percent and 5 percent.
“The method of assessment is ‘company cum product specific.’ A company’s EEG assessment would be conducted once yearly and the determined rate will apply throughout the year,” says the document seen by Real Sector Watch.
Fully manufactured products exporters will attract 15 percent rate as against 10 percent for semi-manufactured products exporters and 7.5 percent for processed/intermediate products exporters and 5 percent for merchant/agro-Allied products exporters.
“Even as the country embraces the zero-oil initiative, the resumption of the EEG Scheme will further encourage non-oil exporters,” Awolowo said.

ODINAKA ANUDU