Import Export Costs, Tariffs, Fees, Duties & Taxes in Africa
Costs of importing and exporting can of course make products far more expensive than when sold in domestic markets. Export pricing must take into account import tariffs, customs duty, business tax, costs of freight, shipping insurance, overseas agent’s commissions, and other incidental expenditure.
Product insurance is essential and can be arranged through insurance brokers. Collecting long-standing payments and debts can prove a very serious problem, particularly for the small business.
One of the major attractions of dealing through domestic export houses or buying agents in one’s own country is the relative certainty of being paid promptly, and in sterling. Extended credit is not usually encountered.
Payment Procedures For Trade In Nigeria, West Africa
Exporting direct on the other hand brings certain problems, mainly of ensuring payment and avoiding risks incurred from fluctuating currency exchange rates. It is no secret that some countries have a reputation for speedy payment, whilst others prove quite the opposite.
The normal procedure with a new customer to whom one exports, is to use either Letters of Credit or other documentary collection handled and co-ordinated by banks. If you plan to offer credit, you should take up references in the same manner as would be the case for a new UK customer.
Starting Or Developing A Business in Nigeria, West Africa?
We advise international buyers, sellers, importers and exporters on the best bank instruments and payment terms for exporting, importing, marketing, sales and distribution of products and goods in Africa
Please contact us for a no obligation discussion regarding starting, set up or develop an import export business or to discuss trade investment opportunities in West Africa.
- Bank Letter of Credit (L/C)
- Standby Letter Of Credit (SBLC)
- Bank Guarantees & Counter Guarantees
- Bank Payment Obligation (BPO)
- Documents Against Bank Payment
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We advise buyers, sellers, importers and exporters to increase brand awareness, market share, sales and profits from exporting to West African markets such as Benin, Burkina Faso, Cameroon, Cape Verde, Equatorial Guinea, Gambia, Ghana, Gabon, Guinea Bissau, Guinea Conakry, Ivory Coast, Liberia, Nigeria, Senegal, Sierra Leone and Togo.