Export Logistics: What You Need To Know (Part 2)
I trust you had an amazing weekend. It’s time for another fascinating read on issues arising from logistics. Today, we are going to further our conversation on export logistics.
Export business involves detailed procedures and documentation. There are many things to consider when your business or company exports its products or commodities, so it is important you know about the export processes.
A company needs to be incorporated with the CAC in Nigeria in order to do business as an exporter. After incorporation, the company must register with the Nigerian Export Promotion Council (NEPC) and obtain the exporter’s certificate to qualify for NEPC benefits. It is also mandatory for exporters to submit the NXP Form to reputable Nigerian banks that are authorized dealers.
Furthermore, an export contract may be drafted between the exporter and the importer that outlines their respective responsibilities.
Whenever a consignment of any commodity can be exported, the exporter is responsible for obtaining the appropriate export permits and licenses from various regulatory agencies. Solid minerals exporters are required to obtain a license from the Ministry of Mines and Steel Development (MMSD) and pay a royalty on exports.
Procedures for exporting
- Order examination and confirmation
- Producing or procuring goods
- Obtaining clearance from central excise
- Examining the shipment prior to shipping
- Choosing clearing and forwarding agents. An export agent performs the following functions:
- Organize transportation to the port.
- Organize transportation to the port.
- Pay the freight charges the shipping company imposed on you.
- As part of the agent’s duties, he/she is expected to facilitate inspections by the Nigerian Customs Service, the SSS, Nigerian Drug Law Enforcement Agency, and other appropriate government agencies.
- Make the required payment, if applicable.
- Agents are also responsible for booking space with the shipping agent.
- In addition, he may make charges for the terminal operators
- Goods to port shipment
- Customs procedures and port formalities
- Delivery of documents by the forwarder to the exporter
- Certificate of origin
- A piece of shipment advice is sent to the importer
- Documentation for banks
Furthermore, the following are some fundamental documents required for moving a product:
- Bill of Lading: Bills of lading are contracts between the proprietor of the merchandise and the transporter. There are two sorts. A straight bill of lading is nonnegotiable. A negotiable or shipper’s order bill of lading can be purchased, sold, or exchanged while products are on the way and is utilized for letter-of-credit exchanges. The client generally needs the first or a duplicate as confirmation of ownership to claim the products.
- Certificate of Origin: Certain countries require a signed statement with respect to the origin of the export product. Such declarations are normally acquired through a semi-official association like a nearby office of trade. A declaration might be required even though the commercial invoice contains the data.
- Commercial Invoice: In a domestic exchange, the commercial invoice is a bill for the products from the purchaser to the vender. A commercial invoice ought to incorporate fundamental data about the exchange, including a depiction of the merchandise, the location of the transporter and dealer, and the conveyance and instalment terms. The purchaser needs the receipt to demonstrate possession and to arrange payment. A few governments utilize the commercial invoice to evaluate customs obligations.
- Insurance Certificate: On the off chance that the dealer gives insurance, the insurance certificate expresses the insurance type and the level of coverage.
- Inspection certification: A few buyers and nations might require an authentication of assessment confirming the particulars of the merchandise dispatched, normally performed by an outsider. Inspection certificates are frequently acquired from independent testing associations.
- Consular Invoice: Certain countries require a consular invoice, which is utilized to control and recognize merchandise. The receipt should be brought from the office of the country to which the merchandise is being delivered and generally should be ready in the language of that country.
- Destination control statement: This assertion shows up on the commercial invoice, sea or air waybill of lading, and SED to tell the transporter and all foreign parties that the product might be exported distinctly to specific locations.
- Dock receipt and warehouse receipt: These receipts are utilized to transfer accountability when the export product is moved by the domestic transporter to the port of embarkation and left with the international transporter for export.
At TGL, we understand how significant the export process is and so we ensure your goods are properly marked, labelled, packaged, and documented in a way that suits all the requirements to reach the goods destination. We ensure that your goods are in proper shape during the time of transportation by making use of all the necessary preservation and storage method which suits the kind of goods you are exporting. We offer wide scope of container desiccants that meets the necessities of clients.
Also, there are some certificates like Phyto Sanitary Certificates, Fumigation, Certificate of Origin etc., that are needed when agricultural products are to be exported, all which TGL will help you with.
With a team of over 50 years’ combined experience in freight forwarding, inbound and outbound logistics, compliance/documentation, and core technology services and we are more than able to ensure that the logistics process(es) of your business stays afloat. We also provide the haulage services from the pickup point to the port.
Get in touch with our Experts to discuss your Logistics requirements.
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