How To Import And Export Goods

How To Import Goods

Importing goods may seem difficult due to the bureaucratic processes involved. This seemingly tiring process can be made easier when you understand the various steps you need to take in time. All you need to know is the necessary authorities that you will get their consent in both the sending and receiving countries. You will equally avoid some of the frustrations that come with wrong steps and forfeiture of certain necessary things. There is nothing wrong with writing a business proposal for the venture. Read through the following to know what you need to do to avoid seizure of your consignment.

Get An Exporter: One of the initial decisions to make as an importer is on who supplies your goods or who you buy from. This follows from your choice of goods and country. One can find out some of the manufacturers of certain products from China, Japan, etc. by a search on the internet. If you deal on agro-products, find your locate your farmer-supplier or an intermediary. You need to decide on your supplier because at a point in the course of processing your documents as an importer in your country, the exporter’s name will be required. So, get an exporter with whom you reach some understanding on price and payments, and get him to nod to being your supplier. While you choose your suppler and goods, be sure to check Customs website to avoid importing contraband goods that will be seized on arrival.

Do The Required Registrations: The next thing you need to do as an intending importer of goods/produce of any kind is to get a company name and register it with the relevant authorities. When you have obtained a Certificate of Incorporation/Registration of the company in your country, proceed to register the company with the rest of the authorities. An up-to-date proof of Tax Payments is usually required for some of the registrations.

Choose An Authorized Dealer Bank (ADB): As an importer, you need to choose a credible bank in your country to act on your behalf. This bank will, among other things, process the Form M / PAAR, as well as mediate among the Customs authorities, the exporter and other bodies. There are some aspects of the import processes you cannot do as an individual; your ADB does those.

Get Regulatory Certification: For certain goods under regulation, you need to obtain certification from such bodies like SON or NAFDAC (in Nigeria, for instance) e.g. the Product Certificate. The importer then activates the PC on the online single window.

Open A Form M: As an importer you need to open a Form M on the country’s Trade Platform (Single Window System) attaching the required documents, e.g. the Insurance Certificate, the Proforma Invoice, the Product Certificate (when the item is regulated by some an authority), and submit it to the ADB. The ADB will then review/validate the Form M and send it to the customs. The Customs will accept the Form M if it is complete and contains all necessary documents and information or rejects it if it does not. E-Form ‘M’ is usually valid for importation only after registration by the Customs. When the Form M is accepted by the Customs, the intending importer forwards a copy of the Form M to his exporter, who will in turn contact the International Accreditation Firm, with the Form M, the Final Invoice, the Bill of Lading/Airway Bill and the packing list, for the issuance of other certificates that authorize one to import (e.g. in Nigeria they are SONCAP and PAAR certificates).

Note: Take care to know the validity period of an approved e-Form “M” and the Proforma Invoice for general merchandise and for capital goods in your country. This is very important.

The e-Form M and the relevant pro-forma invoice are required to carry a proper description of the goods to be imported to facilitate price verification. The required details are: Generic product name, i.e. product type, category; Mark or brand name of the product where applicable; Model name and or model or reference number where applicable; Description of the quality, size, grade, performance, specification, capacity etc.; Quantity and packaging and/or packing.

Arrange Your Shipping: Get a shipper to send the cargo over through a shipping line or air cargo. A shipping company intending to bring cargo into a country’s sea port has to clear the ship by obtaining Ship Entry Notice (SEN) some months (confirm the specific duration in your country) in advance from the Operations Department of the country’s Ports Authority. Alternatively, the customer could obtain clearance through a registered and licensed agent based in the receiving country. This is without prejudice to all other regulations guiding the operations of other relevant government agencies and international laws regulating maritime operations. The procurement of a Ship Entry Notice is a guarantee that a vessel would have berthing facility on arrival in any country. This in essence means that the ship does not come to queue and thus incur demurrage. So, the SEN is actually for the sake of convenience and satisfaction of the importer.

Another thing to note on shipping is that while DHL and UPS offer easy, fast, and secure shipment, it comes with a higher price which will drive the final cost of your goods higher irrespective of who is paying for shipment. When you ship through DHL or UPS, you would certainly add the cost to the price of the goods you have imported. Free On Board is the most popular system used for freight shipping, in conjunction with the port of loading. With this arrangement, the seller is responsible for transporting the goods to the port for shipment and also takes care of the loading charges. From there the responsibility of clearing the goods from your own port and transporting it to your final destination and paying all costs of transport, insurance, etc. becomes yours. It is your choice to make. We however know that your intention is to sell fast and not just recover your money but make profit and go for another trip.

Go For Clearance And Release: At the port, the Bill of Lading is cross-checked and compared with the ship’s manifest. The manifest contains all the content and particulars of the cargo. After certifying the correctness of consignee’s documents, a blank form called Delivery Order (D.O.), supplied to the shipping company by the country’s Ports Authority, is then issued to the importer. The consignee or his agent completes the Delivery Order and returns it and the Bill of Lading to the shipping company. The shipping company then scrutinizes the details on the Delivery Order, endorses it and withdraws the original of the Bill of Lading from the consignee or his agent. After this, a portion of the Delivery Order is detached and given back to the importer who holds it as evidence of shipping company release.

The main body of the Delivery Order is sent to the Marketing Department of the Ports Authority at the specific port. The Marketing Department then raises all necessary bills through a computerized system, cross-checks the Release Note copy of the Customs Bills of Entry with the shipping company’s Delivery Order, after which bills are authorized. The bills are then vetted by the Audit Department after which payments are effected at designated bank. The necessary delivery sets are then produced using information contained in the Delivery Order and subsequently transferred to the transit shed or delivery point. The consignee or his agent then proceeds to the appropriate transit shed or delivery point to effect delivery. After loading, cargo pass is issued to the consignee or his agent who then proceeds to the Ports Authority gate for security checks and final exit. What next? Your consignment is on its way to your warehouse. You haven’t got a warehouse? What were you thinking? Okay, bring the consignment to my house!

General Information On Importation

1. Ensure that all supporting documents are appropriately and clearly marked “Valid for Forex” or “Not Valid for Forex”. These marks depend on whether foreign exchange remittance would be involved or not.
2. Ensure that your applications to Customs Service for goods subject to Destination Inspection bears the “BA” code, while those exempted has “CB” in the prefix of the numbering system of the e-Form “M”. The list of goods exempted from Destination Inspection will be as approved by the Honourable Minister of Finance and the approval will be a pre-condition for the completion of e-Form M exempted from Destination Inspection.
3. Know also that all documents in respect of each import transaction should carry the name of the product, country of origin, specifications, date of manufacture, batch or lot number, Standards to which the goods have been produced (e.g. NIS, British Standards, PD. ISO, IES, DIN, etc.). Nigeria Customs Service takes this information seriously.
4. When you import electrical appliances (fluorescent lamps, electric bulbs, electric irons and ties, etc.) see that they carry information on life performance. Cables should also carry information on the ratings. All other electronic equipment and instruments like television, radio, fan, computer, mobile phone etc. should have, within the package, the following:

• Instruction Manual
• Safety information and/or safety signs
• A guarantee/warranty of at least six months

5. As unimportant as it sounds, endeavor to see that all goods being imported in your name are labeled in the lingua franca of your country in addition to any other language of transaction.
6. Such regulated import items such as food, drinks, cosmetics, drugs, medical devices, chemicals, etc. (usually for health or environmental reasons) are always expected to carry EXPIRY dates or the shelf life (minimum of half shelf life at the time of importation). The active ingredients, if applicable, are also expected to be specified. Be sure to get this information on import goods correctly as any false or fraudulent misrepresentation of facts may result in delays and/or impoundment/ seizures.
7. Ensure that what you intend to import is not on the country’s prohibition list.
8. As you may have summarized, all imports into a country are required to be accompanied by the following documents:

• Combined Certificate of Value and Origin (CCVO) which should also contain: e-Form “M” no; adequate description of goods; Port of destination (state and specify the actual port); shipment identification, date of shipment, Country of Origin and Country of supply
• Manufacturer’s Certificate of production, the Phytosanitary Certificate or Chemical Analysis Report, which shall state standards, if applicable
• Laboratory test certificates for chemicals, foods, beverages, pharmaceuticals, electrical appliances and other regulated products, if it applies
• Final/Commercial Invoice
• Packing list
• Shipped/ Clean on Board Bill of Lading/Airway bill/Way bill/Road Way bill

Although we may not have represented every tiny detail here, we have tried to get you in the know of the major things you need to start importation into any country. A lot of red tapist hurdles awaits you, anyway. So what? Don’t get frustrated or weighed down when the process becomes trying. Keep faith and keep at it. Do all you need to do. If it is good, it will not come easy; but every good thing will come.

How To Export Goods

Exporting from any country seems more difficult than importation. For instance, recently, Nigeria Customs Service was accused of making export difficult for Nigerians and prefers facilitating importation thereby thwarting the vision of the Federal government to increase export rate above import. However, amid all this, export from the country is ongoing and promises a lot of returns if done well.

Do A Product Survey: The foremost thing you need to do as an intending exporter is to know which commodity is needed and where it is needed. You also need to source these commodities to know where you can find them in large quantities.  This is necessary to avoid supply to wrong destination or shortage of supply which will cost you trust of the clients. While you do this, make out time to look at the Customs website to learn about the goods on their prohibition list. You don’t have to act in ignorance. Remember, ignorance is not an excuse before the law.

Weigh Costs And Requirements: You need to find out what it will take you to export those goods. Decide on the means of transportation. Choose a cargo company. Note the conditions that your company or goods must meet to be cleared. Get to know and visit the necessary government agency/department that will certify your goods for exports. Know what all the registrations and necessary documents will cost. If possible, meet people who are in the same line of export business to learn from their mistakes and strengths before you think of how to export goods to foreign countries.

Do The Necessary Registrations: Before your business is allowed to export, you must register with the designated authorities especially those in charge of exports. Apart from being a requirement, registration earns your company some trust as a recognized dealer. This will make it easier for foreigners whom you deal with to trust you. They will possibly check your company with these agencies in your country to ascertain the credibility of your business.

Contact Customers And Advertise: When you have known where certain products are needed and where you can get them, reach out to those manufacturers and distributors who would be in need of these products. Get in touch with them and advertise your product.  Without these customers you cannot break even in your export business. That is why it is said that “Customers are kings in businesses.”  Use the internet to look for these customers. You can design a website and advertise your export produce on it. The internet gives you the kind of visibility all the television stations in your country put together cannot give you. If you deal on sesame exporting business, for instance, and you are present on the internet, because you have a website already, a search by any willing client on the internet will have your company name pop up. Your website already contains some contact details and a few captivating offers for your customers that will make them go for you. You too can also search for companies and other manufacturers that need what you export for their productions. Contact them and make your company known to them.

Also, you must be willing to attend seminars to meet export business tycoons and stakeholders, and speak with friends and family members who are based overseas to discuss your new business – they might have some advice for you or even give you the right connection to the people you need. This way you will get the right connection you need to boost your business. Therefore, searching for customers from the Internet and meeting people are key if you wish to export goods to foreign countries.

Required Documents For Export

• A completed Form NXP (Nigerian Export Proceeds) issued by the Nigeria Customs Service
• A Proforma Invoice
• Sales agreement
• Registration Certificates (where applicable)
• Relevant certificate of quantity as issued by relevant agencies
• Shipping documents like Bill of Exit, Bill of Landing, etc.
• The commercial invoice (this is a type of document which is provided by the exporting company. It is a custom declaration for exporting the products overseas).
• The cargo bill (this is a detailed list of a ship’s cargo which comes in the form of a receipt. Usually, this kind of receipt is given by a captain of the ship to the person who ships the goods).
• The consular invoice (This is a document that should be submitted before shipping products abroad. It is required to be submitted to the consulate or embassy of the country to which goods are to be exported).
• The Certificate of Origin (CO)
• The inspection certificate (this is one of the most important documents. It certifies that products to be shipped were in good condition at the time of inspection. The document is usually issued prior to the shipment. Such kind of pre-shipment inspection is required by many countries).
• The dock receipt (The dock receipt is issued by the sea freight carrier to prove that your goods are at the carrier’s shipping terminal).
• The warehouse receipt (When goods are stored in a warehouse, the warehouse receipt is issued as a proof. The document states the ownership of commodities that are stored in the warehouse or in any other place for safekeeping. Keep in mind that warehouse receipts might be negotiable or non-negotiable).
• The destination control statement (This document can be issued as part of commercial invoice, ocean or air waybill. It can be also in Shippers Export Declaration (SED). The main purpose of this document is to notify the carrier and all foreign parties, that the item can be exported only to certain destinations.

• The insurance certificate (Of course, while shipping your goods abroad you will have to arrange for the insurance certificate for the shipment. This document provides information on a particular insurance coverage, in case of any emergencies. The certificate is your proof of insurance police 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 product from your country, it is desirable for you to get a license from the government agencies. This document will be a good evidence of legal business for your customers.

Bignedu