How to Start an Import-Export Business

To start an import-export business, you must have realized how soothing and rewarding such investment can be. Several business owners prefer importing and exporting because it is the glory of global trade. For the import-export business to succeed, much work must go into making solid and reliable connections.

What is Import-Export Business?

Imports are goods/services bought in one country but manufactured in another. On the other hand, exports are goods produced in one country but sold to buyers in another. You could be an importer, exporter, or even an agent; the most important thing is to know how it works because you will be trading. So, if you have plans to start an import-export business, there are several things you need to consider and put in place. The business can pose a complexity, but you can cross the hurdle.  Selena Cuffe, a businesswoman, and co-founder of Heritage Link Brands stated that the business's compliance makes it so complex that you have to consider a lot of considerations. Many people think investing in the business is profitable because some of the goods are less expensive when purchased from abroad. Want to know how to go about starting? Continue reading.

Have an Identity

It's essential to have an identity if you want to start trading. If you think you're good with clothes, consider importing clothing materials. Could you be sure of what your interests are and work towards them? Consider a name for your business and register it; registering your business means it is licensed and can start operating. Also, create a logo allowing your intending customers to recognize your business and stick around for consistent purchases.

Open a Business Bank Account

There are tons of documents for you to acquire, but first, open a current account for your business. Not just a current account, one that will enable you to transact in foreign exchange.

Leaving out Networking? No way!

Your goods and services will be sold to people, so you need to go out and make connections. For every business to grow, networking is vital. Identify your target audience, contact them, and put in the effort to initiate a solid relationship. You could use your social media, maybe a video to create awareness about the new products you're bringing. Other people who have been in the business for a while, too, you can reach out to them; they sure have one or two things to put you through.

Where do you want to be?

The business is in two ways, the importation and the exportation of goods. You have to decide whether you want to be an importer, an exporter, or both. Weigh your options, check how much capital you have to invest, and put your product niche into consideration too. It's best to have an idea of the products you intend to work with and consider if they will be easy to select and source. 

Find a Supplier

Once you have decided on the niche of products and part of the business you want to pick, it's time to connect with a manufacturer that deals with the product. Building a solid and trustworthy relationship with your supplier is the backbone of the business. Although finding one who ticks all of your boxes might be a bit difficult, it's always worth it when you do.

Know the Criteria For the Business

In Nigeria, to start an import-export business, there are several protocols you need to follow, as listed by the Nigerian Ports Authority.

For Import:

• Register your business. When you do this, you get a Certificate of Registration for the business in Nigeria.
• Register your business with the Federal Inland Revenue Services (FIR). Also, present up-to-date proof of Tax payments with a valid Tax Identification number and email attached.
• Pick a preferred bank in Nigeria as your Authorized Dealer Bank (ADB). The bank will be responsible for processing your Pre-arrival assessment form and liaising with the Nigeria Customs Service.

If you are looking to export products, take note of the following procedures.

Exporter

• Must nominate agents, i.e, Forwarder
• Have the importer open a letter of credit
• .Get an insurance policy for cargo
• Pay logistic companies up to the port

Also, the forwarder has to:

• Obtain a product certificate
• Arrange transportation
• Plan inspection by the Nigerian Customs Service and other government agencies
• Pay charges to shipping companies
• Book slots with shipping companies
•  Pay charges to terminal operators

Ensure you have all required document

As stated by the Nigerian Trade Hub, to carry out successful importation-exportation, intending traders must have and be familiar with the following documents:

• Product certificate
• Form M
• Pre-arrival assessment report
• Customs duty pay confirmation
• Assessment notice
• Bill of lading
• Commercial invoice
• Packing list
• Certificate of origin
• Single goods declaration

Finally

The import-export business looks like something that requires a lot of hard work; well, it does. However, it comes with a bountiful reward if you get the tricks right. The complexity should not deter you, good things don't come easy, and they require sacrifice and hard work. Importers and exporters are making it through, so if you're planning to be one, take your time, do your research and make the right decision.