China is probably the biggest market in the world for importation of different kinds of products. There are so many goods you can import from China into Nigeria and sell for good profit but how exactly do you go about the process to import goods from China to Nigeria? What are the importation requirements and regulations? This post will try to explain not just how to import from China but the general importation requirements and procedures in Nigeria.
N10,000 can do nothing for you as far as importation is concerned, not even N100,000. If you want to import goods from China to Nigeria and sell to make money, you have to get professional about it.
Steps To Import Goods From China
Firstly: You need to start by scouting for the type of goods you want to import. Be diligent about it and balance your decision with proper reasoning. You have to make the list of products you think that will sell in Nigeria, I mean products that are not common in the market or products that are common but still hot cake.
Keypoint – China Laptops, Pads, Mobile phones, Children toys of all kinds, and Shoes are known to sell very well in Nigeria. While this is not a recommendation by me, you can as well look into that direction and see if it fits into your desired goods for importation.
Secondly: Having isolated some of the goods you think can do well in the market in Nigeria and decided on the particular one you want to import, the second step is to make a selection of merchants that deals with those goods in China. You don’t have to travel to China as the case may be except you have much amount of money to foot the travel bill. All you need to do is to make use of some of the China popular merchant websites such as Alibaba.com.
Keypoint – It’s easy to identify trusted merchants on a website like Alibaba.com due to the stringent security procedures they employ in certifying their trusted merchants. So, you don’t have to be afraid of contacting a merchant online, it is very safe and secure to some reasonable extend. But that doesn’t mean the system is infallible, you still need to take serious precaution especially if big amount is involved.
Thirdly: Start negotiation with the merchants to find out whose terms of contract will be most suitable to you. There are some important things you’d have to agree upon apart from the price of the goods. You will have to discuss and agree on method of shipment and mode of payment.
As someone who is new to international trade, buying and importing good from a country as diverse and deep as China can be a bit risky sometimes, it is therefore advisable that you use escrow services where possible for payment to dealers on Chinese sites.
You may start by buying smaller quality of product for a particular dealer over time to establish how trust worth he is. Then you increase your order gradually. Verified merchants are dealers who have been doing business successfully on the site without any complain. Those are people you want to be patronizing; so before you place order with any dealer, check if he is verified.
Method of shipment is another critical factor to look into and agree upon and don’t forget that the type of shipment you use can greatly influence the final price of your goods. But should be the least of your concern since are not the cosigner. The method is the dealer’s to worry about as long as you have agreed and settled the price of goods.
Little things to note however is that while DHL and UPS offers easy, fast, and secure shipment, it comes with a higher price which will drive the final cost of your goods higher irrespective of who is paying for shipment. If a merchant is shipping through DHL or UPS, they must have added the cost to the price of the goods. (-_-)
Free On Board is the most popular system used for freight shipping, in conjunction with the port of loading. With this arrangement, the seller is responsible for transporting the goods to the port for shipment and also take care of the loading charges. From there the responsibility of clearing the goods from your own port and transporting it to your final destination and paying all costs of transport, insurance, etc becomes yours.
The Guideline For Importation In Nigeria
Though the Nigeria Port Authority (NPA) have made several claims in the past of how they have changed the face of port operation in Nigeria, I can assure you that things are still the same if not worst over the past eight years. Therefore, you have to prepare for the long list of unnecessary huddles and bureaucratic bottle neck.
But if the goods you are importing is a product in high demand, you can be sure of making your money in millions to cover all the hardship you went through. The good news is that importing from China isn’t as hard and costly as importing from other countries in Europe and America.
Below is a vital information about importation procedure in Nigeria. Please, share your opinion below after reading and let’s take the discussion further. You can ask questions or help others find answers to their question. Remember, no dropping of email or phone number in your comment.
A shipping company intending to bring cargo into a Nigerian sea port has to clear the ship by obtaining Ship Entry Notice (SEN) two months in advance from the Operations Department of Nigerian Ports Authority. The customer, in the alternative, could obtain clearance through a registered and licensed agent based in Nigeria.
This is without prejudice to all other regulations guiding the operations of other relevant government agencies and international laws regulating maritime operations. The procurement of a Ship Entry Notice is a guarantee that a vessel would have berthing facility on arrival in Nigeria. This in essence means that the ship does not come to queue and thus incur demurrage.
There are two categories of goods for the purposes of this guideline:
Merchandise And Raw Materials
It is no longer mandatory that the consignee engages the services of a registered Clearing and Forwarding Agent in respect of merchandise and raw materials. In such cases, the consignee may opt for self clearance as is the
Types Of Cargo Requirements
There are two categories of goods for the purposes of this guideline:
(a) Merchandise and Raw Materials
(b) Personal Effects
it is no longer mandatory that the consignee engages the services of a registered Clearing and Forwarding Agent in respect of merchandise and raw materials. In such cases, the consignee may opt for self clearance as is the case with personal effects, where the owner may clear the cargo when familiar with the clearing procedure.
Bill of Lading
The consignor/shipper sends the Bill of Lading in advance of the arrival of the ship to the consignee/importer. This document contains the following vital information.
(a) The name of the ship carrying the goods
(b) The description of the goods along with their marks and numbers
(c) The date of departure from port of loading
(d) The weight of cargo
(e) The terms of contract of affreightment
The importer/consignee takes the Bill of Lading to the NPA Central Office for Planning and Information of the appropriate port for details about the arrival date of the ship and her allocated berth. This information can also be obtained from the shipping company
The importer or his agent completes the Bill of Entry and registers it with the Nigerian Customs Service.
The consignee or importer proceeds to the shipping company to effect Shipping Company Release of the goods
There, the Bill of Lading is cross-checked and compared with the ship’s manifest. After certifying the correctness of consignee’s documents, a blank form called Delivery Order (D.O.), supplied to the shipping company by the Nigerian Ports Authority, is then issued to the importer.
The consignee or his agent competes the Delivery Order and returns same and the Bill of Lading to the shipping company.
The shipping company then scrutinizes the details on the Delivery Order, endorses it and withdraws the original of the Bill of Lading from the consignee or his agent. Thereafter, the lower portion of the Delivery Order is detached and handed back to the importer who holds it as evidence of shipping company release.
The main body of the Delivery Order is sent to the Marketing Department of Nigerian Ports Authority at the specific port.
The Marketing Department then raises all necessary bills through a computerized system, marries the Release Note copy of the Customs Bills of Entry with the shipping company’s Delivery Order, after which bills are authorized.
The bills are then vetted by the Audit Department after which payments are effected at designated bank.
The necessary delivery sets are then produced using information contained in the Delivery Order and subsequently transferred to the transit shed or delivery point.
The consignee or his agent then proceeds to the appropriate transit shed or delivery point to effect delivery. After loading, cargo pass is issued to the consignee or his agent who then proceeds to NPA gate for security checks and final exit.
Facilities And Insensitive
The NPA provides various cargo handling equipment for both containers and general cargo. Roro facilities are available at the ports. Free storage period of six days from the last day of a ship’s completion of discharge are allowed for importers to clear their goods.
Ship Manifest is a summary of all Bills of Lading due for discharge at a particular port.
Delivery Order is a printed form supplied by the NPA to shipping companies for purposes of delivery of goods to the rightful owners.
Terminal Delivery Order is a document on the presentation of which a consignee or agent is authorized to take delivery of consignment at an NPA terminal, delivery point or shed.
It must be emphasized that carriage or cargo in excess of declaration on cargo manifest attracts sanction.