Background

A Nigerian client engaged in two-way trade with India was facing challenges in managing his logistics, documentation, and cargo security. With his business size not large enough to justify a full-fledged establishment in India, he sought a cost-effective and secure way to manage his transactions, both for procuring commodities from India and importing goods like Cotton, Cashew nuts, and Cocoa from Africa.

Solution Provided by MOMENTUM

MOMENTUM stepped in to streamline the Nigerian client’s operations by partnering with a Free Trade Warehousing Zone (FTWZ) in India. The following steps were implemented:

• Centralized Procurement Hub: All commodities procured within India were shipped to the FTWZ. The consolidation of goods at this centralized location allowed the client to form Full Container Loads (FCL), making shipments more efficient and cost-effective.
• Logistics and Documentation: MOMENTUM arranged for the Freight Forwarding Agents within the FTWZ to issue House Bills of Lading (HBL) after a thorough inspection of the arrivals. This ensured that the client received the supplies securely and only made payments after inspection.
• Storage and Sales of Imported Goods: The Nigerian client brought in cargo from Africa under his own account and stored it within the FTWZ. This allowed him to respond quickly to Indian sales orders, dispatching goods only after receiving payments and completing customs procedures.
• Tax and Regulatory Efficiency: Operating from the FTWZ meant that the client did not need to establish a formal company in India, obtain registrations, or pay any taxes. All transactions were handled as if they were conducted from his home country, with funds transacted directly into and out of his home bank accounts.