Before the COVID-19 pandemic, many Nigerians travelled to China and dealt directly with Chinese manufacturers for different businesses. However, things have changed with strict travelling rules, which have left many companies to find alternative means of importing goods from China and other countries.
China is commonly referred to as “the factory of the world” because of the country’s skilled population and enormous production infrastructure. Pay4Me has created a guide to help you import goods from China without travelling out of Nigeria.
Find the Right Products to Import
With the number of products to import, you must find a niche that can suit your business at significantly lower costs. The end product of doing business is to make a profit and keep your business running.
A common reason business people use countries like China is to reduce the cost of production and improve their profit margins. You can use the following guidelines before you import goods into Nigeria:
- Profit margins (30%–50%)
- Consistent and sufficient demand
- Reliability
- Low maintenance requirements in transit and storage
- No laws prohibiting them
Why Are Chinese Products Less Expensive?
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· Efficient logistics: The country has created efficient railroads, roads, and ports that connect small towns with more affordable products to megacities.
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· Technology and automation: China uses the latest technologies to manufacture products globally with high scalability and efficiency.
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· Government promotion: The country has established export insurance, special economic zones, subsidized utilities, tax and financial benefits, duty drawback, and exchange rate management.
· Integrated domestic supply chain: Chinese manufacturers can easily access affordable raw materials from local suppliers.
· Labour: The country has a vast population of skilled workers that have reduced the cost of production.
Get Your Business Registered with CAC
You may not register your business with the Corporate Affairs Commission (CAC) before you import goods, but you may have some limitations. Therefore, we recommend registering your business to boost your confidence and better relationships with your clients.
Look For A Chinese Supplier
You should not rush to pick a Chinese manufacturer if you want to import goods from China. Instead, read customer reviews and learn about the most reliable and trustworthy suppliers.
You can import goods from China to Nigeria with the following routes:
1. Use Chinese Sourcing Agents
2. Order Goods Directly from a Chinese Factory or Supplier
3. Use Online Market Places such as Alibaba.com. Aliexpress.com.
When you find your supplier online, the need for these agents is eliminated. A supplier's reliability plays a vital role in your business's success.
4. Make Payment from Nigeria
When you place an order, you should use the most suitable and reliable payment platforms like Pay4Me, Western Union, Alipay, Paypal, your bank account, or your ATM card.
5. Shipping from China to Nigeria
You can ship your orders via Sea freight or air freight. UPS or DHL may be costly for some businesses, which may not favour small businesses.
Free On Board(FOB) is the most popular system used in conjunction with the port of loading. How does this work? The Chinese buyers transport your goods to the port and take care of the loading charging. Then, you take charge of the rest of the movement until it reaches Nigeria.
A shipping company would bring your order to a Nigerian seaport and clear the ship by obtaining a Ship Entry Notice (SEN) two months in advance from the Nigerian Ports Authority (NPA) Operations Department.
Bill of Lading
The shipper or consignor has to send your order’s Bill of Lading in advance of the ship's arrival to the consignee/importer. The Bill of Lading contains the following:
1. The name of the ship carrying the goods
2. The description of the goods, along with their marks and numbers
3. The date of departure from the port of loading
4. The weight of the cargo
5. The terms of a contract of affreightment
Finally, the consignee or importer has to take the Bill of Lading to the NPA Central Office for Planning and Information for details about the ship's arrival date and her allocated berth.
On the other hand, you can use a company that can do DDP shipping, which can help you clear the goods and then ship them directly to you.
SONCAP Certification
Nigeria imposes import bans on specific products; some require compulsory safety certification like SONCAP certification.
What is SONCAP certification? SONCAP is a compulsory certification for customs clearance and consists of the following:
1. SC certificate (customs clearance certificate
2. PC certificate (product certificate)
Process of Applying for SONCAP Certificate
1. Submit information (PC application) Tables, product manuals, and product pictures);
2. Perform product testing and start operating related documents;
3. Give the PC certificate to Nigerian customers, and they will apply for From M Number;
4. After the customer applies for Form M, give it to the manufacturer Form M Number, waiting for shipment;
5. Packing list, bill of lading, commercial invoice, PC certificate, and From M Number to apply for SC certificate together;
6. Send SC certificate to Nigerian customer to complete the certification
However, not all products require this certification, but need other certifications, especially;
· Cosmetics
· Bottled water
· Detergent
· Medicines for humans and animals
· Food (alcohol and beverage)
· Medical products
· Chemicals (including raw materials)
· Medical equipment
How to Select a Chinese Trade Partner
· The Chinese company must have long-term experience with the product. In addition, they should have a well-established and professional operation.
· They agree to a price that gives you a sufficient profit margin
· The company must offer after-sales support and/or warranty services
· They need all applicable certificates required in Nigeria
· They export to Nigeria and can provide references
· The company offers reasonable payments terms
What to Expect From Chinese Companies
· Be wary of contracts: You should understand that contracts and signed agreements hold different meanings in China. Therefore, ensure that you know your purchase agreements.
· Form a relationship: You should have a friendly relationship with your Chinese trade partner. In addition, social platforms are essential to Chinese culture. Therefore, ensure you form a solid relationship with your business partner if you want a seamless business transaction.
· Mind the language barrier: You should know that Chinese professionals can read English better than they can understand it in spoken conversation. Pay4Me recommends using typed or printed communication and aims to write concisely.
· Don’t assume anything: Businesses with the Chineseoften go less straightforward because Chinese culture tends to be non-confrontational. Therefore, before signing any contract, you should ask direct questions, clarify, reiterate, and confirm everything.
Bottom Line
We believe that this guide can help you make the right choice when you want to ship products from China to Nigeria. Do you know that you can use Pay4Me App for your cross-border payments?
Download our app on Google Playstore or Apple Store to start your business.
