EXPORT CATEGORIES, SUB-CATEGORIES AND TYPES
The export industry is divided into two broad categories. As an introduction into the export sector for new or intending exporters, it is very important that these categories are properly explained and that one is able to understand these export categories as it will help you understand the agencies that regulates the activities within the industry, how to focus and maximize your opportunities within the industry. We shall consider these categories, sub-categories, and types in this post.
CATEGORIES OF EXPORT
There are two broad categories of the export sector which mainly is based on the product they cater for. These are:
- OIL EXPORT:
The oil export sector deals with all export of Crude Oil and its products. This simply implies that if you’re interested in exporting crude oil and its product, you’d have to understand the peculiarities of exporting crude oil and the agencies that regulate these activities.
- NON-OIL EXPORT
The Non-oil export sector deals with all export products that are not crude oil or its derivatives. This sector seems a lot broader than the oil export as it comprises of more activities, products and services. These sector is further divided into five (5) sub-sectors. In this post we shall only outline these sub-sectors with a more detailed explanation in our subsequent post (You can be sure to hold us by our words). These sub-sectors of the Non-Oil export includes:
- Agricultural commodities
- Solid minerals
- Wood, crafts and arts
These five subsectors make up the broad sector of Non-Oil Export. Bulk of the export transactions around the globe fall into these categories.
Having understood these, we shall now look at the different types of export. Export activities can be categorized based transaction value or tangibility. Thus there are four types of export. These are:
- NON-COMMERCIAL EXPORT
Non-commercial exports are exports whose transaction value does not exceed $500. These exports are done in small quantities and are usually considered as gifts for family and friends living abroad. They are also called export for non-consideration. In Nigeria, Non-commercial export is initiated by the NCX Form. However, if the export value exceeds $500, it is considered as a commercial export. Non-commercial export is classified as Code “D”
- COMMERCIAL EXPORT
As said earlier, an export transaction is classified as a commercial export if the value is more than $500. It is also called export for consideration. In Nigeria, a commercial export is initiated using the NXP form. This form is known as the Export Proceeds Form and is obtained from the exporter’s bank. This form ensures the all export proceeds are properly and legally returned as foreign exchange to the country. In subsequent posts, we shall bring you a detailed post on the NXP form. The above export types are classified based on transaction value. The next two (2) types of export are classified according to tangibility. Commercial export is classified as Code “B”
- VISIBLE EXPORT
An export is said to be visible if it can be seen, felt or touched. These are tangible and mostly deals with products.
- NON-VISIBLE EXPORT
These are export types that can’t be seen, felt or touched. They are not tangible and as such cannot be seen, felt or touched. These includes or forms of services such as: intellectual properties, financial services, architectural services, online services, skills etc.
The above given are the categories, sub-categories and Types of export. We hope that this post has helped your understanding.
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