How to Export to US, UK, EU, ASIA with good documentation

The demand from European, US, Asian markets for African commodities has been on the increase.

Export business from sub-Sahara is very lucrative and this is why it is quite compelling to consider exporting from Kenya, Nigeria, Ghana, South Africa and other African countries based on having the requisite knowledge and current economic parameters.

Some of the benefit of export business are as follows but this is not exhaustive:

1. Increased sales and profit
2. Create potential for business expansion
3. Gain global market shares
4. Increase life cycle of products
5. Take advantage of economies of scale
6. Diversifying income
7. Gain new knowledge and experience
8. Earn more in foreign currency

Based on the above itemized benefits of export business, this article will be addressing exporting from Nigeria, you will get started by first registering with the national export body. For Nigeria, (Nigeria Export Promotion Council – www.nepc.gov.ng ) as an exporter via e-registration platform as you will need the exporter’s certificate.

The needed documents for limited liability company registration are as follows:

1. Certificate of incorporation, CAC 1.1, Form C 07, and copy of memorandum and article of association.

2. Registration charges: https://nepc.gov.ng/get-started/e-registration/

Once the export certificate has been completed, carry out research in the following areas in order to minimize your risk and increase gain; Trade statistics, trade policy, regulatory framework, channels of distribution, logistics and risk assessment.

Going further for an export business, your company can begin processing the Nigeria Export Proceed (NXP) through an authorized bank.

You will be required to open an export domiciliary account with any bank in Nigeria in which you registered the form NXP. This is a control that ensures that export proceeds are repatriated and credited to your domiciliary account within 180 days from the Bill of Lading date. Payment method could be direct advance transfer, Letter of Credit (LC), Bills for Collection, and other approved international mode of payment acceptable for exports from Nigeria. Cokodeal introduced its escrow services to help receive funds from countries around the world and credit your account locally.

With the completion of NXP, a Request for Information (RFI) shall be collected from the Pre-shipment inspection agent. This is to enable the inspection agent to coordinate the date and time for the inspection.

Please, note that the following are exempted from inspection:

SCHEDULE “A” EXPORT GOODS EXEMPT FROM INSPECTION

  1. Personal effects
  2. Used motor vehicles
  3. Perishable day old chicks
  4. Vaccines, Yeast
  5. Objects of Art
  6. Explosives
  7. Pyrotechnic products and arms
  8. Ammunitions
  9. Weapons
  10. Live animals

SCHEDULE”B” PROHIBITED EXPORT

  1. Raw hides and skin
  2. Scrap metals
  3. Timber – Rough and saw
  4. Unprocessed rubber latex and rubber lump

Please avoid trading prohibited goods as it may lead to unimaginable adverse consequences and loses to your export business.

Once the product has been inspected by the Pre-shipment inspection agent along the side with all relevant goverment agencies and all parties are satisfied, a clean certifcate of inspection CCI will be issued.

With issuance of CCL, the product for export is now ready to be loaded on board the vessel based on the agreed Incoterms which defines all obligations of buyer and seller within the logistics and supply chain

Export business in Nigeria will require the following documentations:

  1. Bill of lading (BL) / Air way bill (AWB)
  2. Packing list
  3. Certificate of Origin
  4. Commercial invoice
  5. Single goods declaration (SDG)
  6. Nigeria Export Proceed (NXP)
  7. Clean certificate of inspection (CCi)
  8. Certificate of weight and quality
  9. Road transport waybill

In addition, export business will require other documentations depending on the regulatory body that is involved. This will include the following:

Phytosanitary certifications for agricultureal commodities (NAQs)

Health certificate for processesd and semi-processed food items (NAFDAC)

Internatinoal veterinary certiciate and animal products (DVPCS)

Fumigation certificate for agricultureal commodities (FPIS)

Lastly, In an export contract draft, for a legal biding transaction here are some of the terms used;

Terms of trade (Incoterms)

Mode of payment

Mode of delivery

Trade enforcement organs

Agreed dispute resolutions mechanism

Presiding court

At The Commodity Bank ( cokodeal.com ) over the last decade many of our exporters do experience different challenges along the value chain.

At any point you have any question please get in touch with cokodeal support center for professional advise, it is free

Email: service@cokodeal.com

Whatsapp: +234 816 3229 560

credits to: ronish logistics

For new members ready to explore export business start by registring with link below

https://cokodeal.com/register

Wishing you success in your international trade business.

How to begin export in Nigeria, Registration, documents and Procedure

Cokodeal provides access to the best suppliers in Africa market. From Kenya, South Africa, Nigeria, Tanzania, Morocco and other African nations. Find quality foodstuff and commodities on cokodeal platform.

If you find this article valuable, kindly share with others. “We rise by lifting others”

HOW TO BEGIN EXPORT IN NIGERIA

E-REGISTRATION

When you want to export from Nigeria you are obliged to register at NEPC. You can only register as an exporter via the e-registration platform. This page presents all the information you need to know about obtaining an Exporter’s Certificate from NEPC.

Additional benefits
Besides the fact that you need an exporter’s certificate for exports, registering at NEPC gives you a lot of additional advantages:

• you have the availability to trade promotion support services from NEPC
• you are able to request NEPC administered (pre- and post-) export incentives
• you can register for numerous trainings, clinics, seminars, and more
• you can collaborate and exchange ideas through a network of exporters

Guidelines & procedures

Before you can proceed and register as an exporter you have to take some preparations. There are documents required for completing the full registration process. The required documents depend on your type of company:

DOCUMENTS FOR LIMITED LIABILITY COMPANY
• Certificate of Incorporation (issued by the Corporate Affairs Commission)
• Certified True Copy of Memorandum and Articles of Association
• Current Certified True Copy of From CAC 1.1 – “section C” (Particulars of Directors). This is formerly known as: Form C07 or Form CAC 7.

DOCUMENTS FOR CO-OPERATIVE SOCIETY
• Certificate of Registration (issued by State Ministry of Commerce, Local Governments and Federal Capital Territory Area Councils)
• Bye Laws of the Society

DOCUMENTS FOR GOVERNMENT AND NON-GOVERNMENT ORGANIZATION
• Certificate of Registration (issued by the Corporate Affairs Commission)
• Constitution of the Government Organization and non-Governmental Organization
• Memorandum for Guidance of Applicant

When you have all the documents at hand you can start the registration procedure on the e-registration portal (link at bottom of page). Register at the portal, log in and start the e-registration for exporters. Include all requested documents in your registration.

Fees & charges
Obtaining an exporters certificate involves some costs. Different charges apply for different situations:
• New certificate registration – N13,500
• Expired certificate renewal – N7,500
• Late certificate renewal – N12,500
• Lost / mutilated certificate – N12,500

Note: The E-registration platform was launched on the 3rd of April, 2017 and only companies registered after this date will be eligible for renewals. All companies registered before this date with expired certificates will need to migrate to the new platform by registering afresh for a new certificate.

Payment methods
After you filled out all the requested information you have to pay for your registration. There are several payment methods available, including:
• Nigerian local cards
• International credit / debit cards
• Internet banking
• Commercial bank branch in Nigeria

Payment confirmation
After you have paid for your registration, you should always confirm the payment:
1. Copy the Order ID from your certificate (see Transactions Log)
2. Input it in the field besides Get Status
3. Click on Get Status to confirm your payment
4. You will receive a notification of the status of your payment

Service timeline
The council aims to issue certificates as soon as possible. Normally within 1 working day after payment is confirmed by the system. Please note that issuance of your certificate could be delayed by payment delays, issues with documents or insufficient information supply.

Alternative options for registration
It is only possible to register online for an exporter certificate. Having any reservations? Please contact NEPC directly via the online chat. Alternatively you can also visit the NEPC export assistance office closest to you.

LINK TO REGISTER BELOW

E-registration

EXPORT DOCUMENTS & PROCEDURES
To export from Nigeria you should follow the appropriate export procedure. This is a formal process in conducting international trade in Nigeria. Certain export documents are attached to this procedure. Export documentation is necessary to facilitate exports of goods and services.

Importance and advantages
Following the structured export procedure will give you a better understanding of the full export process. Therewith your company will benefit from the right and up-to-date knowledge you receive by following the right procedure. Besides, it leads to:

• minimising your export risks
• ensuring that exported goods conform to importing country specifications
• meeting buyer requirements for export by providing evidence of origin and delivery
• supporting you to formalise your export business
• supporting you in qualifying for export incentives

Needed export documents
For the full formal export procedure you will need certain export documents per step of the process. The needed documents are shown in the complete overview below:

EXPORTER REGISTRATION DOCUMENT
The first step of your export procedure is registration as an exporter at NEPC. In order to venture into export business this is obliged. In summary:
• Document issued – exporter’s certification
• Issued by – NEPC
• Relevant because – it licenses you as exporter and makes you eligible for NEPC-benefits
If you want to know how to obtain this document, please check our e-registration page.

EXPORT CONTRACT DOCUMENT
An export contract is an agreement between seller and buyer on the terms of export business:
• Document issued – a signed export contract
• Issued by – you as exporter and the importer
• Relevant because – it spells out the obligations of buyer and seller

QUALITY ASSURANCE DOCUMENTS
Quality assurance documents help you to ensure your exported goods conform to food safety measures (as stated by international conventions and possibly agreed terms of the contract). Using international recognised bodies is very important. Relevant documents include:
• phytosanitary certificate for agricultural commodities (issued by NAQS)
• health certificate for processed and semi-processed food items (issued by NAFDAC)
• international veterinary certificate for animals and animal products (issued by DVPCS)
• fumigation certificate for agricultural commodities (issued by FPIS, part of FMITI)
Want to find out more regarding quality competent authorities (QCAs) and the associated documents? Check out the detailed information about QCAs!

COMMERCIAL DOCUMENTS
The commercial documents display product values and quantities. The documents are both prepared and issued by the exporter and include:
• Commercial invoice – indicating the value of goods for export in the currency of transaction
• Packing list – indicating the unit packaging and total quantity of goods intended for exports

FINANCIAL DOCUMENTS
The preparation of financial documents shows evidence of financial transaction between buyer and seller. It also shows conformance with the financial regulation for exports. Summarising it includes:
• Document issued – Nigeria Export Proceed form (NXP)
• Issued by – commercial bank
• Relevant because – it captures the value of the export transaction for economic development purposes. It is also a major prerequisite for accessing the Export Expansion Grant (export incentive)

• Document issued – commercial invoice
• Issued by – you as exporter
• Relevant because – it indicates the value of the goods for export in currency of transaction. It is also useful for processing the NXP

• Document issued – final invoice
• Issued by – you as exporter
• Relevant because – it indicates the actual value of the goods exported in currency of transaction for the purpose of payment by the importer

GOODS MOVEMENT DOCUMENTS
This deals with all aspects of the delivery of goods to the buyer in the medium specified in the export contract. Documents involved can include:

• Document issued – Clean Certificate of Inspection (CCI)
• Issued by – government appointed Pre-Shipment Inspection Agencies (PIAs)
• Relevant because – it ascertains the quality, quantity and price competitiveness of Nigerian exports

• Document issued – Certificate of Weight and Quality
• Issued by – independent quality assessors (e.g. SGS, Bureau Veritas) agreed by seller and buyer
• Relevant because – it ensure the goods conform to the quality standards and weight as stated in the contract

• Document issued – Certificate of Origin
• Issued by – National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA)
• Relevant because – it indicates the origin of goods, needed for e.g. trade agreement benefits

• Document issued – Bill of Lading (shipping document)
• Issued by – shipping agencies
• Relevant because – it indicates the details of goods transported by sea

• Document issued – Air Way Bill (shipping document)
• Issued by – airlines
• Relevant because – it indicates the details of goods transported by air

• Document issued – Road Transport Bill (shipping document)
• Issued by – logistics companies
• Relevant because – it indicates the details of goods transported by road

To register as a supplier — follow this link —

http://www.cokodeal.com/index.php?option=registration&task=sellerregister

Article credit: Nigeria export promotion council NEPC

For buyer inquiry

Email: cokodeal@yahoo.com —- service@cokodeal.com —

Whatsapp +2348163229560

How to find buyers in Europe, UK, US for foodstuff and commodities

Cokodeal platform supports hundreds of businesses to connect with international buyers and succeed daily. If you find this article valuable, kindly share with others. “We rise by lifting others”  SELL HERE

 

Finding international buyers in US, UK, Europe and other foreign countries for your exports can be a unique challenge. In this article, you will learn how to utilize your available resources to conveniently connect with prospective trade partners abroad.

The most important thing you can do is to have a web presence: a website or a store in a marketplace. Interested buyers looking on the internet should be able to find you when they search for the product you specialize in sourcing.

Where to connect with buyers

Trade Expos and Trade Missions
When you attend trade expos, you have the opportunity to showcase your products and services, meet with potential buyers and connect with trade partners. Trade events have attendees from different regions who provide exporters with a large number of business leads under a single roof.
The Lagos Chamber of Commerce and Industry (LCCI) usually organizes trade Expos which is well-attended by multinationals and foreign traders.

The LCCI ultra-modern Exhibition and Conference Centre is located at Plot 10, Bola Ahmed Tinubu Drive , Central Business District, Alausa, Lagos.

The Nigerian-British Chamber of Commerce (NBCC) is a foremost channel of trade between Nigeria and Britain which encourages and promotes trade between these countries. Among the NBCC’s objectives is to provide information and market intelligence service on United Kingdom/Nigerian trade in the form of regular trade bulletin. They also organise Trade Missions.

 

A trade mission is an international trip organised for the purpose of exploring international business opportunities. It is an effective way to seek out potential trade partners. For this reason, if you’re looking to export to Britain, NBCC should be your first point of call. You need to have a registered company to join, and membership costs N170,000 for companies with less than N500m in turnover. To register, you will need to fill out the membership application form on this page and then submit in person to the secretariat at Olubunmi Owa Street, Off Admiralty Way, Opposite CBC Towers, Lekki Phase 1.

 

How to use the Internet to find customers
Various internet websites allow you to post your products or services online, so that prospective buyers can come to you, instead of you searching for them. These are called ‘online marketplaces’.

The way these online marketplaces work is that you as a seller posts information about your products online, making your services available to anyone in the world who needs them. When interested buyers search for your services in these marketplaces, they can see your products and get in touch with you to make enquiries. Sites like Alibaba, cokodeal and Tradekey are examples of such marketplaces.
One important thing to note when offering your services in online marketplaces is that just like meeting strangers in real life, you must deal with contacts you meet cautiously. Always verify their full address by using Google. You can also query their company name and website using scamadviser.com to check how long they have been in business, as well as the level of trust they enjoy.

LinkedIn 

This is a powerful but under utilized tool for finding foreign trade partners. Companies and their employees from all over the world advertise their services on the website. The two most effective ways you can use this platform for prospecting potential buyers are by using the filtered search option and joining relevant groups for your industry.
There are many groups for all types of industries on LinkedIn, so it is best to be specific from the beginning as to what region and industry you’d like to find a group for. You will need to find the most active groups and join them to begin engaging with other professionals to build up your network.

Look at your Competitors
Have you identified the competitors who are already selling in your target market?
Try to find look at companies which carry similar products as you, and learn from them how they engage their customers. This would enable you to understand your target market better.

By this method, you should be able to find a similar business(es) in the same country that will be ready to do business with you. If you can’t find any competitor already operating in your target market, search for local products in that country that are similar to yours. If you have a product that is higher quality, differentiated, etc. you can often find distribution in the same retailers as the local manufacturers.

Be sure to place emphasis on what makes your product unique for the best chance of success with this tactic.

Customised data search tools and trade data
Using business intelligence search tools such as ImportGenius is another way you can find buyers for your exports and connect with them. Import Genius has a large export-import database, and helps you find what businesses imported to the USA, and also the businesses which received these imports. The site is populated from the US customs database, and the cheapest plan is at $99 per month.

 

Alternatively, you can use a free tool called PortExaminer, but without the depth of information that ImportGenius provides.
At this stage, these trade data tools are magic wands you can use to gather as much of information as you can– from transportation of goods to buyers and sellers of a particular product; and trading prices to the shipping lines, ports, and trade lanes employed for the purpose of international trade.

Government controlled foreign companies and their buying agents
These trading companies are government-controlled foreign companies that are involved in the import of a particular product relevant to your area of export should another focus.
Most of these agencies already have buying agents in countries where they are looking to import from.They go about outsourcing these through agents. You can contact these buying agents in Nigeria and let them know of your products.

Some of the private consultants can be buying agents for other countries in Nigeria since they know more of the markets than the companies abroad do.

Getting in touch with these agents can help you to expand your market base tremendously.

 

Online ads
Google and Facebook ads are good ways to advertise your products. You can place online ads to reach  your target audience, as a means to get quality leads for your products online. Once you get these prospects, be sure to put things in place where your prospects can contact you – if possible get their email addresses for follow-up.

 

Online marketplace portals

For a monthly subscription fee, these marketplace portals send targeted buyers to your online store which helps you get more buyers to do business with.

How to request and accept payment for international exports

You must also only agree to reasonable terms of payment – terms which are reasonable to them and also to you. For example, prospective buyers would also be equally cautious when dealing with you (especially if you have no feedback and no previous sales history). So if you were to start by requesting advance payment, that would be a huge turnoff to many buyers regardless of how low your prices are. To cross this hurdle of how to request payment AND protect yourself, you have two options:

  1. Letter of Credit: This is a document which a buyer obtains from a bank in his/her country. This letter is issued to you the seller,  and it acts as an obligation of the bank guaranteeing the buyer’s payment. It is recommended that you confirm a letter of credit by your own bank here in Nigeria.
  2.  Draft Documentary/Document Against Payment (D/P)
    With this method, you will use the services of a bank to effect payment.

Once you are satisfied, you can then you will ship the goods along with the bill of lading and a draft. A Bill of Lading (abbreviated B/L) is like a ticket which outlines the journey of your cargo from origin to its destination. It functions as a contract for the movement of the goods, with the fine print – the terms of the contract – frequently outlined on the back of the bill. It also serves as a receipt for the cargo and can act as proof of ownership of the goods being transported.

The draft is a cheque-like document that will be forwarded to your bank.

Your bank will forward the documents to the buyer’s bank and the foreign bank will collect payment from the buyer before the arrival of the goods.

If payment is not made by the buyer, the correspondent bank will not release the bill of lading to the buyer, and the buyer will be unable to take possession of the goods or clear customs.
Finally, getting genuine foreign buyers for your products can be a straightforward task if you follow the steps as explained. We cannot generalise about it being difficult or simple. It depends on the situation and the motivation, and the level of enthusiasm you have for success as an exporter.

 

To register as a supplier — follow this link —

http://www.cokodeal.com/seller-registration.htm

Article credit:  mrpepe / Cokodeal contributor

For support:

Email: cokodeal@yahoo.com —- service@cokodeal.com —

Whatsapp +2348163229560

 

How to Find International buyers for my foodstuff export business

Cokodeal platform supports hundreds of businesses to connect with international buyers and succeed daily. If you find this article valuable, kindly share with others. “We rise by lifting others”  SELL HERE

 

When you are trying to get into international trading, finding customers can be one of the first obstacles you have to overcome. But nowadays there are plenty of options that you can take advantage and discover new opportunities overseas. Always keep an eye on how to find buyers for export products. If you are not able to identify customers, all your efforts will be in vain.

So, after you identify the product that you want to export to foreign countries like African countries, you will need local contacts to complete your import-export business. Besides funds and legal matters, any exporter needs an importer to help him introduce their goods on the local market. And when it comes to African countries, your possibilities are almost endless considering the extended needs of such countries.

You can find clients interested in a variety of goods and increase your profit significantly. Here are the main ways to increase your export buyers list and become successful in the international business!

1. Start with a good and in-depth online research

Research is crucial to any success in import-export business, and it is important not to neglect this phase. When it comes to how to find customers for export business, the knowledge you gather can make a great difference. Of course, the first option of research is the online research which can give you a lot of information about your future international trading process. There are plenty of websites and forums that can help you but also many local importers looking for foreign exporters just like you!
This B2B import export portal will put you in contact with plenty of African importers looking for new partners. Many goods are needed in Africa, and you can supply the market the best you can. But you will not be able to do that unless you find a reliable importer to help you with the process.

There is a trick though, especially when you are looking for business partners online: you need to watch out for scammers. Unfortunately, on such popular websites like the B2B portal, you may find plenty of importers that do not look trustworthy. However, after some time, you shall be able to identify the real importers and spot the potential scammers. Keep in mind to check the internet for more information about potential importers. You can find a reliable website and even some reviews to put your mind at ease.

Keeping in touch with other exporters will help you as well. You can find forums with different topics for foreign exporters like you. And you might be amazed to see that many successful exporters can refer you to a good importer that you can trust. You have even higher chances if your products are different than other’s because this type of business is based a lot on the competition. Stay active and vigilant on such forums and try to analyze your options before starting any serious collaboration with a potential client.

2. Invest in your brand awareness

Even before you start looking for importers to fulfill your import export business, you have to invest in yourself. Make your company visible and attractive for your export buyers by investing in your brand awareness. It means you will need a professional website with very clear information on it. Also, consider investing in an SEO campaign to reach more of your target audience through the content of your website. Use keywords and links to become more popular among the best search engines. All these tricks and tips can be applied by your co-workers but also by hiring a professional SEO team that can help you in the long run.

It is an investment worth making especially if you are planning to break into foreign markets. Your official website should have important information about your company such as contact information and offers for your future buyers. Keep in mind that your clients should find everything they need on your website as this is your business card.

Having a professional PR team is going to help you a lot while you are building your brand awareness. Also, applying different strategies can increase your odds to be successful from a marketing point of view.

Your PR department will make sure to be actively involved in these strategies and research the market to build you a great slogan and campaign.

This type of marketing will help you reach new customers around the world and even develop your business by entering new markets. And if you neglect your brand awareness, you may risk to not reaching the business potential that you aim for.

Your logo is also very important as it has to be easily recognized worldwide but also adapted to specific countries. For instance; if you want to enter an African country, consider using a logo that will catch the local’s attention and won’t pass by unnoticed.

The language that you use in your PR campaign can make a difference as well. Try to be aware of local languages before advertising into a certain country. In Africa, you can always use English but also French as both languages are very common. You can also add some local words to your campaign so that people will relate to your brand more than they do with others. And the competition on this market is high, so you have to be as original as possible. Either way, a good PR will act as a magnet when it comes to bringing new customers to you, so it is well worth the investment!

Email marketing is also a great PR strategy that can bring you, new clients if you are using it well. You can purchase databases with different importers and even important local stores, and you can start negotiating with them and identify the best to start a long-term collaboration with. Having access to such databases can be pricey, but it is all worth it once your profit starts increasing. And the good news is that they can bring you a new customer in a matter of weeks from accessing them!

Think that every investment that you make in the beginning phase of your business is going to bring you more positive outcome shortly and it is never lost as long as you do it wisely. You can find databases for sale online, but you need to pay attention to how authentic they are because it is a high risk of fraud when you purchase one from an unknown or uncertified website!

3. Make the customers you already have a number one priority

Even if your main concern might be to reach more customers, you have to pay attention to the clients that you already have. Most often than not, your current clients will open new opportunities for you to reach new ones. How can that happen? Happy clients will always bring you new ones by referring your business to others that are interested in buying similar products. It is a very popular form of PR, considering that good advertising is always beneficial when you need to increase your database of customers. And when it comes to how to get foreign clients, the key might be to your current clients. Make sure to get good reviews from your current customers and make them public. You can also allocate a section of testimonials on your website so that new customers can see what others think of your business.

If you try to keep your customers faithful and satisfied, your chances to break into new markets will increase and so will your profit. You can do that by adjusting your offers to their needs and make sure that the import-export business is one that works for both yours and their benefit.
Usually, your importers will know other importers as well and will not hesitate to recommend your business to them if they are happy with your services. However, if it happens to have a client that is not satisfied with an import-export business with you, make sure to take the necessary actions to correct the outcome. One client that is not satisfied should be a big red flag for you and your future commercial adventure.

A new potential client will always check your past activity and reviews before even contacting you. Some of them might also get in touch with your previous customers to gather more information before they decide to get in contact with you. This is a way to lose or gain clients before you even become aware of them.

4. Get familiar with the local market’s needs

Staying informed is essential when you are hunting for new customers for your import-export business. An overseas market introduction service will help you identify the main needs of the market that you want to break into. Get familiar with the goods that the local market needs and evaluate your potential to supply them. Especially if you get into an African market, the demands are high for many types of goods, and you can talk with different importers before deciding what type of trading you can get involved in. Check local forums and determine what type of impact you can have on the market to develop your business.

Most of the times, researching the market will also put you in contact with potential buyers. There are many guides that you can read to determine the viability of your business as well as gather information about local importers. When it comes to African importers, they are willing to import almost any type of goods from food to electronics and clothing which leaves you with a wide variety of options.
Talking with local importers can also help you adapt your business according to their needs to have better deals for your future profit. In any case, you can only benefit from this type of research, and your business can significantly increase under the indirect guidance of the importers.

While you are researching the local market that you want to break into, make sure also to stay informed regarding the legal aspects of it. Be aware of the paperwork required during an import-export process and understand that such regulations can defer from a category of goods to another which is why details always matter in this type of business. But don’t get overwhelmed by the amount of information that you might come across because you can deal with it better once you have your importer and buyer export. If you already have local contacts in countries like African ones, you are a step ahead of other exporters just trying to get in the system. It is a hard work process but well worth it in the end!

5. Start following embassies fairs and economic changes in the local market

Sometimes, the authorities will offer you better answers than any other research ways. Make sure to check the official websites of different institutions such as embassies or even local ports to identify the opportunities that you are looking for. You might be amazed to discover that there are plenty of events organized for import-export business such as thematic fairs that you can participate on.
At such events, you can identify importers and buyers that will become your future international trading partners and change the course of your business altogether! Since the import-export process is usually in the good name of a country’s economy, the chances are that authorities will do their best to facilitate this process and put foreign exporters in touch with trustworthy local importers.

Another advantage that you can obtain by being present at such fairs and subscribing to embassies websites is the possibility to find a buyer’s agent. It can help you a lot while you are trying to break into a new African country because they will act as a mediator between you and potential buyers. By having such an agent, you can be almost sure that you will avoid possible scammers and only deal with honorable local importers.

Usually, buyers’ agents tend to receive a percentage of the transaction that they facilitate which is fair, but it is also a small price to pay for a lot more benefits that you can enjoy. To find such an agent, you can check the embassies’ forums since they are very active there, looking for clients. You can for sure find them at the fairs that we mentioned above and also through local importers that you might already know or work with.

Buyers’ agents will help you find customers to sell your goods from all categories, and they will also speed up the formalities and negotiation phase. But there are many other reasons why you should consider working with a buyer’s agent especially if you are a small business. Many small business ideas involve cooperating with an agent until you get familiar with the import-export process which can take from several months to several years. A mediator can make this process a lot easier for you as well as they can also help you skip different obstacles that you can find on the way.

You can get membership from local councils as well regarding export information as well as have access to a list of importers. It will be information that will help you significantly especially if you are entering a new market. Official memberships can grant you access to different facilities and also make a big difference for your business and your contact list since you will be meeting a lot of people that you can work with.

 

To register as a supplier — follow this link —

http://www.cokodeal.com/seller-registration.htm

Article credit:  waystocap

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How to export agricultural product in Nigeria, terms and guidelines

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DISCOVER THE SECRETS OF EXPORTING WITH AN EMPTY BANK ACCOUNT, NO EXPERIENCE, NO OFFICE APARTMENT AND AT YOUR OWN CONVENIENCE.

Please NOTE; This document is not a blog post, to be read once, It is a document that you may need to visit for reference and re – read often times. THANK YOU

 

 

Do you like the idea of running your own business? How would you like a tax deductible trip to foreign places a couple of times a year? The advantages of an export business are great.

Do you know that you can start and operate your own highly lucrative export business with little or no capital at your spare time and right from home?

What a good way to build up a successful business from nothing and have fun doing it? The export business may be your answer. You don’t need previous experience in the field but you should have a “GOOD HEAD” for organizing.

Not only does it require little or no financial investment, it also offers the prestige of working with clients from all over the world. This has been made possible due to the advancements in information and communication technology(ICT). Especially, the emergence of the INTERNET

The internet has transformed the world into a “GLOBAL VILLAGE” such that a commercial ginger farmer in KADUNA, NIGERIA can access the contact details of an importer of ginger based in HAMBURG, GERMANY.

Apart from accessing the foreign importers contact details, the farmer could still go ahead to call the product buyer with the aid of his GSM phone. The buyer and seller upon introduction and establishment of contact, could also go ahead to sign a sales contract for the export of a certain quantity of the product at an agreed price, convenient and secured method of payment without both parties seeing each other.

 

THAT IS THE POWER OF THE INTERNET.

Fulfilling a successful export business requires constant attention even to the minutest details that concerns the transaction.

If you have an ability to sell and an air of transparency and diplomacy, the export business might be right for you.

ALL YOU NEED IS THE DESIRE AND DETERMINATION

TO MAKE IT WORK.

As you progress in the business, many factors become obvious and easy to handle. For example, you’ll need to find a person to handle shipments called a “freight forwarder”.

And you’ll need to create solid contacts and strong relationships with reliable local product suppliers and also export merchants. But after a short time, you can be well on your way to making a sizeable income with a very low overhead.

WHAT DO YOU NEED TO KICK START THIS VENTURE?

Mobile phone

Bank account (savings or current)

Email address

Internet/ cyber café

Understanding of an export business process

The determination and desire to make it work

 

 

FACTS ABOUT ONLINE BASED EXPORT BUSINESS

No need to have a registered public/ private limited liability company with (CAC)

No need to register with Nigeria Export Promotion Council (NEPC)

No capital investment required

You can operate as a part time business

A wonderful precedence before going into full time export business

HOW CAN YOU MAKE MILLIONS OF NAIRA IN ONLINE EXPORT- BIZ INVENTION?

It might interest you to know that the gap between you and the millions of naira waiting for you in this business is nothing but the “basic understanding of an export business process”. Understanding the fundamentals of an export business process especially as it concerns securing a

GENUINE EXPORT ORDER/ CONTRACT with a well secured method of payment, then you are on your way to making UNIMAGINABLE LOADS OF MONEY.

What you should do as an export entrepreneur is tosecure these contracts via the internet using the various trade portals listed in this manual and also aided with your GSM phone, you could start earning commissions which run into millions of Naira in few months depending on the size of the shipment. This manual contains all you may need to secure a “genuine export contract”. All you need to do is to read through, carefully understanding the elements of an export business process.

 

THIS IS WHERE YOU COME IN

An export broker is a match maker. Becoming an export broker is one of the easiest and most rewarding ways any prospecting exporter can raise money to go into full time export business. The advantages are enormous.

Starting from a little or no capital, an export broker could earn large “finders fee” with absolutely unlimited income.

There is hardly another business requiring a negligible startup cost that can put you into a six figure bracket so quickly than online-based export business. It gives one the power, prestige and high respectability in his community.

Manufacturers of domestic goods seek foreign distribution of Nigerian commodities in the international market. You need to find the foreigners who want to buy the raw materials / goods of Nigerian origin. Make a solid connection and establish a business relationship with their companies.

 

GETTING STARTED

It might be slow at first, and you will need to plan your moves, make contacts and SELL YOURSELF. But once you make a few sales and sign several contracts, you will know that your dedication was worthwhile.

 

MAKING CONTACTS WITH FOREIGN BUYERS

The most important step in setting up your online based export business is finding the contacts of buyers. One of the ways of making contacts with foreign buyers of Nigerian commodities is by going online to establish instant contacts.

You can achieve this by signing up for FREE with cokodeal.com! or With most of the international trade directories which are listed on the internet. Some of such directories are listed in subsequent pages of this manual.

Other sources of foreign buyers are the foreign

consulates (embassies)

Another way to establish contacts is through the chamber of commerce of every city you are aiming for.

are only a few of these businesses that’s

why there is plenty room for more.

Government agencies such as Nigerian Export Promotion Council (NEPC) are great places to find help. This agency promotes export business.

 

ANALYSIS FOR THE EXPORTATION OF THE FOLLOWING COMMODITIES”

CHARCOAL

SESAME SEED

GINGER

BITTER KOLA

CASHEWNUTS

KOLA NUTS

GROUNDNUT

 

FOR YOU TO SOURCE A GENUINE EXPORT CONTRACT, YOU MUST BE WELL ACQUAINTED WITH THE FUNDAMENTAL PROCEDURE AND RUDIMENTS OF AN EXPORT BUSINESS PROCESS. THIS IS THE ESSENCE OF THIS DOCUMENT

INTERNATIONAL COMMERCIAL TERMS (INCOTERMS) The INCOTERMS (International Commercial Terms) is a universally recognized set of definitions of international trade terms, such as FOB, CFR and CIF, developed by the

International Chamber of Commerce (ICC) in Paris, France. It defines the trade contract responsibilities and liabilities between buyer and seller. It is invaluable and a cost-saving tool. The exporter and the importer need not undergo a lengthy negotiation about the conditions of each transaction. Once they have agreed on a commercial term like FOB, they can sell and buy at FOB without discussing who will be responsible for the freight, cargo insurance, and other costs and risks.

TON (TONNE): This is the recognized international unit of measurement that is used in export. 1ton = 1000kg weight of any commodity. Hence if a foreign buyer orders for 10tons weight of goods, he is demanding for 10,000kg weight of the

product in question.

MT (METRIC TONNE): This incoterm could be used in place of the above as both mean the same thing in export.

EXW {+ the named place} Ex Works : Ex means from. Works means factory, mill or warehouse, which is the seller’s premise. EXW applies to goods available only at the seller’s premises. Buyer is responsible for loading the goods on truck or container at the seller’s premises, and for the subsequent costs and risks.

In practice, it is not uncommon that the seller loads the goods on truck or container at the seller’s premises without charging loading fee. In the quotation, indicate the named place (seller’s premises) after the acronym EXW, for example EXW Kobe and EXW San Antonio. The term EXW is commonly used between the manufacturer (seller) and export-trader (buyer), and the export-trader resells on other trade terms to the foreign buyers. Some manufacturers may use the term Ex Factory, which means the same as Ex Works.

FCA {+ the named point of departure} Free Carrier: The delivery of goods on truck, rail car or container at the specified point (depot) of departure, which is usually the seller’s premises, or a named railroad station or a named cargo terminal or into the custody of the carrier, at seller’s expense. The point (depot) at origin may or may not be a customs clearance center. Buyer is responsible for the main carriage/freight, cargo insurance and other costs and risks.

In the air shipment, technically speaking, goods placed in the custody of an air carrier is considered as delivery on board the plane. In practice, many importers and exporters still use the term FOB in the air shipment.

The term FCA is also used in the RO/RO (roll on/roll off) services. In the export quotation, indicate the point of departure (loading) after the acronym FCA, for example FCA Hong Kong and FCA Seattle. Some manufacturers may use the former terms FOT (Free On Truck) and FOR (Free On Rail) in selling to export traders.

FAS {+ the named port of origin} Free Alongside Ship Goods are placed in the dock shed or at the side of the ship, on the dock or lighter, within reach of its loading equipment so that they can be loaded aboard the ship, at seller’s

expense. Buyer is responsible for the loading fee, main carriage/freight, cargo insurance, and other costs and risks. In the export quotation, indicate the port of origin (loading) after the acronym FAS, for example FAS New York and FAS Bremen. The FAS term is popular in the break-bulk shipments and with the importing countries using their own vessels.

FOB {+ the named port of origin} Free On Board

CFR {+ the named port of destination} Cost and Freight

CIF {+ the named port of destination} Cost, Insurance and Freight

CPT {+ the named place of destination} Carriage Paid To The delivery of goods to the named place of destination (discharge) at seller’s expense. Buyer assumes the cargo insurance, import customs clearance, payment of customs duties and taxes, and other costs and risks.

In the export quotation, indicate the place of destination (discharge) after the acronym CPT, for example CPT Los Angeles and CPT Osaka.

CIP {+ the named place of destination} Carriage and Insurance Paid To The delivery of goods and the cargo insurance to the named place of destination (discharge) at seller’s expense. Buyer assumes the import customs clearance, payment of customs duties and taxes, and other costs and risks. In the export quotation, indicate the place of destination (discharge) after the acronym CIP, for example CIP Paris and CIP Athens.

DAF {+ the named point at frontier} Delivered At Frontier The delivery of goods to the specified point at the frontier at seller’s expense. Buyer is responsible for the import customs clearance, payment of customs duties and taxes, and other costs and risks.

In the export quotation, indicate the point at frontier (discharge) after the acronym DAF, for example DAF Buffalo and DAF Welland.

DES {+ the named port of destination} Delivered Ex Ship The delivery of goods on board the vessel at the named port of destination (discharge), at seller’s expense. Buyer assumes the unloading fee, import customs clearance, payment of customs duties and taxes, cargo insurance, and other costs and risks. In the export quotation, indicate the port of destination (discharge) after the acronym DES, for example DES Helsinki and DES Stockholm.

DEQ {+ the named port of destination} Delivered Ex Quay. The delivery of goods to the quay (the port) at destination at seller’s expense. Seller is responsible for the import customs clearance and payment of customs duties and taxes at the

buyer’s end. Buyer assumes the cargo insurance and other costs and risks. In the export quotation, indicate the port of destination (discharge) after the acronym DEQ, for example DEQ Libreville and DEQ Maputo.

25

DDU {+ the named point of destination} Delivered Duty Unpaid The delivery of goods and the cargo insurance to the final point at destination, which is often the project site or buyer’s premises, at seller’s expense. Buyer assumes the import

customs clearance and payment of customs duties and taxes. The seller may opt not to insure the goods at his/her own risks. In the export quotation, indicate the point of destination (discharge) after the acronym DDU, for example DDU La Paz and DDU Ndjamena.

DDP {+ the named point of destination} Delivered Duty Paid The seller is responsible for most of the expenses, which include the cargo insurance, import customs clearance, and payment of customs duties and taxes at the buyer’s end, and the delivery of goods to the final point at destination, which is often the project site or buyer’s premises. The seller may opt

not to insure the goods at his/her own risks.

In the export quotation, indicate the point of destination (Discharge) after the acronym DDP, for example DDP Bujumbura and DDP Mbabane.

In practice, trade terms are written with either all upper case letters (e.g. FOB, CFR, CIF, and FAS) or all lower case letters (e.g. fob, cfr, cif, and fas). They may be written with periods (e.g. F.O.B. and c.i.f.).

In international trade, it would be best for exporters to refrain, wherever possible, from dealing in trade terms that would hold the seller responsible for the import customs clearance and/or payment of import customs duties and taxes and/or other costs and risks at the buyer’s end, for example the trade terms DEQ (Delivered Ex Quay) and DDP (Delivered Duty Paid). Quite often, the charges and expenses at the buyer’s end may cost more to the seller than anticipated. To overcome losses, hire a reliable customs broker or freight forwarder in the importing country to handle the import routines. Similarly, it would be best for importers not to deal in EXW (Ex Works), which would hold the buyer responsible for the export customs clearance, payment of export customs charges and taxes, and other costs and risks at the seller’s end.

 

EXPORT DOCUMENTS

In a bid to ensure a well documented export transaction, the federal government of Nigeria has approved the following documents to ensure a successful export transaction. These documents include:

  1. CERTIFICATE OF INCOPORATION
  2. EXPORT LICENCE

III. PROFORMA INVOICE

  1. FINAL COMMERCIAL INVOICE
  2. PARKING LIST
  3. NIGERIAN EXPORT PROCEEDS (NXP) FORMS

VII. REQUEST FOR INSPECTION (RFI)

VIII. LETTER OF MANDATE

  1. BILL OF LADING
  2. SINGLE GOODS DECLARATION (SGD) FORM

 

Exporters incentives and address links is available on the next blog post, kindly check

3.0. HOW TO SOURCE PRODUCTS FOR EXPORT

Every exporter is strongly advised for their best financial interest to select product(s) which they intend to export based on accessibility and availability (such that it must be easily sourced). The said export products should be

procured from merchants who are based in rural areas where such products are either grown or produced. If the product is manufactured, hence the exporter should buy from the direct manufacturer. The reason for the above exercise is such that the exporter could procure the export goods at a very cheaper price for profit maximization and also for the exporter to remain competitive in the international market. With respect to the sensitiveness of export market requirements, prospective exporters are advised to source products from product merchant that understand the export market requirement of the commodity in question.

3.1. LIST OF EXPORTABLE PRODUCTS OF NIGERIAN

ORIGIN

Nigeria’s export policy is focused on non-oil export sector which comprises the following categories:

MANUFACTURED GOODS

Alkylate

Aluminum

Auto components

Alcoholic beverages

Baby clothes & other baby products

Bottles (empty)

Billets

Chemicals

Carbon black

Cocoa butter

Cocoa cake

Cocoa powder

Cocoa liquor

Confectioneries

Cosmetics & Soaps

Cylinders

Detergents

Doors (wooden)

Drilling equipment

Electrical wires

Furniture components

Filaments

Glass sheets

Glycerin

Hoof powder

Insecticides

Lubricants

Malt drinks

Palm kernel cake

Peugeot cars

Leather & Foot wears

Tires & tubes

Textiles & garments

Wire rod coils

Rebars/ round steel

Flat sheets

Semi blooms

Structures (Iron)

 

 

AGRICULTURAL COMMODITIES

Cassava

Cashew nut

Charcoal

Chilies (Dried)

Cocoa beans

Coffee

Cotton lint

Cotton seed

Cow horns

Fish

Fruits

Ginger

Groundnut

Gum Arabic

Kola nuts

Poultry

Rubber

Sesame seeds

Sheanuts

Shrimps

skins

Snails

Tobacco

Vegetable oil

Wheat pellets

Yam

 

 

SERVICES

Movies

Music and other services

SOLID MINERALS

Aqua marine

Bauxite

Columbite ore

Calcium carbonate

Coal

Gold

Galena

Gypsum

Ges

Iron ore

Kaolin

Lead ore

Marble stone

Pyrite

Sapphire

Tin

Tin metal ingot

Tourmaline

Tantalite

Wolframite

Zinc alloy ingot

Zinc ore

Zircon

 

HANDICRAFTS

Talking drums

Calabash carvings

Wood carvings

Raffia products

Metal carvings

Hand woven textiles

Beads

Pottery

Paintings (color & canvass)

PHARMACEUTICALS

Analgesics

Antibiotics

Disposable injections

Antipyretics

Anti malaria

Anti histamine

 

 

PROCESSED FOODS, VEGETABLE & SPICES

Ginger

Garlic

Ukazi

Cassava flour & derivatives

Garri

Locust beans

Yam flour

Plantain flour

Ground rice

Ground maize

Ground crayfish

Bitter leaf

Ground melon

Dehydrated vegetables

Horticultural products

Okra

Mangetout (French beans)

Mangoes

Pineapple

Sugar cane

Cut live flowers

 

3.2. EXPORT PRODUCT PROCESSING & QUALITY CONTROL

Since our major focus here is the export market, it is necessary to consider the processes involved in other to make it adequate for the export market. Some of the indexes which are of major focus when determining the quality of products to be exported include:

MOISTURE, ASH CONTENT, DIMENSION, COLOR, OIL

CONTENT, FREE FATTY ACID, ADMIXTURE E.T.C.

Sample of an export market requirement specifications for COAL

SAMPLE INDENTIFICATION

PERCENTAGE MASS

Moisture content………………………………………….0.1%

Ash Content………………………………………

4.0%

Volatility……………………………………………28%

Carbon Fix…………………………………………..80%.

Hydrogen………………………………………………..20%

Oxygen……………………………………………………12.5%

Nitrogen …………………………………………………….4.0%

Sulphur…………………………………………………………0.4

%

Other

Matter………………………………………………………0.01%

.

Subsequently, maintaining a good quality control is a prerequisite for a successful exporting business. This implies that products must be free of foreign matter such as stone, dirt, papers, nylon, etc. These will not only add unnecessary weight but might also contaminate the product especially such products that are useful for medical and food processes.

 

PRODUCT PACKAGING

It is important to note that there is no standard packaging method for any export product. The reason being that it is only the prospective importer that can specify the packaging method approved for a particular product in their country home. Therefore, exporters must seek the consent of their buyer before packaging. As a matter of fact, the packaging requirement will be clearly stated in the export contract which must be strictly adhered to.

In practice, most agro and allied commodities meant for export could be packaged in JUTE or POLY PROPYLENE (PP)/ MESH bags. Commodities like charcoal could be packaged in BULK such that the product is tipped directly

into the container without need for any packaging material.

 

International commodity pricing

 

It must be acknowledged that there is an approved international price for all exportable commodities. It is the responsibility of both the exporter and importer to agree on a price that will serve their interest. You can check the NEPC international price catalogue for more information. The international price of commodities is dependent on the following factors:

  1. Quantity and quality
  2. Local cost of procurement and logistics

iii. Terms of payment and delivery

  1. Prevailing local economic factors

 

METHODS AND TOOLS OF PAYMENT IN EXPORTING

The process of exporting is incomplete without receipt of payment. Export income is considered earned only when payment has been received. Below is the most recognized method of payment in exporting:

Letter of Credit (L/C)

The most popular and a safer method of international payment is by a confirmed irrevocable letter of credit at sight.

The documentary creditletter of credit, documentary letter of credit, or commercial letter of credit—is an arrangement whereby the applicant (the importer) requests and instructs the issuing bank (the importer’s bank) or the issuing bank acting on its own behalf, pays the beneficiary (the exporter) or accepts and pays the draft (bill of exchange) drawn by the beneficiary, or authorizes the advising bank or the nominated bank to pay the beneficiary or to accept and pay the draft drawn by the beneficiary, or authorizes the advising bank or the nominated bank to negotiate, Against stipulated document(s), provided that the terms and conditions of the documentary credit are fully complied with. For purpose of maintaining uniformity in the text, the words “letter ofcredit“, “credit” and “L/C” are used on this website to refer to the documentary credit.

TYPES OF LETTERS OF CREDIT

Irrevocable versus Revocable Letters of Credit A letter of credit (L/C) can be irrevocable or revocable. The L/C usually indicates whether it is an irrevocable or revocable letter of credit. In the absence of such indication, the L/C is deemed to be irrevocable. Irrevocable Letter of Credit An irrevocable letter of credit cannot be amended or cancelled without the consent of the issuing bank, the confirming bank, if any and the beneficiary. The payment is guaranteed by the bank if the credit terms and conditions are fully met by the beneficiary. The words “irrevocable documentary credit” or “irrevocable credit” may be indicated in the L/C. In some cases, an irrevocable L/C received by the beneficiary may become invalid without the amendment or cancellation of such L/C, for example, when the trade between importing and exporting countries is suspended such as in a trade sanction, or when the issuing bank has ceased operation. There have been cases of an irrevocable L/C being amended without the consent of the beneficiary in the. The beneficiaries affected were export manufacturers from a developing country.

The importers were able to convince and instruct the issuing bank to amend the latest date for shipment in the L/C,changing to a date earlier than the agreed upon date, at which time the beneficiary would not be able to ship the OEM products. The importers used sneaky tactics that aimed to cause the beneficiaries to default in the delivery.

The intention of the importers was to cancel the orders from the existing OEM suppliers and buy from other suppliers in another developing country where the prices had become lower. In the event of an amendment like the above mentioned case, the beneficiary must give notification of rejection of amendment to the bank that advised the amendment at once.

Irrevocable and Without Recourse Letter of Credit

The irrevocable letter of credit received from an advising bank may be indicated as “irrevocable and without recourse documentary credit”. The words “without recourse” mean that the advising bank will not be able to recover the money paid to the beneficiary in case the issuing bank does not pay the advising bank.

 

 

Revocable Letter of Credit

A revocable letter of credit can be amended or cancelled by the issuing bank at any time without the consent of the beneficiary, often at the request and on the instructions of the applicant. There is no security of payment in a revocable letter of credit (L/C). The words “this credit is subject to cancellation without notice“,”revocable documentary credit” or “revocable credit” usually is indicated in the L/C.

The revocable L/C was not uncommon in the 1970’s and

earlier when dealing with less developed countries. It is

rarely seen these days in international trade.

Confirmed Irrevocable versus Unconfirmed Irrevocable

Letters of Credit

Confirmed Irrevocable Letter of Credit

An irrevocable letter of credit (L/C) opened by an issuing bank whose authenticity has been confirmed by the advising bank and where the advising bank has added its confirmation to the credit is known as confirmed irrevocable letter of credit. The words “we confirm the credit and hereby undertake …” or “we add our confirmation to this credit and hereby undertake …

normally are included in the L/C.

An exporter whose method of payment is a confirmed irrevocable L/C is assured of payment even if the importer or the issuing bank defaults. The confirmed irrevocable L/C is particularly important from buyers in a country which is economically or politically unstable. In a confirmed letter of credit, the exporter or the importer pays an extra charge called the confirmation fee, which may vary from bank to bank within a country. The fee usually is added to the exporter’s account. The exporter may indicate in the sales contract that the confirmation fee and other charges outside the seller’s country are on the buyer’s account.

Unconfirmed Irrevocable Letter of Credit

An irrevocable letter of credit (L/C) opened by an issuing bank in which the advising bank does not add its confirmation to the credit is known as an unconfirmed irrevocable letter of credit. The promise to pay comes from the issuing bank only, unlike in a confirmed irrevocable L/C where both the issuing bank and the advising bank promise to pay the beneficiary.

Revolving Letter of Credit

When a letter of credit (L/C) is specifically designated “revolving letter of credit“, the amount involved when utilized is reinstated, that is, the amount becomes available again without issuing another L/C and usually under the same terms and conditions. The revolving L/C may be used in shipments of a wide range of goods to a buyer within a period of time (several months to one year usually).

 

 

DOCUMENTARY COLLECTION

Documentary collection is necessary when the draft is drawn on the importer. The exporter must give instructions to the collecting bank on what to do with the draft and shipping documents in documentary collection instructions, also

known as a collection letter or letter of instructions. Such letter provides the conditions under which the collecting bank can release documents to the importer and the actions to be undertaken. The format of the instruction forms and drafts may vary from bank to bank, but they basically have the same information. The forms and drafts are available at banks.

Uniform Rules for Collections

The Uniform Rules for Collections, ICC Publication No. 322, which describes the conditions governing collections  including those for the presentation, payment and acceptance terms), is issued by the International Chamber of Commerce (ICC) in Paris, France. The Uniform Rules for Collections and other ICC publications are available at your local Chambers of Commerce affiliated with the International Chamber of Commerce.

“TENOR ”

The tenor is the credit term of the draft. It can be at sight (in a sight draft) or after sight or after date (in a term draft).

.

“… CASE OF NEED … ”

The case of need is the party in the importer’s country named by the exporter who may assist in obtaining payment or acceptance of draft or who may be empowered by the exporter to act fully on his/her behalf—waiving of protest, allowing a discount, etc. Whether the case of need is ‘for guidance’ or ‘accept their instructions’, put an X in the appropriate box.

… DOCUMENTS AGAINST PAYMENT ”

In the documents against payment (D/P) —documents on payment (DOP or D/P) —the documents attached to the draft (bill) drawn by the exporter and needed to obtain goods are deliverable to the importer only after he/she has paid the draft. The document against payment (D/P) applies to a sight draft.

” … DOCUMENTS AGAINST ACCEPTANCE ”

In the documents against acceptance (D/A) —documents on acceptance (DOA or D/A)—the documents attached to the draft (bill) drawn by the exporter and needed to obtain goods are deliverable to the importer only after he/she has accepted the draft for payment later. The documents against acceptance (D/A) applies to a term draft.

“REMIT PROCEEDS … ” When the payment is received by the collecting bank, it remits the proceeds to the remitting bank. The remitting bank then credits the account of the exporter, less applicable charges.

” PROTEST ” and

” DO NOT PROTEST ”

The protest is the legal action to be undertaken by the collecting bank, at the instructions of the exporter, in case the importer does not pay a sight draft, or does not accept a term draft, or does not pay an accepted draft on maturity. In practice, the protest usually is required by the exporter and it is made within three (3) working days after the presentation or maturity date. In certain countries, failure to protest may cause the exporter to lose the legal rights against the importer.

In cases where the instruction is ‘do not protest’, such

instruction may encourage inaction or deferred payment by the importer. In some countries, particularly in the West, protest against the importer may spoil his/her credit standing. Hence, the importer is encouraged to act promptly if ‘protest’ is instructed by the exporter.

“COLLECT INTEREST … ”

The interest charge, if any, normally is agreed upon between the exporter and importer. It is either built into the export price or collected separately. Under certain pre-arranged credit terms, a discount may be allowed on the early payment of a term draft.

“COLLECT ALL YOUR BANK CHARGES … ”

In practice, the collecting bank may not collect some of their charges despite that instructions to collect all their charges is given.

4.1.3. OPEN ACCOUNT

In an open account trade arrangement, the goods are shipped to a buyer without guarantee of payment. Quite often, the buyer does not pay on the agreed time. Unless the buyer’s integrity is unquestionable, this trade arrangement is risky to the seller.

4.1.4. CONSIGNMENT

In a consignment trade arrangement, the seller ships the goods to the buyer when there is no purchase made. The buyer is obliged to pay the seller for the goods when sold.

The seller retains title to the goods until the buyer has sold them.

4.1.5. CASH IN ADVANCE (CID)

The cash in advance, which is the safest term of payment, most often is effected using the cheque or bank draft. In some cases, the CID term is paid using the telegraphic transfer (T/T).

4.2. TOOLS/ INSTRUMENTS OF EXPORT PAYMENTS

Below are some of the means through which an exporter can repatriate proceeds of export:

4.2.1. CHEQUE AND BANK DRAFT

In exporting to the offshore countries, payment by cheque and bank draft occur more often in a small order, ranging from a few hundred to a couple of thousand  U.S. dollars. Cheques and bank drafts are often used in open account and consignment trade arrangements. Both large and small companies may default in their payments, regardless of the amount involved. In times of economic uncertainty, both large and small companies may go out of business. It is important to receive the cheque or bank draft before releasing the shipment. Unless the integrity of the importer is known, it is very important to wait until the cheque or bank draft has cleared before the shipment. International clearing of cheques and bank drafts takes 3 to 4 weeks usually (except in a sight draft with a paying bank in the seller’s country).

Not all cheques and bank drafts are genuine, and not all genuine cheques carry a cash value.

.

4.2.2. TELEGRAPHIC TRANSFER (T/T)

The telegraphic transfercable transfer or wire transfer

–is the equivalent of a cash payment that can be credited directly to the seller’s account (the name and address of the seller’s bank and the seller’s bank account number are required by the buyer’s bank). It is fast and safe. Unlike a payment by cheque or bank draft, in which the mailing time alone may take several days to few weeks, plus the clearing time of 3 to 4 weeks for a total of about 4 to 6 weeks before the seller may receive the cash, by means of T/T the seller may receive the cash in a few hours or days. It is important to wait until the T/T has been received before making the shipment, especially when the integrity of the buyer is unknown.

For an exporter to successfully repatriate export proceeds, he must have an active cooperate domiciliary account with any reputable commercial bank in Nigeria. Such an account could be a Dollar, Euro or Pounds sterling. As a professional, I advise that every exporter should operate three currency accounts for flexibility. Upon opening of a domiciliary account, the exporter should request for his commercial bank’s offshore account details which must be presented to the foreign buyer in this format;

NAME OF CORRESPONDENT BANK: Eg CITIBANK

NEWYORK

ADDRESS OF CORRESPONDENT BANK: 111 WALL

STREET, NEW YORK, NY 10043, USA

ACCOUNT NUMBER… (USD/EURO/POUNDS)

SWIFT CODE…

ROUTING…

BENEFICIARY BANK…Eg SPRING BANK PLC

SWIFT CODE…

FOR FURTHER CREDIT TO………..EXPORTERS

ACCOUNT NAME

ACCOUNT NUMBER… EXPORTERS DOMICILIARY

ACCOUNT NUMBER

Sample Document:

Documentary Collection Instructions and Draft

(Collection Letter and Draft)

 

 

TERMS OF EXPORT PAYMENT

The terms of payment valid are:

Bank transfer by means of payment order

Bank transfer by T/T

Cash against document (CAD)

Cash against delivery

Prepayment of a certain % of the contract value

Any other type of payment agreed upon

 

 

EXPORT CONTRACT

Having understood the primary rudiments on how to embark on an export transaction, the next step would be to seek a genuine foreign buyer/ consignee/ importer of the product that you have selected to export. The prospective importer might place an order for your products upon receiving you proposal/ letter of offer to supply the product in question.

The demand/ order for your goods by a foreign importer is called a firm EXPORT ORDER and you as an exporter must ensure that it is genuine.

This order must be constituted by

ELEMENT OF EXPORT SALES CONTRACT

Sales contract for export must contain the following elements.

Contract number

Full name and address of buyer and seller

Name of product/ goods

Product specifications

Quantity required

Packaging method and standard required by buyer

The agreed export price

Port of shipment (e.g. Tin can Island port)

Port of delivery (e.g. Antwerp port)

Terms of sale (FOB, CNF, CIF, etc.)

Method of payment (L/C, documentary collection, open account, etc.)

Shipment/ delivery term (e.g. Cargo to be shipped two weeks upon confirmation of payment instrument)

Contract value

Name and signature of representatives of both buyer and seller However, to get an export order or contract is the responsibility of the exporter.

ONLINE METHOD

The online method involves the use of online trade portals in locating trade leads posted on the internet indicating interest to purchase Nigerian products. It also involves the use of emails to respond to such offers to buy Nigerian products.

ROLES OF THE INTERNET IN INTERNATIONAL BUSINESS

At this stage, I feel delighted to mention that the roles of the internet especially in international business cannot be over emphasized

It is the safest, fastest and cheapest means of communication.

You can freely source for the contact of interested buyers of any product.

Products can also be advertised to the whole world at a

peanut if not for free.

Considering the above therefore, the exporter must have a

valid and functional email address and must know how to

access it on the net, sending and receiving emails etc.

 

 

USEFUL ONLINE INTERNATIONAL TRADE DIRECTORIES

The most important step in establishing contact with foreign buyers in need of products of Nigerian origin is by signing up with any of the under listed trade directories

www.alibaba.com

www.cokodeal.com

www.howtrade.com

www.tradekey.com

www.busytrade.com

www.importers.com

 

You can also search for more directories with the Googlesearch engine at http://www.google.com.

 

SAMPLE: LETTER OF OFFER

10th November, 2018

The director,

Commercial department

Dear Sir,

Letter of offer to supply hardwood charcoal

Please permit me to introduce our company. We are B.C. & Bros. Int’l Nig. Ltd an international trade outfit registered under the companies and allied matters act of the federal republic of Nigeria.

We are also licensed to embark on export transaction by the Nigerian Export Promotion Council.

We offer in principle hardwood charcoal with the following terms:

Product name: Hardwood charcoal

Country of origin: Nigeria

Specifications: moisture content 8% max, ash content 7%max, non volatile

matter 4%max, fix carbon 80% min, dimension 30-100mm (no dust below 20mm)

triple sieved with mesh, no unburnt wood.

Packaging method: Bulk

Port of loading: Tin can Island Port, Lagos

Price: 250euro/ton, FOB, Lagos

We look forward to a mutually profitable business relationship.

Best regards,

Your name

CEO

Tradolic Nigeria Ltd

0903228***

Upon acknowledgement and acceptance of offer by the prospective buyer and a method of payment agreed by both parties, an export sales contract is signed between buyer and seller.

 

 

SAMPLE: EXPORT SALES CONTRACT

Contracted to be drafted with COMPANY LETTER HEADED

PAPER with contact details

7th September, 2008

EXPORT SALES CONTRACT FOR THE SUPPLY OF SESAME SEED

This contract is for the sale of sesame seed and should be utilized solely for the purpose of this transaction

Contract number: KBS/0908/001

Buyer’s details

Company name: HASSAT GROUP

Address: 10 Hatam road by Tequila square

City: Abu Dhabi

Country: UAE

Phone/ fax: +98234564105, +98235678197

Contact person: Mr. Abdul Mohammed

Seller’s details

Company name: Tradolic Limited

Address: Suite 45, Isaac John, Ikeja Lagos.

City: Lagos

Country: Nigeria

Phone/ fax: +2348534785

Contact person: Mr. Akeem Okeke

Name of product: Sesame seed

Country of origin & supply: Nigeria

Specifications Color: white

Oil content: 48-50%

Moisture content: 12%max

FFA: 2%max

Admixture: 2%max

Packaging: 50kg pp bags

Quantity: 30MTS (2 X 20 feet containers)

Price: 2,000US$/ Ton

Contract value: US$60,000 (Sixty thousand naira only)

Incoterm: FOB, Lagos

Method of payment: 100% confirmed irrevocable letter of

credit

Terms of payment: 100% payment to be effected upon

sighting of shipping documents

Method of delivery: By sea

Terms of delivery: Product to be stuffed into 20’ containers

two weeks upon confirmation of payment instrument.

Buyer’s signature/date……….. Seller’s

signature/date………………

 

 

Summary of Export-Import Procedure

EXPORT-IMPORT PROCEDURE

1 Seller and Buyer conclude a sales contract, with method of payment usually by letter of credit (documentary credit).

2 Buyer applies to his issuing bank, usually in Buyer’s country, for letter of credit in favor of Seller (beneficiary).

3 Issuing bank requests another bank, usually a correspondent bank in Seller’s country, to advice, and usually to confirm, the credit.

4 Advising bank, usually in Seller’s country, forwards letter of credit to Seller informing about the terms and conditions of credit.

5 If credit terms and conditions conform to sales contract, Seller prepares goods and documentation, and arranges delivery of goods to carrier.

6 Seller presents documents evidencing the shipment and draft (bill of exchange) to paying, accepting or negotiating bank named in the credit (the advising bank usually), or any bank willing to negotiate under the terms of credit.

7 Bank examines the documents and draft for compliance with credit terms. If complied with, bank will pay, accept or negotiate.

8 Bank, if other than the issuing bank, sends the documents and draft to the issuing bank.

9 Bank examines the documents and draft for compliance with credit terms. If complied with, Seller’s draft is honored.

10 Documents release to Buyer after payment or on other terms agreed between the bank and Buyer.

11 Buyer surrenders bill of lading to carrier (in case of ocean freight) in exchange for the goods or the delivery order.

 

FREIGHT FORWARDING

Freight forwarder

This is a specialized firm and it performs the following functions on behalf of the exporter  advising on the best route to undertake and the relative shipping cost Booking the necessary space and containers with the shipping line

Arranging with the exporter for packaging and subsequent marketing of the goods Consolidating shipments from different exporters (Groupage)

Handling customs insurance abroad Arranging marine insurance for the shipment Preparing the export documents Arranging for transport that will convey container to and fro the stuffing warehouse back to the port of shipment.

In other words, the freight forwarder who in most cases is a customs broker is the one that actually tells an exporter the cost of shipping and insurance.

 

 

SHIPPING DOCUMENTS

These include

Final commercial invoice:

This is the exporting firms invoice, addressed to the importer describing The goods shipped, Unit price of each commodity that was shipped and The total amount that must be paid

The exporter may also be asked to when providing an export quotation for the foreign buyer to supply a PROFORMA INVOICE to the buyer. This document shows the foreign buyer what the commercial invoice would look like if an order is placed. The exchange authorities in the foreign country some times require it before an import license is issued.

Certificate of origin:

This is a document which indicates the country in which the goods were produced. It is required whenever preferential duties are claimed.

Bill of lading: The shipping company that is transporting the goods to their foreign destination, listing items by items and the goods being shipped. It serves three basic purposes: To acknowledge the receipt by the carrier of the exporter’s

goods To indicate the carrier’s contractual obligation to transport the goods to their destination in exchange for payment To record transfer of title (or ownership) from the seller to the buyer when payment of the goods takes place

Certificate of quality and quantity: This is a document issued by a reputable inspection agency such as SGS, Alexis Stewart, Alfred Knight, Cotectna, Bureau Veritas etc. certifying the quantity and quality of shipment made by the exporter. The essence is to ensure that a third party confirms what the exporter has declared in his shipping documents.

 

HOW TO OPEN AN EXPORT TRANSACTION

According to federal government’s regulation stipulating that all export transaction must be well documented to ensure a comprehensive monitoring of all export activities in the non oil sector. Subsequently, such documentation will assist government in keeping a detailed statistics on the performance and impact of non oil export to our national

GDP. Official export documentation is necessary so as to ensure adequate sanity in the Nigerian export business environment. A well documented export transaction will also act as an evidence for the exporter when it files an application for the collection of government grant for all export.

To this end, all exporters are charged to comply strictly with regulations laid down by the relevant authorities as it concerns export.

To open an export transaction, an exporter approaches the foreign trade department (FT) of his receiving or advising bank where he has an active cooperate domiciliary accountand then completes Nigerian Export Proceeds (NXP) Form popularly called NXP from. This form is synonymous with “FORM M” for import. This form must be duly filled in sextuplicate and returned to the bank with the following accompanying documents

PROFORMA INVOICE

CERTIFICATE OF INCOPORATION

EXPORT LICENSE

REQUEST FOR INSPECTION (RFI) FORM

The receiving bank officer will then sign, acknowledging receipt of the NXP form, proforma invoice and other relevant documents from the exporter. The exporter after submitting the said documents is mandated to pay for NIGERIAN

EXPORT SUPERVISION SCHEME (NESS). In return, the bank officer issues the exporter photocopies of the Duly completed NXP form Proforma invoice

Ness charge receipt (original and photocopy)

These are the documents which the exporter will issue to his freight forwarder or customs broker for subsequent booking of container/ cargo space for shipping.

 

 

STEP BY STEP PROCEDURE ON HOW TO EXPORT ANY NIGERIAN PRODUCT

Seller (prospective exporter) incorporates company and subsequently registers business with the Nigerian Export Promotion Council (NEPC).

Seller approaches bank and opens a cooperate domiciliary account (USD/EURO/POUNDS) with which the company can repatriate export payments (payments).

Seller gathers information as it concerns the source for the procurement of the commodity intended for export.

Seller should try as much as possible to gather as per the export market requirement of the commodity for export. Seller must ensure that product is available in large quantity such that it would meet the minimum order that could be requested by buyer (foreign importer). At this stage the services of an export consultant/ facilitator/ manager would be both invaluable and indispensable because of the pitfalls it would save the new exporter from falling into.

Seller embarks on a massive search for the buyer of the commodity in question. The search could be done online or offline.

Buyer and seller conclude an export contract with a secured and confirmed method of payment.

Seller may investigate buyer’s genuineness

Seller approaches bank and opens NXP for the transaction. Seller approaches a reliable freight forwarder who advices on the best shipping line, routes and any other documentation that may be relevant for that transaction. Seller consolidates with credible suppliers of the commodity intended for export to ensure timely delivery of commodity for export.

Upon arrival of goods, freight forwarder arranges for transport and containerization of goods.

Loaded container is dropped at the shipping terminal for Subsequent shipment.

Upon sailing of carrier vessel, shipping line issues seller with debit note. Seller obtains bill of lading from shipping line after payment of charges as indicated in the debit note.

Seller deposits shipping documents with the receiving/ collecting bank that subsequently sends them to buyer’s bank for remitting of export proceeds.

Upon receipt of payment, seller prepares for another export transaction.

 

Thank you for completion.

 

To register as a supplier — follow this link —

http://www.cokodeal.com/seller-registration.htm

Article credit:  Cokodeal contributor

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