1.       International trade is facilitated by banks on a three prongs bank services:

a)       Exchange Control

b)      Trade Finance

c)       Regulatory Compliance

EXCHANGE CONTROL: A gamut of processes, foreign exchange sourcing, currency conversion, value-for-money monitoring under the ambit of statutory provisions.

This involve Processing of Customs monitoring forms (Form ‘M’, Form NXP, Form ‘A’ etc.), Pre-Arrival Assessment Report (PAAR), and duty collection mechanism, dealing in FX markets, Foreign Direct Investments and Reporting activities.

The Exchange Control Service requires one to know the following:

Ø  How to register form M with Nigeria Customs Service (NCS).

Ø  How to Process NXP for Export, including required documentations.

Ø  Identifying relevant regulators (e.g. CBN, NCS, NAFDAC, SON etc.) to trade and the relevant guidelines.

Ø  How to obtain PAAR and Import duty payment procedure.

Ø  The role of importer, exporter, bank and shipping companies in our international trade.

Ø  Procedure and documentation for Foreign Direct Investment (FDI) in Nigeria and Issuance of Certificate of Capital Investment (CCI).

Ø  Understand Foreign Exchange Sourcing options.

 

TRADE FINANCE: This represents the financial instruments and products that are used by companies to facilitate international trade and commerce. Some of the financial instruments include:

ü  Lending Lines of credit

ü  Letters of credit

ü  Factoring

ü  Export credit

ü  Insurance.

Under trade finance Service one is expected to know the following:

Ø  Know about the various International Trade Risks.

Ø  Understand Trade Finance as means of trade risks mitigation.

Ø  Know the mode of Payments in Trade e.g. Open Account, Letter of Credit, Standby Letters of Credit, Bills for collection, and their implications.

Ø  Able to identify and examine Transport documents, financial documents, Commercial document and insurance documents.

Ø  Appreciate trade fraud schemes and to prevent same.

Ø  Know and understand International Commercial Terms (Incoterms).

REGULATORY COMPLIANCE: Trade Services are provided within the confines of domestic and international laws and guidelines:

For your trade services to be hitch free you need to kow the following:

§  Know the Regulators whose functions impact on your Trade Finance Services.

§  Know the various extant CBN trade guidelines and circulars.

§  Know when and how to carry out Enhanced Due Diligence (EDD) to mitigate trade fraud, including money laundry.

§  Know and render statutory reports of trade activities, including suspicious transaction Reports (STRs)

For further enquiry on specific training or support services on this, kindly sign up to book a call +234 816 274 3213; +234 912 894 8008 or email support@tadenetng.com.