The Central Bank of Nigeria (CBN) created the Trade Monitoring System, or TRMS, a computerized platform that enables students, exporters, and anybody seeking medical care abroad to apply for foreign currency (US dollars, GBP, and euros) using trade forms like NXP, NCX, and form A.
In essence, the TRMS aims to make data interchange between participants in the trade chain simpler.
The platform's brilliance lies in its ability to accept applications for foreign exchange for both visible and invisible transactions in a matter of seconds.
What’s new about Trade Monitoring System?
The Trade Monitoring System has moved everything online, in contrast to the traditional and outdated methods of applying for Personal Travel Allowance (PTA), Business Travel Allowance (BTA), foreign school fees, and foreign medicals where you were required to fill out forms and forced to visit the branch of your preferred bank. And all in one spot.
This implies you won't need to go to the bank again since you can easily submit applications for forex requirements immediately from your smartphone or another device.
The TRMS allows the apex bank to follow applicants using their BVN or TIN and monitor currency application requests in real-time.
We'll go into greater detail regarding the advantages of the Trade Monitoring System as well as some of its drawbacks.
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What Ate the Components TRMS Portal?
Trade Single Window, often known as TSW, is a one-stop electronic portal that allows registered importers and exporters to submit trade paperwork to the government in the majority of nations throughout the globe.
Given that the CBN's TRMS comprises three main portions, it is heartening that Nigeria's central bank has joined the rest of the world in digitizing applications for foreign currency.
- Authorized Dealer Bank (ADB)
The Stakeholder/MDA option is intended for organizations involved in pre-shipment inspections, such as the Nigeria Customs Service and other pertinent regulatory bodies in the value chain of imports and exports.
The ADB is used by authorized dealers to examine exporters' submissions and verify trade documents.
The busiest applications are located in "Applicant." Here, you may submit your requests for foreign currency for both visible trade (NCX and NXP) and invisible commerce (Form A).
Conditions for an FX Application
You MUST have the following before you can start your FX application on the Trade Monitoring System:
Your bank's verification number or your tax identification number (TIN) from FIRS (BVN). additional needs mentioned in our early guidelines.
What is e-Form A?
A digital application form known as eForm A is used to purchase foreign currency at the interbank or CBN rate in order to pay for qualified services or invisible trade transactions as specified in the Central Bank of Nigeria's foreign exchange manual.
As of November 30, 2021, e-Form A will take the place of the paper copy. According to the apex bank, clients would be charged NGN5,000 as a cost per declaration of the e-Form "A".
When exporting out of Nigeria, exporters are required to fill out a form known as the NXP, which stands for Nigeria Export Proceed.
The majority of Nigerian banks handle export duty, Ness fees, and export profits repatriation certification on behalf of their clients.
As opposed to earlier, the trade monitoring system will now be used for the electronic processing of Form NXP.
A valid Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS) is required, along with other standards for commercial export.
How to Successfully Cancel Form A Application & Re-Apply
You should use considerable care while submitting a Form A application. This is due to the fact that after you confirm and submit your application, there will be no chance for you to go back and make any changes.
You can only add new documents to an application that has already been filed. You are unable to alter the account number, bank, name, address, phone number, or any other information.
You can't, however, rule out errors, and in other circumstances, the bank you choose can just refuse to process your application for whatever reason.
Here’s how to successfully cancel your application and re-apply:
- Tap Form A
- Go to History
- Go to the extreme right of the application
- Click the dropdown
- Click Cancel
- Enter the reason for the cancellation
- Upload the supporting document (if any)
- Upload a blank document (if none)
But the story doesn't stop here.
If you immediately cancel and attempt to reapply, you will find that the $4000 limit has been increased by the amount of the canceled application (in the case of PTA). Don't worry; just follow these instructions:
- Only when an application is canceled prior to the bank's first approval (before it receives a form "AA" number), is the cancellation request subject to approval by the processing bank.
This indicates that the selected bank must approve the cancellation when the application was in the "ADB Reviewer" stage at the time of cancellation.
The application should be rejected by the reviewer, and the rejection should be approved by the supervisor.
- If the cancellation request is made after the first ADB approval, the CBN TED must approve it (after a form number has been issued).
This indicates that CBN must provide its consent if you cancel after receiving a form "AA" number.
- In addition to other supporting documentation, the applicant must provide a letter seeking cancellation. Not all banks need this paperwork; if you can explain your cancellation request to them directly, they will be able to proceed.
You may use e-Form A to pay for things like mortgages abroad, training sessions, utilities abroad, life insurance premiums, and payments for foreign credit cards.
The new Trade Monitoring System Portal is very efficient since it handles every aspect that the previous forms used to.
The procedure is also quick, and as soon as you choose the bank officials and submit your application, it takes effect immediately on their end.