CBN Form Q is a documentation requirement for SMEs that are involved in importation transactions. It is a form that must be completed by the SME and submitted to the bank before the transaction can be processed. The form contains important details about the transaction, such as the name of the importer, the amount of foreign exchange required, and the purpose of the transaction. CBN Form Q is a critical component of the CBN's effort to streamline the process of accessing foreign exchange for SMEs.
Requirements for Processing Form Q
1. A proforma invoice needs to be provided.
2. The director(s) must either be Nigerian or expatriates who are legally allowed to live in Nigeria.
3. It is required that you possess an active current account with a commercial bank in Nigeria
4. A product certificate is necessary.
5. Form M must be completed.
6. A formal application for Form Q is needed.
7. A request letter for Form Q is also required.
8. The applicant's international passport's data page must be provided.
9. The applicant's name.
10. The applicant's Bank Verification Number (BVN).
11. The applicant's phone number.
12. The applicant's address.
13. The applicant's email address.
14. Annual revenue of the applicant's business.
15. The number of employees working for the applicant's business.
16. The name of the bank where the applicant has an account.
17. The account number of the applicant's bank account.
18. The items being imported.
19. The name of the beneficiary.
20. The name of the bank where the beneficiary has an account.
21. The address of the beneficiary's bank.
22. The International Bank Account Number (IBAN) of the beneficiary.
23. The Swift code of the beneficiary's bank.
24. The amount of money being transferred in words.
25. The reason for the remittance.
How to Process Form Q in Banks
1. Fund your account: The first step is to deposit the Nigerian Naira equivalent of the foreign currency required to pay for your goods.
2. Go to your bank and tell the customer care person you want to execute Form Q for an import transaction.
3. Request Form Q: Send a letter to the customer service agent requesting Form Q. The bank can provide you with a letter template.
4. Complete the Form Q application: Fill out the Form Q application form that the bank provides. Fill in the blanks with your name, BVN, address, email address, annual turnover, number of employees, bank name, and account number.
5. Submit a Proforma Invoice (PFI): Submit the Proforma Invoice (PFI) for the imported items. The PFI provides all of the product information, including the price and quantity.
6. Provide Beneficiary information: Provide the beneficiary's name, the name of the bank with which the beneficiary holds an account, the bank address, the International Bank Account Number (IBAN), and the Swift code.
7. Specify the purpose of the remittance: Specify the aim of the remittance, which is usually to pay for imported products.
8. Wait for your bank to review and approve your Form Q application. The processing time varies according on the bank and the type of products imported.
9. Receive Form Q: Once your Form Q application has been approved, you will receive the completed Form Q document from your bank. You can then use it to make payment for your imported goods.
The small and medium-sized enterprises (SMEs) will not receive cash payments, but the funds will be directly transferred to their overseas suppliers.
In conclusion, Form Q is an important document required for the payment of imports in Nigeria. It is a form of documentation that helps to regulate foreign exchange transactions and ensure compliance with regulatory requirements. By following the necessary steps and providing all the required information, SMEs can successfully process Form Q and make payments for their imported goods. It is important for SMEs to work closely with their banks to ensure a smooth and efficient process of Form Q application and approval.
