(+632) 8525-9775    wecare@excelsior.ph

Customs Audit: How Will It Affect Your Importation?

excelsior on December 29, 2016

Customs Audit is one of the most critical parts of the importation process. In May 2001, the Philippine Congress passed the Republic Act 9135 establishing the Port Entry Audit (PEA) System. This was shortly followed by the Customs Administrative Order No. 5-2001, which allows for the system to be fully implemented all over the country. The procedure was strengthened by the newly passed law in the Congress and Senate last September 2015, the R.A 10863, also known as the Customs Modernization and Tariff Act.

What is a Customs Audit?

The law designates power to the Bureau of Customs to conduct a Post Clearance Audit of imports for three years from the date of importation (Final payment of duties or customs clearances). Operationally, customs audit means that the importer is obliged to open its import and business records specified in the said law and give full & free access to customs officers authorized by the Bureau of Customs for the purpose of authenticating the accuracy of the information declared in the corresponding import entries covered by the audit period.

What are the Consequences of Noncompliance?

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Noncompliance with laws and regulations may result in very stiff penalties. Any person who, after being subjected to post clearance audit and examination is found to have incurred deficiencies in duties and taxes paid for imported goods, shall be penalized according to two degrees of culpability.

First when negligence committed and found guilty for deficiency results from an offenders failure to exercise reasonable care and competence in ensuring that a statement/declaration made is correct, shall be penalized with a fine equivalent to 125% of the revenue loss.

Worst, When the customs officers found out that there is fraud involved (committed knowingly, voluntarily and intentionally) the auditee if found guilty is subject to a separate investigation and may further be liable to criminal prosecution aside from the penalty of not more than six times the revenue loss.

How to Avoid Noncompliance

Certainly, post clearance audit greatly impacts the way importers will be doing business with customs. Corporate officials are also expected to be aware that violations of the post clearance audit law make them liable to civil- or worst, criminal prosecution. To avoid this, here are the three things that a responsible corporate official should consider to ensure compliance with the new law:

1. Determine as to what office or who within the organization should be responsible for the storage and retrieval of relevant documents and information needed for customs audit.

2. Provide to the Customs Officer the correct information when the same is required or asked during post clearance audit at any time for that matter.

3. The storage and retrieval pertain to a system of keeping these records, whether manually or electronically.
It is very important to systematically keep the records.. A disorganized record-keeping system is highly associated with negligence, which is one factor that can affect the importer’s level of customs compliance.

What to Do If You Are Audited

Should your company receive notice of an audit, contact a person (Licensed Customs Broker) who is familiar with customs compliance to help you prepare for the audit.

To prepare for a post-entry audit, consider the following:

  • Prepare your in-house procedures and controls in such areas as record-keeping, classification, and valuation by making sure they are in writing and that your company’s transactions are well documented
  • Be sure that your documentation shows all corrective actions that have been implemented
  • Review the audit questionnaire and prepare your response in advance

Some of the import and business documents that are reviewed by Customs in an audit include:

  • Customs entry records (both manual records and electronic records)
  • General ledger accounts
  • Foreign vendor payments
  • Inventory and disbursement records
  • Correspondence with foreign suppliers

Understanding how the audit procedure works and how the results can affect a business are very important as violating the law may have a severe business and personal ramifications. With a sensible approach, companies can avoid potentially disastrous results.

Avoid any discrepancies in customs audits by partnering with an honest and capable customs broker today.
Excelsior Worldwide Freight Logistics Corp. provides services that can improve your import process, help you with your recordkeeping, and prepare you for customs audits as well. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph.

6 Biggest Frustrations of Importers and Exporters

excelsior on December 19, 2016

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

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

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

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

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

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

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.

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

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.

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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

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 anxiety.

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 Delivery Agreement With Your Supplier – Understanding Modern Incoterms®

excelsior on November 28, 2016

If you are planning to start an international import and export business, or you are expecting to receive or ship goods from an overseas market, choosing the right delivery agreement between you and your supplier is a critical operational decision.

To establish clear terms with overseas vendors, importers rely on Incoterms® (International Commercial Terms)—a set of standardized trade definitions published by the International Chamber of Commerce (ICC). Incoterms specify how transport costs, insurance coverage, risks of loss, and customs formalities are split between buyer and seller.

While Incoterms 2010 laid the groundwork for over a decade of international trade, global commerce has evolved. Modern supply chains now operate under Incoterms® 2020, which introduced pivotal updates to accommodate digital documentation, heightened security requirements, and changed insurance mandates.

What Changed from Incoterms 2010 to Incoterms® 2020?

Before choosing a delivery term, note these critical updates that directly impact your risk and cost structure:

  • DAT replaced by DPU: Delivered at Terminal (DAT) was renamed Delivered at Place Unloaded (DPU) to emphasize that delivery can occur at any location (warehouse, factory, or site), not just a transport terminal.
  • Higher Insurance Requirements under CIP: Carriage and Insurance Paid To (CIP) now requires sellers to provide comprehensive, all-risk cargo insurance (Institute Cargo Clauses A) rather than basic cover.
  • FCA On-Board Bills of Lading: Free Carrier (FCA) now allows buyers to instruct carriers to issue an “On-Board” Bill of Lading directly to the seller, resolving previous issues under Letters of Credit (L/C).
  • Enhanced Security Obligations: Modern Incoterms explicitly outline transport security requirements and cost responsibility for container scanning and port clearance.

Rules for Any Mode or Modes of Transport (Multimodal Cargo)

These 7 rules apply regardless of whether goods travel by air, sea, rail, road, or containerized transport.

1. EXW – Ex Works

The seller places the goods at the disposal of the buyer at the seller’s premises or factory. EXW represents the minimum obligation for the seller.

Importer Caution: EXW presents severe transport and customs clearance hurdles for Philippine importers. The buyer assumes all costs, risks, foreign export declarations, and local cartage. In practice, obtaining origin customs clearance without a local presence in the origin country is extremely difficult.

2. FCA – Free Carrier

The seller delivers the goods to the carrier (or another nominated party) at the seller’s premises or another named location, cleared for export. Once delivered to the carrier, risk transfers to the buyer. FCA is widely considered the modern, safer alternative to EXW for containerized cargo.

3. CPT – Carriage Paid To

The seller arranges and pays for carriage to bring goods to the agreed destination. However, the risk transfers to the buyer as soon as goods are handed to the first carrier. The seller is responsible for export customs clearance, while the buyer handles import clearance and duties in the Philippines.

4. CIP – Carriage and Insurance Paid To

Similar to CPT, except the seller is obligated to obtain high-level all-risk cargo insurance covering the buyer’s risk during transit. Risk transfers when the cargo reaches the first carrier, but the cost of transport and insurance is borne by the seller up to the named destination.

5. DPU – Delivered at Place Unloaded (Replaced 2010 DAT)

The seller delivers and unloads the cargo at the named destination (e.g., terminal, port yard, or buyer warehouse). The seller bears all risks and costs involved in bringing the goods to the location and unloading them. The buyer remains responsible for import clearance and customs duties.

6. DAP – Delivered at Place

The seller delivers when goods are placed at the buyer’s disposal on the arriving means of transport, ready for unloading at the named destination. The seller bears all risks and costs to transport cargo to the site, while the buyer assumes unloading responsibilities and local Philippine customs clearance.

7. DDP – Delivered Duty Paid

The seller assumes the maximum obligation, handling all freight, export clearance, import customs clearance, duties, and final delivery to the buyer’s location.

Importer Tip: Relying on overseas suppliers for DDP can complicate local tax compliance and Philippine Bureau of Customs (BOC) accreditation. Working with alicensed customs brokerunder FCA, FOB, or DAP often gives you far greater control over duties and tax declarations.

Rules for Sea and Inland Waterway Transport (Bulk & Breakbulk Cargo)

These 4 rules apply exclusively when both the origin delivery point and the destination are maritime ports. They are designed for non-containerized, bulk, or breakbulk cargo.

1. FAS – Free Alongside Ship

The seller completes delivery when goods are placed alongside the vessel on the quay or barge at the named origin port. The buyer assumes all risks and costs from that point forward and handles export clearance.

2. FOB – Free on Board

The seller delivers goods on board the vessel nominated by the buyer at the port of shipment, and handles export clearance. Risk passes from seller to buyer the moment the goods are safely loaded on board the ship.

3. CFR – Cost and Freight

The seller pays ocean freight charges to bring the goods to the named port of destination. However, the risk of loss or damage transfers to the buyer as soon as the cargo is loaded on board the vessel at the origin port. The seller clears export formalities; the buyer handles insurance and import clearance.

4. CIF – Cost, Insurance, and Freight

Identical to CFR, with the added requirement that the seller must purchase basic marine cargo insurance (Institute Cargo Clauses C) covering the buyer’s risk during sea transit. Risk transfers once the cargo is loaded on board at the origin port.

Quick Reference: Cost & Risk Transfer Overview

Incoterm®Export ClearanceTransport to PortOrigin Port LoadingOcean / Air FreightImport ClearanceRisk Transfers At
EXWBuyerBuyerBuyerBuyerBuyerSeller’s Premises
FCASellerSellerBuyerBuyerBuyerFirst Carrier
FOBSellerSellerSellerBuyerBuyerLoaded on Vessel
CFR / CIFSellerSellerSellerSellerBuyerLoaded on Vessel
DAP / DPUSellerSellerSellerSellerBuyerNamed Destination
DDPSellerSellerSellerSellerSellerBuyer’s Warehouse

Modern Contract Recommendations for Importers

  1. Always Specify the Incoterms Year: State the exact version in your purchase order to avoid legal ambiguity (e.g., “FCA Shenzhen, China (Incoterms® 2020)”).
  2. Detail the Precise Delivery Location: General city names cause disputes. Specify exact addresses, port terminals, or yard numbers.
  3. Align Terms with Philippine Regulatory Rules: Terms like FOB, FCA, and DAP give Philippine importers direct visibility over local Bureau of Customs (BOC) processing, preventing unexpected storage, demurrage, or clearance holds. Check out our latest logistics insights and regulatory guides to stay informed.
Importer Facts

Optimize Your Import Logistics with Excelsior

Choosing the right shipping terms protects your business from unexpected fees, insurance disputes, and border delays.

As a premier logistics provider and total supply chain partner, Excelsior Worldwide Freight Logistics Corp. provides end-to-end support for your international trade setup:

Have questions about international trade terms or import clearances?

Contact the Excelsior logistics team today or reach out through our channels:

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.

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Advantage of Having the Services of a Freight Forwarding Company

excelsior on October 29, 2016

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

As your business grows and expands, 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 focused on the things you do best. Detailed below are some of the key advantages of using a freight forwarder in your business.

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

Freight Forwarder Offers Services

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 Offer a Specific Set of Services at an Ideal Cost

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 Bring Simplicity

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 Give You Sense of Control

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?


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

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

Image result for demurrage

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

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

 

Advantages of Having an Honest Customs Broker

excelsior on September 26, 2016

Professionalism and Integrity have always been imperative aspects in every industry. In the 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

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.

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

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.

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.

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.

Excelsior Worldwide Logistics Corp.