Non-Oil Export To Be Increased By 20% In 3years

 Non-Oil Export To Be Increased By 20% In 3years

The Federal Government will increase the contribution of non-oil export to the country’s Gross Domestic Product from the current 4.5 cent to 20 per cent in three years.
Olusegun Aganga, Minister of Trade and Investment, stated this during a stakeholders’ meeting with top exporters of non-oil products in Abuja.

The objective of the meeting was to identify problems militating against the effective implementation of the Export Expansion Grant Scheme and chart the way forward for its effective implementation.


However, Aganga said the Ministry of Trade and Investment was ready to work with all exporters to ensure transparency and accountability in the payment of export incentives, adding that the ministry was committed to successfully driving the implementation of the nation’s economic diversification policies and programmes by increasing the contribution of non-oil export to GDP.


He said, “The development of the non-oil export sector is one of the key areas of President Goodluck Ebele Jonathan’s Transformation Agenda aimed at diversifying our economy. And to be able to achieve this, it will not be business as usual. We have to put in place a robust, transparent and efficient export promotion structure such as the EEG in order to boost our non-oil export drive and significantly increase the contribution of the sector to GDP.

“Our target is to increase the contribution of the non-oil export to our GDP to about 20 per within the next three years. Part of our strategy towards achieving this is to review the operations and implementation of the EEG to make it more efficient and transparent by removing the barriers militating against the implementation of the policy.”

http://www.businessdayonline.com/NG/index.php/banking-a-finance/34226-non-oil-export-to-be-increased-by-20-percent

Trade Credit Insurance: Catalyst To Export Diversification

Trade Credit Insurance: Catalyst To Export Diversification

Exporters all over the world face the risk of non-payment for goods bought by their customers overseas. The sale of goods and services are exposed to risks which are not immediately under the control of the supplier. Managing these risks is a priority for businesses.

In addition to increased risk of non-payment, international trade presents the problem of time between the product shipment and its availability for sale. The accounts receivable is like a loan and represents capital invested, and often borrowed, by the supplier.

Bad debts can bring down a company to its knees. A simple insurance policy can make all the difference and this is where trade credit insurance becomes very relevant.

Trade credit risk insurance is an insurance policy and a risk management product that is offered by private insurance companies and governmental export credit agencies (such as the Nigerian Export-Import Bank) to business entities wishing to protect their accounts receivable from loss due to credit risks, such as protracted default, insolvency, bankruptcy, etc. It is, therefore, a protection against unusually large losses from unpaid accounts receivable.

Trade credit insurance protects against customer non-repayment and hedges against commercial and political risks beyond their control. Compared to a letter of credit (LC), trade credit insurance is easier to set up, more secure, and oftentimes less expensive.

It is customary to define short-term export credit insurance (ST) as insurance for trade transactions with repayment terms of one year or less, while medium to and long-term export credit insurance (MLT) covers trade transactions of more than one year (typically three to five years and occasionally up to fifteen years). MLT business is usually insured on a transactional business, covering sales of capital goods and services with repayment terms of over several years.

There are many benefits of trade credit insurance: (i) Sales expansion: if receivables are unused, a company can easily and safely sell more to existing customers or go after new overseas business that was otherwise considered risky; (ii) Ignores finance terms: banks will often lend more against uninsured receivables; (iii) Export on open account: the product provides global competitiveness advantage to trade on open account terms (i.e. buy now and pay later) without the worry; (iv) Provides times for the customer to generate income from sales before paying for the product or service; (v) Reduces credit risk related losses; (vi) Improves profitability of business; (vii) At the macroeconomic level, it helps to facilitate international trade flows and contributes to global economic growth; (viii) It enhances economic stability by sharing the risks of trade losses with trade credit insurers; (ix) In the absence of trade credit insurance, and in order to avoid credit risk-related losses, suppliers would have no choice but to rely on either full pre-payment for goods and services by buyers or to seek a third party which is willing to take the credit risk for a price; and (x) The product also provides peace of mind to the supplier as well as market intelligence on the financial viability of the supplier’s customers.

Trade credit insurance works by individual credit limits for each customer. The limits are pre-set and customers can trade within the limit for a specified period without further reference to the insurer. The customer can request for an increase in the limit at any time. The trade credit insurance can be paid in one payment but many insurers offer monthly payment, some interest-free.

There are many types of credit insurance: (i) Whole turnover cover (which is the most common): This is a comprehensive credit insurance policy that covers the whole business and allows the business to offer credit up to a pre-set limit. The premium paid is based on the turnover of the business. This is common with ST transactions. (ii) Critical customer cover: This allows a business to have insurance cover against a number of named customers (usually up to 10). The business will be fully responsible for the remaining customers not covered by the credit insurance. (iii) Specific risk cover: This allows a business to have insurance against a single customer or a large contract. Premium is based on the contract value or the turnover of the customer over the policy period. (iv) Export trade credit insurance: The policy offers insurance against non-payment of overseas customers. It can also insure against political, social and economic instability, insolvencies, and defaults, etc.

How does trade credit insurance work? Very simple: you ask the credit insurer for a credit limit on each of the customers with whom you trade above and at agreed level. Below this level (usually referred to as your Limit of Discretion or Discretionary Limit), you do not need to ask for a credit limit.

Provided trading is done within the set parameters and sticks to the terms and conditions of the policy, the exporter can be covered (up to the limit of cover agreed) if one of the customers defaults.

The process of insuring accounts receivable must, by definition, involve a thorough understanding of a supplier’s trade sector, risk philosophy, business strategy, financial health, funding requirements, and internal credit management process.

Throughout the life cycle of the policy, the supplier may, for instance, request for additional coverage on an existing buyer. It must be noted, however, that credit insurers do not cover losses where there is a valid dispute between the supplier and the buyer.

In the late 1980’s, global trade credit insurance premiums increased to over $10 billion. This massive growth cannot be said to have occurred in Nigeria. For decades, export credit insurers, public and private, have worked in the background oiling the wheels of international trade, largely unnoticed by the wider public. In mid-2008 when the global financial crisis struck, the crucial importance of trade finance and credit insurance to support international trade flows became glaring.

The level of awareness of this product is still very low in Nigeria due to ignorance and lack of awareness. It must be noted, though, that the Nigerian Export-Import Bank is set up specifically to deliver this product to Nigerian exporters. The bank is now fully re-engineered and re-invigorated to provide this service to Nigerians.

Exporters in Nigeria, especially non-oil exporters, would find this product very attractive and supportive of their export business. This would, no doubt, boost non-oil export in Nigeria and facilitate diversification of the productive base of the economy, generate foreign exchange and enhance job creation.

The value of credit insurance as a risk mitigation tool in cross-border trade has gained in global recognition which has led to increased demand for the product. Higher risk awareness and higher product awareness will bring opportunities for existing credit insurers, public and private, and for new entrants.

http://www.businessdayonline.com/NG/index.php/analysis/commentary/34937-trade-credit-insurance-catalyst-to-export-diversification

LEAD ORE LOCAL BUYERS NEEDED IN NIGERIA

We are working with  miners who have their mines located in both the northern and southern parts of Nigeria. They have the capacity to deliver good quality Lead Ore in record time. The specifications of the Lead Ore, payment terms and pricing are as follows: 

Specifications:

a. Lead Ore Purity: 50-60%

b. Moisture: 5% Max

c. Size: 20-70mm  

Price: N1,550 per 1% (Pb=55%, means the unit price is 55% x N1,550 = N85,250/MT)

Capacity: 120-210MT Per Month 

Minimum Quantity: 100MT (+/-10%)

Inspection Agent: Eyeview Inspection Limited  

Payment Method: LPO Backed by a Bank Guarantee. 

Payment Terms: Payment to be made within 2 working days after Inspection Report.

Delivery Destination: Lagos Port or Warehouse 

Target Buyers: Exporters of Lead Ore.

Contact Details: Interested buyers should contact us via info@3timpex.com and +234 803 6522 946.

3T Impex Services: Export Information Service (EIS)

3T Impex Products: e-Export Seminar

EXPORT PROMOTION IN TERTIARY INSTITUTIONS (The EPITI Project) IN NIGERIA

Dear readers, 

We will like to intimate you with the details of our new initiative to promote export in Nigeria right from the Citadel of learning. This is aimed at creating jobs, reducing unemployment and consequently poverty in Nigeria. We will appreciate if you can be part of this and we will also like to say that No amount is too small.

As part of our objective to promote export business in Nigeria, 3T Impex is launching a strategic programme to grow an export oriented generation by educating and exposing the youth in tertiary institutions all over Nigeria to relevant export business information. This is aimed at sensitizing them on the immense opportunities that abounds in the non-oil export sector of the economy and how they can benefit profitably from it as a student (during their holidays) and as a young graduate. This will consequently reduce the unemployment rate in the country and help create young, skillful, vibrant and well equipped export trade entrepreneurs. This initiative is aimed at creating more Jobs (by self employed young graduate in export business), thus reducing poverty and consequently improving our economy via the growth of GDP that would result from massive exportation.

The EPITI Project

To achieve this feat, we have come up with a programme called Export Promotion In Tertiary Institutions (The EPITI Project). To execute this project, we have put together a product called the ABC of Export. This CD contains 2hours of disseminating export information in mp3 format which is divided into 12tracks on an Audio CD. We therefore need sponsorship of the production, packaging, campus launch through free export seminars and the distribution of the product during the seminar.

The EPITI Project will be launched in at least one major campus in each of the 36 states of the federation including Federal Capital Territory. Our target is to reach at least 10,000 students in each of the states in the federation. Our estimation of the total cost per ABC of Export audio CD to be distributed on these campuses during the seminar is NGN200 (Two hundred Naira only). This covers the cost of production, packaging, campus publicity and product launch through free export seminars and the distribution of each of the CDs. Altogether, we intend to produce and distribute a total of 400,000 copies of this product for free.

We are therefore soliciting for partnership with your organization to sponsor this project in part or in whole as part of the organization’s contribution to the growth of the Nigerian GDP through exportation, sustainable employment generation and drastic reduction in the poverty level across the country.

Area of Sponsorship

The Sponsorship of The EPITI Project has been segmented to enable each organization sponsor different aspects of the project based on their area of interest, region and capital.  A sponsor can therefore limit its sponsorship to:

1.     A particular state

2.     A particular geopolitical zone

3.     A particular amount

4.     A particular number copies of the CDs

5.     A particular area of the logistics (Production, packaging, publicity, transport etc)

Depending on the area of interest of each sponsor, the breakdown of all the cost implications will be made available to each partner in this project upon request.

Benefit to the Sponsor

Considering the fact that this project is going to cover every state in this country with a target of about 10,000 students in each state, the products and services of each sponsor will be given immense publicity through:

1.      Their logo which will be printed on the CD pack/sleeve

2.     Distribution of their handbills and fliers on all the campuses

3.     A short presentation of their products and services before the students during the free seminar.

Long Live Federal Republic of Nigeria!!!

LAGOS EXPORT SEMINAR-IKOYI

Export Seminar: March 2012

UNDERSTANDING INCOTERMS 2010- DDP (Delivered Duty Paid)

DDP (Delivered Duty Paid)

The seller is responsible for delivering the goods to the named place in the country of importation, including all costs and risks in bringing the goods to import destination. This includes duties, taxes and customs formalities. This term may be used irrespective of the mode of transport.  

UNDERSTANDING INCOTERMS 2010- DAP (Delivered At Place)

DAP (Delivered At Place)

New Term - May be used for all transport modes
Seller delivers the goods when they are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. Parties are advised to specify as clearly as possible the point within the agreed place of destination, because risks transfer at this point from seller to buyer. If the seller is responsible for clearing the goods, paying duties etc., consideration should be given to using the DDP term.

Responsibilities
•    Seller bears the responsibility and risks to deliver the goods to the named place
•    Seller is advised to obtain contracts of carriage that match the contract of sale
•    Seller is required to clear the goods for export
•    If the seller incurs unloading costs at place of destination, unless previously agreed they are not entitled to recover any such costs
•    Importer is responsible for effecting customs clearance, and paying any customs duties   

UNDERSTANDING INCOTERMS 2010- DAT (Delivered At Terminal)

DAT (Delivered At Terminal)

New Term - May be used for all transport modes

Seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. "Terminal" includes quay, warehouse, container yard or road, rail or air terminal. Both parties should agree the terminal and if possible a point within the terminal at which point the risks will transfer from the seller to the buyer of the goods. If it is intended that the seller is to bear all the costs and responsibilities from the terminal to another point, DAP or DDP may apply.

Responsibilities

•    Seller is responsible for the costs and risks to bring the goods to the point specified in the contract

•    Seller should ensure that their forwarding contract mirrors the contract of sale

•    Seller is responsible for the export clearance procedures

•    Importer is responsible to clear the goods for import, arrange import customs formalities, and pay import duty

•    If the parties intend the seller to bear the risks and costs of taking the goods from the terminal to another place then the DAP term may apply.

UNDERSTANDING INCOTERMS 2010- CIP (Carriage Insurance Paid To)

CIP (Carriage Insurance Paid To)

The seller has the same obligations as under CPT but has the responsibility of obtaining insurance against the buyer's risk of loss or damage of goods during the carriage. The seller is required to clear the goods for export however is only required to obtain insurance on minimum coverage. This term requires the seller to clear the goods for export and can be used across all modes of transport.

UNDERSTANDING INCOTERMS 2010- CPT (Carriage Paid To)

CPT (Carriage Paid To)
The seller pays the freight for the carriage of goods to the named destination. The risk of loss or damage to the goods occurring after the delivery has been made to the carrier is transferred from the seller to the buyer. This term requires the seller to clear the goods for export and can be used across all modes of transport.

UNDERSTANDING INCOTERMS 2010- CIF (Cost Insurance and Freight)

CIF (Cost Insurance and Freight)
The seller has the same obligations as under CFR however he is also required to provide insurance against the buyer's risk of loss or damage to the goods during transit. The seller is required to clear the goods for export. This term should only be used for sea or inland waterway transport.

UNDERSTANDING INCOTERMS 2010- CFR (Cost and Freight)

CFR (Cost and Freight)
The seller must pay the costs and freight required in bringing the goods to the named port of destination. The risk of loss or damage is transferred from seller to buyer when the goods pass over the ship's rail in the port of shipment. The seller is required to clear the goods for export. This term should only be used for sea or inland waterway transport.