Low returns on export trade have been attributed to poor
documentation and sub-standard quality of export products.
Experts note that when these documents are not made available the
shipment to the buyer is delayed and in cases when the goods have been shipped,
without complete documentation, the buyer may not be able to pay for the
commodities.
In other to facilitate hitch-free transactions in exportation of
agricultural products. The following documents should be obtained.
1. Registration with CAC: one of the first steps that must be taken when starting out
as an exporter in Nigeria is to register the name of your export business with
the corporate affairs commission. This will add the business to the list of
businesses officially recognized by the government. Please you must bear in
mind that you will not be allowed to register a business name that conflicts
with that of another company that is already registered and in existence.
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2. Have a registered office: as with other businesses, every export business in
Nigeria must have a registered office or at least an office address. The
government is interested more in people having an address for their business
than having an office structure. Whether it is a home or a real office, the
most important thing is that it must have an address.
3. Registration with NEPC: registration with the Nigerian export promotion council to
obtain a license can be done online on its website. According to information on
NEPC website, exporters are required to open a domiciliary account with any
bank in Nigeria and the bank is expected to issue the exporter with a Nigerian
export proceeds form (NXP FORM) in six copies for completion in respect of each
export transaction. It says that the exporter will ensure that the export
proceeds are credited to the account. According to the NEPC, the exporter has
to complete the form in six copies, and then return them to the bank with
contract of sale or proforma invoice.
4. The NXP form: stakeholders in exportation say that
documents are important to enable the importer to clear his or her goods in his
country while the seller/exporter needs documents to ensure that he will get
paid. They say that the bank will register and endorse the form; retain the
original copy while the remaining five copies shall be forwarded to the
inspection agents.
5. Proforma invoice or contract of sale: experts note that the proforma
invoice serves as a negotiated instrument. According to them, the initial
proforma invoice often sets the stage for the first round of negotiations if
the exporter and importer have not yet had any real discussions.
6. Certificate of origin: experts explain that certificate of origin is an important
international trade document attesting that goods in a particular export
shipment are wholly obtained, produced, manufactured, or processed in a
particular country. They note the origin of imported goods is a declaration by
the exporter that the goods are safe and may be legally exported.
7. Fumigation certificate: according to stakeholders, fumigation certificate is issued
by the fumigator by obtaining approval for fumigation from the licensing
authority. Fumigation is a method of killing termites, pests or any other
harmful living organism to prevent transfer of exotic organisms. However, they
note that when the wrong type and quantity of pesticide is used, it may
contaminate food products. To ensure that all foods exported to other countries
are rodent and insect free, the national agency for food and drugs
administration and control has to certify the products because most countries
will not allow goods into their country without fumigation certificate. As
such, NAFDAC is expected to detect excess quantities of these chemicals when
samples are tested in laboratory before export.
8. Insurance certificate: one of the major worries of exporters is non-payment for
goods exported. It has been observed that non-payment may result from the
buyers insolvency or other events outside the control of the exporters and the
buyers. According to veterans in the export trade, export credit insurance
protects exporters from the risk of non-payment on the part of the
importer.
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