Importer Tips: How to Avoid Shipping Storage and Demurrage

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)

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.importer-facts-what-to-pay-and-not-pay-hd

 

Advantages of Having an Honest Customs Broker

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.

  1. They Will Take Proper Care of Shipping All Your Products
Steel Container on Container Dock

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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.

  1. They Allow Your Company to Retain More Money Than Losing It.
Free stock photo of money, finance, bills, bank notes

Image from Pexels

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.

 

  1. An Honest Customs Broker Will Tell You Which Goods They Specializes In
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Image from Pexels

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.

  1. They Understand Your Goals and Reason for Shipping.
3 Women in Suit Sitting

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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.

 

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

 

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Image from Forbes

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)

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.

importer-checklist-to-save-time-and-money-hd-1

How To Choose The Best Customs Broker

How To Choose The Best Customs Broker

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Customs brokers provide professional and expert service on customs clearance
of goods during importing and exporting. Customs brokers are in charge of
making sure that the rules and regulations of international trade are consistently
met, and they are responsible for the interaction and communication with the
customs of a shipment’s country destination.

There are several factors that must be taken into consideration when it comes to
choosing the best customs broker.

1. Eligibility

The very first thing that you need to check with your customs broker is their
eligibility. Your customs broker must be a license holder, which means that he or
she is an accredited customs broker, and he or she has been able to pass the
licensure examination specific for customs brokers. Moreover, if you are looking
for a customs brokerage company, this company must empower its employees to
become licensed customs brokers.

In order to become a licensed customs broker, one must go through a four-year
course and take a licensure exam, which in the Philippines is administered and
regulated by the Philippine Regulatory Committee (PRC). The intensive
education process that licensed customs brokers goes through enables them to
have the confidence and efficiency that they need to carry out their
responsibilities.

Every country usually has an official list of active brokers from the government. It
will be wise to first check with this list for any customs broker that you will be able
to get in touch with.

For the official list released by the Bureau of Customs of the Philippines, the list
can be found here.

2. Technical Knowledge and Skills

Interfacing with the local and international customs is no mean feat.

The laws, rules, and regulatory requirements pertaining to transport of goods can
be very complex. This is why it is critical for your customs broker to have a high
level of technical knowledge, as well as access to up-to-date information when it
comes to shipments, importation, and exportation. Your customs broker must
have high understanding of entry protocols and requirements, valuation, fines and penalties, taxes, and the like.

3. Track record

It is also wise to ask industry peers for recommended customs brokers, as well
as existing clients of customs brokers for feedback regarding their performance.
This way, you can gauge their integrity, professionalism, and level expertise.

You might also want to consider making sure that your customs broker of choice
has no pending case with the customs of any country.

4. Specialty and experience

The ease of any work always depends on the experience of the one doing the
work. Customs brokerage is no different. You need to consider working with a
customs broker who has had experience, or better yet, has a specialization in the
handling of the goods that you will be shipping.

This way, you will not be caught off guard when it comes to duties, taxes, and regulations, or even obscure agreements and provisions, special cases, or some
exceptions to the rule, if there are any. After all, each country has a unique set of
shipping rules and regulations, and all goods are handled and shipped in a
specific way.

5. Professionalism and Integrity

The customs broker is the one who interfaces with customs in behalf of the
importer or exporter. This means that the customs broker is the one who
represents you and your business. In this regard, it is important to have a
customs broker who is able to satisfy all legal requirements in an efficient,
effective, and ethical way.

Moreover, the goods that you are shipping are valuable, and oftentimes irreplaceable. It is therefore important to make sure that these goods are being
handled by people only with utmost professionalism and unbreakable integrity.

Choosing to work with a customs broker is one thing, and choosing the best
customs broker for your business and your goods is another thing. It is important
to make sure that the customs broker you are working with actually has what it
takes to get the job done for you, and provide you with a service that is
exceptional and efficient.

Excelsior is a freight logistics corporation who not only moves your shipment, but
also takes care of customs clearance on your behalf. Excelsior has been
providing exceptional, excellent, and experienced service for 15 years,
throughout all the phases of shipment – from freight forwarding to customs
brokerage.

You can also be assured that at Excelsior, we value or partners (we treat our
people as partners, not employees). We support and encourage all partners to
become licensed customs brokers. This is to make sure that our clients are
provided only with excellent customs expertise and superior customer service. To
date, 80% of Excelsior Partners are customs administration graduates. Six of the
Excelsior Partners are licensed customs brokers; we are proud to note that this
number exceeds industry average today.

Allow Excelsior Worldwide to help you navigate through the world of import and
export. For more information on our customs brokerage services and to know
more about Excelsior, visit our website today at /. For any
queries that you may have, you may call us at (063) 5259775, or send us an
e-mail through wecare@excelsior.ph.

What Is a Customs Broker and Why Do You Need One?

What Is a Customs Broker and Why Do You Need One?

Importing and exporting are two strategies currently being used in business expansion. In exporting, a business grows by tapping into international markets
and establishing international contacts. In importing, a business is able to provide
solutions to existing problems, as well as supply existing needs, through granting
access to products needed locally but only available elsewhere.

In the process of importing and exporting, the shipment will have to come in
contact with the customs, a government agency that manages and regulates the
flow of goods in and out of any country.

This is where a customs broker plays an important role.

A customs broker is a licensed individual or firm that ushers all shipment,
whether imported or exported, through customs. It is the broker who represents
the shipper when it comes to any dealings with the customs authorities, and
prepares the necessary documents for the shipment. A customs broker also
ensures that every phase of the shipment is consistent with the set rules and
regulations of goods transfers, which are unique, and not to mention constantly
changing, in every country.

Customs brokers also provide assistance when it comes to the classification, valuation, and entry protocols of goods, while making sure that all details and
necessary procedures associated are ironed out. Customs brokers also ensure
correct information with regard to taxes and tariffs, all in an effort to usher goods
towards its destination in an efficient and timely manner. The timely and efficient
ushering of shipment is critical because any form of delay in customs clearance
will cost a significant amount of time and money.

It is also important to note that communicating with different countries is no mean
feat, especially if there is a language barrier. In this sense, the customs broker
also serves as a translator, thereby ensuring that communication lines are not
broken or unduly diverted.

All in all, a customs broker performs all technical coordination functions relating
to importation, exportation, and overall goods transfers.

Because of the laborious nature of the processes involved in international trade,
as well as the technical requirements associated with importation, exportation,
and customs transactions, it is highly advisable for any business to avail of the
professional service offered by customs brokers. This way, businesses will have
the confidence and peace of mind that their shipments will be able to cross
international borders in a safe and efficient way. Furthermore, the services that
customs brokers provide enables business owners and staff to focus exactly on
what they need to focus on: managing their business.

As a business owner, getting a customs broker to help you with your shipment is
a wise business decision that will help you and your business remarkably. It is
not only practical, but also time and cost-efficient.

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

Allow Excelsior to assist you in the movement of your shipment, meet all of the
importation and exportation requirements on your behalf, and fulfill all
international trade and customs rules and regulations, all for a successful and
hassle-free shipment for you and your business.

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

What Is the Best Freight Forwarding Company?

Image from wisegeek.org

Freight forwarding is the process of preparing goods for
transport in behalf of the shipper. The shipping process
includes moving the goods from one carrier to another,
transport tracking, freight consolidation, negotiation of freight
charges, and preparation of necessary documents.

The shipment of goods can be via air, sea, or land.

There are many freight forwarding companies, especially in
this day and age where the importing and exporting industry
is seeing a rising trend. After all, the transportation of goods
across the world is considered to be the keystone of modern society. So how does one know and decide which freight
forwarding company to choose?

1. Owns the carrier

Technically, fright forwarders serve as the middleman
between the shipper and various transportation services to
get the shipment to its destination. However, there are some
freight forwarding companies that own transportation
services like trucks and ships, thus eliminating the need to
coordinate with a third party carrier. As a result, such
companies are able to take full control of the freight
transport, thereby reducing cost, and promoting efficiency
and reliability.

2. Has a significant amount of knowledge and
experience

Of course, a good freight forwarding company needs to have
a good amount of knowledge and experience about
international transportation processes, as well as rules and
regulations on goods transfer.

It is critical for a freight forwarding company to have a
streamlined process of shipping goods in order to promote
efficiency at all times, regardless of the freight being shipped
and the destination of the shipment.

A good freight forwarding company also needs to have
excellent communication, administrative skills, and attention
to detail. Since freight forwarding involves different steps and
involves different people from different companies (such as
supplier, carriers, and warehouse), it is important to make
sure that there is a seamless coordination and a seamless
transaction among all parties involved.

3. Has problem solving skills

It is also important for a freight forwarding company to have
excellent problem solving skills. They need to be able to
identify the problem across the logistics and supply chain,
and provide the necessary solution to prevent any delays in
delivery, as well as to prevent the recurrence of shipping
problems.

4. Ethical and Professional

Lastly, freight forwarding companies must consistently abide
by rules and regulations of goods transfer, and they must
also have a high level of professionalism.

Professionalism can be seen in the way that the company
coordinates and communications with the shipper, as well as
with all other people involved in the shipping process.
Professionalism can also be seen in how the freight
forwarding company keeps their word with regard to
deadlines and shipping schedules.

Allow Excelsior Worldwide to help guide you through the import & export world. Contact us today to learn more about our global logistics . Call (063) 5259775 or email us at wecare@excelsior.ph

Excelsior Worldwide Logistics Corp Success Story

Early this year, Excelsior Worldwide Logistics Corporation’s success story has been cited by Victory Fort, as an encouragement to business men and professionals in their weekly gathering.

In the series Faith to Conquer that discusses about the worthy cause of faith through obedience, Pastor Jeff Eliscupidez shared how the company turned around from following corrupt practices in the industry, to being fully transformed by obeying what the Bible is teaching in 2009.

With the leadership of its founder and owner, Victor Hermosa, Excelsior experienced a short term contraction in business due to clients who are used to the usual corrupt industry practice to speed up release of their shipments in the government body that overseas importation and exportation of goods.

However, with his strong desire to obey his faith, Victor had to accept the departure of many of his accounts and trust God that obedience will lead to blessings.

In this video Pastor Jeff Eliscupidez shared what happened shortly after obeying God’s call for righteousness.

Currently, Excelsior Worldwide Logistics Corporation is continually experiencing God’s favour and business growth, expanding it’s coverage to be able to accommodate the increasing needs of it’s customers. Aiming to give them the peace of mind by making sure that everything is done right, investing in it’s people development and technology to be able to give topnotch quality service and experience.

To see the full video, click here: https://www.youtube.com/watch?v=JIXKYbc9S34&feature=youtu.be

New Cebu international port project may start in August

Lorenciana, Carlo and Braga, Michael Vencynth (2016, June 24). The Freeman. New Cebu international port project may start in August. Retrieved from http://www.philstar.com/cebu-news/2016/04/29/1577985/new-cebu-international-port-project-may-start-august

CEBU, Philippines – The new Cebu international container port may start construction by August this year if the National Economic and Development Authority Board would approve the project.

Cebu Port Authority General Manager Edmund Tan, however, could not say if the port project will be approved within President Aquino’s term which ends this June. The President chairs the NEDA.

Tan said he was hoping the project would be approved as soon as possible.

Speaking at the Visayas Shipping Conference 2016 yesterday in Cebu City, Tan said NEDA is currently awaiting from the Department of Transportation and Communications “the submission of requisite documents for the said project to facilitate NEDA Board-ICC (Investment Coordination Committee) processing and approval.”

These documents include the feasibility study which was completed in July 2015 and ICC project evaluation forms.

The project, Tan added, is scheduled to be presented to DOTC secretary for approval and subsequent endorsement to the NEDA Board-ICC.

According to the project’s implementation timeline, the target schedule for the construction is August this year and completion is second quarter of 2019.

The feasibility study on the new Cebu port, done by Korean experts, pointed a location in Tayud, Consolacion as the project site.

Among the study’s recommendations include funding from the Korea’s Economic Development Cooperation Fund as the project, which has an estimated project cost of P10 billion, has a poor financial viability.

Tan said the new port will need an access road to connect the port to and from the Cebu North Coastal Road.

The study noted that the traffic on the existing road linked to the access road to the new port will increase due to the increased cargo transport.

“It is recommended to expand lane of the existing road and set up a countermeasure for traffic improvement,” Tan said.

He said the CPA will have to ask the Department of Public Works and Highways for the possibility of funding the road access project.

The study also recommended the application of Korea’s container port development experience to Cebu new port.

The new container port is geared to meet the demands of dynamic and growing economy of Cebu and of the region.

It is expected to provide a long-term solution to the congestion at the existing Cebu International Port due to increasing cargo volume and the shallow water depth of its container berths.

The new port project was included in the Comprehensive and Integrated Infrastructure Program (CIIP) on April 11.

The municipality of Consolacion welcomes the idea of establishing the international port in Barangay Tayud.

Mayor Teresa Alegado believes that transferring the port to other areas like Consolacion will decongest the traffic in the cities of Mandaue and Cebu.

She added that it would also spur economic development of the town.

The traffic congestion at the Cebu International Port area is reportedly caused by big trucks hauling cargoes inside the area.

Duterte OKs P39-B project in Davao

Nawal, Allan (2016, June 24). Inquirer Mindanao. Duterte OKs P39-B project in Davao. Retrieved from http://newsinfo.inquirer.net/792194/duterte-oks-p39-b-project-in-davao

Backers say one of Digong’s last acts as mayor shows he’s probusiness

DAVAO City Mayor Rodrigo Duterte, who would officially be President on June 30, signs a P39-billion deal on June 21 for a city project to develop some of its coastal areas. CONTRIBUTED PHOTO

DAVAO City Mayor Rodrigo Duterte, who would officially be President on June 30, signs a P39-billion deal on June 21 for a city project to develop some of its coastal areas. CONTRIBUTED PHOTO

DAVAO CITY—About a week before he leaves this city as mayor to assume the presidency, Rodrigo “Digong” Duterte signed a P39-billion project for port and coastal development that project proponents said was a showcase of Duterte’s support for business that he would bring to Malacañang.

Giving his seal of approval to the project could be one of Duterte’s last acts as mayor of the city.

Duterte signed the agreement with Mega Harbour Port and Development (MHPD) during ceremonies here on Tuesday. MHPD president Victor Songco signed for the developer.

Last year, the city council approved the proposed reclamation project, which involves turning a total of 214 hectares along the coastline of the city between the villages of Bucana and Agdao into a world-class, well-planned, environment-friendly and self-contained community.

Under the joint venture project, none of the area’s estimated 3,500 families would be displaced.

Marcelito Manalili, of Mega Harbour, said the company would immediately start to secure permits from the Philippine Reclamation Authority, the National Economic and Development Authority and other agencies, including those that oversee environmental compliance, before starting with the project.

“This is a unique project because this will not just spur economic development but also uplift the conditions of the people living along the coastline,” Manalili said.

MHPD, in a statement, said the approval by Duterte of the project showed the incoming President “has hit the ground running” in improving the economy.

The statement said the project “is an urban renewal and poverty alleviation program” for residents of the area.

“Basic utilities and services will be put in place, main roads will be cleared and zoning will be enhanced to allow a free flow of safety and security vehicles,” said the company.

“A flood control system and other calamity mitigating measures will form part of the undertaking. Recreational, commercial and sanitation centers will be developed to ensure a holistic approach to community development,” the company said.

MPHD said it would also build a commercial business district and industrial park in the project site.

“It will host establishments that will generate employment for Davaoeños and attract investors to locate in this self-contained development,” it said.

The project, the company added, would adopt environment-friendly technologies “following the natural footprint of Davao.”

Duterte said he wanted to see tangible results within a year from the day the project started.

Councilor Danilo Dayanghirang said it would also be best to study the possibility of integrating the controversial P19-billion Sasa Port expansion project into the Mega Harbour project.

The city council has opposed the Sasa port project on several grounds, including the lack of consultation when the Department of Transportation and Communications conceived it.

“Since there is a port component in the mega harbor, why don’t we explore its integration?” said Dayanghirang.

Excelsior Worldwide Logistics Corp.