Exporting a new car from the UAE to Nigeria involves a complicated process. It needs utmost attention to detail and compliance with the rules and regulations of both countries.
Many dealers can make profits when they try to buy a car in Dubai for export. Dubai is a city in the UAE that has become a hub for automobile exporters and dealerships in recent years. The city is renowned for its luxury cars, and several car enthusiasts regard it as the best destination to buy exotic vehicles.
Dubai has a thriving automobile industry that makes it an ideal destination for buyers and exporters of cars. The export of new cars from Dubai has become a common trend among individuals and car dealers who desire to exploit the city’s flourishing automobile industry. African countries like Nigeria have a high demand for cars like to import cars from Dubai.
Steps for export to Nigeria
- Choosing the model
The first step in exporting cars from Dubai is to choose the model. There is a wide choice of models of cars in Dubai, from budget cars to SUV’s and Limos. It is crucial to select a car that complies with the laws of Nigeria and is a popular model in that country.
- Finding dependable exporter
The next step is to find a reliable exporter in Dubai. The new car exporters in Dubai can be relied upon if they have experience exporting to Nigeria.
- Ascertain rules and regulations for export
All countries, including Nigeria, have their very own rules and regulations for importing cars and so you must stay compliant.
- Select a method of delivery
The car can be sent either by sea or by air. Delivery by sea is cheap but time-consuming, while by air is costly but fast.
- Make arrangements to send and deliver
These will be taken care of by the exporter. Documents will also be arranged by the latter, including packing list, commercial invoice, bill of lading and export declaration.
Necessities to export cars to Nigeria
- Registration of business
Before starting to export, one must set up a legal business entity like a sole proprietorship or an LLC (Limited Liability Company).
- Import license
For exporting to Nigeria, one must have an import license sourced from the Nigerian Customs Service. Also, ensure that the business complies with the needed regulations.
- Bank account for business
Open an account in any bank for the sake of business transactions for new car exporters in Dubai.
- Market research
This must be done in Nigeria to know which brands of cars are popular and why.
Choice and procurement of car
- Sourcing of vehicles
It is a must to get in touch with car auctions, dealerships and manufacturers in Dubai for sourcing the vehicles you desire to export to Nigeria. One should negotiate price and purchase terms.
- Purchase agreement
The next step is to draft as well as sign agreements of purchase with dealers or suppliers in Dubai. This must include details of pricing, vehicle, terms of delivery and methods of payment.
Make arrangements for payment to suppliers that may include different financial instruments like bank guarantees or letters of credit.
Documentation for exports
- Certificate of origin
It is a must to acquire a certificate of origin for every vehicle. Such a document carries verification of the country of origin for regulatory and customs objectives.
- Bill of lading
This is a critical freight document generated by the carrier. It carries details of the cargo, the place of origin, the destination and much more. Such a document also serves as proof of ownership and receipt of goods during the transit process.
- Commercial invoice
One should prepare a commercial invoice which includes information regarding vehicles, their prices and all financial transactions between buyers and sellers. This will be needed for customs clearance in the destination (Nigeria).
- Packing list
This list offers a detailed breakdown of transported items such as VINs (Vehicle Identification Numbers), quantity and details of models.
- Certificate of Inspection
In certain countries, such as Nigeria, there will be a need for a certificate of inspection to verify the condition and quality of vehicles.
- Export license
Places like Dubai may need an export license for goods like vehicles. Be sure to comply with the export regulations of the UAE.
- Transport to port
Arrangements must be made to transport the vehicles to the designated port in Dubai. Make sure that cars are loaded and secured properly for transport.
- Mode of transport
Select a method of transporting such as Ro Ro (Roll-on/ Roll-Off) or container. The mode chosen will impact costs and insurance.
- Transit insurance
Arrange insurance for the cargo to protect against loss or damage during transit.
- Clearance of customs in Dubai
Make sure that all export documents are proper for customs clearance in Dubai. One should pay all applicable taxes or export duties.
Import in Nigeria
- Taxes and duties for customs
Make yourself familiar with taxes, import duties and fees that apply to new cars exported to Nigeria. Such costs can substantially affect your profit margins and pricing.
- Import Permit
For exporting cars to Nigeria, there will be a need for an import permit from the Nigerian Federal Ministry of Industry, Trade and Investment, besides the import license.
- Declaration of Nigerian Customs
This comprises the submission of necessary customs declaration forms and related documents. Also, pay the needed customs taxes and duties.
- Standards of emission and safety
Make sure that the cars comply with standards of emission and safety in Nigeria. There might be a need to gain clearance from related authorities.
- Registration of vehicles
Arrange the registration of imported cars from the UAE car export agency with the Nigerian Road Traffic Authority for obtaining license plates of Nigeria.
- Sales outlets or showrooms
Create a plan for where the cars will be sold. One might require a sales outlet or showroom and need to comply with the specific needs of such locations. This is a must for aUAE car export agency.
In sum, with regard to the export of cars from car export companies in Dubai to Nigeria, it comprises of a multi-pronged process which necessitates careful planning, adherence to rules & regulations and a keen knowledge about the Nigerian market. To ensure a smooth process, one must work with experienced professionals and consult the right authorities about the most updated needs and regulations for the sake of car export companies in Dubai.