excelsior, Author at Excelsior Worldwide Logistics Corp.

Why You Need a Freight Forwarding Partner in Your Supply Chain (Infographic)

excelsior on August 30, 2018

Your company is getting bigger, and so are your market and the number of shipments to be made. The problem is, you don’t have your own shipping function. Why not get it outsourced through a freight forwarding partner so that you can focus on expanding your core business further?

To help you fulfill the required documents

Document processing is one of the most crucial and complex stages in every business transaction. Especially in importing and exporting products, wherein there are many different documents, clearances, and permits to be processed. Through partnering with a freight forwarder, the fulfillment of your commercial, transport, financial, and government documents will be hassle-free because you will be assisted throughout the process.

To reduce expenditures

Freight forwarders ship loads of products on a regular basis, that is why they can use their affiliation with multiple transportation companies across the globe to negotiate for better prices on your behalf. Your freight forwarding partner can also cut back your costs through consolidating several small shipments with products from several clients into one large shipment.

To avoid product damage and delay

The main goal of every product-driven business is to have its goods delivered to the right location, intact and on-time. Teaming up with a freight forwarder will help you achieve it through cargo insurance document management services, route optimization, and transport tracking.

Products in transit are inevitably exposed to risks and dangers that is why cargo insurances are highly essential. In case of accidents, theft, and other unfortunate events during the transportation, damaged insured goods can be converted to cash claims.

While route optimization will make the delivery of your time-sensitive products faster by using the shortest and most convenient path. Most freight forwarding companies now use modern technology to find the best routes in order to avoid late deliveries.

Transport tracking, on the other hand, works through using tracking numbers as identification in determining the current location of a shipment.

Indeed, hiring a freight forwarding partner helps in optimizing a supply chain. But in choosing one, aside from the above-mentioned services and benefits, you must also ensure that the freight forwarder is dependable, trustworthy, and experienced to make sure you’re in good hands.

Excelsior Worldwide freight logistics have been in the business for seventeen years and counting. With trained and experienced employees who uphold the principle of integrity, we provide only the best services to our clients.

Visit our website today at www.excelsior.ph to learn more about our services.

Sources:

How to Ensure Successful Partnership with a Freight Forwarder

excelsior on August 15, 2018

A productive and efficient partnership with a freight forwarder is critical in today’s challenging import-export landscape. Not only it is important to generate the best return for your investments, but it can also significantly boost your competitiveness in the market because a freight forwarder streamlines the overall logistics operations of your business in the long run.

Here are the ways to ensure a successful partnership with your chosen freight forwarder.

Communicate Your Priorities

If your freight forwarder knows what matters to your import-export business on the get-go, they will be able to provide you with the solution best suited to meet your goals. For instance, if you want to achieve significant cost-savings, then they can help ship your cargo by sea. If you need to receive your goods quickly, they can offer to ship your goods by air instead.

An experienced freight forwarder should be able to help you on every aspect of shipping, from which type of container to use, choosing the right Incoterms, and releasing your cargo in customs yard, but they need to know your business priorities first.

Know Your Compliance Responsibilities

Hiring a freight forwarder for your business doesn’t free you up from compliance responsibilities. It is essential that you understand your compliance obligations as an exporter since failure to comply with compliance regulations can put you and your freight forwarder to severe legal and financial implications.

As an exporter, there are four key compliance considerations which you need to deal with:

Proper classification of what you’re shipping.
Trade policies and regulations in your country.
Proper labeling in your cargo.
Proper documentation requirements.

While a reliable freight forwarder will be more than willing to help you in these aspects, lack of basic understanding in this area can lead to serious issues, since most forwarders often tender shipments based on information that exporters give to them.

Only Work with a Reliable and Trustworthy Freight Company

When choosing a freight forwarder, reliability and trustworthiness are two factors that most business owners tend to overlook. Don’t make the same mistake of taking the risk of partnering with a freight company without these characteristics because it will only affect your reputation in the industry.

That said, accreditations and affiliations with reputable trade and logistics organizations can be an indicator of these qualities of a freight forwarder. Excelsior Worldwide Freight Logistics partners with International Container Terminal Services, Asian Terminals Incorporated, and Chamber of Customs Brokers.

We are also duly licensed as Total Logistics Company by the Bureau of Customs, and holds a Philippine Economic Zone Authority accreditation, which has the additional benefit of simplifying and speeding up the customs process for your shipments.

Excelsior Worldwide Freight Logistics conduct free orientation for those who are willing to learn about importation & exportation. It is our advocacy to share our knowledge & experience for 17 years in the business. Contact us today to learn more about our service.

5 Questions to Ask Before You Hire a Freight Forwarder (Infographic)

excelsior on July 31, 2018

A reliable and trustworthy international freight forwarding company is crucial to the success of any import/export business operations. Regardless of the size of your company, this aspect could mean make or break your business.

Make sure to ask these five questions before you entrust your cargo in someone else’s hands.

1. Are You Trustworthy?

First, you need to choose a company that puts integrity at the core of their business. A freight forwarding company acting in integrity means that they are not driven by a desire to earn huge profits, get in on trends, and other external mechanisms. Instead, they sincerely value the trust their customers put in them, and in the result, they become the “go-to company” in their respective niche.

A trustworthy company is also one that is a member of a reputable associated and has accreditations which embody their legitimacy and reliability.

Excelsior upholds utmost integrity in their customer service, business dealings, and business operations. They are duly accredited as Total Logistics Company by the Bureau of Customs and have strong affiliations with key authorities and logistics organizations in the country.

2. Do You Provide the Shipping Service I Need?

It’s important to make sure that the freight forwarder you intend to hire provides the freight service that you need. Do they have the mode of transport necessary to transport the volume of cargo you want to ship? Do they provide port to port, port to door, door to port, or door to door services?

3. Do You Have Strong Experience in the Field?

Freight forwarding companies have sprouted like mushrooms in the recent time, so it is only imperative to choose one that has a reputation that has been built accordingly through the years. A good freight forwarder should indicate the number of years they have been in operation, as some of the companies they have managed to provide service with.

As well as checking how long your chosen freight forwarder has been in business, it’s also worth checking how much experience they have that’s relevant to the cargo you wish to ship. Excelsior has been in service for the past 17 years and continues to be the trusted freight forwarder of a plethora of different businesses in the Philippines these days.

4. Is Your Rate Cheaper Than Shipping Line?

Perhaps the most cited reason why most businesses use a freight forwarder is that they offer cheaper rates than shipping lines. They do this by proposing rates to multiple shipping lines, giving cost advantage which they subsequently pass to their clients. Therefore, it only makes sense to choose one that charges less compared to what shipping lines offer. This is crucial if you want to save money on your import/export cost effectively.

5. Do You Cater Brokerage Services and Provide Own Trucking Services?

Probably, you are looking for a freight forwarder because you want to simplify the complicated process of moving your goods across borders. As such, it is more practical and cost-effective to choose a freight forwarder who is also capable of meeting your customs brokerage and trucking services needs.

By doing so, you will only have to deal with one company with regards to brokerage documentation, and that all your cargos will be managed consistently from the point of origin to the point of destination.

Sources:
https://issuu.com/virgill.ratliff/docs/tips_on_picking_the_best_internatio

Why Importers Choose Freight Forwarders Over Shipping Lines (Infographic)

excelsior on June 23, 2018

For the past years, freight forwarding companies have been doing good in the world of logistics, wherein most of the importers right now is choosing to use the service of Freight Forwarder rather than choosing the service of Shipping Line.

In order to understand why more and more importers rely on the service of freight forwarding companies, we detail in this infographic the biggest advantages that freight forwarders have over traditional shipping lines.

1. Flexibility

Freight Forwarder could be more flexible in terms of quality service and rate which is very critical for importers these days. Instead of going directly with the shipping line, a freight forwarder will negotiate on your behalf to get a competitive deal and discover the most suitable arrangement for your shipments.

2. Service

A freight forwarder is a total logistics provider, which means that an importer can access a wide variety of services more conveniently. Freight forwarder could offer different types of Incoterms depending on what arrangement of importer wanted to do.

In fact, there are shipping arrangements that a freight forwarder could offer to a budding importer that a shipping line cannot, such as such as Ex-Works and Air Freight. Lastly, freight forwarders provide brokerage services which are a critical aspect when running a legitimate importing business.

3. Rate

Of course, a freight forwarder will still use the service of a shipping line to transport the goods since they do not have their own vessel to do so. However, to make their rates more competitive than shipping lines, freight forwarders use the extreme competition in shipping line industry as leverage. They do this by proposing rates to all shipping lines instead of using only one shipping line, allowing them to charge the most cost-effective rates to their customer more effectively.

4. Reliability

One of the hardest parts on the side of importers is the communication. Most importers – especially those that are new in the business – can testify how hard to contact shipping line and how inconsistent their service when it comes to updating the arrival details of their shipment.

On the contrary, freight forwarders are known in the industry as reliable service providers. They can come up with solutions on-the-go be it for harsh weather, customs errors, inaccessible routes, vehicle breakdowns, and other problems that could arise and delay the transport of your shipment.

5. Contract Agreement

A reliable and trustworthy freight forwarder could get not only the best and most competitive rates but other cost-privileges such as Demurrage, Detention, Ocean Freight, Credit Term and ability not to be affected by General Rate Increase.

By choosing to work with a freight forwarder, you will also be able to choose from a wide variety of shipping line options. They know where to load best in terms of your need/demand. It’s either low rate or transit schedule. You can also enjoy the service contracts/agreements they have with different shipping lines in terms of extended free time and waive of unnecessary charges, thus helping you lower your overall importation cost.

Excelsior Worldwide conduct free orientation for those who are willing to learn about importation & exportation. It is our advocacy to share our knowledge & experience for 17 years in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Importer Tips: Tips to Effectively Manage Your Import Supply Chain

excelsior on June 11, 2018

Most importers will testify that managing shipments – from proper documentation to clearing cargos at the docks – is not a simple task. The import process involves a plethora of interactions and complying with dozens of regulations. These requisites can have a significant impact on your supply chain. Therefore, careful planning and fluid supply chain execution are required to minimize the uncertainties throughout the whole process.

Here are some tips that you can implement to optimize imports supply chain and speed up cycle time while complying with increased regulatory requirements in the industry.

1. Identify All Potential Pain Points

To optimize your supply chain, you must identify all the potential pain points that may cause hiccups in your operations along the way. Knowing these disruptions before they arise will enable you to create a proactive strategy with your service providers.

Aside from factors such as weather and catastrophic events, planning for the following common pain points in the supply chain will help ensure seamless import operations in the long run:

Port congestion and labor disputes
An unexpected change in vessel route
In-transit capacity crunches
Holidays, especially Chinese New Year.

2. Weigh the Benefits of LCL vs. FCL Shipping

When importing from overseas, you will likely choose between less than container load (LCL) and full container load (FCL) as a means of shipping your cargo. Each method has its own advantages and drawbacks. For instance, LCL will help you save on cost since the shipping price is shared among other importers. One of the drawbacks of this shipping method, however, is that the arrival schedule of shipments is often inconsistent. Nonetheless, there are services providers that offer regularly scheduled LCL services.

3. Hire a Trustworthy Customs Broker

Auditing your customs documents consistently is must to protect the operations and the namesake of your import business. If time is an issue, you can hire a trustworthy customs broker who will look over your records and will make sure everything matches up. In doing so, you will not only be able to ensure legitimate import operations, but you will also be able to focus on other important aspects of your growing business.

4. Ensure All Your Logistics Service Providers are Linked

Finally, a streamlined import-based supply chain will ultimately depend on the ability of your transportation and logistics partners to communicate with you and one another.

Since there are so many moving parts within international logistics, failures tend to occur in the spaces between each parties. If your service providers are communicating well with you, but you are still encountering issues, you may want to ensure that they are on the same page with each other.

It is very easy to get overwhelmed by the nuts and bolts of the complex import-based supply chain management. Being well-informed and asking your trusted customs broker and freight forwarder the right questions can significantly help you avoid costly surprises.

Integrity in Business By Excelsior Team (Infographic)

excelsior on May 15, 2018

Several decades have passed, yet nothing rings truer than the words of Zig Ziglar: “Honesty and integrity are by far the most important assets of an entrepreneur.”

Many businesses today have been seen to close shop after 10 years; sometimes it only takes 7, or even just 5 years. If you ask entrepreneurs whose businesses have endured past the 10-year mark, they are likely to tell you that the key, the fundamental ingredient is this: integrity.

Business giants and industry leaders attest to the primacy and indispensability of integrity in their business success. Bill Gates openly speaks of how honesty and good morals have served as his stepping-stones towards his success. Warren Buffet has both verbalized and lived out how an unwavering adherence to high moral standards has paved the way for an untainted reputation, which has positioned him to be the most successful investor today.

Indeed, integrity is the crux of every business’ system infrastructure, the cornerstone on which a business’ success is founded on.

But what exactly is integrity and why does it matter so much?

Integrity comes from a Latin adjective integer, which means whole and complete. Imagine a bicycle wheel with several spokes that connect the center of the wheel to the rim. The spokes, when whole and complete in its assembly, enable the wheel to turn effectively. When one breaks, goes missing, or starts to rust, this compromises the structure of the wheel, thus contributing to feeble and ineffective functioning and progressive deterioration.

In an organization, being whole and complete has to do with establishing moral standards and living up to them, so much so that it becomes the very glue that holds the company together. Examples of such moral standards include honesty and transparency. Failure to adhere to these leads to collapse, first internally wherein mistrust occurs among employees and partners, and then externally, between the business itself and its customers.

The absence of an established set of moral values deprives companies of a “true north”. With nothing to guide them, they are capriciously directed by profit, trends, and other external mechanisms, which are all elusive at best.

Acting in integrity allows the company to be the “go-to company” for clients’ needs. Why? For the simple reason that the business has earned the trust of customers. No other factor – no amount of net worth, network, or company size – can be a better measure of a business’ trustworthiness than its integrity.

A company that has seen the powerful impact of customer trust on their business’ success is Excelsior, a budding industry leader in customs brokerage & international freight forwarding services. Today, 90% of their sales are by referral. Their clients have become their biggest marketing and sales force.

Clients of Excelsior have been a witness to their high moral standards, values of honesty and transparency, and uncompromised quality of client-centered service. Excelsior likewise upholds utmost integrity in their customer service, business dealings, and business operations. They have been in service for the past 17 years.

Truly, with integrity as the foundation of any business, it is sure to move from good to great and withstand the test of time.

Excelsior Worldwide conduct free orientation for those who are willing to learn about importation & exportation. It is our advocacy to share our knowledge & experienced for 17 years in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Is Your Customs Broker Helping You Save Money from Import Cost?

excelsior on May 14, 2018

When getting your goods into a country as an importer, passing through customs is an inevitable hurdle. As with any situation, you can either decide to whether or not you should do all the legwork alone or use a local customs broker to help you steer through often-rough seas of customs compliance.

Another question to be answered when looking at using customs broker is whether the price of doing so affects total import cost.

An Honest Customs Broker Can Impact Your Total Import Cost

If you to clear their goods at customs alone, you’re going to have to be at points of entry to receive goods, handle the tariffs, taxes and documentation and get the goods warehoused and/or moving into the supply chain themselves. Working with an honest customs broker that are experienced with all of the above is the best way to stay compliant and up to date with the importing process.

As a business owner, it is very important to work with someone who understands your unique requirements and delivers the level of service you need to succeed in your marketplace. And most importantly, you only want to work with a broker that will help your business save money in a legal and ethical manner in all your import dealings.

To know if your customs brokers are helping you save money from import cost, you must ask yourself if they are providing you with the following benefits:

Saving time on paperwork

The customs clearing process can be an extremely laborious task. If your customs broker is still giving you tons of paperwork to fill out, you may be missing precious time from other aspects of your business. Your customs broker should take care of all the necessary documentation for you, which will help you save time, which in the business world, equates to money.

Reduce errors on customs documentation

In relation to previous point, all the documentation that your customs broker has done on you behalf must be free from any mistakes or issues. If your current broker filled out the forms and made a mistake, your goods may be held up at the customs yard.

Ultimately, that can slow order processing down significantly. It can also make clients unhappy, which can tarnish your business reputation. Finally, it may result in product returns. All of that can cost your business but turning to a trusted and reliable customs broker can help you avoid costly documentation mistakes.

Handling duty payments

Lastly, an honest customs broker should help you create a reasonable appraisal of your items. If necessary, they should also be able to negotiate with the customs officials to keep the valuation relatively low, and subsequently, keep the duties low as well. These negotiations are another way that a customs broker helps to save your business money.

Customs Compliance for Philippine Importers: Things to Know About the Tariff System of the CMTA (Infographic)

excelsior on April 30, 2018

On 30 May 2016, the Republic Act (RA) No. 10863, otherwise known as the Customs Modernization and Tariff Act was implemented signed, which amended many sections of the Tariff and Customs Code of the Philippines (TCCP).

This Act changed the course of the relationship between Customs and Trade by modernizing Customs rules and procedures for faster trade, reduce opportunities for corruption while improving Customs service delivery and efficiency of the supply chain.

What Happened After the CMTA Was Signed?

From the CMTA, several new concepts emerged – all of which aim to facilitate a smoother transaction between businesses and the Customs, adoption of internal best practices, and simplified and harmonized processes, among others. These new concepts include:

Expansion of the customs mandate to include trade facilitation
Promotion of ‘paperless’ transactions through the use of information and communication technology.
Definition of “free zones” to harmonize rule and regulations governing all special economic zones, free ports, and similar authorities.
Provision for tax and duty status in on ‘relief consignments’ to, among others, promote donations and international aid during calamities and major disasters.
Provision for legal interests in case of non-payment of duties and taxes.
Procedure for an advance ruling to allow early resolution of customs issues even if there is no actual importation involved.
The provision on ‘Authorized Economic Operator’ or AEO, an expansion of the original concept of ‘Authorized Operator’ under the Revised Kyoto Convention (RKC) and adoption of the expanded program of the World Customs Organization (WCO) to promote both trade compliance and security in the supply chain.
Definition of ‘Alerts’ to harmonize and simplify rules of the apprehension of shipments, to make the process transparent for the trading community, and to prevent abuse by customs and enforcement officers.
Provision for summary remedies such as distraint on personal property and levy on real property to collect duties, taxes, and other charges arising from a customs audit.
Creation of a Forfeiture Fund for outsourcing customs functions, facilitating processes, capacity building, and modernization through automation; and
Creation of Congressional Customs and Tariff Oversight Committee to oversee the implementation of the CMTA.

Changes in Tariff System

The Tariff Administration and Policy (Title XVI) of the Act are composed of three chapters, with most of the provisions being based on the old code.

Chapter 1 – Tariff Commission

A major change in the old code provides the commission the power and function to issue an advance ruling on the tariff classification of imported goods and render rulings on disputes over tariff classification. This section also restates the jurisdiction of the commission over trade remedy measures – dumping, safeguard, and countervailing duties.

Chapter 2 – Flexible Tariffs

This section restates the old provisions on “flexible clause” and “promotion of foreign trade.” The flexible clause empowers the President to:

Increase, reduce, or remove existing rates of import duty.
Establish import quotas or ban imports of any commodity.
Impose additional duty on all imports not exceeding 10% ad valorem.

Chapter 3 Tariff Nomenclature and Rate of Duty

This section restates many of the old provisions of the provides the tariff classification and duty system for imported and exported goods. This chapter is composed of 3 sections as follows:

General Rules on Interpretation (Section 1610)
Tariff Nomenclature and Rates of Import Duty (Section 1611)
Tariff Nomenclature and Rates of Export Duty (Section 1612)

Implications of the Revised Tariff System

Under the revised tariff system, certain adjustments (depending on the INCOTERM used) may be made on the invoice price to arrive at the dutiable value. The classification process for regularly imported goods remains simple and straightforward, while the opposite can be expected for finished and processed goods as well as for new products that involve composites or mixtures.

The new product classification system provided is mainly based on the 8-digit ASEAN Harmonized Tariff Nomenclature (AHTN), the first six digits of which is based on the Harmonized System (HS) while the seventh and eighth digit codes are assigned to ASEAN subheadings with more than 10,000 tariff lines. Beyond the 8-digit level, member countries are allowed to create national subheadings.

How can Importers Make Sense of These Regulations?

All importers are encouraged to review this document on an annual basis to support their due diligence in exercising Reasonable Care in all international transactions with Customs. Importers and their trusted brokers should work through the questions in this publication annually to ensure that both are using the information, tools, and guidance provided by BoC to submit accurate entries every time.

If you have further questions regarding the Tariff System under the CMTA, contact Excelsior Worldwide Freight Logistics Corp. by visiting our website at www.excelsior.ph, or you may reach us by calling (063) 525-9775 or send us an e-mail through wecare@excelsior.ph

Excelsior Worldwide conduct free orientation for those who are willing to learn about importation & exportation. It is our advocacy to share our knowledge & experienced for 17 yrs. in the business.

Philippine Importers: Here’s How to Compute Your Import Tax and Duty

excelsior on April 26, 2018

Paying the right customs tax and duty in your import business is crucial to ensure that your operations are legitimate. That is why it important that you hire a legitimate licensed customs broker is critical to avoid the hassle of facing significant penalties or even legal ramifications from the Bureau of Customs.

In the Philippines, the Customs Law indicates that all imported goods above P10,000 are subject to payment of duties, taxes, and other local charges. If you have just started your import business and not sure on how your trusted customs broker will come up with the import tax and duty for your upcoming shipment, we detail in this post how to calculate import tax and some of the additional charges which you should be aware of.

How to Calculate Import Tax and Duty

Customs Duties or Import duty will be pending and need to be cleared while importing goods into the Philippines. Customs clearance can be executed either by a private individual or a commercial entity. The valuation method often used to arrive at dutiable value is CIF (Cost Insurance and Freight), i.e., the cost of the imported goods, the shipping cost, and the insurance cost. Imports are also subjected to Sales Tax.

Excelsior conducts free orientation for those who are willing to learn about importation and exportation. It is our advocacy to share our knowledge and 17 years of experience in business. You can contact Excelsior Worldwide Freight Logistics Corp. today at (+632) 525-9775 or email us at wecare@excelsior.ph

Exporter Guide: Steps to Make Sure You Will Get Paid

excelsior on April 15, 2018

In our previous post, we discussed how you could effectively find overseas clients for your export goods. Provided that you have already established a substantial client base, the next you need to do is to make sure that all your efforts will pay off.

So, while learning to grow your export business and getting familiar with common mistakes that exporters must avoid is crucial, making sure you collect what you are owed is just as important.

To help you out, we compiled on this the actionable ways to ensure your export customers will always pay you on time.

Negotiate Payments Terms Ahead

The first step to ensure payment is to negotiate payment terms that work for both you and your customers. Most customers would prefer to pay 100% of what they owe sometime after they have received the goods, while you would rather be paid in full before you even ship.

To strike a balance between the interest of your business and of your customers, ask them to pay for a deposit shortly after the order. This not only helps your cash flow, but it also commits your client to work with you, and it reduces the likelihood that they will cancel their order.

Obtain Letter of Credit

A letter of credit (L/C) is an effective tool to establish trust between you and your client. Essentially, L/C is an agreement between your bank and the customer’s bank stating that the customer bank will send payment to your bank once you show proof that you have shipped the goods.

With an L/C in place, you can expect to receive payment within about three to four weeks following shipment. Although L/C come at some financial expense—typically around 0.5% to 1% of the payment to be made – it is definitely worth the price as it greatly reduces your risk of not receiving payment.

Use Sight Draft

Another common financing tool used by many small- and medium-sized export businesses is the sight draft. To use one, you need some help from your bank and your shipping company or freight forwarder.

In essence, a sight draft allows you to draw a check on your client’s bank account and comes hand to hand with a letter of credit. Unless your client signs a document that a shipment has been made, they will not be able to take possession of the shipment.

Consider Getting a Trade Credit Insurance

Trade credit insurance is an effective financial risk management tool that protects your export business against losses from non-payment of trade-related debts. In the Philippines, many trade financing companies such as UCPB and QBE offers trade credit insurance and other trade finance programs which helps minimise the financial risks that growing export businesses face.

If All Else Fails

When nothing else works, – the client cannot pay due for whatever reason there is – do everything possible to address the non-payment issue to receive at least partial payment. Surely, you would rather have 80% of the payment in the bank than to sue for 100%.

Not only pursuing legal action in a foreign country can be expensive, but it is also time-consuming and frustrating as well. If your export product includes a warranty or a component which needs to be serviced regularly, you can use those as leverage to extract payment.

Allow Excelsior Worldwide Freight Logistics Corp. to help you navigate the world of import and export. For any queries that you may have about our customs brokerage service, you may call us at (063) 525-9775, or you can send us an e-mail through wecare@excelsior.ph