What an intending exporter needs to know

jchima14 · 2014-11-09T15:43:10+00:00

Being an active player in the export market can be very exciting. It involves a lot of travel, tracking and transactions. But along the line, it also involves the customs of the exporting and the host countries, the immigration, finance and trade ministries. It equally involves some cross-border charges and associated risks. This implies that export business is something that requires painstaking planning and order. Before you go into export business, the first thing you must do is to set some money aside for training. Training has so become important because you need to understand the demands of customs unions of your host country, the market dynamics, the demands of the people, quality and standards prevalent in the country and the way the government and its regulatory agencies work. This type of training is critical because a number of products are rejected at the borders of other countries simply because the exporters did not take time to learn export skills. Badaru Mohammed, president of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), recently advised intending exporters to spend some time on skills acquisition. In Nigeria, the Nigerian Export Promotion Council and the Manufacturers Association of Nigeria Export Group (MANEG) often have some form of training or education for intending exporters. Some chambers of commerce such as the Lagos Chamber of Commerce and Industry (LCCI) sometimes organise trainings of this nature. Moreover, there are some professional agencies that conduct trainings and enlightenment programmes on the export business. Secondly, you must be acquainted with products on the Export Prohibition List of the Nigeria Customs Service (NCS). These are products you are legally not allowed to export. For instance, maize and timber (rough and sawn) are prohibited for export. Scrap metals, raw hides and skin and unprocessed rubber, among others, are all prohibited for export. You can get further information from the NCS's website. You need this information because going into prohibited products can mar you. Do not be deceived into moving into prohibited products as it can be more expensive than you think or are told. Next is to know your market. Where do you want to sell your product (s)? For example, a top exporter said the business of slippers is lucrative in Burkina Faso. This is why experts say your market depends on your products. You cannot, for instance, export cocoa to countries that have the product in abundance, except if you are bringing something new concerning the cocoa. Have you processed it? Or is there something unique about your product? But you cannot successfully know your market without conducting a research. The Small Business Encyclopedia defines market research as ‘the process of gathering, analysing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business's target market, the industry as a whole, and the particular competitors you face.' The last but not least on this maiden edition is to understand standards. Internationally, countries have specific standards for commodities and products. And if you do not meet such standards, your product(s) will automatically be rejected at the border, with attendant costs. This affects mostly semi-finished and finished products, especially manufacturers. The best bet is always to take a product you want to export, produced in a continent like Europe, the Americas and Australia, and then compare it with what you want to export to a country like South Africa, which also has European standards. However, there is cheery news as the European Union has set aside 12 million Euros to upgrade Nigera's products so that they can become marketable in all continental markets. The product is called the National Quality Infrastructure Scheme (NQIS). This is managed by the United Nations Industrial Development Organisation (UNIDO) and is supported by Nigeria's ministry of industry, trade and investment. Preliminary programmes in this area have begun. So be ready to take advantage of it. Source:ereporter http://www.ereporter.com.ng/index.php/business-news/item/1160-what-an-intending-exporter-needs-to-know

Thread starter jchima14
Start date Nov 9, 2014

jchima14

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What an intending exporter needs to know

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