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
- Personal effects
- Used motor vehicles
- Perishable day old chicks
- Vaccines, Yeast
- Objects of Art
- Pyrotechnic products and arms
- Live animals
SCHEDULE”B” PROHIBITED EXPORT
- Raw hides and skin
- Scrap metals
- Timber – Rough and saw
- 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:
- Bill of lading (BL) / Air way bill (AWB)
- Packing list
- Certificate of Origin
- Commercial invoice
- Single goods declaration (SDG)
- Nigeria Export Proceed (NXP)
- Clean certificate of inspection (CCi)
- Certificate of weight and quality
- 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
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
Whatsapp: +234 816 3229 560
credits to: ronish logistics
For new members ready to explore export business start by registring with link below
Wishing you success in your international trade business.