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INTRODUCTION<\/strong><\/span><\/p>\n Exporting is the legitimate transfer of goods and services, with or without an order, across political boundaries for reasons of profit. From the perspective of the exporter, it is a process that begins from having a business idea to creating an external market. It includes value-addition of some sort, ensuring proper quality standards, packaging, warehousing, documentation, forwarding, shipping and finally the receipt of payment.<\/span><\/p>\n To the extent that goods and services move across national boundaries, politics and protectionism, in particular, may become considerations that affect the type and volume of goods that an exporter can move from one country to another.<\/span><\/p>\n Export is conventional when the goods or products shipped are the usual, customary and traditional ones like crude oil, cocoa beans, cashew nuts, sesame seeds and gum Arabic. It is non-conventional when they are products or ideas for which Nigeria is not traditionally known. Such products can be:<\/span><\/p>\n iii)\u00a0\u00a0\u00a0\u00a0 Skills or human capital: like the 25,000 Nigerian Consultant Doctors currently practising in the United States or the thousands of Nigerian sportsmen and women playing all over the world.<\/span><\/p>\n The opportunity that Nigeria, as an economic unit, offers prospective exporters is immense and mouth-watering.<\/span><\/p>\n There is a popular saying that no man is an Island.\u00a0 This also applies to countries because no country in the world is completely sufficient.\u00a0 As a result of this, goods and services are moved beyond the boundaries of countries under transactions.\u00a0 Every country has to generate enough foreign exchange to oil her wheels of production and also balance its external account.\u00a0 At the same time, she has to also import goods and services not locally available.\u00a0 These imports may be in form of raw materials or technical know-how.<\/span><\/p>\n All these are possible because rapid technological improvement, especially in transportation, has turned the world into a global village.<\/span><\/p>\n The starting point is to complete the logical registration procedure with the Nigerian Export Promotion Council. After completing this local registration then the real issues in being an exporter come to the fore.\u00a0 They include, but are not limited to, the following:<\/span><\/p>\n Wherever you find yourself in the category stated earlier, the solution to your problem will be found in these issues arisen.<\/span><\/p>\n To succeed, you must have the interest which is the driving force and you must also be well informed and up-to-date with your information.\u00a0 You must know the rules and regulations in your country as well as those countries you do business with.\u00a0 In addition to this, you must understand the international regulations e.g those contained in the Incoterms, Uniform Custom and Practice for Documentary Credits, Uniform Rules for Collection etc.<\/span><\/p>\n What all these points at is that you have to do your homework.\u00a0 If you claim that you do not have time, by the time the transaction crashes, you will have time to count your losses.\u00a0 Just like the absence of disease is not an indication of good health, the fact that you have been importing does not mean you are doing the right thing because if you are subjected to an ideal environment, the reality will come out.<\/span><\/p>\n Selecting the Right Product\/Finding Market<\/strong><\/span><\/p>\n Product selection is very important because this determines your success.\u00a0 Just like it will be difficult to sell hot tea in the north in the dry season or ice water in Jos in harmattan, a good product in the wrong environment will not sell.<\/span><\/p>\n This therefore, calls for market research and good market intelligent network.\u00a0 This might sound too academic.\u00a0 What I am saying is that you should do enough homework before you choose a product you wish to import or export.\u00a0 If you are an exporter and you export winter clothes during summer, you will have to wait for the next winter.\u00a0 If you are an importer you should know what time of the year to import umbrellas.\u00a0 If you choose the right product and put it in the market at the right time, then you are bound to succeed.<\/span><\/p>\n Choosing the right product is not the final process because you have to keep statistics over a period to take decisions.<\/span><\/p>\n Maintaining Foreign Presence<\/strong><\/span><\/p>\n Whether you are an exporter or importer, you need a foreign presence one way or the other to compete effectively.\u00a0 If you look at the foreigners in this country who import, the foreign presence gives them a lot of advantage.\u00a0 For example, if he notices a gap or scarcity of a product in the market, while you are still trying to open an LC he will call his home office to send the goods immediately.\u00a0 In three weeks the goods are in Nigeria and before your own arrives in maybe eight weeks or so, the market is already saturated.<\/span><\/p>\n Maintaining an office abroad is expensive, but you can do so by having agents or brokers.\u00a0 Additionally, you have to do a lot of travelling because the truth is that you may not be able to do big time import and export business without the ability to travel occasionally.<\/span><\/p>\n However, this is not to scare the small ones because there are ways to solve the problem.\u00a0 This is where the use of consultants and confirming houses come into play.\u00a0 We shall discuss this in greater detail later.<\/span><\/p>\n Training and Development<\/strong><\/span><\/p>\n One big problem with us is that we always believe we know enough and therefore do not require attending seminars, workshops and short courses.\u00a0 The complaint is always that these programmes are expensive but as the saying goes, \u201cIf you think education is too expensive then try ignorance\u201d.\u00a0 Some people can bear witness to this and have said that only a statement in a seminar changed their lives.\u00a0 You may attend a five-day seminar but just one statement will give you the push and I trust you will have that before the end of this article.<\/span><\/p>\n There are conditions that can wipe so many companies out of business.\u00a0 What you don\u2019t know can really hurt you<\/span><\/p>\n Using the Services of Competent Consultants<\/strong><\/span><\/p>\n The issue of training and development brings us to the issue of services of consultants.\u00a0 Unfortunately, the attitude of the average Nigerian to a consultant is that of \u201cwhat has he done that I have to pay him so much\u201d.\u00a0 We do not value information.\u00a0 Training and development fall under the functions of consultants.\u00a0 People say that there are too many pretenders around and so many circumstantial consultants.\u00a0 Yes! But the keyword is COMPETENT.\u00a0 How do you identify one?\u00a0 The taste of the pudding is in the eating.\u00a0 A good consultant will give you a money back guarantee because he knows that he will perform.<\/span><\/p>\n Whether you are an importer or an exporter, there are several facilities and incentives available.\u00a0 To take advantage of these facilities within Nigeria and from international agencies eg. BOI SME Loans, facilities etc, you need the guidance of a competent consultant to access these facilities.<\/span><\/p>\n There are good basic training programmes a competent consultant will offer newcomers to prepare them for the task ahead.\u00a0 For example, as a newcomer, you must understand among other things, terms of trade and methods of payment, incoterms, policies, politics, principles of negotiation, basic documentation requirements etc.\u00a0 Without a good background, you may make mistakes that will expose your ignorance.\u00a0 For example, an exporter signs a contract with the term of CIF and he submits documents that read freight payable at destination.\u00a0 This is just a simple example.\u00a0 But in my 32 years in the export industry, I have seen so many unpardonable errors.<\/span><\/p>\n Learn to be Patient (Exporting is a process, not a transaction)<\/strong><\/span><\/p>\n To succeed in import and export business, you need a lot of patience.\u00a0 A lot of people have failed because of their misplaced desire for immediate gratification.\u00a0 \u201cIn every business, you must pay your dues\u201d.\u00a0 A few people may succeed the first time but that is not applicable to every businessman.\u00a0 Import and export business has its ups and downs and you must be consistent.\u00a0 Stay there, make your mistakes, learn your lessons and push on and on you will get there.\u00a0 So many people actually have withdrawn a few feet from gold.\u00a0 One big problem of business in Nigeria is the \u2018Bandwagon\u2019 attitude; if you are selling cosmetics for example, and you hear that there is so much margin in tin tomatoes, you abandon your area where you have spent a considerable time and acquired useful experience.\u00a0 The tendency is to continue jumping from pillar to post and becoming a jack of all trades and master of none.\u00a0 There is nothing that can be compared to experience in business.\u00a0<\/span><\/p>\n My advice here is that you should, after careful study, choose a line and for those who have chosen, stick to it because every business is profitable, it\u2019s all in the mind, and a matter of attitude.<\/span><\/p>\n Always be on the Right side of the Law<\/strong><\/span><\/p>\n This will either sound strange or outright stupid in a lawless society.\u00a0 For purposes of emphasis, the import and export we are discussing in this paper is the genuine and legal one and not smuggling.\u00a0 If you are engaged in illegal business, you are like a thief; many days are for you but one day you will lose all that you thought you had gained.\u00a0 For example, the government has been sounding it that exporters should use NXP form for their export and that export proceeds must be repatriated. If you fall foul of that, the consequences are heavy, e.g. you could be barred from foreign exchange transactions in Nigeria.<\/span><\/p>\n The lesson here is that you may think you are smart and that you have escaped, but one day, the long arm of the law will catch up with you.\u00a0 Therefore, obey the laws of the land if you wish to prosper in your import\/export business.<\/span><\/p>\n Honesty<\/strong><\/span><\/p>\n International business is all about confidence and credibility.\u00a0 The day your associate loses confidence in you, that\u2019s the end.\u00a0 You show transparent honesty in your dealings. You can make mistakes after all pencils have erasers because everyone makes mistakes but by all means, let it be an honest mistake that can be explained.<\/span><\/p>\n That Nigeria is rated among the most corrupt nations in the world is because of a few disgruntled elements and these have impacted negatively on the genuine and honest businessmen around.\u00a0 Do business in such a way that your associate will say, \u2018I have met one good Nigerian that we can return to the good old days.<\/span><\/p>\n You must say yes only when you mean so.\u00a0 You must understand the terms of a contract before you put pen on paper.\u00a0 You have to understand that a contract is a contract and many a time it carries penalty clauses.\u00a0 Your buyer who signs a long-term contract with you for the supply of his raw material has factored that into his production line and has at the same time signed contracts with those who buy finished goods from him.\u00a0 So when you want to default on a contract, remember the chain of consequences, the penalties and the multiplier effects.<\/span><\/p>\n The summary is, if you are in international business and you wish to remain there, do not sign contracts when you are not sure you will be able to perform.\u00a0 You will be better off signing a small quantity and moving up later than taking a big contract and putting a permanent end to a relationship, which could make a difference in your business.<\/span><\/p>\n ENTRY POINTS INTO EXPORT TRADE<\/strong><\/span><\/p>\n Export business is a long chain and anybody who is interested can find a point in the chain where he has a competitive edge over others and operate there and make money.<\/span><\/p>\n One company is the ultimate exporter but the goods will have to pass from gate to the warehouse before shipping, this applies to commodities. For manufacturers, the manufacturers may not necessarily be the exporter, in fact, for SMEs, it\u2019s more advisable to concentrate on production and leave the export responsibilities to someone else. We shall now look at various possible entry points into the export chain. Because of the complexities of export business. It is important to pass through a learning process to avoid losses.<\/span><\/p>\n Exporters of commodities do not get to farm gate to procure their commodities. There are suppliers who do this. These suppliers relate very closely with farmers and are like the go-between.\u00a0 Under this arrangement, you can also act in various capacities.<\/span><\/p>\n You can act like an agent to exporters simply by locating commodities and supply to the exporter at a designated warehouse.\u00a0 Most of the time payment is made after delivery.\u00a0 Funding for this type of business is treated later.<\/span><\/p>\n As stated earlier, it\u2019s better for Small and Medium Scale Enterprises who are into manufacturing to concentrate and look for secondary marketing channels like export houses to take responsibilities for their exports.<\/span><\/p>\n This is a very wide subject and cannot be exhausted.\u00a0 It simply means looking for foreign goods and local buyers and local goods for foreign buyers.\u00a0 This is a very lucrative business for a devoted entrepreneur. Because of the depth of this subject, our company has a separate package on how to run an Import\/Export Agency: interested readers should contact us.\u00a0 The beauty of this is that you may not need more than a phone\/fax line to start.<\/span><\/p>\n This is an advanced form of agency.\u00a0 To be a confirming house, you receive an order from a foreign company for certain goods, you pass the order to a manufacturer adding your confirmation.\u00a0\u00a0 What that means is that you have told the manufacturer to forget the foreign buyer and look to you for payment.\u00a0 As a Foreign Buying House, on the other hand, you pay manufacturers and take the goods acting as the representative to some foreign companies.\u00a0 You may not get involved in shipping as your principal may arrange that by sending or nominating a vessel.<\/span><\/p>\n \u00a0Follow us on TWITTER for more Logistics News<\/a><\/strong>\u00a0 \u00a0 \u00a0\u00a0Follow us on FACEBOOK for more Logistics News<\/a><\/strong><\/p>\n A Forwarding Agent is responsible for the loading, supervision, inspection and documentation.\u00a0 He takes responsibility for seeing that goods get on board a nominated vessel.\u00a0 The job of the forwarding agents starts as soon as procurement is completed.\u00a0 This profession has been bastardized but those who are professionals will succeed.<\/span><\/p>\n Exporting is simply trading with customers in another country.\u00a0 You buy your goods or commodities by whatever means and arrange your shipment through a forwarding agent.\u00a0 Details of other issue involved in exporting will be discussed elsewhere in this manual.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" \u00a0STARTING EXPORT BUSINESS INTRODUCTION Exporting is the legitimate transfer of goods and services, with or without an order, across political boundaries for reasons of profit. From the perspective of the exporter, it is a process that begins from having a business idea to creating an external market. It includes value-addition of some sort,…<\/p>\n","protected":false},"author":8,"featured_media":5902,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[98,47],"tags":[],"_links":{"self":[{"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/posts\/6922"}],"collection":[{"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/comments?post=6922"}],"version-history":[{"count":2,"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/posts\/6922\/revisions"}],"predecessor-version":[{"id":6924,"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/posts\/6922\/revisions\/6924"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/media\/5902"}],"wp:attachment":[{"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/media?parent=6922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/categories?post=6922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/tags?post=6922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"http:\/\/moovafrica.com\/news\/wp-content\/uploads\/2017\/11\/moov-Ad-300x250.jpg\")
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BECOMING AN EXPORTER<\/strong><\/span><\/h3>\n
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Major Issues in Import and Export Business<\/em><\/strong><\/span><\/h3>\n
TOOLS OF TRADE<\/strong><\/span><\/h3>\n
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