Nowadays many are interested in importation. 100, 000 questions related are obvious obstacles ahead. This article is intended to present a blueprint.
Be financially ready & avoid small quantities.
Importers are recommended to prepare no less than 4, 000 U. S Dollars to get started. Otherwise, it’s not quite a good idea to move forward. With the favor of Rados, you can easily start importation with even zero knowledge of it. However, some costs are fixed, some costs are flexible. Small quantity not only limit production but also add more cost to each cable. Sometimes you may find it’s hard to compete in the market and get ideal profit. Any order shall meet our MOQ. MOQ is different based on different cables. Orders will be all put into production. So there’s no way to supply in any retail length.
Importers are suggested to check the exchange rate carefully. You can’t always expect dollars from official banks with 360 naira to 1 dollar.
Understanding basic trade terms.
- FOB ( Free on Board): sea freight is paid by importers in destination countries.
- CFR ( Cost & Freight): sea freight is paid by Rados, importers can choose either to cover insurance or not by themselves.
- CIF ( Cost, Freight & Insurance): sea freight and insurance are both paid by Rados.
Under FOB term, importers don’t have to search for shipping forwarders by themselves. Rados offer free service to make sure cables are loaded. We have a good relationship and partnership with international reliable forwarders to ensure your goods to be delivered timely. The transportation from Rados to destination ports will be taken care of by Rados under CNF and CIF trading terms.
Understanding the most common container types.
- 20 feet: inner space ( L × W × H): 5.89 m × 2.35 m × 2.38 m
- 40 feet: inner space ( L × W × H): 12 m × 2.35 m × 2.38 m
General procedures of order handling.
Sign sales contracts with Rados. Rados send importers proforma invoices.
T/T ( wire transfer ) deposit ( 30% of the total contract value ) to trigger the production.
- LCL load: to Rados exportation broker’s account. Rados doesn’t have exportation right itself. A famous exportation broker is in cooperation. Just like many other countries, China is a country with the existence of Exchange Controls. All import and export business in China shall be reported to the government. Rados Cable didn’t apply for export right. We have to export through very professional Import & Export agents. In fact, many companies with export right still prefer using Import & Export agents. The most common consideration is cash flow and the cost of capital. It’s the main reason why Rados didn’t apply for export right. Cables are tax returned products. It usually takes 6 months and even longer to get tax return back from the government. Although we pay 1% the total value of goods to Import & Export agents, we can get the tax return in 1 month or so. That’s 5 months in advance. In China, the mortgage interest is more than 1% each month. To get the tax return earlier means more cash flow and lower company operation costs. It makes our prices more competitive. Better rates and more cash flow contributes to more orders too.
- FCL load: to Rados sister company’s account. The main reason is that our sister company will apply the SONCAP certificate while exportation agents can’t do that.
Rados update production progress during production.
Complete the balance before delivery.
- LCL load: Rados send cables to CHOICE (shipping broker) in Guangzhou. Importers sit and wait. CHOICE in Nigeria inform importers to pick up goods and pay sea freight and customs clearance cost locally.
Please contact us for CHOICE Nigeria Branch contacts.
CHOICE focus on Middle East and African countries and providing complete one-stop logistics service. It set up wholly-owned branch companies in Dubai, Saudi Arabia, Kenya, Cameroon, Nigeria, D.R. Congo, Uganda, R.E.P Congo, Tanzania, and Senegal.
- FCL load: Rados send cables to Qingdao / Shanghai / Ningbo ports. Rados prepare necessary custom clearing documents required at destination ports. Shipping brokers in Nigeria inform importers when ships arrive.
Hope this article is useful to guide you through. Although we try to make everything as clear as possible, you will probably have other doubts. That’s why we recommend you to read some other instructions like and . You’re also welcome to write to us at [email protected], [email protected] or [email protected] if you need extra help.