COMMERCE 101

QUOTING PRICE IN INTERNATIONAL TRADE

Hey Guyz, Happy Monday.  Hows your week so far, great right???. lolz- God has been Faithful and We are grateful. So let's get started....

1. Cost, Insurance and Fright (C.I.F)- This price means that the prices quoted includes the cost of the goods, the fright and insurance up to the port of destination while the purchaser is responsible for other subsequent charge.

2. Free On Board (F.O.B)- means that the price covers all cost up to the ship including charges, payable for loading goods on the ship.

3. Franco- means the price quoted includes the cost of the insurance, fright and all delivery charges to the importer's warehouse.

CUSTOM & EXCISE AUTHORITY

Custom and Excise Authority is a department in the Ministry of Internal Affairs that is charged for the collection of taxes imposed on goods, and the regulation and control of imports and exports in a country. Custom and Excise Authority collect the following duties:

* Import Duties are tax imposed on goods and services imported from other countries into a

particular country.

* Export Duties are tax imposed on surplus goods and services of a country which was to other countries.

* Excise Duties are tax imposed on locally made goods.

Functions of the Custom and Excise Authorities:

# The department collect taxes imported on goods and services, as a way of generating revenue to the government.

# The Authority prevents smuggling of goods and seized contraband goods.

# The Authorities supervise the bond warehouse where goods whose duties have not been paid are kept.

# The Authority collect data for the compilation of statistics on export and import trade which give a clear picture of a country's Balance of Trade and Payment.

# It is also the responsibility of the authority to ensure that custom declaration form and other documents are completed.

NIGERIAN EXPORT PROMOTION COUNCIL (N.E.P.C)

Nigerian Export Promotion Council was set up to assist exporters in the cause of exporting goods and set out procedures for export trade.

Functions of the Nigerian Export Promotion Council:

* The Council works hand in hand with other government agencies, to assist in the preparation of expert document.

* The Council organises training programmes, seminars and workshops in export management and international marketing.

* The Council approves export, provide export license and set a procedure for exporting goods aboard.

* The Council establish and operate international trade information centers to provide necessary information to the services.

TRANSPORTATION

Transportation is a means whereby people and goods are moved from one place to another through water, air, road and rail. It is one of the aids to trade and a branch of commerce.

Transportation plays a vital role in commercial activities, because people that are geographically separated are brought together by it.

Importance of Transportation:

# Transportation facilitates and quickens the effective distribution of goods and services to areas where there are needed.

# Transportation promotes trading activities between different parts of a country.

# Transportation leads to economic growth and development of a country.

# Transportation facilitates efficient movement of productive resources from areas where there are available to areas they can be put to adequate use.

# Transportation helps to make goods and services available at the right time and at the right place to improve the standard of Living of the people.

# Transportation widens the market for the sales of goods and services.

# Transportation encourages the development of rural areas.

Factors to be Considered When Selecting Means of Transport:

v  Nature of Goods- Bulky Goods are better transported through ship/rail while perishable or Fragile goods are better handled by fast means of transportation like Air.

v  Cost of Transportation- It plays a Crucial or Vital Role in determining the means of transportation to be chosen. For Example-Air Transport is costly while Rail Transport is cheap over a Long distance.

v  Distance- Road Transportation is good over short distance while air and water transportation, preferable for a long distance.

v  Value of Goods- Commodities of high value like Jeweleries, are transported by a means that is faster and safe.

v  Degree of Urgency of Delivery- Messages that require urgency in delivering are better handled by fast means of transportation.

v  Speed- perishable goods are better handled by fast means of transportation.

This brings us to the end of today's session. Hope this was very helpful to you, leave a comment of what you think of this tutorial and of your questions below. Have a Blessed Day and Remember You are Amazing. God Bless.