excelsior, Author at Excelsior Worldwide Logistics Corp.

6 Biggest Frustrations of Importers and Exporters

excelsior on December 19, 2016

6 Biggest Frustrations of Importers and Exporters

No industry is free from problems and complaints, even the importing and exporting business. As complex as it would appear, the world of import and export can be one of the most daunting endeavors that you would get into, especially if you are not well-versed with its intricacies.

We will uncover some of the enduring pains and nuances that importers and exporters faced in their international trading business. From the struggles of finding an honest customs broker to unseen charges and changing regulations, knowing these situations that might occur in your trading business will make you prepared for the unexpected to a certain degree.

1. Lack of Access to Honest Customs Brokerage Firm

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Many companies are struggling to find an honest customs broker that they can fully trust. It could be because they are still new in the business, or they don’t have any criteria that can help them in the selection process.

Either way, choosing a truthful and straight to point customs brokerage firm can be very beneficial to a business, simply because they make the whole importing and exporting process much easier for you: From doing customs transaction on your behalf to payment of duties and taxes, they make sure that all your freights will arrive at its destination on time, while making significant cost-savings along the process.

2. Faulty and Inefficient Logistics

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Logistics plays a very critical role in a trading business, that is why even a simple glitch can cause pains and nuances to both importer and exporter. This may include delay at the port of loading, delay at transshipment, withdrawal of inbound vessels and many others.

These delays can escalate to a lot of troubles, primarily because these delays are never communicated to consignee until they asked. It also gets worse when the shipping line keeps on giving faulty arrival dates just to save their grounds. This fallacious information can lead to the company not being able to take an alternative course of action, resulting in bigger shipping expense.

3. Insufficient Expertise of the Broker

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Aside from honesty and reliability, another factor or quality that many businesses struggle to find nowadays are an equally capable customs broker. Many small to medium sized companies that import or export their products and doesn’t have someone on staff to manage their customs obligations experience this struggle first.

Instead of making the process much easier for you, partnering with a broker that lacks knowledge about the constantly changing regulations international trade can result in delayed shipments, costly penalties, fees, or worse – a lost customers due to a bad experience.

Their lack of knowledge can also inhibit companies from expanding their sales opportunities beyond their current market. If the customs broker doesn’t have a solid understanding of international trade, then the business may not be able to know the various marketplaces and tariff schedules that they can take advantage of and make significant savings.

4. Hidden Charges

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If dishonesty and lack of knowledge didn’t get you, hidden charges surely will. Because of its complexity, identifying hidden charges in importing and exporting is quite a challenge, especially if you don’t have the service an honest and capable customs brokerage provider.

Some of the cost that is often not accounted for in landed cost calculations are:

• Customs Exams
• Less than Container Load (LCL)Charges
• Port Fees
• Chassis Fee
• Wait Time Fee
• Terms of Sale

These are just some of the factors that can come into play and affect the price you turn out paying for your imported products. You need to be keen to these costs because no matter how well you calculate your landed cost, these “hidden” costs are likely to show up in the final computations of your imports.

5. Severe Document Backlogs

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There are rules and regulations that need to be met in the importing and exporting world to ensure that goods are moved legally without any impediment developing in the process. That is why a delay in documentation process can immensely affect the whole importing process, thus increasing expenses such as storage cost, fines, and penalties.

Customs clearance requires set of documents to be submitted by the importer, by the airline, shipping line or concerned freight forwarder, as well as the customs documentation prepared and submitted by clearing agent on behalf of the importer. So, to avoid any delays, it is important to provide complete and accurate information to the customs broker/freight forwarders so that the clearance process will be smoother and your shipment is less likely to face with any exams

6. Sudden Change of Rules and Regulations

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One of the most terrible situations in the importing/exporting industry are the sudden changes in rules and regulations of the importing and exporting country. For instance, a huge quantity of cargo is in transit, and the country of destination suddenly issues an order that bans the import of that same item that the importer has in-transit.

Since the vessel can no longer unload the freights into the destination country, either the seller or the buyer should bear the loss or will need to look for an alternate buyer in some other country to dump the cargo. Likewise, sudden new taxes and duties on export items may also result to exporter not being able to fulfill the order.

Contingency planning, along with little precautions can help you overcome these notorious headaches in the importing and exporting world. Likewise, these can also be avoided if you partner with a seasoned and competent customs brokerage firm that is driven on giving quality and upright service to their clients.

Let Excelsior Worldwide Freight Logistics Corp. help you throughout the whole importing and exporting process. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph.

Source:
http://www.posteverywhere.com/customs-clearance-problems/
http://www.managementstudyguide.com/imports-documentation-in-customs-clearance.htm#

Incoterms 2010: What’s the Responsibility of Supplier and Buyer? (Infographic)

excelsior on December 9, 2016

Whether you are new in the importing and exporting industry or not, you might have already encountered the term Incoterms in your business. For starters, International Commercial Terms or Incoterms , which the latest edition was released in 2010, is a set of standardized trade terms created and published by International Chamber of Commerce in 1936 to serve as the basis of agreement between the supplier and the buyer that trades internationally.

The latest edition, the Incoterms 2010, contains 11 rules which are divided into two classes: 1. Rules for any mode or modes of transport; and 2. Rules for Sea and Inland Waterway Transport. Both differs in the mode of delivery, but understanding the difference between each rule is critical to know where and when the responsibility of the buyer and the supplier ends.

Detailed below are the duties of buyer and supplier in accordance with the 11 rules in Incoterms 2010.

Why Should You Pay the Correct Customs Duty and Tax?

excelsior on November 30, 2016

In the importing industry, paying the right customs duties and taxes does not only ensure a smooth flow of importation but also saves you from a lot of headaches in the long run. Going back to the basics, 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.

Import duty can also be ad valorem – based on the value of the goods, or specific – based on weight, dimensions, or other units of measure. In the Philippines, the dutiable value of a cargo is the sum of the actual value of the goods, plus the insurance and transport/freight/shipping cost. It will then be multiplied by the rate of duty which may vary according to the type of goods being shipped.

To arrive at Value Added Tax, the dutiable value is combined with customs duty, brokerage fee, and other charges (customs documentary stamp, import processing fee, and BIR documentary stamp) then multiplied to 12% Expanded Value Added Tax rate.

Cutting off the chase, what really are the benefits of paying the correct customs duty and tax? In this post, we will discuss the reasons why paying the correct customs duty and taxes is not only beneficial to you and your business but to the society as well.

Peace of Mind

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Being reviewed by the Bureau of Customs may cause a high amount of stress especially to a taxpayer who intentionally or illegally, decreases their tax payments. Sometimes it can affect even your personal life which gives you sleepless nights and anxieties.

If you pay the right amount of tax, you can eliminate these stress and anxieties. You will have more peace of mind and you can focus on growing your business.

Honest Income Tax Return

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Some importers, who do not file the correct amount of tax, encounters a problem when they need to generate an Income Tax Return for purposes of loan applications. As such, they resort to preparing inaccurate income tax returns in order to produce the said requirements. Producing an inaccurate tax return is extremely risky because if the agency verifies it to the BIR, it might cause a lot of trouble.

However, if you are diligently filing and paying the right amount of tax, it’s easy to produce accurate income tax return without any risk.

Good Investor Reputation

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To grow your business, at some point, you will need people or institutions with money that are willing to invest in your company. These investors will aspect into your financial and tax records to support their investment decisions.

Maintaining a truthful and accurate accounting and tax records will boost the confidence of investors. On the other hand, fraudulent and inaccurate will create an impression that the company is not trustworthy to invest with.

Social Responsibility and Contribution to the Country

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Paying the right amount of duty and tax is a social responsibility to the country. The duties we pay from importing goods has the purpose of protecting our country’s economy, residents, local jobs, environment and so on. The taxes we pay will go to the government funds that will be used in developing and improving the government facilities and life of our countrymen, inside and outside our country.

Overall, as a responsible importer, paying the correct customs duty and tax will ultimately benefit your business as it will make your name more credible in the eyes of the authorities, to your stakeholders, and ultimately, to your clients.

Let Excelsior Worldwide Freight Logistics Corp. help you throughout the whole importing and exporting process. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph.

Importer Facts: Choosing Your Agreement Between Your Supplier – Incoterms 2010

excelsior on November 28, 2016

If you are planning to start an import and export business on an international basis, or you are expecting to receive or ship goods from an overseas market and you already have a list of potential suppliers at hand, the next step that you will take now is to choose the appropriate delivery agreement between you and your supplier.

By that point, you should have already familiarized yourself with the International Commerce Terms or Incoterms, which is a set of standardized trade terms published the International Chamber of Commerce or ICC. As the basis of delivery agreement between you and your overseas supplier, Incoterms usually includes the information on how goods will be delivered, who will cover the payments, who is responsible for insurance, and who handles specific shipping procedures.

The latest edition of Incoterms was released in 2010 and includes eleven rules which are divided into two classes – 1. Rules for Any Mode or Modes of Transport, which may be used without regard to any kind of transportation used; and 2. Rules for Sea and Inland Waterway Transport, which emphasizes that the point of delivery and the destination of the equipment are both ports.

To decide which of these rules is best for your import and export business, we will discuss all the Incoterms 2010 rules and weigh down the advantage of each in terms of passing on responsibilities and cost.

RULES FOR ANY MODE OR MODES OF TRANSPORT

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EXW – Ex Works

According to ICC, Ex works means that the seller delivers when it places the goods at the disposal of the buyer at the seller’s premises or at another named place. This rule places the minimal responsibility to the seller or supplier since they only have to make the goods available, properly packaged at the specified place which is usually at the supplier’s factory or warehouse.

This is not typically used in the cross-border transaction since it presents many transportation difficulties. The buyer also bears all the cost and risks involved in collecting the goods from the seller’s premises to the designated destination.

FCA – Free Carrier

ICC defines Free Carrier as the agreement when the seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place.” When the goods have already been cleared, it can then be delivered by the seller to the carrier at the designated location stated in the contract.

When the goods arrive at the point of location, the buyer will then assume the responsibility. If the location to deliver goods is not mentioned in the contract, the seller may choose within the place or range stated where the carrier take the goods into his charge. This term is usually used in container transport movements such as RO/ RO (roll on – roll off) used by trailers and ferries.

CPT – Carriage Paid To

Carriage Paid To means that the seller fulfills his obligation if they deliver the goods to the carrier or another person nominated by the seller at an agreed place. This is only applicable when the seller contract for and pay the cost of carriage necessary to bring the goods to the named place of destination. Like FCA, the seller may select the point at the named place of destination which best suits its purpose.

The risk of loss and damage to the goods, as well as any additional cost incurred after the goods have been delivered into the custody of the carrier is then transferred to the buyer. If ever that there are several successive carriers, the transport risk passes from the seller to the buyer when the goods are delivered to the first carrier in the chain.

In this term, the seller has no obligation to hire insurance transport to cover the goods from the point place of delivery to the point of destination. The seller is also tasked to complete all the formalities and carry all the costs of customs clearance for export, but not the import clearance needed in the place of destination.

CIP – Carriage and Insurance Paid To

In its most basic format, Carriage and Insurance Paid To means that the goods will be delivered by the seller to carrier or person nominated by the buyer at the place mutually agreed by the seller and the buyer, and that the seller arranges and pays for all costs for the transportation, including insurance (which is usually kept at minimum) of the goods up to the agreed port of destination.

Like CPT, the obligations of the seller end when he successfully delivered the goods to the carrier, but typically do not end until the carrier reaches the agreed destination. Unlike other Incoterms, the stipulated point of delivering under this terms does not necessarily mean that it is the final delivery point.

DAT – Delivered at Terminal

Incoterms “Delivered at Terminal” means that the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. “Terminal” may include place any place, whether covered or not, such as factory, warehouse, container yard or road, rail or cargo terminal.

Under this Incoterms, the seller must complete all the formalities and shoulder all the costs of customs clearance for export. The seller also bears all the risk involved in bringing the goods to and unloading them all at the terminal at the named port or place of the destination.

DAP – Delivered at Place

Incoterms “Delivered at Place” means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. Under this Incoterms, the seller agrees to pay all costs and assumes all risks related to bringing the goods up to the place of destination.

DDP – Delivery Duty Paid

Incoterms “Delivery Duty Paid” means that the seller fulfills their obligation when they successfully delivered the goods at the named place in the country of importation. Under this terms, the seller has to shoulder all the costs and risks related to delivering the goods to the place of destination. Unlike the other Incoterms, the seller has also the obligation to clear the goods not only for export but also for import, which means that they have to pay any duty for both export and import and to carry out all customs formalities. While Ex Works is Incoterms that represents the minimum obligation by the seller, Delivery Duty Paid represents the maximum obligation.

RULES FOR SEA AND INLAND WATERWAY TRANSPORT

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FAS – Free Alongside Ship

Free Alongside Ship basically means that the seller fulfills their obligation when the goods have been placed alongside the vessel on the quay or on a barge at the named port of shipment. This means that the seller has to carry all the risks of loss and damage to the goods until the goods are alongside the ship. Under this terms, the buyer is required to clear the goods for export, and should only be used when the buyer does not have the capacity to carry out directly or indirectly the export formalities.

FOB – Free on Board

Incoterms Free on Board states that the seller fulfills their obligation when the goods have been delivered on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered. This Incoterms indicates that the seller has to shoulder all the costs and risks of loss and damage to the goods until the goods have finally arrived on board the vessel, and the buyer will bear all costs from that moment onwards.

CFR – Cost and Freight

Cost and Freight Incoterms mean that seller delivers the goods on board the vessel or procures the goods already so delivered. The seller covers all the risks of loss and damage to the goods until the goods are on board the vessel. However, the seller has to shoulder the costs of bringing the goods from the point of origin to the place of destination. They are also tasked to clear the goods for export, but never on insurance.

CIF – Cost, Insurance, and Freight

Cost, Insurance, and Freight Incoterms is almost identical to CFR – with an exception for the insurance portion. Under this Incoterms, the seller fulfills their obligation to deliver when the goods are already placed on board the vessel or procure the goods already so delivered. Like CFR, the risks of loss and damage passes when the goods are on board the vessel. Aside from freight and clearance cost, the seller has to procure and pay for a marine insurance against the buyer’s risks of loss of or damage to the goods while in transit.

Choosing the appropriate Incoterms is one of the most important step in the shipping process as it ensures that both parties – the seller and the buyer – understands their responsibilities. It also streamlines the whole shipping process so that goods will arrive at the point of destination with less time and hassle, which is a win-win situation both for the seller and buyer.

If you have any questions about Incoterms, feel free to call Excelsior Worldwide Freight Logistics Corp. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph

Types of Bill of Lading That Affects Your Import & Export Business (Infographic)

excelsior on November 21, 2016

Bill of Lading (BOL, Waybill) is a legal document between the shipping carrier and the business which acts as 1) a proof of contract of carriage, 2) receipt of goods, and 3) document of title of goods. It is considered as one of the most important documents in the whole shipping and freight process. Unknown to many, bill lading has many types, and each of these has its own purpose and set of specific instructions for the shipping carrier.

Check out this visual guide as we present some of the most common types of bill of lading used in the importing and exporting business.

Advantage of Having the Services of a Freight Forwarding Company

excelsior on October 29, 2016

Advantage of Having the Services of a Freight Forwarding Company

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In the shipping world, one of the most common catchphrases that we often hear is the freight forwarder or forwarding agent. As one of the most critical elements in the global supply chain, freight forwarder has the task to assist and support you in the importing and exporting process- ensuring that all your goods are delivered to your warehouse safely and efficiently.

As your business grow and expand, and the competition in the industry becomes stiffer, you must also keep up with the number of shipments that must be delivered to your customers locally and abroad. To achieve that, you can have the services of a freight forwarding company to manage the shipping function on your behalf, while you stay focus on the things you do best. Detailed below are some the key advantages of using a freight forwarder in your business.

Freight Forwarders Offers Services That Are Rather Complex for You to Handle

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Choosing a freight forwarding service instead of handling the whole logistics functions in-house or another type of logistics provider can bring in a lot of difference especially on the type of services that they can handle. A lot of small and medium enterprises doesn’t have the capability and resources to manage all the shipping requirements effectively, in which case a freight forwarder does have.

Using their knowledge and skills in the importing and exporting industry, they can transport your cargo to any destinations more efficiently. They have the resources to handle unexpected circumstances like redirected shipments or delays, saving you a lot of time and effort in the process.

Some of the services that a freight forwarding provides includes:

Inland Transportation Tracking- Freight forwarding firms track your shipments while they are in transit by truck, rail, or air.
Shipping and Export Documents Preparation- Because shipping a high volume of goods is just another day for freight forwarders, they have all the required skills in the shipping documentation.
Warehousing- They either have their own warehouse in several locations or lease one in an area they don’t service themselves.
Booking Cargo Space- They know which carriers are best at serving a location so they have the advantage when it comes to shipping abroad or even to various regional domestic markets.
Freight Consolidation- They can turn several small shipments into one large shipment at a lower cost.
Cargo Insurance/ Filing Insurance Claims- Because of their knowledge about the intricacies of shipments, they can obtain insurance coverage for your shipments as well as how to deal with insurance should anything go wrong with a shipment.
Freight Forwarders Offers a Specific Set of Services at an Ideal Cost

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Another advantage of having the service of a freight forwarding company in relation to other outsourcing logistics solutions, such as third-party logistics companies or freight brokers, is that they offer a specific set of services which prices are ideal and more cost-effective than 3PL companies that have a broader range of services and freight brokers whose scope of services is only limited to arranging the mode of transportation and does not issue their own bill of lading.Freight forwarders, because of their large network of connections for their services, can negotiate with carriers for lower cost due to the high volume of containers they ship. They can find better freight quotes and have the knowledge which carrier has the most cost-effective routes, allowing your shipments to reach their final destinations faster and at an ideal price.

Freight Forwarders Brings Simplicity

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Truth be told, the shipping industry is indeed full of complexities and volatility. Dealing with these by yourself might result into an expensive shipping process or worst- lost shipments. By having the services of a freight forwarding company, your shipments can move much easier because you are only communicating with one entity.
For one aggregated cost from a single freight forwarding company, you can save a lot of time, money and frustrations. You do not have to mingle with the different trucking company, air carrier, and an ocean carrier to negotiate for services and compare prices because freight forwarders combine these to give you more flexible shipping options.

Freight Forwarders Gives You Sense of Control

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Manageability and organization are one of the most important aspects for many businesses today, especially in logistics function. Freight forwarders give its clients a sense of control over their supply chain, allowing them to foresee the risks as well as to recover quickly in the event of loss of shipments. Compared to many 3PL companies who have a broader breadth of service and stiff structure, freight forwarders have a unique combination of services which allows you to modify the shipping plan to make sure all your shipments reach their destination safely and in a timely manner.

Furthermore, many 3PL companies, due to their wide-ranging scope of services, cannot offer transparency and personal touch that international shippers need. If your shipment is lost, it could take a very long time before you get the answer you need. Freight forwarders, on the other hand, utilize their wide range of networks to quickly trace the issue to its roots, acclaiming solution at first-hand.

These are just some of the many reasons why partnering with a freight forwarder can help your import or export business grow and expand. Knowing these benefits, what you should do now is to evaluate if your needs do qualify for a freight forwarding service since not every shipment demands this type of shipping arrangement.

Finding an Honest and Reliable Freight Forwarder?

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You’ve found one! As an international freight forwarder, Excelsior Worldwide Logistics Corp. ensures that each cargo arrives at its destination safely and in a timely manner. We act as your shipping agent to transport your cargo from point A to point B without hassle. Plus, our wide network of air, sea, and land carriers allows your shipments to travel on the most effective routes across different channels. Let Excelsior guide you in the world of shipment today. Call us at (+632) 525-9775 or send us an email at wecare@excelsior.ph

Importer Tips: How to Avoid Shipping Storage and Demurrage

excelsior on October 19, 2016

If you’re new in the importing or exporting world, you might be surprised to receive an unexpected bill showing demurrage, storage & detention charges – terms that you haven’t even heard yet, let alone know the cause. Or you might have experienced this already for some time now, but either way, these costs might hurt your pockets big time. So, to clear up your confusion, let’s talk about when you might see these charges, and how you can avoid them.

Storage

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Storage charges accumulate at port facilities, airline terminals, and bonded warehouses when a container remains at the site beyond the allotted “free days” provided by the airline, warehouse or Arrastre operator after arrival.

Storage Fee- with standard rate for FCL (see PPA memo). Standard Free time 5 days.

for LCL (see BOC CMO 41-15)

Cut your losses by following these tips to avoid storage cost:

Ensure that there are no issues with the shipping documents. It is the common reason for delaying the release of container.
For regular cargo, consider a Seaway Bill of Lading/Telexed Release instead of an Original Bill of Lading.
Always keep a keen eye over your shipment and the arrival of the vessel, so you will know exactly when you free time initiates and expires.
Advise broker for immediate releasing.

Demurrage

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Demurrage fee is levied by shipping lines for containerized shipments only, however, this fee is charged when the containers are still full and has not been cleared up by the consignee within the seven (7) days free time & extendable as per approval of the shipping line.
Menacing as it is, here are some tips to avoid demurrage charges:

Talk with your freight forwarder and know in advance a number of free days granted.
Dispatch your shipment as early as possible. Excelsior Worldwide Logistics can help you clear your cargo ahead of time provided that all documents handed in a timely manner.
If your shipment comes in volumes, you may request an additional free time from your freight forwarder or carrier. (Most often, the volume of your shipments should be close to 1,000 containers per year to be granted for extended free time.)?
Ensure that your trucking company can pick up the shipments within the allotted free time, and a trucker has been assigned to your shipment. Set-up a backup or alternate trucker in the case of any circumstances that will prevent them from picking up your cargo in a timely manner.
Analyze all the papers containing the terms and conditions of your transportation, warehousing, and sales contracts to find out the situations under which your company may be held responsible for demurrage charges.

Detention

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When the container has been picked up and out gated from the terminal, it must be returned within 72 hours otherwise detention charges will be imposed.

As always, it is important to seek the help of a licensed customs broker and freight forwarder to help you avoid or lessen this unplanned additional charges you might incur in importing/exporting process. They can help you understand the whole shipping process, and makes sure that you stay ahead of schedule and your cargo will move in a timely manner.

Allow Excelsior Worldwide to help you ensure a storage free -demurrage free clearance of shipments. Contact us today to learn more about our global logistics. Call (063) 5259775 or visit our website www.excelsior.ph

Importer Facts: What to Pay and Not Pay? (Infographic)

excelsior on October 11, 2016

Importation is quite tricky, especially if you’re not aware of the costs that come with it. It is important to understand the basic charges you have and you don’t have to pay in order to come up with a solid figure you have to prepare when your goods have finally arrived in the port; cleared and delivered to your warehouse.

Aside from the product you have purchased abroad, here are some of the costs that you should assume from the importing process.

Advantages of Having an Honest Customs Broker

excelsior on September 26, 2016

Advantages of Having an Honest Customs Broker

Professionalism and Integrity have always been an imperative aspect in every industry. In trading business, it is an utmost priority to choose an honest and capable customs brokerage firm to ensure that the import and export operations are done diligently and legitimately. Likewise, getting your shipments abroad or on the local shores without worrying about legal and ethical dilemmas is the core purpose of why customs brokerage are here to be present.

Check our thoughts below and see why a truthful and straight to the point customs brokerage company is going to be your greatest ally in your import and/or export business.

They Will Take Proper Care of Shipping All Your Products

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A genuine customs broker makes sure that all of your freights will arrive at your local warehouse on-time and with no legal requirements bypassed. A legitimate customs brokerage firm ensures that you are complying with various Customs Regulations. If these regulations are neglected or avoided, it may cause time delay on delivering the shipments, or worst, get the shipments confiscated by customs authorities.

If you leave your customs responsibilities to a non-seasoned and incapable customs broker, you might just be surprised to see your products all piled up in the port- seized by authorities, and you ending up paying a large sum of penalties or even face criminal liabilities, which can taint the reputation of your company.

An honest customs broker, aside from assisting you with all legal requirements, will give you advice on additional up-to-date Customs compliance on constantly changing trade rules and security requirements- thus protecting your business against costly penalties and customs audits.

They Allow Your Company to Retain More Money Than Losing It.

Free stock photo of money, finance, bills, bank notes

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Basically, doing the customs responsibilities in-house requires having various hardware and software to carry out the task. In addition, these installations will also incur periodical maintenance cost and other associated overhead related to having an in-house Customs expert. A customs broker firm who is dedicated to serving its clients truthfully and to the full extent is equipped with various programs and technology to help you perform your import and export task or communicate with Customs officials.

Also, although it is the basic duty of a customs broker to steer your company clear of shipments problems, they will also seek out and take advantage of applicable trade agreements opportunities. Trade agreements like ASEAN, JPEPA, and EFTA free trade agreement can reduce shipping duties and taxes, allowing your company to retain more money.

An Honest Customs Broker Will Tell You Which Goods They Specializes In

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Truth to be told, some customs brokerage companies today doesn’t mind the type of product that your company is shipping. Having said that, it is important to get an honest customs broker that will tell what kind of products they specialize in or is at least familiar with the goods you’re shipping. For instance, if you’re shipping electronic components for export, you don’t want a broker a broker that mostly handles household commodities.

If your customs broker is honest with you, they will tell you right ahead that they are not yet capable handling the product you want to ship, but given that a professional relationship has been established, they will give you the best options on how you can ship your products with without worrying too much about its safety. Of course, this includes trust, formal agreements, and other arrangements that will ensure that your goods are handled properly.

They Understand Your Goals and Reason for Shipping.

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Another thing that makes an honest customs broker investment worthy is that they analyze your goals and reason for merchandising such product. This not only enables them to form a much stronger partnership with you but also giving them the foundation for the proper distribution strategy that they have to employ.

A professional broker will take an interest in learning the mechanics of your business and asks questions about your business model- giving an outside yet fresh perspective and insights subsequently. To achieve this, a two-way communication must exist first, and a thorough understanding of your company’s key strengths and weaknesses must be established during the negotiation stage.

They Are Willing to Correct Mistakes and Prompt for What’s Missing.

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If you want to seek the help of a customs broker, you must first provide all the necessary paperwork to them. And because you are ultimately responsible for the filing and paying taxes and duties, you should look for a reliable and a sincere customs broker who are willing to correct mistakes and is quick in notifying you for missing important details. If it is your first time to ship products, an honest customs broker should recognize that you are right after you talk to them. They will assist on every aspect of customs along the way, and wouldn’t wait for you to give them what they need.
They are proactive, and will provide it because it is part of the relationship. Given that you have checked their credibility- some unique situations wherein they were able to help other companies on certain issues or their level of emphasis on details, accuracy, and compliance- it is guaranteed that a synergetic type of relationship will ensue between your chosen broker and your company.

In conclusion, a reliable and ethical customs broker should give you the peace of mind and confidence in every importing and/or export endeavors. At Excelsior Worldwide Freight Logistic and Excelsior Customs Brokerage, we ensure that your shipments will be able to cross international borders in a safe and efficient way. And because we strongly believe that your time is a critical element in your business strategy, we want to offer you a customs brokerage service that is well-grounded on professionalism, integrity, and efficiency.

To know more about Excelsior, visit http://www.excelsior.ph.

Importer Checklist: Save Time and Money (Infographic)

excelsior on September 9, 2016

Being competitive in today’s market requires your overall business operations to be fast and smart in every step of the way, all while maintaining a sound profit and cash flow. Many of the trade leaders nowadays see importing as a strategic move to overcome the strains in this overly competitive market. Importing, especially if it’s the backbone of your business, can give you an upper-hand in the market if executed carefully. Whether it’s your first time to import products from other countries or not, it is always important to know the basics and other fundamental factors that can affect the whole importation process. To help you carry it out, we’ve put together seven things that can actually save you time and money when bringing in those raw materials and products into the local area of your operations.