BY IFE ADEDAPO
For a hitch-free export business, IFE ADEDAPO writes on how to go about the documentation
The failure of some businesses involved in export has been attributed to improper documentation particularly as regards clearing goods at the ports.
Experts note that when these documents are not made available, the shipment to the buyer is delayed and when the needed documents are not obtained by the buyer, he or she may not be able to pay for the commodities.
In the processing of export consignment, stakeholders in the export trade have highlighted some of these indispensable documents. The event was an export business empowerment seminar organised by Rays of Light Empowerment Initiative.
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.
The National Project Coordinator, RLEI, Toun Omisore-Davidson, says this will add the business to the list of businesses officially recognised by the government.
She says, “You must bear in mind that you will not be allowed to register a business name that clashes with that of another company that is already registered and in existence.”
Have a registered office
As with other businesses, every export business in Nigeria must have a registered office or at least an office address.
According to Omisore-Davidson, the government is interested more in people having an address for your business than having an office structure.
She says whether it is a home or a real office, the most important thing is that it must have an address.
Registration with NEPC
Registration with Nigeria Export Promotion Council to obtain a licence 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.
Having collected a set of NXP Form from his/her bank, the exporter completes the form in six copies, and returns the same to the bank with a contract of sale or pro forma invoice.
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.
The Comptroller-General, Nigerian Customs Service, Mr. Abdullahi Dikko, says that goods may not be exported to destination outside Nigeria unless the exporter has complied with the prescribed documentation.
According to the comptroller, who was represented by the Deputy-Comptroller, NCS, Mrs. Margaret Dyuran, the bank will register and endorse the form; retain the original copy while the remaining five copies shall be forwarded to the inspection agents.
Pro forma invoice or contract of sale
Experts note that the pro forma invoice serves as a negotiating instrument.
According to them, the initial pro forma invoice often sets the stage for the first round of negotiations if the exporter and importer have not yet had any real discussion.
Certificate of origin
Experts explain that a 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.
The comptroller notes that the origin of imported goods constitutes a declaration by the exporter that the goods are safe and may be legally exported.
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 pests, termites or any other harmful living organisms to prevent transfer of exotic organisms.
To ensure that all foods exported to other countries are rodent or insect-free, the Deputy Director, Ports Inspection Directorate, NAFDAC, Mrs. Comfort Makanjuola, says that most countries will not allow goods into their country without fumigation certificate.
However, she says that when the wrong type and quantity of pesticide is used, it may contaminate food products.
She adds the agency detects excess quantities of these chemicals when samples are tested in the laboratory before taking them to the port.
Insurance certificate
One of the major worries of exporters is about the problem of non-payment for goods exported.
The Head, Lagos office, NEXIM bank, Mr. Kalu Ugenyi, says non-payment may result from the buyer’s insolvency or other events outside the control of the exporters and the buyers.
According to him, export credit insurance protects exporters from the risk of non-payment on the part of the importer.
The role of Nigeria Customs Service
As specified by the Nigeria customs service, anyone willing to engage in export business must register with NEPC.
This council was created to enhance and encourage exportation of commodities other than oil with the ultimate aim of generating national revenue through alternative means.
Dikko says that the agency coordinates all other government bodies to ensure all documentation is complete.
He adds that the agency has been collaborating with other agencies to ensure that all necessary documents like certificate of origin, fumigation certificate, sales contract agreement, Nigerian export proceeds form, shipping documents, product registration licence, other trade licences and permits are checked before onward loading of goods on the ship.
According to him, officers are always at the seaport to facilitate export trade.
He adds that other duties performed by the agency include inspection of goods to be exported, administration of laws, anti-smuggling regulations and freight facilitation among others.
In order to have unhindered access to government grants, Dikko stresses that proper documentation is essential.
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