Steps to Competitively Price Your Import/Export Product (Infographic)
How to Find Foreign Buyers for Your Export Products
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:
- 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.
- 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.
- 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.
- 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.
- 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)
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.
How to Release Your Cargo in Customs Without Delay
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
Common Mistakes in Import & Export Business (Infographic)
The import and export business is still the most lucrative industry anyone could venture into. Aside from the wide range of goods to choose from, playing a critical role as an importer/exporter can help you generate anywhere from a few thousand to millions of dollars monthly in revenue.
While the import/export business may be highly attractive to those who want to start a business with great potentials to generate large revenues, not playing your cards right or making petty mistakes can cause you to lose a great portion of you import/export business, here are six common import/export mistakes to avoid at all costs:
How to Release Imported Item from Philippine Customs
In this post, we will walk you through the steps by step guide on how to release your imported shipments from the Philippine Bureau of Customs (BoC)
Step 1: For new company or individual who wants to import any commodities with commercial value and or in commercial quantity, you first need an Import Clearance Certificate from the Bureau of Internal Revenue. Then you need to apply for Importer’s Accreditation to the Bureau of Customs. Only accredited importers have the privileges to imports any commodities whether regulated imported commodities or freely imported commodities.
Step 2: Import documents required for shipments to the Philippines include:
1. Commercial invoice/Pro-Forma invoice
- Should include a detailed description of the goods i.e. what is it made of, what is it part of, what is it used for.
- The value indicated must be correct. If the shipment consists of more than one item, the importer must provide a value breakdown and ensure that the total amount tally to the total value of the shipment.
- The value must be transaction value – the price paid or payable – for the item/s in case the item has been provided free of charge or as a gift.
- Putting “No Commercial Value” will lead to Customs asking the consignee to provide value evidence such as proof of payment, purchase order, or telegraphic transfer.
- The invoice should also include the quantity, weight, unit price, currency and country of origin (COO).
2. Bill of lading (for sea freight) or air waybill (for air freight)
- Should be filled out completely and accurately.
- Make sure all the information is consistent with the commercial invoice.
- A revision in the declared value once a shipment reaches the destination port is subject to Customs approval.
- Make sure to include a reachable consignee contact so the destination port can easily inform them about the shipment’s arrival and advise of any necessary clearance paperwork.
3. Packing list – A document that details the merchandise in the shipment, along with information on how it was packed, how the items are numbered, the serial numbers, and the weight and dimensions of each item.
4. Applicable special certificates/import clearance/permit depending on the nature of goods being shipped and/or requested by the importer/bank/letter of credit clause, e.g., Food and Drug Administration (FDA) license; and
5. Commercial Invoice of Returned Philippine Goods and/or Supplemental Declaration on Valuation.
6. For a Letter of Credit (L/C) transaction, a duly accomplished L/C, including a Pro-Forma Invoice and Import Entry Declaration for Advance Customs Import Duty (ACID) is required. A Pro-Forma Invoice is required for non-L/C transactions (e.g., Draft Documents against Acceptance (D/A), Documents against Payment (D/P), Open Account (OA) or self-funded documentation).
7. Additional documents for certain imports – Importers bringing in animals, plants, foodstuff, medicine or chemicals must additionally obtain a Certificate of Product Registration from the Philippines’ Food and Drug Administration.
Step 3: File an Entry
Entry must be filed in the Customhouse within 30 days from the date of discharge of the last package from the vessel, which shall not be extendible. Failure to file the entry constitutes implied abandonment and will result in the ‘ipso facto’ forfeiture of the goods/shipment.
You or your customs broker may have the software to file Bill of Entry at office or home. If you do not have such facility, you can approach private EDI (Electronic Data Information) service providers who can arrange to submit the data on behalf of you.
Step 4: Payment of Duties and Taxes for ATRIG
- An ATRIG is an authority issued by the BIR, addressed to the Commissioner of Customs, allowing the release of imported goods from customs custody upon payment of applicable taxes, or proof of exemption from payment thereof, whichever is applicable.
- The BIR Revenue Memorandum Order (RMO) No. 1-2016 directs all applications for ATRIGs for excisable products be processed and issued centrally at the BIR National Office in Quezon City.
- Only applications of importer-applicant and broker-representative who are duly registered BIR taxpayers will be processed.
- An individual importer-applicant must present a photocopy of his/her latest annual income tax return together with the audited financial statements duly stamped received by the BIR. These will be used in the valuation of the individual importer-applicant’s financial capacity to import.
- Prior ocular inspection of the imported goods would be conducted if necessary.
Step 5: Release of Cargo
Upon satisfying all these requirements of, you can now retrieve your import goods from the Customs.
The import customs clearance procedure in the Philippines can be very lengthy and tedious, especially for those small and medium businesses. 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
Advantages of Being an Accredited Importer (Infographic)
Responding to the economy’s endeavor of progress, a factor of its primary resource needs to comply and go with the flow of its demand. Through importation, Philippine economy continuously grows and expand. However, the government which is responsible for regulating and facilitating trade, implement strict policies on the importation process in order to prevent smuggling and to combat tax fraud and evasion.
Accreditation of importer is a necessity when facilitating a transaction with the Bureau of Customs (BOC) wherein ease of processing of documents and release of goods are involved. Importers need to be accredited with the BOC which is indispensable because once you are not, the agency will not recognize your papers. Otherwise, gaining accreditation from the Bureau equals to certainty that your shipment will be entered in any customs office at ease.
Importation is a Privilege given by the government. It is not a right.
Tips to Run a Successful Importation Business
In this post, we will give you some proven tips and tricks that will surely help you run a successful importation business today.
- Create Your Website and Start Blogging
One of the most effective ways to find networks, potential investors, and customers is through a website. According to statistics, over 6 billion searches are being made each day, making it the most cost-effective platform you can use to market your business today.
- Make sure to register your new business with the Department of Trade and Industry if it’s a sole proprietorship, and to Securities and Exchange Commission (SEC) if it is a partnership or corporation.
- Get a domain name. While it is very common for businesses to have domain names that are the same as their business names (such as walmart.com), you can pick a domain name to include any text phrase you want as long as it is not already taken.
- Choose a website builder. Website builders are tools that typically allow the construction of websites without manual code editing. To know more about this, check this guide to choosing the right website builder.
- After you build your business website, it’s time to fill your website with content and information relevant to your products and services. Check out this post to learn more about successful business blogging.
- Select a Product to Import
There are a lot of ways to select the product you want to import and sell in your locality. For example, you can import the products which are currently trending in your area but is not fully satisfied yet by the local providers.
You can also create your own product, such as handmade crafts, then source the raw materials from other countries. Whatever it is you want to sell, make sure that there is a viable market for it, and you know exactly the selling points of that product in the market.
- Find the Right Market
After you identified the product you want to sell, you need to pick someplace to sell it. Here are some tips to help you pick the right market for your product:
- Know what you are offering and you will be able to determine who will be buying it.
- Do the right amount of research. By collecting some useful data on the market situations, needs and customer’s profitability you can design marketing strategy which will work in the targeted niche.
- Your business model matters. Running a B2B or B2C business determines the niche strategy you should develop for your import business.
- Find a Reputable Supplier
The easiest way to find a supplier for the product you want to import is to consult some specialized online resources: Alibaba, Global Sources, ThomasNet, Makers Row, and MFG. You can also try searching the internet for specific keywords, for example, “Taiwan, bicycle parts manufacturers” to see what is currently available online. Either way, ensure the following when choosing an overseas supplier:
- Make sure they are a good fit for your company: provides impressive product information, packaging, process, and has a world-class reputation in the industry.
- Make sure they have the capacity to keep up with the demand.
- Make sure you have what it takes to out the import partnership you’re about to make.
- Set the Price of Your Product
Typically, importers use the cost-plus pricing method to price their import goods. In this method, the importer takes a markup percentage over cost – which is the price charged by the overseas supplier to you when you buy from them. That markup becomes your profit or commission.
The goal is to price your product with markup that will not exceed what your target market is willing to spend. The more goods you sell, the more profits you’ll generate.
- Find Customers
As long as your website ranks well in search engines, customers will be able to find you in the online space. However, you should also use other ways to find customers. Check with local contacts, such as trade organizations, Philippine Chamber of Commerce & Industry, embassies and trade consulates.
These organizations can provide you with contact lists specific to your industry and also suggest trade shows that are taking place locally and internationally that might help you connect with potential customers.
You can also use other digital platforms such as social media to connect with your customers in a faster and efficient manner. Facebook, LinkedIn, and Twitter are full of users seeking for products and services, so using these platforms can help you stay relevant and present to potential customers worldwide.
- Select a Trustworthy Freight Forwarder
Your chosen freight forwarder can make or break your import business, so choose one wisely. Excelsior Worldwide Freight Logistics Corp. is a global freight forwarder that can help you transport your import goods to where you will be selling it in an efficient and timely manner.
Our trustworthy and reliable international freight forwarding service has been the backbone of many import business in the Philippines for 16 years. Catering to different industries, our logistics service has saved all our clients a lot of time, effort and anxiety. Not only we help our clients with their transport needs, we also help them prepare all the necessary shipping arrangements to ensure a seamless import process. With our expertise in Philippine importation process, you will be able to ensure a more successful importation business than you could have ever imagined!
These are the proven tips that will help you run a successful importation business in the Philippines. If you want to learn more about our freight forwarding services, Contact Excelsior Worldwide Freight Logistics Corp. today at (+632) 525-9775 or email us at wecare@excelsior.ph.
Why You Need A Legitimate Licensed Customs Broker (Infographic)
To be successful, one should have a full grasp of the complexities of trading such as the customs rules and regulations that need to be understood and followed throughout the whole importation process.
Cargo Insurance: Top Reasons Why Your Import/Export Business Need It!
In every type of business, it’s minimizing risk is equally important as achieving maximum return. If your business imports or exports its products, it means you’re putting an investment at stake every time you ship cargo. This is why it is extremely vital to have your cargo covered with cargo insurance because your business could lose an absolutely insane amount of money in case everything went spiraling down.
In the Philippines, under Sec.99 of Presidential Decree No. 612, also known as Insurance Code of the Philippines, a marine insurance should cover you against damages or loss on:
• Vessels, craft, aircraft, vehicles, goods, freights, cargoes, merchandise, effects, disbursements, profits, moneys, securities, chooses in action, evidences of debts, valuable papers, bottomry, and respondentia interests and all other kinds of property and interests therein, in respect to, appertaining to or in connection with any and all risks or perils of navigation, transit or transportation, or while being assembled, packed, crated, baled, compressed or similarly prepared for shipment or while awaiting shipment, or during any delays, storage, transhipment, or reshipment incident thereto, including war risks, marine builder’s risks, and all personal property floater risks;
• Person or property in connection with or appertaining to a marine, inland marine, transit or transportation insurance, including liability for loss of or damage arising out of or in connection with the construction, repair, operation, maintenance or use of the subject matter of such insurance (but not including life insurance or surety bonds nor insurance against loss by reason of bodily injury to any person arising out of ownership, maintenance, or use of automobiles);
• Precious stones, jewels, jewelry, precious metals, whether in course of transportation or otherwise.
• Bridges, tunnels and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents and supplies held in storage); piers, wharves, docks and slips, and other aids to navigation and transportation, including dry docks and marine railways, dams and appurtenant facilities for the control of waterways.
• “Marine protection and indemnity insurance,” meaning insurance against, or against legal liability of the insured for loss, damage, or expense incident to ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft or instrumentality in use of ocean or inland waterways, including liability of the insured for personal injury, illness or death or for loss of or damage to the property of another person.
Whether exporting or importing or using an air freight or ocean freight for your international shipping, marine cargo insurance covers loss and/or damage of cargo while it is in transit between the points or origin and final destination.
Here are five reasons why your import/export business need to protect your freight with cargo insurance.
1. Reduce Risk of Financial Loss
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Whether you’re an exporter who has not been paid for the goods at the time of shipment or an importer who has paid for all of the goods prior to receiving the, having your cargo insured protects you from potential financial loss if the goods are lost or damaged during the transit.
2. General Average – Speed up the Release of Your Cargo
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In cargo insurance, general average means general loss. When the general average is declared, both the ocean carrier and the cargo owners are liable for loss or damage to all the cargos aboard in the ship, as well as the ship itself. Under this circumstance, you may be required to post a bond and/or cash deposit in order to obtain the release of your cargo following a general average – even though there was no loss or damage to your goods.
By availing cargo insurance, you take the load off your shoulder as the insurance company assumes the responsibility and expedites the release of your cargo.
3. Contractual Requirement
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If your customers obligate you through a contract to provide ocean cargo insurance, that is because they want to protect their interest and or their bank’s interest as well. This is especially true when selling goods in CIP or CIF (click the link to learn more about Incoterms). Failing to avail cargo insurance cannot only subject you to financial loss if there is loss or damage to the goods, but non-compliance with the terms of your contract with the buyer can also result in loss of sales and legal problems.
4. Coverage for Limited Carrier Liability
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By law, carriers are not fully responsible for many common causes of loss in transit e.g. Acts of God, general average, etc. In the event they are liable, their liability is also limited – either by contract stipulated in the bill of lading or by law. To make up for the limited carrier liability, the best thing that you can do is to purchase a cargo insurance.
5. More Control Over Terms
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While counting on your buyer’s or seller’s insurance may be a viable option, having a cargo insurance provides another layer of security and peace of mind. Purchasing a cargo insurance puts you on the higher ground by giving you more control over insuring terms, valuation, and limits provided by each insurer, ensuring that all these are a perfect match to your business’ needs. As an importer, purchasing your own cargo insurance saves you a lot of time and effort from dealing with foreign insurance company provided by the seller, especially from a country with a different language.
These are the top compelling reasons why you should definitely need a cargo insurance for your import/export business. Want to know more? Contact Excelsior Worldwide Freight Logistics Corp. and let us help you in your journey in the import-export industry this 2017 and beyond. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph.