VOLUME 3 ISSUE 21

for June 2018

specifically targeting export.”He noted that the ceremony was a landmark event towards driving the Federal Government's Economic R e c o v e r y G r o w t h P l a n a n d t h e p r e s e n t administration's emphasis on supporting game changing infrastructure projects directed at making major impact on trade and commerceHe said, “We were told by the promoters of this project that they are targeting about 1.5 million 20 feet equivalent unit container capacity annually, which we expect to grow to about 2.7 million and 4.7 million TEUs when the project operations commence. With this feat, the Lekki Deep Seaport will be one of the largest deep water seaports in our region and serve as a hub for port operations in the whole of West Africa.’Excerpt: Punch.

The Lagos Chamber of Commerce and Industry (LCCI) has urged the federal government to re-evaluate the terms for accessing the solid minerals intervention fund. Disclosing this at a press conference, tagged: Unblocking Investment Opportunities in the Nigerian Solid Minerals Sector, the Chairman, Mining and Solid Minerals Group of the LCCI, Otunba Babatunde Alatise, said there is urgent need to re-evaluate the terms for accessing the solid minerals intervention fund as the conditions stipulated at present, will exclude majority of players

The planned closure of the Marine Bridge and Wharf Road in Apapa, Lagos concurrently from next week will spell doom for the nation's seaports.

Dangote A.S. recently announced plans to close both sides of the Wharf Road inward and outward Apapa while the Federal Ministry of Power, Works and Housing also announced plans to shut the Marine Bridge in Apapa for permanent repairs.

The Federal Controller of Works, Lagos, Adedamola Kuti, while speaking in Lagos on Sunday said Julius Berger Plc., the contractor handling the bridge repair was ready to move to site.

But speaking in Lagos yesterday, the Seaport Terminal Operators Association of Nigeria (STOAN) said the simultaneous closure of the Wharf Road and the Marine Bridge would lead to a buildup of cargo inside the port and lead to port congestion.

“While we commend the efforts of the Federal Government to address the issue of bad roads and the poor state of the bridge, the closure of both roads at about the same time will cause serious problem to the ports especially the Lagos Port Complex, Apapa and the Tin Can Island Port.

“The bridge and the Wharf Road are the two major entry points into Apapa and shutting both down will mean cargoes will be trapped inside the port.

“The implication of this is that there will be build up of cargoes at the various terminals and port congestion will inevitably set in.

“In no time, vessel queues will return and Nigerian ports run the risk of returning to the point where they were prior to port concession.

“Once vessel queues return, shipping lines congestion surcharge, which could amount to as much as $100 million per month could be slammed on Nigerian ports and this cost will ultimately be borne by the market,” STOAN said in a statement issued in Lagos on Wednesday.

Excerpt: Ships and Ports

The Federal Government has announced plans to embark on massive exportation of goods using the Lekki Deep Seaport when it becomes operational in 2021.Vice-President Yemi Osinbajo stated this on Thursday while inaugurating the Lekki Deep Seaport project in Lagos.He explained that the development of the Lekki Deep Seaport was critical to the creation of special economic zones, which would serve as models for others across the country.He said, “In the past two budgets, we have provided an average growth of N90bn for development of SEZs and we are developing the special Lekki economic zone as a model for other economic zones

FG Plans MassiveExport with Lekki

Deep Seaport

Solid Minerals InterventionFund: LCCI Calls for

Re-Evaluation

Export News:

Port Congestion Looms

Over Planned Closure of

Wharf Road, Apapa Bridge

- 1

Export Programme:

Export Business

Clinic and More

- 2

Export Education:

Handling the Critical 5Ps

of Export Business

Success - The Paperwork

- 3

Export Training Products:

Export Business Made Easy

and More

- 3

Export Miscellaneous:

Commodity Prices,

Infographs and Lots

More

- 3 & 4

INS

IDE

TH

IS IS

SU

E

Top NewsPort Congestion Looms Over Planned Closure Of Wharf Road, Apapa Bridge

FG Plans Massive Export with Lekki Deep Seaport

Solid Minerals Intervention Fund: LCCI Calls for Re-Evaluation

Concerns Over Rising Port Charges

Ethanol Exports Set Record in February

Port Congestion LoomsOver Planned Closureof Wharf Road, Apapa

Brigde

for June 2018

Page 2.

OTHERHEADLINES

New Import Duty Threatens

30% Renewable Energy

Target by 2030

- Nation

FG Raises The Alarm Over

Unhealthy Imported Rice

- Leadership

SME’s Need Right Connection

to Access Global Market

- The Punch

VOLUME 3 ISSUE 21

U.S. ethanol exports set a record in February. Government data says the total was 218.7 million gallons – up 148 percent from January, and nearly 50 million gallons more than the previous record set in December 2011. There's a caveat. Trade sources believe February's total includes some late January exports, particularly to China.

In spite of that, year-to-date ethanol exports are at 307 million gallons through February, marking the strongest start in history. U.S. exporters sent a record 103 million gallons of ethanol to Brazil. That's four months in a row that Brazil was the top U.S. export customer, taking nearly half of U.S. ethanol exports. The data says China increased its purchases of U.S. ethanol to 33 million gallons. Canada and Singapore are the third and fourth best customers for U.S. ethanol.

Excerpt: Brownfieldagnews

in the mining industry. “For instance, would the fund be disbursed as grants or as concessionary loans to Junior exploration companies and how do we ensure inclusion of local players and not just foreign mining companies?” he asked. The chairman further demanded an amendment of the Minerals and Mining Act, 2007 such that states can have the right to exploit their state-bound resources. Alatise, said the amendment will create an enabling environment a n d e n c o u r a g e t h e s t a t e government to drive investment in the minerals found in their respective states. He added that the Act should be revised to make explicit and clear provision for accountability and transparency as lack of accountability and transparency in the industry can lead to loss of government revenue to business operators and regulatory bodiesExcerpt: Leadership

Last year, Nigeria's leading accounting firm, Akintola Williams Deloitte, in a report, blamed the high cost of doing business at the nation's seaports on the Nigeria Customs Service (NCS) and other government agencies, claiming that Customs processes are responsible for not less than 82.1 per cent of the charges incurred by consignees. The report was titled: “Public Private Partnership (PPP) as an anchor for diversifying the Nigeria economy: Lagos Container Terminals Concession as a Case Study.”Akintola Williams Deloitte stated that its value chain analysis of a 20-foot container laden with cargo worth N36.42 million ($100,000) imported into Nigeria from China, revealed that about N6.5 million would be required to clear and transport the container out of the port.Of this amount, it said about N5.3 million (representing 82.1 per cent) is paid to the NCS as Import Duty, Comprehensive Import Supervision Scheme (CISS), ECOWAS Trade Liberalisation Scheme (ETLS), Port Development Surcharge and Value Added Tax (VAT).According to the report, other actors in the value chain include: Shipping Companies, Nigerian Ports Authority (NPA), Terminal Operators, Clearing Companies and Haulage Services providers.It said shipping companies are responsible for 13.8 per cent of the port cost (N897,000); terminal operators 1.8 per cent (N117,000); Customs 82.1 per cent (N5.3million); transporters 1.1 per cent (N71,500) and clearing agents (N78,000).According to the report, “The value chain of a typical container terminal operation begins with the shipment of the goods through a shipping line to the host country. The consignee pays the freight charges for the shipping as well as the container deposit fees. Demurrage charges may apply where the consignee fails to return the containers on time.Excerpt: Thisday

Concerns Over Rising PortCharges

Ethanol Exports SetRecord in February

Page 3.

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EXPORTBUSINESSCLINIC

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VOLUME 3 ISSUE 21

Export TrainingProducts

know which of these documents applies to his product before commencing the export project.The last question that needs to be answered by the exporter states that, how does the exporter prepares the documents to be issued by his company? The documents to be issued by the exporter include the proforma invoice, commercial invoice and packing list. The content of both the proforma and commercial invoice are similar and these include the items being shipped, unit price, quantity, total value, Incoterms and other cost. The proforma is issued before shipment while the commercial (or final invoice) is issued based on the items that were eventually shipped. The packing list contains the the details of the packaging materials ( bag, carton, pallet etc), the number of items inside each pack, the container number, unit weight etc. Samples of these documents can be obtained on the Internet. You can also find it in my book title Export Business Made Easy..Cont'd from next issue

like certificates help the importer to confirm the quality, quantity, origin and parameters of the goods.The second to the last question states that, which documents are required for different categories of products? It is very important to note at this point that while the pre export documentations and exchange control documents are constant for every shipment (especially if it is going through the seaport), the shipping documents varies from one products to the other. For example Agricultural produce like cocoa will require Phytosanitary and Fumigation Certificates but these are not needed for solid minerals. Processed food will require NAFDAC certificate but non-food Item will not require this document but will require MANCAP certificate. It is therefore important for the exporter to investigate and

The fifth question is a question of function and it states, why are the documents are necessary? These documents are very vital because of what they represent. For example a Bill of lading in the hand of an exporter performs three major functions which include evidence of receipt of goods by the shipping line, evidence of contract of carriage with the shipping line and evidence of title to the goods by the consignee stated on it. The commercial invoice also have a number of functions which include showing the details of the item and the amount to be paid, it forms the basis for the payment of duty and amount to be insured. The packing list helps the exporter in stuffing the container, it helps the customs in their examination and helps the importer in calculating the total units of items in the container. Other documents

Title:

Export Business Made Easy

Speaker: Bamidele Ayemibo

Price: N 5,000

ExportMiscellaneous:

EXPORT ORDERS

LOCAL ORDERS

COMMODITY PRICES (LONDON METAL EXCHANGE AND BLOOMBERG)

S/N

S/N

PRODUCT

COMMODITY

SPECIFICATION

PRICES

MINIMUM SHIPMENT

UNIT OF MEASUREMENT

1.

2.

3.

1.

2.

3.

4.

5.

6.

7.

PRODUCT SPECIFICATION PAYMENT MONTHLY VOLUME

Zinc Ore Purity 35% 60MT Per Month

120MT Per Month

60MT Per Month

121MT Per Month

60MT Per Month

122MT Per Month

Purity 60%

Purity 30%Lead Ore

Lead Oxide

Zinc Ore

Lead Ore

Lead Oxide

Purity 35%

Purity 60%

Purity 30%Bank Guarantee

Bank Guarantee

Bank Guarantee

Lead Metric Tonne

Zinc

Cocoa Beans

Copper

Tin

Alluminium Bushel

Cotton Pounds

Metric Tonne

Metric Tonne

Metric Tonne

Metric Tonne

USD 2,358.50

USD 3,222.00

USD 2,498.00

USD 6,703.00

USD 21,050.00

USD 1,967.00

USD 82.54

S/N

1.

2.

3.

Handling the Critical 5Psof Export Business Success

- The PaperworkCont’d from last issue

Title:

Export Business Kit

Speaker: Bamidele Ayemibo

Price: N 50,000

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Page 4. VOLUME 3 ISSUE 21

Infographics