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Why Now is the Best Time to Establish an Import-Export Business in the Philippines? (Infographic)

excelsior on March 28, 2018

The import-export sector in the Philippines is on the rise. According to Philippine Statistics Authority (PSA), the country’s total trade grew by 8.6% in December 2017, pushing a full-year trade growth to its current rate. This is better than the 5.8% full-year trade growth recorded in 2016.

Imports and exports posted 10.2 percent and 9.5 percent growth rates, respectively, exceeding the Development Budget Coordinating Committee’s emerging estimates (as of December 2017) of 9.0 percent for imports and 8.0 percent for exports.

Such improvement has made the Philippines one of the fastest growing economies in the world, according to the World Bank’s latest edition of Global Economic Prospects. As the country emerges as a growing economic hub, it is wise to ride the wave and make the most out of it by establishing an import-export business in the Philippines.

Read on as we detail in this infographic the reasons why now is the best time to establish an import-export business in the Philippines.

Why Now is the Best Time to Establish an Import-Export Business in the Philippines
1. Presence of Trade Programs and Affiliations

Plenty of government and non-government organizations promote importing and exporting in the country. These organizations have programs which goal is to help aspiring importers and exporters start their business with a firm foundation as possible.

The Philippine Exporters Confederation, the Bureau of Export Trade Promotion, and the Philippine International Trading Corporation are the most popular of these groups. The Philippine government is ramping up these organizations – hoping to promote the country as a destination for foreign investment and exports.

These groups also help to negotiate trade agreements which also open many opportunities for exporters and importers. Some of the trade agreements that are currently in place are the Philippine-Japan Economic Partnership Agreement (PJEPA), ASEAN-India Comprehensive Economic Cooperation Agreement, ASEAN Free Trade Area, and ASEAN-[Republic of] Korea Comprehensive Economic Cooperation Agreement, among others.

2. Relaxing Foreign Ownership Limitations

Foreign ownership restrictions have been a significant issue in the Philippine international trading sector for many years. However, President Rodrigo Duterte is planning to ease these foreign ownership limits in Philippines businesses.

In 2017, the President has directed the National Economic Development Authority to take “immediate steps” to lift restrictions on foreign investments. The NEDA’s efforts to ease restrictions include labor recruitment, public services, rice and corn production, milling, processing, and trading – among others.

The opening of the Philippine economy reveals previously unreachable markets. Whether you are looking to set up an import-export business there, or simply find a supplier, the future is bright.

3. Monetary and Tax Incentives

The Philippines boasts 326 economic zones across the country – which are composed of export processing zones, free trade zones, and industrial estates. Establishing a trading company in economic zones can benefit you from duty-free imports, with some exemptions from particular taxes and other import restrictions as well.

The Asia Development Bank (ABD) also offers to finance to businesses looking to invest in the Philippines. Businesses can also avoid local taxes, duties on event materials, and travel fees – all depending on the situation.

4. Increased Support for Private Businesses

One of the biggest development in the Philippines international trade scene is the privatization. President Rodrigo Duterte plans to move many Government Owned and Controlled Corporations (GOCCs) into the private sector which would allow local businesses and investors to participate to previously untapped industries such as healthcare, energy, transportation, etc.

While there are domestic concerns for this shift, allowing more private businesses to participate in government projects may increase innovation and is expected to create more investment opportunities for international companies.

To be successful in the Philippines, or any international region, import-export businesses need a reliable and trustworthy logistics partner. A reliable and honest freight forwarding company provide significant advantages that will not only help you gain a competitive edge but also ensures that all your import and export transactions are done legally, ethically, on budget and on time.

If you need a helping hand on starting your import and export business today, Contact Excelsior Worldwide Freight Logistics Corp. and let us help you in your journey in the import-export industry this 2018 and beyond. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph.

Things to Consider When Shipping for Trade Shows

excelsior on March 16, 2018

As mentioned in our previous post, attending trade shows is one of the most effective ways to grow the client base of your import-export business. In fact, studies have shown that 81% of trade show display attendees have buying authority – which means that 4 out of 5 people that you might talk to during the event could be your next customer!
Since potential customers and quality leads thrive in this kind of event, it is only essential that you give your best when presenting your product. One of the first steps to ensure a successful trade show is to ensure a smooth logistics.

Successful attendance at trade shows requires timely arrival of your materials at the destination. To help, we detail in this post the things you need to consider when shipping for trade shows.

1. Ensure Efficient Transportation Planning

Trade shows are very time-dependent events. Thus poor transportation planning could lead to a variety of penalties even before the show begins. It is therefore critical to choose a logistics partner with proven event logistics expertise.

There are certain types of information that your chosen carrier will need to know to ensure that your trade show shipments will arrive on time at the convention center. These are:

  • Name and address of the convention center
  • Name of the show
  • Specific event room or hall
  • The booth number
  • Name and contact number of your company’s on-site contact
  • Dock number for delivery

 

2. Plan for Show’s Conclusion as Well

The numerous instances when your company can incur penalties during move out.
One of such is not meeting requirements included in the Material Handling Agreement (MHA). MHA is the bill of lading for the movement of your booth, and it basically lists all pieces that the shipment contains as well as what company is assigned to the carrier.
If the company is not specified, the decorator will not allow the carrier to pick up the freight after the show. Due to this delay, the decorator may take control of your shipment and picks another carrier to transport your freight. This can increase your transportation cost significantly.

3. Build Relationship with the Parties Involved in the Logistics Process

Facilitating a successful trade show requires collaboration between Installation and Dismantle (I&D) teams, freight forwarders, decorator, and exhibitor. If you plan to maximize your trade show experience, you need to have a clear understanding of the entire logistics process – from unloading and installing to dismantling and loading out.

Penalties and additional overtime costs can escalate quickly if there are any inefficiencies in these processes. Having the right logistics partners, therefore, can help you navigate these time-critical tasks and avoid the heavy penalties that trade shows levy.
Overall, attending trade shows, though quite demanding and exhausting, can be an effective way to grow your import-export business. By partnering with a trustworthy and reliable logistics provider, you can improve your chances of achieving a successful trade show event.

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 services, you may call us at (063) 525-9775, or you can send us an e-mail through wecare@excelsior.ph

Customs Broker vs. Attorney in Fact

excelsior on February 16, 2018

During the process of importing-exporting, many companies will decide to hire a licensed Customs Broker to clear goods through customs and ensure all documentation is filled correctly. Customs Brokers are regulated by the Philippine Bureau of Customs (BoC) and are therefore authorized to assist importer-exporters in meeting the rules and regulations governing imports and exports.

 

However, with the passing of Customs Modernization and Tariff Act (CMTA) in 2016, the BoC has declared that engaging the services of licensed customs broker by an importer or exporter is now optional. According to BoC, the Act provides the importers and exporters with the option to

  • 1) engage the service of a licensed customs broker,
  • 2) assign an attorney in fact that will deal with the customs authorities on their behalf,
  • 3) clear their import/export goods by themselves.

 

Since the customs clearing process involves a series of tedious tasks, the latter may not be a viable option for most importer-exporters. This leaves us the question of who is more apt to do the customs clearing process: a customs broker or an attorney in fact?

 

What is a Customs Broker?

The Section 102(n) of the CMTA states that term Customs Broker refers to any person who is a bona fide holder of a valid Certificate of Registration/Professional Identification Card issued by the Professional Regulatory Board and Professional Regulation Commission pursuant to Republic Act No. 9280, as amended, otherwise known as the “Customs Brokers Act of 2004”.

 

Advantages of Hiring Customs Broker

 

  • Expertise in customs laws, rules and regulations for the clearance of imported or exported goods.
  • Has basic knowledge of how to prepare customs documentation and ensure that shipments meet all applicable laws to facilitate the import and export goods.
  • Can sign documents under power of attorney.

 

What is an Attorney in Fact?

According to Investopedia, an Attorney in Fact is a is a person who is authorized to perform business-related transactions on behalf of someone else (the principal, or in this context, the importer/exporter). To become someone’s attorney in fact, a person must have the principal sign a power of attorney document. This document designates the person as an agent, allowing him to perform actions in the principal’s stead.

 

Two Forms of Attorney in Fact

  • General Power of Attorney – Allows the attorney in fact to conduct all business and sign any document on behalf of the principal.
  • Special Power of Attorney – Allows the persons to sign documents and conduct business on the principal’s behalf only in specific situations.

 

Advantage of Hiring Attorney in Fact

  • Has knowledge on legal matters.

Overall, a licensed customs broker can provide more specific expertise about customs regulations and laws compared to an attorney in fact. This specialized knowledge very handy especially if you are new in the import-export business.

 

At Excelsior, we value your business and your time. This is why we want to offer you a customs brokerage service that is efficient, professional, and ethical.

 

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

Importers/Exporters Primer for Break Bulk Shipment and Container Loading

excelsior on January 16, 2018

If you are just new in the import/export business, then one of the first shipping methods you should get familiar with is the break bulk shipping, better known as Less Container Load (LCL). Probably it is because you are still testing the waters first, i.e., your first orders are likely to be small or, perhaps, your product’s dimensions do not fit or utilize standard shipping containers or cargo bins. Either way, knowing when to use break bulk shipment is essential as you grow your trading business.

What is Break Bulk

In the old-world context, break bulk means the extraction of a portion of the cargo on a ship or the beginning of the unloading process from the ship’s holds.

In the modern context, break bulk is meant to encompass cargo that is transported in bags, boxes, crates, drums, or barrels – or items of extreme length or size. Compared to Full Container Loading, this type of shipping involves paying for space your load takes up in a standard container.

To be considered break bulk, these goods must be loaded individually, not in intermodal containers nor in bulk as with liquids or grains.It is without a doubt the most common form of cargo ever since time immemorial. Examples of commonly shipped break bulk cargo include:

  • Bagged or sacked cargo.
  • Baled goods
  • Barrel, drums, and casks,
  • Corrugated and wooden boxes or containers
  • Reels and rolls
  • Equipment, vehicles, and components
  • Steel girders and structural steel
  • Any long, heavy, or over-sized cargo

Benefits of Break Bulk Shipment

The main advantage of this shipping method is that it allows you to move oversized, over-weight load that would not otherwise fit into a container or cargo bin. It can also be an affordable way to ship large cargo since the item will not have to be dismantled to ship

Take note, however, that even when you are not shipping over-sized cargo, break bulk shipment can still be a very advantageous mode of shipment. If you can find a freight forwarding company that specializes in break bulk, you will be able to control your shipping expense when you are shipping a small trial order.

For exporters, shipping in break bulk requires them to put an extra care in packing and labeling goods because break bulk shipments are more prone to theft and damage. Typically, break bulk cargos are packed using the following materials:

  • Pallets
  • Slip sheets
  • Crates

Container Loading

Since the late 1960s, break bulk cargo has declined while containerized cargo has grown significantly. Moving containers on and off a ship are much more efficient than having to move individual goods. This efficiency, therefore allows ships to minimize time in ports and spend more time on the sea.

There are different types of container units that cater to different types and sizes of cargo. The most commonly used by small to medium-sized importers/exporters are the 20-foot container, while large-sized companies often use the 40-foot and 45-foot containers.

The following are approximations of how many pallets or skids can into each type of containers:

  • Ten standards (40”x48”x48”) pallets can fit into a 20’ dry ocean container.
  • 22 standard (40”x48”x48”) pallets can fit into a 40’ or 40HC (high cube) dry ocean container.
  • 24 standard (40”x48”x48”) pallets can fit into a 45’ dry ocean container.

Overall, choosing between break bulk and container loading are mainly depends on the type and quantity of your goods.

Allow Excelsior Worldwide Freight Logistics Corp. to help you navigate the world of import and export. For more information on our breakbulk service, visit our website today at www. excelsior.ph. For any queries that you may have, you may call us at (063) 5259775, or send us an e-mail through wecare@excelsior.ph

 

 

How to Find Foreign Buyers for Your Export Products

excelsior on December 15, 2017

Your export business would not be successful unless you have a substantial client base that trusts your company. Finding export customers can be a challenging task, especially if you are just starting out or entering a new market. However, with the right knowledge and strategy, you will be able to find export trade customers for your products and keep them as regular customers.

Here are five simple ways to find and acquire foreign buyers for your export business:

  1. Attend Trade Shows for Your Industry in the Philippines and Overseas

Numerous trade shows that cater to different industries are conducted in the Philippines every year. It is a great place to start if you want to expand your business, as well as to keep updated with the latest news in your industry. These trade shows let budding export business owners contact international customers, especially they have a complicated product to offer.

  1. Contact Philippine Embassies Located in Countries You Want to Find Customers

Philippine Embassies have an appointed commercial counselor whom you can request a list of companies that might be a good fit for your products as well as buying agents that are actively looking for suppliers like you. These records are usually made available at no cost, but occasionally you may be asked to pay a fee. The websites of Philippine Embassies also have economy and trade section which posts up-to-date industry analyses and manufacturing reports that may be helpful.

  1. Globalize Your Website

Many people and businesses nowadays use the internet to search for the product they need. To fully maximize the potential of your website, you should include the contact information of your international liaison, if you have, on your contact us page. You should also consider translating your website and marketing materials into the language of the countries you are trying to target. Doing so will make you visible to Internet searches conducted in different languages.

  1. Connect with Commission Agents

Foreign wholesalers often have their own commissioned agents or middlemen abroad to find and buy great export products on their behalf. Dealing with these local authorized agents can be far more comfortable than dealing with a foreign-based agent as they require less effort to reach and are more motivated since they are paid on commission.

  1. Use the Tradeline Philippines’ Business Matching System

The Business Matching System is a platform created by Department of Trade and Industry which allows exporters to find foreign buyers for their products. It is one of the most efficient ways for an export business operator to meet with pre-screened potential cross-border business associates, whether you are seeking an agent, a distributor or a joint-venture partner. You can take advantage of this service by contacting your nearest Export Marketing Bureau.

Is Your Broker Really a Licensed Customs Broker or A Fixer? (Infographic)

excelsior on November 29, 2017

When it comes to importing, it’s extremely important to hire a customs broker who can clear your goods safely, quickly, and most importantly – ethically and legally.

However, it’s a common knowledge that there are still unscrupulous importers who use illegitimate people, known as “fixers” to conduct questionable transactions at the Bureau of Customs (BoC) primarily to save on cost or enter illegal shipments insider the country.

Here are some key points that will tell you if the broker you hire is a licensed customs broker or a fixer.

Is Your Broker Really a Licensed Customs Broker or A Fixer

How to Release Your Cargo in Customs Without Delay

excelsior on November 16, 2017

In our previous post, we’ve discussed the process of clearing your imported goods from the Philippine Customs.
While nobody enjoys getting their freight shipments suspended by customs, it can also result in frustrating and costly delays, especially if the goods awaiting customs clearance are meant to be sold at retail. Not only that but with the possibility of some rather sharp penalties for non-compliance, it’s crucial to follow correct customs procedure at all costs to ensure no additional costs or charges on your cargo.

With that in mind, now that you know the step by step of customs clearing, it’s time for you to learn the ways to fast-track the release of your consignment once it reached the Philippine soil. Here’s how:

1. Have Specific Description of the Cargo in All Documents

Make sure that all necessary import documents are properly filled-out to avoid any delays of you receiving your cargos in a timely manner. By detailed description, it is good to follow your SKU description. If it is a box of red shirts, size medium, indicate that exactly. This will aid the process if an exam is required.

Moreover, you need to mark your goods legibly and conspicuously with the country of origin unless exempted. Exemptions usually apply to goods that cannot be individually marked, like tiny items, such as screws. You should, however, mark the sale packaging of these types of items.

At the bottom of customs invoice, including any markings on the packages, and add a notify party, such as your customs broker.

2. Be Ready for the Import Permit (if necessary)

If you’re an accredited importer, the Bureau of Customs will grant you a special permit in the form of a document which you may need to present during the customs clearing process if you’re a first-time importer. Prepare this, along with other necessary documents to prove that you’re a legitimate importer in the Philippines and to avoid possible legal troubles.

3. Provide Proof of Payment

All goods coming from a foreign country needs to be declared, such as their description, quantity, and their value which will be the basis for assessment of duties and taxes. After the right duties and taxes are paid and registered by the customs authority, you will be provided with a proof of payment which you also need to provide during the customs clearing process.

4. Hire Trustworthy Brokerage Company

Having the wrong person handle your customs brokerage can be very problematic. Shipping containers are warehoused as they go through customs clearance. Warehousing and storage fees can add up quickly. If there is a problem with your customs brokerage and your customs clearance does not happen smoothly, your shipping costs could go up by hundreds to thousands of dollars.

By a hiring legitimate and trustworthy brokerage company, you will be able to experience many advantages – one of such is faster customs clearing process. A trustworthy customs broker not only know the shipping industry, but they know the laws better than anyone and can help you not only meet deadlines, but they can save you the headaches associated with importing. Overall, they help ensure the clean reputation of your business in the eyes of the government and market as well.

If you need a professional help to ensure a fast and hassle-free release of your import goods, contact Excelsior Worldwide Logistics Corp. today at (063) 525-9775 or send an email to wecare@excelsior.ph

Excelsior Worldwide Logistics Corp.