Essential Export Terms for Nigerian Agro and Food Exporters: Simple Knowledge for Success.

As a matter of fact, all business has its own language otherwise known as terminologies. Ability to speak the language or the use of the terminologies dictates how successful the business will be. There is no exception to Agro/food export business which is our focus here. The use of export terminologies is so vital because requires special terminologies is so vital because every step in Agro/food export business requires special language and terms. Right from the beginning to the end of exporter operations these terminologies are transformed into practical when running an Agro/food export business.

They are as follows:

(1) EXPORT = This is a term related to business transaction between two parties residing in different countries.

(2) BUYERS = One of the two parties in export transaction is called the buyer, which is the user/consumer of the goods and services.

(3) SELLER = Second party involved in export transaction is the one providing the goods/services for exchange of money to the seller (other party).

(4) FOB = This is a price term that translated to be FREE on BOARD. Meaning, the buyer is only interested in the actual cost of the goods and also ready to bear the transportation cost (shipment).

(5) C&F = This means COST and FREIGHT, which translates to mean seller is responsible for both the cost of goods and the cost of freight.

(6) CIF = This is COST INSURANCE and FREIGHT.

(7) COMMERCIAL INVOICE = This is a document normally issued by the seller to the buyer indicating the name, number of items to be shipped, unit price and the total amount due for payment.

(8) BILL OF LADDING = This is a document issued by the shipping company indicating the details of the goods, details of consignee, quality of goods and destination (port of discharge).

(9) CERTIFICATE OF ORIGIN = A document by the exporter, or other required party, which declares the country of origin of the merchandise.

(10) AIRWAY BILL = This is like the bill of landing except that it is issued for cargo consignment and by the cargo airlines.

(11) INSPECTION CERTIFICATE = This includes the Analysis certificate-Quanlity and quality, phytosanitary and health certificates.

PAYMENTS TERMS

(a) CAD = This is cash against document.

(b) CAD = Cash against delivery.

(c) C/A = Cash in advance.

(d) L/C = Letter of credit.

(e) DLC = Document letter of credit.

(f) PB = The performance Bond

OTHER TERMS

Insurance certificate - issued by insurance companies.

Certificate of origin - This normally Identifies a commodity from the home country.

Freight - The transport cost of good to the destination being it air/sea.

Freight forwarders - This is an approved agent between the shipping company. He/she arranged all shipping document, booking of space, containers e.t.c

Domiciliary account - This is an account that is opened and maintain foreign currency either Euro or Dollar or any other currency for export transactions or repatriation of export proceeds.