How to Import From China
Nigerians Importing From China
Thinking of importing from China, below is a step by step guide of some of the processes.
– Find Supplier
– After agreement, shipping your items to Nigeria could pose a daunting task for a first timer.
Actually you need to understand what you agreeing to, because they are different types of shipping.
Okay, let’s start with the basics. When dealing with suppliers from China, you’ll often be offered 4 types of pricing:
FOB – Free on Board (or Freight on Board). This basically means that the cost of delivering the goods to the nearest port is included but YOU, as the buyer, are responsible for the shipping from there and all other fees associated with getting the goods to your country/address.
EXW (Ex-Works) – also sometimes referred to as the Ex-Factory price. This basically means the cost of the product and nothing else! No shipping costs or export fees in China are included in this price, never mind local port and custom fees or delivery to your door.
CIF – Cost, Insurance and Freight. In this case, the price also includes sea freight charges and insurance to deliver the goods to YOUR nearest port. But only to the port – from that point onwards, you take the shipment into your hands.
CNF – Cost & Freight (or Cost, no Insurance, Freight). Similar to CIF only this time insurance is not included.
If your supplier quoted you a CNF Nigeria price, this means that the price includes shipping of the goods via sea freight to Nigeria port. When the goods arrive, you’ll have to organise customs clearance and delivery to your home/office/warehouse.
While the CNF price can look very attractive, keep in mind that there will be other costs involved when your goods arrive in Nigeria, such as:
Customs clearance fee
Value Added Tax
Port security charge
Warehouse storage fee
So the CNF price is really just the tip of the iceberg and does not show you the true, FINAL price you’ll pay for the products you’re importing.
Also, as you’re new to importing, it will take extra time and be a lot of hassle for you to organise everything at Nigeria port.
If your supplier quoted you an Ex-Works price, this means that there will be LOTS of hidden charges in China + the actual freight charge + all the additional charges I already covered under CNF. This really is NOT the way to do business! You’ll never know for sure how much your import will cost in total, so please NEVER deal with Ex-Works prices!!!
A much better alternative to CNF, FOB, CIF and Ex-Works is to use a freight forwarding agent for your shipments from China. These companies will take care of EVERYTHING mentioned above and will deliver the goods to your door without you having to mess around with the customs clearance procedure.
You usually receive an invoice from them once your goods have arrived with all taxes, customs & port fees clearly listed.
I highly recommend you use such a company, at least for your first few importing deals. These freight forwarding companies are very affordable and can actually work out cheaper than if you try to do it all on your own.
My recommendation is to use a freight forwarder with great customer service, weekly shipments from China and very competitive prices. Get in touch with them to find out exactly how much your order will cost delivered to your door, after all the fees and taxes.
When contacting a freight forwarding company, make sure you ask for a Door to Door price. This is very important as otherwise you can end up with a host of additional charges when your goods arrive in the Nigeria.
So just keep it safe and play by the rules!
To sum it up – when you deal with suppliers in China, ALWAYS ask for a FOB price! This means product’s cost + local charges in China to the nearest port.
Ask your supplier for order dimensions (weight & size) and contact a freight forwarder for a door to door quote. Lastly – don’t forget about insurance! It will protect your shipment against loss and damage.
You can contact some Nigeria import and export companies for more information.
This is just a guide, you should do your own homework. We are not responsible for any liabilities for any los for anyone using this article as a guide.