UNDERSTANDING NIGERIAN AGRICULTURAL EXPORT MARKET PART II

One of the things COVID-19 pandemic has critically revealed to us is the agricultural opportunity and how we can take advantage of it. Due to the lockdown as witnessed across the globe, food supply has become in high demand hence the need for some country to import food from other countries to augment the short fall. Agriculture as the mainstream of many West African Countries like Nigeria, before the oil boom, provides food for the citizenry and raw materials for the industry, and with policy thrust of President Buhari’s administration. Therefore, it should command priority, with special interest in agricultural export which has become a booming gold mine. For this reasons the Federal Government of Nigeria established the Nigerian Export Promotion Council which is the apex institution for the promotion, development and diversification of exports. NEPC has over the years worked to achieve its mandate by: coordinating and harmonizing export development and promotion activities in the country; taking the lead in all national export programs; interfacing with international trade agencies on cooperation and capacity building.

So, when it comes to exporting agricultural products to other countries, the best agency to approach is the NEPC. One will ask what then is the procedure for exporting agricultural products? This is the crux of this article that aims to bring to limelight the export document required and procedures therein.

EXPORT DOCUMENTS, PROCEDURES & IMPORTANCE

Export documentation is a requirement for formal exports of goods and services from Nigeria to other countries. The Importance of Export Documentation & Procedures include the following:

• Minimize your export risks.
• Ensure that exported goods conform to importing country specifications
• Ensure you meet buyers requirements by providing evidence of origin and delivery
• helps you to formalize your export business
• assist you in qualifying for export incentives

 

REQUIRED EXPORT DOCUMENTS

Since the business of export promotion is quite lucrative, a prospective exporter must possess adequate knowledge of information about the export market as well as documents and procedures required by NEPC. For formal exports the following documents will be required at different stages of the export process:

Exporter Registration Document

To venture into export business, the first step of your export procedure is registration as an exporter with NEPC this requires obtaining “EXPORTER’S CERTIFICATE”. The importance of obtaining this certificate is that it licenses you as exporter and makes you eligible for NEPC benefits. To obtain the document, prospective exporter can engage the services of an expert or approach any NEPC office for further directives.

Export Contract Document

An export contract is an agreement between seller and buyer on the terms of export business.

Document issued here to you as exporter and the importer is a “SIGNED EXPORT CONTRACT”. The importance of this document is that it spells out the obligations of buyer and seller.

Quality Assurance

Quality assurance documents help you to ensure your exported goods conform to safety measures (as stated by international conventions and possibly agreed terms of the contract). Using internationally recognized bodies is particularly important. Relevant documents include:

• Phytosanitary certificate for agricultural commodities issued byNigeria Agricultural Quarantine Service (NAQS)
• Health certificate for processed and semi-processed food items. This Certificate is issued by NAFDAC)
• International veterinary certificate for animals and animal products. This document is issued by Department of Veterinary and Pest Control Services. This is a department in the Federal Ministry of Agriculture and Rural Development(DVPCS)
• Fumigation certificate for agricultural commodities. This certificate is issued by the Federal Produce Inspectorate Services (FPIS) being a directorate under the Federal Ministry of Industry, trade and Investment

Commercial Documents

The commercial documents display product values and quantities. The documents are both prepared and issued by the exporter and include:

• Porforma Invoice – An offer by an exporterto sell specified goods for a certain price and at certain terms in a formal manner.
• Commercial invoice – indicating the value of goods for export in the currency of transaction
• Packing list – indicating the unit packaging and total quantity of goods intended for exports

Financial Documents

The preparation of financial documents shows evidence of financial transaction between buyer and seller. It also shows conformance with the financial regulation for exports: 

1. Nigeria Export Proceed form (NXP)issued by commercial banks. The essence of this captures the value of the export transaction for economic development purposes. It is also a major prerequisite for accessing the Export Expansion Grant (export incentive)
2. Commercial invoice: Issued by the exporter. The relevance is that it indicates the value of the goods for export in currency of transaction. It is also useful for processing the NXP.
3. Final invoice: issued by the This indicates the actual value of the goods exported in currency of transaction for the purpose of payment by the importer.

GOODS MOVEMENT DOCUMENTS

This deals with all aspects of the delivery of goods to the buyer in the medium specified in the export contract. Documents involved include:

Clean Certificate of Inspection (CCI: Issued by government appointed Pre-Shipment Inspection Agencies (PIAs). This ascertains the quality, quantity and price competitiveness of Nigerian exports

Certificate of Weight and Quality: Issued by independent quality assessors (e.g. SGS, Bureau Veritas) agreed by seller and buyer. It ensures the goods conform to the quality standards and weight as stated in the contract.

Certificate of Origin: Issued by National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA). This certificate indicates the origin of goods, needed for e.g. trade agreement benefits.

Bill of Lading (shipping document) Issued by shipping agencies. The relevance of this document is that it indicates the details of goods transported by sea.

Air Way Bill (shipping document): Issued by airlines. The relevance of it is that it indicates the details of goods transported by air.

Road Transport Bill (shipping document) is issued by logistics companies and it indicates the details of goods transported by road.

In conclusion, the impact of Agricultural Export in an economy is like a life jacket that is needed for economic growth. This can go a long way to encourage individuals, local industries to engage in backward integration were they farm raw materials in large quantities, use some for local industries and export the excess. This can also go a long way into helping Nigeria’s foreign reserve as foreign partners patronise the economy in foreign currencies, boost GDP of non-oil sector, and create employment in sectors such as transport, forwarding, pricing and clearing. This will also create a value chain in the finance, agriculture and transportation sector. It will trigger the forces of demand and supply and to a large extent, normalise the Nigerian Economy.