If you have not already started to
export farm produce from Nigeria to the US to other parts of the world, then
you are leaving money on the table. This is the time to get involved in the
exportation of farm produce, especially during ‘-ember’ months.
Introduction
Prior to the oil boom in Nigeria,
Agriculture has been one of the Nigeria major economic drivers. This boom
turned Nigeria to a mono-economic country, relying only on crude oil as her
major source of revenue.
But in the long run, there arose the
volatility in oil price and uncertainty of the global economy. This compelled
the government to diversify towards other areas for revenue generation, with
Agriculture as the topmost evergreen opportunity.
This diversification has led to much
talked about ‘non-oil export’. In essence, something else other than oil export
that can foster a robust revenue generation in the country.
In the opinion of Chief Segun Awolowo
(The Former Nigeria Export Promotion Council boss), “It was regrettable that
Non-oil export trade between Nigeria and USA has remained abysmally low at 2%.”
Mind you, we have in another post the key functions of the Nigeria Export Promotion Council (NEPC).
He expressed that the government had
set up a Committee for Export promotion to be chaired by the Vice
President of the Federal Republic of Nigeria, to boost productivity in the
nation non-oil export in a bid to get goods exported to the US, with ease.
This is the time to take advantage of
the rising opportunity by starting a small scale export business in Nigeria. In
a future post, we’d be revealing our discoveries on how you can
effortlessly export foodstuff from the shores of Nigeria to the United States
of America and to other parts of the world.
Exportation of local goods, foodstuff
or handmade products from Nigeria to overseas is one business of the many small
and large scale businesses available, where you can generate as much as 5 times
what is obtainable here in Nigeria, selling same local products.
Today’s post is not about the biggest exportation business, which we all
know as mostly being dominated by top business tycoons or the Government, for
example, crude oil exportation, petroleum exportation.
We want to show you how lucrative the
exporting farm produce is and how you can leverage it effectively. It’s no more
news that you can also export your farm produce from Nigeria to any parts of
the world as the Nigerian government has now given expressed supports by way of
providing loans and other means to aid startups in the country.
The agricultural business may have
initially been overlooked, but now…?
“… it is the much go-to venture if you
want to create a business that can generate over 200% return on investment.”
Meanwhile, just as it is possible to
export agricultural products for business purposes, you may also send food
items to your family and friends in the diaspora, for consumption. This is a
clear indication that in as much as there are implications to it, there are
however more to benefit from this evergreen.
Let’s first start with what export is.
What
Is Exportation And Who Is An Exporter?
Export, in simple term, means to ship
goods and services out of the port of a country. It refers to all the process
involved in selling goods and services produced in the home country to other
markets, usually international.
An Exporter is
known as the seller of the goods and services being moved beyond the country of
export to another country. The buyer of any goods and services from the country
of import is known as an Importer.
Export of commercial quantities of
goods normally requires the involvement of the customs authorities in both the
country of export and the country of import.
How
Can You Leverage This Exportation Goldmine Opportunity?
In this post, you get to gather 3
simple steps you must take before you begin to export farm produce from Nigeria
to the US. Exporting Farm Produce from Nigeria is one business, of all, where
you can generate as much as 5 times what is obtainable in sales of the same
products here in Nigeria.
But it requires quite a lot to become
successful.
You have to understand the market
trend and get familiar with high-demand products in the US or any part of the
world. This would give you a better chance of making profits in the business.
Besides, you have to take some significant steps, which without, you may land
your business in ‘shambles’
To leverage on this business
opportunity, the following 3 steps are very important to note before you
begin.
·
Do a Thorough Research
·
Register your Export Business
·
1.
Do A Thorough Research
The export business is broad and
requires a reasonable decision. This requires lots of serious research. Find
out about how to establish contacts, check on market satiation, best means and
approach to advertisement and promotion of the same product, research on
capital/startup cost, as well as research on best means of
transportation.
You would want to ensure you have the
right freight forwarder, Check on the most convenient shipping companies or
flight cargoes, the legal requirement (what kind of documents you need before
you start.
Research on high-demand product outside
Nigeria
High demand products of great needs and
best selling. There are several factors used in determining how to find such
products. Some determinable factors are as follows:
1.
Find out how lucrative such products
are,
2.
What location in the world would have
high demands for the products,
3.
The cost of producing the products and
also,
4.
How you can source the products and
make them available to overseas customers who are already waiting for the
products
Research on Best
Shipping/Transportation method
Another important consideration is
transportation. You want to get the most reliable means of transportation to
convey your goods out of the country. Would you be shipping by sea freight, Air
Freight, or other available modes? What shipping companies would be more
reliable for us.
You want to ensure proper channels for
this aspect as it applied to other areas.
Research on Legal Requirements &
Documents needed
Your company is required to meet up
with some legal requirements and other important documents before venturing
into exportation business. Ask questions about the proper documents to set in
place before exporting from Nigeria to any parts of the world.
So, for smooth passage, we put together
documents you need to have in place for your export business. So, which of the
documents below are more important for you?
·
The Commercial
Invoice: This type of document is provided
by the exporting company. It serves as a customs declaration for exporting the
products outside your country or overseas.
·
The Cargo Bill: This document plays the part of a receipt
detailing a list of ship cargo, usually given by a captain of the ship to the
person who ships the goods.
·
The Consular Invoice: As the name implies, this document is
required to be submitted to the consulate or embassy of the country where the
goods are to be exported. It is an important requirement.
·
Certificate of Origin
(CO): This is a document that is provided
by the exporter indicating the origin of goods. It shows where the products
were made and packaged.
·
The Inspection
Certificate: This is one of the most important
document. Without this document, exporting those goods would definitely not be
possible. This document helps in certifying that the products being shipped
were in perfect condition at the time of inspection. This is required in many
countries to help limit the movement of contraband goods/products.
·
The Dock Receipt: The document is issued by the sea freight
carrier to prove that your goods are at the carrier’s shipping terminal.
·
The Warehouse
Receipt: This document is issued when
goods are stored in a warehouse. It is proof-document which states the
ownership of export goods stored for safekeeping. It is a negotiable document
anyway.
·
The Destination
Control Statement: This is a document that serves
the purpose of notifying the carrier and other foreign parties that the item
can be exported but only to particular/certain destinations. It may be issued
as part of the commercial invoice, air waybill or ocean. It can be also in the
Shippers Export Declaration (SED).
·
The Insurance
Certificate: Insurance is a document which
provides information on particular insurance coverage in case of any emergencies.
You would have to prepare an insurance certificate for your shipment. The
certificate is your proof of insurance policy and usually contains some
detailed information on types and limits of insurance coverage, your insurance
company’s contact information, policy number, and the insurance’s expiration
date.
·
The Export License: Once you begin to export any products from
Nigeria, it is desirable for you to get a license from the government agencies.
This document will be good evidence of legal business for your customers. These
are the ten documents, which any exporter should have before starting the
export business and shipping the goods abroad. But before you move to documents
part, you still need to decide what to ship!
Register
Your Export Business
3.
Search for Foreign Customers
Contact Bowa-Gate Global Limited for
more professional supports
The export business is broad and
requires a reasonable decision. Any attempt to jump in without an adequate
guide can sink all your capitals just before your goods leave the country.
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