₦airaland Forum

Morning bro and thanks for the prayers..God will bless all of us, as for your first question, discussing price per kg is the normal way the business is been run, where by you give your price quotations per kilogram for example if you are sending out a total pack of garri that weighs 100kg but during specification, you were told to pack it in 10kg each that means you will be having 10packs of that, so your price quotation will be on 10kg each, as for the irrevocable letter of credit, this is just to secure the deal, because with this kind of payment, your buyer cant call of the deal no matter what happens. i hope have been able to answer your questions.

Ejisz: @lizu..
Tnx a bunch for this free guide you are droping here...am grateful..more blessings awaits you in what ever you do..dnt just read this o..say amen my brother...
please boss, can you just help break down ''the price per kg''(number 4) aspect for the commodity to be exported? With an example please.. And i got lost when you mentioned irrevocable letter of credit...how does one negotiate that? And also, how does the exporter(me) send documments to the buyer who is overseas? Thanks alot..hope to get an answere soon...

Nxp if refered to nigeria export proceed form, its obtain frm d bank, its part of the documentation required in some kind of export business.. As for d other question, tnx for taking note of that its d correct thing I wrote but think I need to just be a bit explicit on that.. Normally d work of d exporter ends at no 14 but in case of airway freight or an agreement wt the buyer to help do that which attracts extra cost no 16 applies, so I believe u shld be clear on this.

Kamkamdd: Kudos bro!Gud wk u're doing.I've some questns based on d info u gave.
1.Wat's NXP?
2.In no.14 u said after taking d necessary steps,d exporter has placed his part and d importer sends his agent 2 pick d goods.Again in no.16,d exporter is again involved,pls clearify.Tanx!

My brother, tnx for the comendation, but as for recomendation of forwarding agent, I won't be able to do that n I belive u understnd why that can't be done, I will advice everyone to make a move on issues like that, so we can make a proper bergain personally n probably learn one or two things about them. Tnx

a.A.K:
Hello Mr lizu. I must comened the good work you are doing. I've been a quiet follower of this. I would want to know if you can recommend any forwarding agent

Pls House get this straight....

Types of Export Business

There are two types of Export business namely;
Direct Export Business and Indirect Export Business..

1.DIRECT EXPORT BUSINESS: This is a type of export business that is done between two companies from different countries i.e a company in nigeria and a company oversea. This can be done on a small scale or large scale. A pre inspection is done in this type of export business and NXP is also compulsory here.

2.INDIRECT EXPORT BUSINESS: This type of export business is done between individual in nigeria and individual oversea, this can be done in small scale and can also be done in a large scale, pre inspection is not needed in this type and NXP form is not also needed, the two important documents needed here are just the 1.certification 2. airway bill if by airline or bill of laden if by sea.

DOCUMENTS REQUIRED FOR EXPORTING FOOD ITEMS IN A DIRECT SCALE EXPORT(COMPANY TO COMPANY)

1. Copy of certification result being issued by relevant government approved certification agency.

2. A copy of euro customs document ( this is issued in the bank)

3. A copy of proformal invoice as in the case of letter of credit type of payment.

4. A copy of pre inspection result being issued by the buyer's nominated pre inspection agent.

NB..Pre Inspectors;They monitor and inspects the goods belonging to the buyer on his or her behalf.

5. A copy of airway bill if using airline as a means of transportation

6. A copy of bill of laden if transporting by sea.

7. A copy of NXP form obtained from the bank.

8. A copy of export liscense.(if available)

9. A copy of letter of credit.


PROCEDURES FOR EXPORTING FOOD ITEMS FOR DIRECT SMALL SCALE

1. Select a product or identify the product and get buyer for it

2. Send an offer letter to the buyer and state what you can offer conveniently in term of quantity, duration of time before you can deliver e.t.c

3. Negotiate and agree on specification.

4. Negotiate and agree on price per kg.

5. Send a proformal invoice to the buyer according to the details agreed upon with the buyer in terms of price per unit, product specification, packaging and packaging methodology, duration of time to be delivered e.t.c

6. Take the proformal invoice to you account officer in your bank to help you put your bank details on it..it is compulsory the bank does this for you.
NB.. Always negotiate for an IRREVOCABLE letter of credit during the transaction because with this, the deal can never be cancelled because of anything( so with this you are getting your money)...its a form of security.

7. Scan mail the proformal invoice to your buyer for him or her to take it to his or her bank for the preparation of the IRREVOCABLE letter of credit that will be sent to you.

8. Collect the NXP form from the bank, fill it accurately with accurate informations and submit to the bank for future incentives from the nigerian government( these are things nigerians dont know that exists and they exist, but if you dont know that it happens, the people in charge will never tell you and they will always sit on it)...be wise.

9. Go to the bank and pick up the letter of credit opened for you by the buyer's bank.( with this, you are in a safe hands..as soon as your products gets to the buyer your bank is going to pull your money out for you through the letter of credit opened by his or her own bank).

10.Now go to the market for procurement according to the agreed specification

11. Package the product according to the agreed specification.

12. Take the products for certification

13. Take the product for pre inspection in the buyer's nominated pre inspection company and collect the pre inspection result

14. Collect the pre inspection and if it corresponds with the agreed specification, take it to your account officer.
NB...from here if the specification is met, your job ends here then the buyer takes up charge from there and sends his or her agent to pick up the products from the pre inspection company and sends to the buyer.

15. when payment is confirmed, go to any airline of your choice and make payment for the exact number of kg and collect your airway bill.

16. call any liscensed forwarding agent of your choice, hand over to him or her a copy of the pre inspection result and the airway bill to enable him or her to go to the pre inspection company and carry the goods to the airline for air freighting.

17. Inform the buyer of the name of the airline that is bringing the goods to him or her or probably scan mail all the documents to the buyer.

My brother pls I won't be able to do this because I stand not to be quoted at the of ur transaction, pls if you notice when it comes to figures I dnt write specific cos in naija anything can change anytime..tnx

Tunjman: @Lizu: can you give me rough estimate of transporting my garri via airline? you can inbox me: nectar.edibles@gmail.com

Thanks.

I already gave out the basics 2 days ago..if u go thru the pages properly u shld see it, another one should be coming up before d end of today. Tnx

ay sax: bro i can see u ve been doing a good job but when will this ur write up on exportation business be release

Goog info bro...tnx

kenraj: Considering the cheapest means of conveying your exports, nipost is the cheapest. EMS services also works faster than Nipost but cargo (via-airlines) is the costliest and the most expensive (though the fastest-bare 48-72 hour depending on destination). The hiccups in all means depends on the recipient's country,as in the maximum weight which can be received @ a go and also their charges also. But I feel they are cheap compared to some countries like Russia which is quiet strenuous and expensive. Just be positive on your business and you sure will smile you gave it a trial.

@kamkamdd...have been using the airway freight for sometime now and i feel much safer using them because of time of delivery considering the fact that we are exporting food items that might be affected with time if it stays too long somewhere...though airways are quit expensive but if your calculation is done correctly, you must have gotten your profit even before sending your stuffs out. Thanks

@chidozy15.. asides using your bank account officer, you can visit the chamber of commerce and industry, registered forwarding agents, commercial desk of any embassy, shipping companies...its all about making your smart and get information from anyone there...but dont forget that we are still in naija...scratch my back i scratch your back...nothing goes for nothing, you dont have to make this official when doing it. i beleive we are all working with matured minds here...thanks

good job bro...nice one

smith_sydny: anoda tin we shld consider is the airline of transporting cus I had turkish airline is the cheapest too uk..so I went too ther office at the airport too comfirm..so dats anoda tin we shld put in our budget too..thanks pple..

My brother, pls dnt feel that way..at least you were able to feel that space too by answering d question, I believe this forum is for matured minds, so pls let's do it 2geda..I believe no one will open his or her eyes down to watch anyone put sand sand for his or her garri, so its all about shinning your eyes on ur stuff at every point of action. God go help us all, hope u were able to digest today's write up

smith_sydny: at the packaging point of ur goods until wen its sends in u shld be there nd watchful at all point in time..no loss holes at all. Must drug guys go tru dat means too deliver ther drug or they mit u nd plead wit.wat u will hear is guy na just dis small tin mk I just put nd u collect money not knowing its drug..so in dis accept u have too be vry observant ..God go help us..Lizu no wan show us face again?

@mosexyl and jorrey...tnx housemates...we are in the ride together...

my brother..the certification agencies i know and trust are the already mentioned ones, and if you source for any product outside lagos, i see no reason why you should go through such rigirous stress of just certifying lagos and taking it back to your state for air freighting, you know that will cost you alot..i dont know if have been able to answer your questions sir

9free: @OP,
Are these certification agencies available in every state of the federation or just in Lagos alone?
Secondly, can I export from any of the five international airports in Nigeria?
What happens if I can easily source ''exportable'' products but live in a state that has no local airport/int'l airport?
Lastly, can you clarify this offer letter thing?

are you still following so maybe you can find tips that wll answer your questions....thanks

Tweetie: Hi Lizu, I am interested in exporting palm kernel shells to European countries. I heard its lucrative. Kindly give the step by step procedure of how to go about it. Thanks

infact people that lives in lagos come as far as enugu to get and abuja to get their stuffs at times and still come back to lagos to transport it, am very sure if its something that was easy for them to do they wont venture to come back to lagos for the remaining transaction to be completed...but if something comes up o that later i will gladly put it up..thanks

lovelymind: Again for those of us that doesn't base in lagos which other route can we use insisted of lagos route. Or can we use Abuja or Enugu

sorry bro...i dont use courrier services for my delivery because i beleive it takes time and all, but i beleive this is a forum and we are definately going to have people here that knows about that as well, so please housemates lets save a bro..

kenraj: @Lizu....

I asked earlier what the requirements are for UPS to send my stuff to Russia if it's gonna be 100kg upwards and I don't mind if it's gonna be splited. And things I send range from cosmetics, hair extensions, foodstuff like ogbono,plantain,yam,egusi,garri,palm oil etc, beverages and the likes. I'll really appreciate to know how I can go about it!

Thanks in antticipation!

my night was good thank you and how was yours too..quick one, definately we can...its all about getting people that needs it, we have lots of nigerians oversea that could not toil with all these things when they were in the country and they could offer anything to get them where they are now...so my housemate, please its time for serious work here..

lovelymind: U re welkom op and hw was ur 9t . Question Pls op can one export bitter kola . Regards

FOOD ITEMS PRODUCT SELECTION FOR EXPORT

Factors To Consider When Selecting Products to Find Foreign Buyers For;

1. Factor of finance;
This is the number factor here, because it determines everything. so you as an exported have to know how much you have before getting into any transaction and i beleive this is done in all businesses.

2. Factor of availability of product in the local market;
I personally dont advice people to just go any product, you make your findings properly and get to know what people want before choosing a product.

3. Factor of Location of the product;
It is adviceable to always go for things you can get easily withing your reach, because there are sometimes the buyers want more, but for example you are sourcing for a particular product that is very far from where you are, and that same product is urgently needed, i am sure it might be very hard for such seller to deliver on time and you know what that means to the business.

4. Factor of packaging;
This has to be considered as well, because all these sums up to determine the selling price, so if you are using things that are too expensive, then that might raise your prices too high for the buyer and you knwo what that means...you are already creating an option for the buyer...
NB...in export business,you dont guess your profit makings..its been calculated right from the start of the business...so every penny you spend must be documented, so you can do your calculations at the end to give your selling price...we will talk more on that later.

5. Factor of local and international prices;
This actually speaks about currency exchange..you can determine where to sell your product to at a time..i.e where you want to find buyers to, so you can earn better money.


I will like us to digest all these today and the house should discus on these...questions and critics are welcome....

we will continue from here tomorow.

Idea of Proper Identification/description.

Lets use a sweet potatoe as a case study..

when you are describing this, these are the points you give...i mean you are to tell the exact way the product is looking to the buyer.

1.unwashed, unpilled, 0.001bruised, 0.01 hairy body, 35gms/one

2.how you will like to package it( this is mostly done by weight i.e kilogram)

3.Then how it will be delivered

i see you are one of the very people that have been following from the beginning, please lets just take things gradually okay...we will get there.

Kamkamdd: Hello!If i may suggest,while nt publish ur article,then whoeva has a questn'll den ask.Dis'll make tins clearer and also allow u 2 respond 2 evrybdy.I noticed som questns are no longer answd.Again,it'll help maintain d steam d thread carries.Pls don'nt allow following dis thread 2 get boring.Tanx 4 d gud wk!

Lets start with this....

In Nigeria, when people hear of export business, what comes to the mind is the business is for the rich people, i.e the millionaires and the billionaires.. but with God and researches, people have been able to deduce some hidden truth about the business. If you are willing to know these hidden facts about how thaousandnaires too can do this business, lets fasten our seat belts and take a ride together because one tree can not make a forest.
Do you know that we have over 400 different types of exportable products in this country that can be done in small scale and you earn yourself good money.

LIST OF FOOD ITEMS THAT ARE EXPORTABLE IN NIGERIA..

Generally, food items are done in small scale because of the perishable quality they have, though there are some that can also be done on a large scale e.g cocoa, charcoal, cashew nut, soya beans, coffe, cotton, groundnut.

-Random Identification of list of different items..
Garri(cassava granular), melon, yam tuber, palmoil, ogbono seed(etima seed), sweet potatoe, ginger, garlic, crayfish, ugwu vegetable(pumpkin leaf), pine apple, smoked catfish, tumeric, snail, beans, bean flour, yam flour, iru(locust bean), plantain, cotton seed, okro, dry fish, ewuro(bitter leaf), cocoa yam, dabinu(daites pam), honey, plantain four, fufu(cooked), wet processed pap, paradise seed(aligator pepper), peanuts, cashew nut, cocoa butter, bitter kola, zobo leaf(hibiscussflower), shear butter, wall nut, pine apple, palm iol, perry winkle (isan), indomie, ccucmber, carrot, maggi, onions, ofada rice, chilly pepper, banana e.t.c

Food Item Proper Identification..
Proper identification is described as an act of the exporter describing the very condition of his or her product on the offer letter to the buyerfor him or her to have an idea of what the seller i.e the exporter is exporting to him or her so as to enable him to decide wether that is how he or she wants it or not.

This is very lovely....thanks for this contribution

xsey: Hello house!

I've followed the thread for a while.

"Export of Foodstuffs, Agro commodities, etc"

Here's my personal opinion based on my personal experience and observation in the business.

Export: is expanding your goods/services to the International Market. That is; you want to establish links Globally.

The first thing to master is "your product"

Product Knowledge:

Do you really know and understand your products very well?

I agree that Nigerians in diaspora need certain food items, But are you aware that the packaging and product specification required to bring food items to the UK and US is completely different from how we handle and package our food items here?

** Is Your Product "Perishable or Non-Perishable?**

Experienced exporters try to put some measures in place especially when you export perishable commodities to foreign countries.

**Ask Yourself tough questions**
Do I want Profit and Regular Income?

If your main goal is profit and not just the prestige that comes with being an exporter, Some of those food items would make you more profits if you sell them locally. - " My Opinion based on experience"
While some would make you more money exporting them. It's all about thinking.

Yam for example: Few people can do the "hard work" required to make it work because it requires hardwork to meet up with the standards by the UK GOVT for bringing food items into their country.

The specifications varies from buyer to buyer.

Generally exportable yam should have the following characteristics.
Diameter- 3.5-4.5cm, Length- 15-40cm, No hair (No fibers), No fingers (branches)Very smooth body with no sand (if at all it should be very minimal)
No injury (if at all it should be very
minimal)
Not too big (enough for a family to
eat at once)
This is one of the specifications and it varies
.
"If you cannot meet up with this specification for example, don't send your products" if you can meet up, you may go ahead.

"Also if you do not know the measures to protect your product quality from Nigeria to your country of destination, keep your money or sell Locally"

This rule must be followed for all perishable products.

* Do you have a Buyer yet or How do you Intend getting one?
You must thread carefully here.
Negotiate a good deal.

* What form of payment is the Buyer offering?
There are different forms of payment and you need to be skillful in choosing the best form.

If you're not very sure of your product, never sell it.

Meanwhile, when you sell to the Local Markets, you make your money within a week and turn it over. Your N50,000 is just okay to do this locally rather than trade in export (with the hope of making the so-called millions with N50,000)
The specifications for local market is very easy to meet up. (No special rule) as long as you buy at the right source.

Think Deep!

However, if you want to go into export business, just know these:

1. Export is a real business and must be mastered. Take enough time to master it. "If You rush into it without thorough preparation, you will soon rush out"

2. My personal advice is that "Don't, Never rush into it without proper knowledge, adequate information of the Processes Involved and preparation"
The necessary regulations that applies to your export product.

3. Also, there is a major difference between what you hear by anyone and what is actually happening in this export business.

4. Export business also requires you to learn how to master details. As in pay attention to details" There's nothing called insignificant details in export. All the details matters a lot. (It's a business of details)

5. Accept that nothing is free! Whether you want to sell Agro-commodities locally or export, real work, effort and money is required.

6. If you will get any training at all, get Hands-on training/mentoring/field experience. This is by far the best form of training you can get.

The manuals and countless talk or gist only can only give you an introduction to this business....

7. Start your export career with "Non-Perishable" Exportable Products.
You must be very sure of how to maintain the quality of your products till it gets to the final destination.

8. You must ask questions and query everything that is against 'common sense"
If any export offer sounds too good to be true and too easy to do, Run!

That's my candid opinion anyway and it's based on my experience of several years in the business.

There is a lot to learn.

I love to improve too!
So I'm open for honest Corrections, Contribution and Questions.

Enjoy!

Hi everyone in the house...am sorry to have delayed a bit, but please i will like to make something very clear here, i really and truely understand why some people are getting furious about thing whole, that has been our ways in nigeria, we all want to learn things very fast and at the end we dont get to make or achieve our goals..please i will like everyone here to know export business is not what you can get to understand and know about at a snap of the fingers..so we dont get our fingers burnt...so please this si a forum...we all have different opinions , so any one can leave if he or she wishes...but i want us to know that a single tree cant make a forest...because someone is the op doesnt mean he does not learn new things everyday...so am sorry if you feel have delayed you in a way..

I will commend the guys that have been contributing their own ideas too in the house we are all going to be successful at the end.. thanks so much
if the already exporters in the house understands all am trying to say about the business, you will surely let people newbies know that its a step after another..so please all hands should on deck as we drive on.. Thanks once again.

Amen my brother God bless you too..all is well

andrizzy1: @lizy we re stil following o plz giv us update. Am a student nd I dnt bliv in workin unda som1..luv 2 earn ma moni wif ma sweat nt som1 payin me 1 scrab @ d end of d month. God bless u 4 dis

Tnx for ur words of encouragement..we shall all get to d promise land some day

ceasare: @lizu: good work you are doing here.hope u r not going to sell any scrappy manual at d end of d day cos thats d norms wth all dis export business messiahs they abound online and on d business section of nairaland( i want to bliv u r not 1) dont mind my sceptism as your suspense filled response is always d cheapest luring trucks used by manual marketers(my thoughts though).that you ve given some insightful details regarding d biz shows some level of sincerity on your part(we are still watching though) as most nigerians will definitely not want to show there brother where they r making small change,nigeria in diaspora are not excluded if you knw what i meant.more power to your elbow as dis thread makes one of d best thread on nairaland.
Pls keep d suspense low and break d steps as simple as possible before d thread lost steam and been derailed..i knw what am saying.

Cheers.

Yes you have to go for certification cos its also a processed product, the relevant agency is under nafdac at yaba office as well and you can hand it over to any registered forwarding agent.

Iyohokwa: Lizu, for one who wants to export dried crayfish, do u need to get approvals from any authority, can it be properly packet and handed ovr to a freight agent?

How can one build contact or interested parties/contact to enable export possible?

No oh....this has nothing to do with nafdac number..the concern agency is just placed under nafdac so take note

Tunjman: What if the product doesn't have nafdac number yet? Please pardon me for the questions.

please make no mistake..its the office at yaba.. i mean nafadac office at yaba, you are to go to..since its a processed product you are sending and you are paying around 2.5k -3k...dont dull yourself oh.. make dem feel and know that your are not new in the business.

Tunjman: Thanks for your prompt response, Yeah! meant to type offer letter (thanks for the correction). We have settled the payment term, what is left for me now is how to go about the certification and what comes up after the certification.

PS: I need detailed information on how to go about the certification (will I go to NAFDAC office with a pack of the product or what? what's the cost implication?). Please i await your response.

Thanks.

please dont be crossed with me, this will be done very soon. tnx for the understanding...dont mean any disrecpect.

tafrica: Kindly outline the bodies that accredit different products; say food items, leafy items, drinks and so on.
Thanks

in as much as we are trying to be sucessful int his kind of business, we have to be sincere with ourselves that this is nigeria...nothing goes for nothing.. what i mean is that different transactions must have passed through the banks due to different mode of payments that involves the bank, so there for the contact of a buyer must have been documented in the bank, so the business desk of a bank will definately have such contacts and those contacts are very real i hope you understand what am trying to say here...so all you need to do is just talk your bank officer up and he does the rest of the job by getting you contacts...and the rest they say becomes history

Debesther: HI BROS I AM ENJOYING UR TREND. HOW CAN MY ACCOUNT OFFICER GET A BUYER FOR ME?.PLS LET KNOW SO I CAN TALK TO MY ACCOUNT OFFICER

yes you will have to go with the products...you know how our people are, you can go with samples and they will ask you for the remaining ones..but its very adviceable to do all this the same same you are sending out the package so as to reduce the cost of transportation.

lovelymind: Hello lizu pls, before a pdt goes under certification, will you present the sample of the pdt to the agency or will u take the total pdt to the anency for certification . Regards op

This sounds good but do you mean an offer letter..if that what you r talking about, that means you dnt need it again, the function of the offer letter is just to describe your pdt and even introduce you formally to your buyer, and other modalities that surrounds the transaction, after this, you go for certification and take note, you are doing the certification at the Health certifying agency..this is directly under nafdac..because garri is a processed pdt, the office is at yaba nafdac office, its different from plant quarantine agency..am sure you must have discussed the payment term before now...cos that's d koko..I hope av bn able to answer your question sir

Tunjman: Hello Lizu, I already have a market for my product (packaged ijebu garri) in London but I don't know how to go about getting the stuff there...do I still need a letter of specification? Please enlighten me. Thanks