B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
Points to consider while exporting from usa to nigeria
1. Points to consider while exporting from USA to Nigeria
Nigeria ranked 119 on the World Economic Complexity Index. Per capita GDP of Nigeria was $3010
and its GDP was $521 Billion. The Country’s top exports are Crude Petroleum ($75.3B), Petroleum
Gas ($10.3B), Refined Petroleum ($3.07B), Cocoa Beans ($561M) and Special Purpose Ships
($463M). Its top imports being Refined Petroleum ($9.5B), Cars ($1.87B), Wheat ($1.42B), Rolled
Tobacco ($1.34B) and Special Purpose Ships ($1.01B). United States of America stands second most
favorite destination for Nigerian imports after China, accounting for $6.5 Billion worth imports
(2013). That was a 28.8% from the 2012 Nigerian imports from the USA. The top import categories
from the USA have been Mineral Fuel (oil) ($2.1 billion), Vehicles ($1.3 billion), Cereals (wheat)
($962 million), Machinery ($820 million), and Plastic ($185 million) during 2013. Under Agriculture
category, Wheat has topped other imports to Nigeria, accounting to $959 million. In Nigeria, the
direct investment from the USA is led by mining and totals to $52 million from all sectors of direct
investments.
Leading sectors for exports from USA to Nigeria are agriculture, agricultural machinery,
automobiles, computers, construction equipment, electrical power equipments and medical
equipments. Import tariffs in Nigeria for USA goods differ with the type of product imported. It
ranges from 0%-35%. Certain USA product categories that are exported to Nigeria are covered
under African Growth and Opportunity Act (AGOA) inked during 2000. The AGOA designated 34
countries from Sub-Africa for preferential treatments through Generalized System of Preference.
AGOA covers specific products, which denote - “D” under special rates of duty/ Generalized System
of Preference (GSP) that you can specifically browse here for each export good
(http://hts.usitc.gov/). Denoted code A indicates the GSP preference, A+ indicates Lesser Developed
Beneficiary Country (LBDC) GSP preference. U.S. exporters and their local partners are advised
to pay close attention to some of the cultural differences while marketing their products/ goods in
Nigeria.
The basic list of documentation that the exporter should be prepared with, in accordance with the
product requirement are:
Bill of Lading
Airway bills
Commercial invoice
Consular invoice
2. Certificate of origin
NAFTA Certificate of Origin
Inspection Certification
Doc receipt and a warehouse receipt
Destination control statement
Shippers export declaration
Export Licence
Export packing list
Insurance certificate
There are certain norms of compliance that are to be met while exporting to Nigeria. These norms
shall be inspected by the Nigerian customs officials upon the arrival of the shipment; abiding these
compliance norms are necessary for successful entry of goods into Nigeria borders.
Here are the guidelines of inspection compliance:
Ensure that the importing party has the form "M" through any Authorized dealer bank of
Nigeria. The validity of the approved form “M” is for 180 days, which may be extended for
another 180 days by the authorized dealer. For capital goods, the form “M” is valid for 365
days on which the authorized dealer can extend the validity to a maximum of another 365
days. Any further request for extension shall seek approval from the Director Trade and
Exchange Department, Central Bank of Nigeria.
Relevant proforma invoice (valid for 3 months from the date of issue) should contain proper
description to facilitate price verification including-
o Generic product name, product type, category, Mark, brand of the product
wherever applicable
o Description of quality, grade, specification, capacity, size, performance and other
applicable parameters
Proper export documentation that includes Country of origin, specifications, date of
manufacture, batch or lot number, standard to which the product is produced (ISO, IES, DIN
etc).
Documentation including –
o Combined Certificate of Value and Origin (CCVO), which contains the following
details in addition to proforma invoice: e-Form "M" number, adequate description,
3. port of destination, shipment identification, date of shipment, Country of origin,
Country of supply.
o Packing list
o Shipped/ Clean on Board Bill of Lading/Airway bill/Way bill/Road Way bill
o Manufacturer’s Certificate of production (To state standards)/ Phytosanitary
Certificate/ Chemical Analysis Report- whichever applicable
o Laboratory test certificates (For chemicals, foods, beverages, pharmaceuticals,
electrical appliances and other regulated products)
All negotiation documents in any type of payment in the form of Letter of credit or
Unconfirmed Letters of Credit must be routed through the importer’s correspondent bank
to the exporter’s bank. This confirms the bank’s endorsement of all documents.
English label in addition to any other language of the transaction is a must.
Export items like food, beverage, cosmetics, medicines and other consumer goods must
contain details about their shelf lives and Date of Expiry. The exporter needs to ensure a
minimum of half shelf life at the time of arrival in Nigeria. Similarly, the consumer goods
should have the active ingredients list on them wherever applicable.
For more details visit us at: http://www.eximdesk.com/buzz/points-to-consider-while-exporting-
from-usa-to-nigeria?channel=Organic_Doc