How To Ensure The Quality Of Goods You’re Buying Locally, Exporting, Or Importing Meets International Standards

A lot goes into every international trade transaction; from product sourcing to logistics, payment security, and much more. But while there are attractive profitable opportunities to explore, there are also great risks involved, and one risk that can cost you your entire investment is failing to ensure that the quality of the goods you’re exporting meets the export standard agreed between you and the international client.
Quality assessment is usually a great problem for a lot of exporters and managing this risk is key to building a profitable fast-growing international trade business, since meeting your obligations would help spread word of mouth. But when you fail to meet the quality standards specified, you wouldn’t just lose clients, but would also very likely lose your investment.

Now, what are the solution points? Join our Export training program to learn all the ways to ensure the quality of goods you are buying locally or Exporting meets International standards.

Exporting is lucrative because sometimes local prices are way lower than the export prices are. For example, If you want to start a direct export business in Nigeria, then you need to know very well, what kinds of goods are exported from Nigeria. With direct export business, product selection is very important.

What Is Export Credit Insurance (ECI)?

Export Credit Insurance (ECI) is a form of insurance that protects an exporter of commodities, products and services against the risk of non-payment by an international buyer.
In other words, Export Credit Insurance greatly reduces the risks of nonpayment by foreign buyers of your products and services by giving the exporter a form of conditional assurance that payment for the commodities will be made to them by the issuer of the insurance policy if the international buyer refuses or is unable to pay.
In simple terms, if any exporter with Export Credit Insurance ships a commodity without getting a Letter of Credit or part-payment from the international buyer and the international buyer refuses to pay for whatever reasons despite the exporter meeting all the terms of the agreement, the insurance body would pay the exporter 100% of the agreed amount as per the insurance terms and conditions.

Quality assurance is at the peak of the international trade business because international buyers want to know that the product they’re paying for is exactly or better than what they’re getting. Not worse.
Since many international buyers cannot visit the loading port at the country of origin to verify the quality of goods before it is shipped, they need a strong assurance that guarantees them the quality of the goods that they have paid for before it arrives their port of delivery at their destination country.
Also, exporters sourcing goods need a form of assurance when purchasing the goods they want to export to ensure that the quality of the goods they’re buying will be exactly the same as agreed with the international buyer when an inspection is done at the port of loading.
To guarantee the quality of goods, international buyers and most exporters employ the services of inspection companies, but mostly world-class inspection companies that are known for their quality of service, age in the industry, and consistency in delivering on guaranteeing the quality of goods loaded before it arrives the destination country.
If you want to know which companies you can use to test and guarantee the quality of goods been shipped from a sourcing point to a loading port and eventually to a destination country.

Top tips to understand the market
Gather basic market information, from import regulations to trade statistics. You can make use of several freely available Market Analysis tools.
Narrow the focus of your research to your product or service. This will make the whole process more specific.

What to say to prospects or existing clients could either improve or diminish your relationship with them. It could turn them into one of your best loyalists or into one of your company’s worst critics.
Treating and speaking to your clients the right way is key to building great relationships with them, and ultimately growing a successful business.

If you’re running a local or international business and want to ensure you never knowingly or unknowingly pushing your clients away with your words, Join us to learn here are 12 things to never say to a client or prospect.

Trade Agreement That Benefit Export From Nigeria

ECOWAS Trade Liberalization Scheme (ETLS) is a trade instrument designed by the Economic Community of West African States (ECOWAS). The scheme offers unhindered market access to the fifteen member Countries and promotes economic relations within the sub-region. Countries covered by the Scheme are; Nigeria, Ghana, Benin, Côte d’Ivoire, Gambia, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Senegal, Sierra Leone, Togo, Burkina Faso, Cape Verde.

ETLS benefits
The ETLS gruarantees free movement of goods and persons between member countries
No quantitative restrictions
Total exemption from import duties and taxes
Non-payment of compensation for loss of revenue for items (ii) and (iii) as a result of their importation.

So What’s The First Thing To Know When Preparing To Price Commodities For Export?
First, commodities are mostly priced per Metric Ton, and one Metric Ton is equal to 1,000 kilograms. So if you are exporting bitter kola for instance, depending on the quality and more factors, the price could be $1500 per Metric ton; and since 24 Metric Tonnes of bitter kola fills up a 40 feet general-purpose shipping container, the value of the transaction would be $36,000.

A feasibility study examines the practicability of a proposal, business venture or idea. The principal function of this is to determine if the project will continue or not. Another important purpose is that it helps planners focus on the project and narrow down the possibilities.

Nigeria is a country naturally blessed and endowed with item of huge demand in the export markets around the world. We are not only blessed with solid minerals (besides crude oil) we are also blessed with good climate and weather conditions to support the growth of commodities that are industrially useful in the developed nations. Majority of our agro products are exportable and are easily available to source. We can support you to start your agro export venture today.

Learn about quality Assurance and world class Inspection Companies you can use to test the physical and chemical properties of your commodity.

Why Do You Need an Import Export Consultant?

If you are looking to try your hands in the export business, then it is the right time to jump into it as it is one of the most lucrative business and a gateway to successfully maximize your profits and enter into the foreign market easily. Selling your products abroad and importing any items at a low price to sell the same at a higher margin in a domestic market will help you get easy money than manufacturing the same and selling it in the domestic market due to slow payment recovery. To make sure each and everything is done in a smooth manner, you need to contact an Export Consultant Company which will guide you through the process.

A freight forwarder, forwarder, or forwarding agent, is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution. ... A forwarder does not move the goods but acts as an expert in the logistics network.

The international commodity trading business has thousands of players in the industry collectively employing millions of people and executing transactions worth billions of dollars every day. These heavy activities attract both legitimate and fraudulent players and as a result, making the need to know how to easily filter through the noise to find the right prospects very important.
While it can be difficult to find the right type of buyers for various commodities, there are some basic questions that should be asked on a surface level and the answers to these questions will help ensure you’re only dealing with people who will very likely close a deal in the near or distant future

What is freight forwarder in shipping?

Freight forwarding consists of strategic logistics planning and execution for the international movement of goods, on behalf of shippers. Specifically, a freight forwarder will carry out freight rate negotiations, container tracking, customs documentation and freight consolidation, among other tasks.

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Export Expansion Grant– It is a post-shipment incentive designed to expand export volumes and improve global competitiveness of Nigerian products.

Our role as exporters of raw agricultural products is to ensure buyers get exactly what they want from as close to the sources as possible.

Benefits of Using a Freight Forwarder

They can recommend the best mode of transportation and best routes based on shippers' requirements. There is a cost savings when using a freight forwarder. Since transportation providers transports goods in bulk, freight forwarders can negotiate lower terms with carriers.

Every region in the world has a minimum standard for the commodities that can be imported into their countries. Whether for petroleum products, agricultural products, or solid minerals, there’s a minimum standard for every nation, before moving on to the importer’s standard requirements.
Studying and understanding what is acceptable in most parts of Asia, Europe, America, and parts of Africa can be the difference between success and failure.

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What is a freight forwarder example?

Forwarders contract with a carrier or often multiple carriers to move the goods. For example, the freight forwarder may arrange to have cargo moved from a plant to an airport by truck, flown to the destination city and then moved from the airport to a customer's building by another truck.

Freight Forwarders vs Shipping Agents

The main differences between freight forwarders and shipping agents are: Types of transportation—shipping agents will often specialize in one specific mode of transportation, while a freight forwarder can provide multimodal transportation options.

And while no two countries have exactly the same laws, when it comes to freight there are many precepts that are standardized worldwide.

This means that no matter where you ship from, you will encounter the same regulations. One of the most prominent examples of this standardization is the International Commercial Term, or incoterm.

Simply put, an incoterm is the standard contract used to define responsibility and liability for the shipment of goods. It plainly lays out how far along into the process the supplier will ensure that your goods are moved and at what point the buyer takes over the shipment process. It also has implications for your total freight costs.

FOB
Of the 11 different incoterms that are currently used in international freight, Free on Board (FOB) is the one that you will encounter most frequently.

FOB Shipping Meaning

First, let’s define what FOB (free on board) means by breaking it down word-by-word.

The term ‘free’ refers to the supplier’s obligation to deliver goods to a specific location, later to be transferred to a carrier.

In other words, the supplier is “free” of responsibility. ‘On board’ simply means that the goods are on the ship.

As such, FOB shipping means that the supplier retains ownership and responsibility for the goods until they are loaded ‘on board’ a shipping vessel. Once on the ship, all liability transfers to the buyer.

The FOB incoterm is only applied to shipments being sent by sea or waterway.

The further clarify, let’s track the FOB shipping process:
You purchase goods from a supplier in China and agree to FOB shipping terms. The next three steps of the process are carried out at the supplier’s expense.
Your goods are packaged and loaded onto a truck (or another form of transportation) at the supplier’s warehouse (or another facility).
The truck brings the goods to the port.
The goods are loaded on board the shipping vessel.
Once aboard, the rest of the journey from China is now both your liability and your expense. Anything that happens from this point is on you

There are situations where you may be responsible for covering costs before your goods are on board.

When you are shipping loose cargo (ie, not a full container), for example, your goods must go through a Container Freight Station (CFS) to be consolidated into a container.

Some suppliers do not cover the cost of consolidation.

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What is the Difference Between FOB Shipping Point and FOB Destination?

The qualifiers of FOB shipping point and destination are sometimes used to reduce or extend the responsibility of the supplier in an FOB shipping agreement.

With FOB shipping point, ownership of goods is transferred to the buyer once they leave the supplier’s shipping point.

From there, the title for the goods transfers from the supplier to the buyer immediately and if anything happens to the goods at any leg of the journey to the buyer from there, the buyer assumes all responsibility.

With FOB destination, ownership of goods is transferred to the buyer at the buyer’s loading dock.

Upon delivery of the goods to the destination, the title for the goods transfers from the supplier to the buyer.

If anything happens to the goods on any leg of the journey to the buyer, the supplier assumes all responsibility

FOB Shipping Point

When the terms are FOB shipping point, the supplier relinquishes all of his responsibility for the goods at his shipping point and the buyer is obligated to cover the freight costs required for getting them to the desired location.

To further clarify, let’s assume that Third moves ventures company in Nigeria purchases a container of The Wonder Comb from a supplier based in China.

An FOB shipping point agreement is signed and the container is handed off to the freight carrier at the shipping point.

If sending the container to Nigeria costs N500,000, Thirdmoves ventures Company is responsible for paying that sum in full in order to get the goods.

FOB Costs: What is the Difference Between FOB and other sea shipping incoterms?

There are four incoterms that are applied exclusively to ocean shipments: FOB, FAS, CFR, and CIF.

Understanding the differences between each is as simple as knowing how much responsibility the buyer and supplier assume under each agreement

What is the Difference Between FOB and FAS?

Free Alongside Ship (FAS) is a barebones ocean freight shipping option. It requires the supplier to pay for the delivery of your goods up until the named port of shipment, but not for getting the goods aboard the ship.

The buyer takes responsibility for the shipment once it is placed alongside the shipping vessel.

Unlike FOB shipping, the supplier is not required to ensure the safe movement from port to ship.

What is the Difference Between FOB and CFR?

Cost and Freight (CFR) puts the costs associated with transporting your goods to the destination port on the supplier.

This includes any fees associated with export, in addition to the cost of sending your freight to the port of destination.

Once the delivery is unloaded in the receiving country, responsibility is transferred to you.

CFR includes neither insurance nor the costs associated with getting the delivery to your final destination. Also excluded are customs duties.