excelsior, Author at Excelsior Worldwide Logistics Corp.

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.

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.

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

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.

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

What Are the Factors That Affect Ocean Freight Rates? (Infographic)

excelsior on February 28, 2018

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.