Introduction Of The New Uniform Customs And Practice (UCP 600) For Ary Credit P 600 TED FEM FPC GEN 01 075 07

User Manual: P 600

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09-61637804

09-61637802

E-mail address:ted@cenbank.org

Our Ref: TED/FEM/FPC/GEN/01/075 June 25, 2007

TO: ALL AUTHORISED DEALERS, NIGERIA CUSTOMS

SERVICE, IMPORTERS AND THE GENERAL PUBLIC

INTRODUCTION OF THE NEW UNIFORM CUSTOMS AND

PRACTICE (UCP 600) FOR DOCUMENTARY CREDIT

This is to inform all Authorized Dealers, Nigeria Customs Service,

Importers and the General Public, that effective 1st July, 2007,

the new Uniform Customs and Practice (UCP 600) for

documentary credits would be operational. Accordingly, all

Letters of credit from that date would be subject to the

provisions of the new UCP 600, while those issued under the

UCP 500 would continue to have effect until the expiration of the

validity of such Letter of credit.

However, without prejudice to the provisions of the UCP 600, all

Letters of credit issued in Nigeria shall continue to be guided by

the domestic regulations aimed at meeting International Best

Practices. In this regard, specific fields on the SWIFT FORMAT

for all letters of credit are clarified as follows:

45A DESCRIPTION OF GOODS AND OR SERVICES

CFR with the specific Port of discharge specified.

Central Bank of Nigeria

Central Business District

P.M.B. 0187

Garki, Abuja

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Description of goods must be detailed enough and in

compliance with the provisions of circulars

TED/AD/153/2005 of 30th December 2005 and

TED/AD/36/2006 of 17th February, 2006. Thus, all

proforma invoices must comply with the said provisions.

46A. DOCUMENTS REQUIRED

 2 original Combined Certificate of Value and

Origin (CCVO) on form C.16 and 3 copies.

 2 original Manufacturer’s Certificate of Production

stating standards adopted.

 2 original packing list and 3 copies

 1 original laboratory Test Certificate

 2/3 original clean/shipped on Board Bill of Lading

and 3 copies

 Marked freight Prepaid and endorsed or Consigned to

…………………. Notifying………………………. (as may be

applicable). Where a Bill of Lading is endorsed, it must

be in the following format; Name, Date and

Signature.

 A certificate issued by the beneficiary stating that

one original and one copy of Combined Certificate of

Value and Origin (CCVO) on Form C.16, one original

and one copy of Manufacturer’s Certificate of

Production stating standards adopted and one

Laboratory Test Certificate and one Original and one

copy of clean/shipped on Board Bill of Lading have

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been forwarded to …………….Bank (the issuing bank) by

air courier not later than 21 days after shipment.

47A ADDITIONAL CONDITIONS

 All documents must be written in English.

 Where there will be further shipment, Beneficiary must

present a certificate stating that there will be further

drawdown on the letter of credit.

 Shipment documents including Bill of Lading etc

dated prior to L/C opening date (DD/MM/YY) is

not acceptable.

 Beneficiary Certificate signed by the Authorized

Officers to the effect that “product/cargoes had been

delivered in conformity with the Terms of the L/C, that

all necessary documents have been forwarded to the

consignee and that payment of the invoice for delivery

is properly due to them and would be exclusively used

for the settlement of the invoice.”

 The Combined Certificate of Value and Origin (CCVO)

must show the Form ‘M’ No., Description of goods,

port of destination in Nigeria (Same as in field 45A),

port of loading, country of origin, country of supply,

date of shipment, Bill of Lading, Number, Vessel name

and voyage number.

 L/C number and Form ‘M’ BA/CB number must be

indicated on all shipping documents.

48. PERIOD OF PRESENTATION

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 Documents must be presented not later than twenty

one (21) days after shipment.

The conditions stated above must be included on all Letters of

credit in addition to others as may be deemed necessary and or

demanded by the importer and or issuing bank, or in compliance

with specific import items e.g. drugs, electronics, petroleum

products etc. for which there are specific regulations for their

importation.

In addition, in order to sustain the level of confidence being

enjoyed by the country and to ensure continued integrity of all

letters of credit issued by Nigerian banks, henceforth, all charges

for letters of credit must be paid before the correspondence

banks are advised.

In case of shipment from a mother vessel, the relevant Form ‘M’

must have been completed to indicate the appropriate country of

origin and supply.

In addition, the sequencing of the Mother Bill of Lading and

Daughter/Slave Bill of Lading must be evident to show and

indicate Ship To Ship (STS) transfer.

In line with International best practices, CPT should be

substituted with CFR for shipment by Air. Similarly in such

circumstances, Airway Bill will replace Bill of Lading. However,

all other conditions as specified above must be complied with.

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While the Risk Assessment Report (RAR) is not a negotiating

instrument, Authorized Dealers must ensure that appropriate

duties and taxes have been paid before any document in their

custody is made available to the importer for clearance of goods.

For the avoidance of doubt, no Authorized Dealer should

entertain, condone, treat or approve any request for deferral of

any of the documentation requirement specified in this circular.

Authorized Dealers are therefore enjoined to familiarize

themselves with all regulations which had been duly advised.

When in doubt, appropriate clarification should be obtained from

the Director, Trade and Exchange Department, Central Bank of

Nigeria, in line with existing provisions in the Foreign Exchange

Manual.

O.O. AKANJI (MRS.)

DIRECTOR

TRADE AND EXCHANGE DEPARTMENT