Hides And Skin Business And Export Opportunities For Nigeria

Shippers Guide is the learning page of MMS Plusnewspaper. Here we answer the five W’s and H of several issues in the shipping industry. This week’s edition focuses on the nitty-gritty of hides and skin business in Nigeria as well as the export potentials in the business.

Agriculture has remained the largest sector of Nigeria’s economy. It creates about 70% of employment in Nigeria and contributes about 40% to the Gross Domestic Product (GDP) with crops accounting for 80%, livestock 13%, forestry 3% and fishery 4%. As such, there is a thriving opportunity for the promotion of hides and skins business in the country and immense potentials for export.

Although Agriculture contribute only 13% to the national GDP, livestock plays an vital role by providing part of the nation’s protein needs and it is from it that hides and skin is gotten from.

Livestock ranks second to cocoa as Nigerians largest non-oil export in terms of volume, processed hides and skin. The hides and skin have a lot of global demand. They are used in the production of leather products like shoes, bags, watch straps, belts etc.

The best hides and skin in the world today is made in Nigeria. In attempt to promote the local processing of hides and skin, government placed a ban on the export of raw hides and skin in Nigeria.

This will help to develop related industries and employment generation in the country. The resultant effect is increased patronage for hides and skins business in Nigeria.

This embargo on the export of raw hides and skin promote the establishment of local industries. These industries always process raw hides and skins and create supply opportunity for interested investors. Although, this require the investors to have a thorough knowledge of different types and sizes of hides and skin in the market.

The constant competition between individuals and industry for raw hides and skin causes scarcity of

the product. The processed hides and skin in Nigeria is mostly supply to country like Europe and Asia with Italy, China, and Hong Kong leading the pack.

In Nigeria, a good number of the processed hides and skin usually derive from cow and goat, other animal skin likewise have great demand and they include crocodile, buffalo, Zebra etc.

Although, the Convention on International Trade of Endangered Species of wild fauna and flora (CITES) signed a treaty that restricts the importation of animal skins in order to preserve such animals. This guides against indiscriminate killing and poaching of wild animals. The treaty also authorizes CITES to grant exemption for trade in skins of animals reared in captivity.

Requirements for Hides and Skins Business in Nigeria

If you want to start export of hides and skin, you have to obtain permission from Wild Life Protection Office.

Also, you must obtain certificate from the Convention on International Trade of Endangered Species of wild fauna and flora (CITES). This certificate is required to export raw hides and skin along with leather.

Another special requirement is certificate from Animal Quarantine Office. This is also required to export raw hides & skins & leather.

Useful tips on How to Export Hides and Skin

As an importer or exporter of raw hides and skins, you must know HTS code (HS code) of the export product. The HTS code (HS code) of the export product varies from country to country.

Note that some of the items of HS code may be restricted or prohibited to export.

For instance, unilateral trade agreement, multilateral trade agreement or bilateral trade agreement between countries. Simplify documentation and other formalities and process for export of raw hides and skins.

Once you select your export product as raw hides and skins and export samples are sent, terms of payment and terms of delivery are agreed with your overseas buyer along with other terms and conditions and issue proforma invoice, in turn you receive export order for raw hides & skins & leather followed by purchase order from your overseas buyer.

Determine the terms of payment for your export contract.

It could be advance payment, Documents against Acceptance DA, Documents against Payments (DAP), or under Letter of Credit (LC), and the terms of delivery for your export of RAW HIDES & SKINSmight be EX-Works, FOB, CFR, CIF, or any other Inco terms.

Finance Your Business:

Also, finance the finance against export could be arranged from your bank. This covers pre-shipment packing creditor and post shipment finance against export orders. Inclusive here are for raw hides and skin.

Hides and Skin Quality Check:

Ensure that there is quality check, proper packing with crating if necessary.

Choose Your Hides and Skin Container:

Make sure you choose the type of container if export shipment of raw hides and skin and leather is on FCL basis otherwise LCL if means of shipment of raw hides and skin and leather is by sea.

Ensure that you prepare export invoice

Also under consideration are export packing list, certificate of origin and other documents based on purchased order or LC to export of the product.

Get Hides and Skin Business Export Clearance:

Once export customs clearance is completed either by exporter or his customs broker, bill of lading or AWB is issued by carrier. If consolidator is involved, HAWB or HBK is issued. If export of raw hides and skin and leather is on credit basis, the document for export of raw hides and skin is discounted, arranged for collection or negotiated.

The keys to success for the Hide and Skin business include:

1. Financial stability for purchase of chemicals and other raw materials.

2. Stable forex exchange

3. Having a good retail location in high-shopping or residential areas.

4. Modern solution and technology

5. Outstanding and excellent customer care service.

6. Power supply – for smooth and consistent production

Shaving Machine- single width, Electrical hand operated setting out machine, lace cutting machine, spraying machine with dryer, hydraulic press, brushing machine with dryer, etc.