excelsior, Author at Excelsior Worldwide Logistics Corp.

How Customs Brokerage Firms Help the Philippine Economy

excelsior on April 15, 2020

There are several factors that affect the economy of a country. From the total population, natural resources, to technological growth, it is highly essential for such a massive social unit to thrive and make efforts to enhance and develop its own economy.

In the Philippines, one particular industry is becoming more renowned as a great contributor to the country’s economic growth. Customs brokerage refers to the profession of rendering services to an organization, usually an exporter or importer, to assist them in clearing customs requirements and processes so that they can transfer their products in different locations without facing any legal issues.

The Bureau of Customs, the Philippine government’s agency that facilitates the nation’s trade through an effective customs system, had been touted local customs brokerage firms to be their partners in maintaining the economy. Why did the government say so?

Customs Brokers Helps the Government to Fight Corruption

Customs brokers, as licensed professionals, spent considerable time studying different customs regulations, as well as the most effective ways of negotiating with the authorities. This means that they are well educated on how the government agency operates. Since customs brokers are always dealing with them, it can be easy to spot and report any irregularities committed by any customs authority.

Customs Brokers Aid in Encouraging Investors in the Country

The Philippine government raises funds from taxes. Greater portions of taxes came from businesses. Customs brokers, in a way, encourage investors to do business in the country hence augmenting the country’s economic growth and providing the government with more funds more developing many projects such as infrastructure, public facilities, and combating poverty.

Customs Brokers Can Help Create More Jobs

This is inlined with the profession’s capability to trigger a chain of events that leads to attracting more people to invest in the Philippines. More businesses result in increased job demands, reducing the unemployment rate. This is perhaps one of the best benefits that are often neglected, as many people thought customs brokers only affects what’s going on within the field of the trade itself.

Customs Brokers as an Integral Profession

The Philippine government is currently in full support of the continuous rise of customs brokerage firms. As it was stated in the Customs Modernization and Tariff Act (CMTA), one of the state’s ruling policies is that a priority and support must be given “to professionalizing the practice of customs brokers profession in the Philippines which will be beneficial to the country in general and to the economy in particular.” This further highlights the integrity of customs brokers as key players in maintaining the stability and growth of the Philippine economy in general.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Traits of a Reliable Customs Clearance Service Provider – Infographic

excelsior on March 31, 2020

Dealing with customs authorities for shipping your products is one of the most time-consuming and stressful parts of running an export or import business. Apart from hiring a reliable freight forwarder, getting a customs broker in the Philippines is also essential towards clearing your transported goods and keeping your supply chain in stable condition. But not all agents can be considered as “reliable” and “trustworthy.”

To make the most out of a customs brokerage service, one must be able to identify an agent or company that can provide the highest quality of service, with a considerable amount of experience and knowledge in the field.

Here are some signs that a customs broker is definitely a worthy investment for your business

A Reliable Customs Broker Is a Licensed Professional

Every country has its own laws that regulate the individuals that practice customs brokerage. The Bureau of Customs (BOC) in the Philippines is the one that issues information regarding accreditation guidelines for customs brokers. With a licensed customs broker, expect that you will experience a seamless and trustworthy service that keeps your shipping goals on the right track.

A Reliable Customs Broker Possess Excellent Organizational Skills

With a plethora of documents and requirements that must be cleared, being organized must always be a staple trait of every customs broker. The client will be the one to suffer in case something during the shipping process goes wrong, so a reliable customs broker should be able to prevent unnecessary errors and ensure that the goods will be able to arrive at its destination without delays.

A Reliable Customs Broker Must Be Well-Educated and Trained

Similar to other professions, customs brokers should spend a significant amount of time for training and keeping an ample amount of knowledge on different topics such as logistics and laws that concern product transportation. Being a reliable customs broker in the Philippines requires familiarization of laws and regulations, including trade-related information, and basically everything about customs processes and requirements for clearing shipments.

A Reliable Customs Broker Must Be Always Updated With Any Recent Changes in Customs Policies and Freight Forwarding Process

One of the reasons why many businesses today are more inclined to hiring freight forwarders and customs brokers in the Philippines is that requirements for clearing shipments can change at any given moment. Customs brokerage service providers that are top-notch in the industry tend to experience lesser problems when complying with the requirements because they always keep themselves updated with everything that is going on, especially in customs and freight forwarding policies.

A Reliable Customs Broker Must Have Adequate Knowledge about Your Business

It is highly beneficial for your business if your chosen customs broker is equipped with enough knowledge regarding the nature of your shipment. This way, you can get expert advice that can make save you a lot of resources when transporting your goods in the future.

Why You Need a Licensed Customs Broker in the Philippines

excelsior on March 16, 2020

Commercial businesses in the Philippines, especially those that specialize in importing and exporting, are always facing challenges that are often involved with shipping and customs processes. Transporting products in and out of the country requires an enterprise to comply with specific rules and regulations that can be complex and time-consuming. This became the reason why customs brokerage has become an ever-growing business trend as hiring a licensed customs broker can save a business owner from getting worried about preparing the necessary documents.

Are you planning to run an import/export business in the country? Then you better know more about how customs brokers and why you need to hire one:

Reason #1: To Establish Effective Communication with the Government Authorities

Dealing with government authorities to ship your products can be a tedious process that requires technical knowledge in the existing laws and regulations. For your shipment to be released by Philippine Customs and other government bodies, you will have to submit a number of documents and fill-out forms. Failure to effectively communicate while complying with such requirements can result in wrong shipment information and further delay in your supply chain.

Customs brokers can get rid of this problem because they are well-connected with those in authority, speeding up the clearing process and avoid any problems usually associated with customs requirements.

Reason #2: To Help You Focus More on Other Areas of Your Business

With a trusted customs broker taking care of your shipment tasks that you were supposed to do, you will find yourself in a more convenient situation. More time means more opportunity for addressing other important areas of your business, such as managing your employees, daily operations, etc.

Reason #3: To Prevent Unnecessary Expenses

There are some businesses today who gets fallen on the trap of clearing shipments themselves because they thought that it would save them more money. This is a clear misconception because the rules and regulations in cross-border transactions can fluctuate at any given moment, making it easy for know-it-all companies to experience delays, and others unwittingly commit violations that could prompt them to spend more money in the long run.

Reason #4: To Save Time and Effort

Time, as a precious resource for an import/export business. Depending on the nature of your products, ensuring that it will arrive at its destination on time is a must. Customs brokers in the Philippines are trained and skilled enough to work in a way that can optimize the flow of your overall supply chain, especially in the aspect of product shipping.

Reason #5: To Help You Find the Best Option for Shipping

A customs broker can serve as a guide for your shipping options. By considering several factors, customs brokers can recommend the best carrier, be it via air, ocean freight, or truck freight.

How to Be a Successful Importer – Infographic

excelsior on February 28, 2020

Selling products that came from abroad can be a pretty rewarding business, especially if there is a growing local market that can buy your goods. Imported products tend to be available for a cheaper price, and usually in high quality. And with the rapid spread of globalization, new and commercial items from an international supplier could emerge, which gives importers instant access and offer it their own country maximizing their profits in the long run.

If you’re one of those aspiring entrepreneurs who are planning to start an importing business, then you should be aware of some tips that can help you thrive and succeed as the competition becomes tougher as the years go by.

Have a piece of in-depth knowledge about your products

While this might sound like a no-brainer, conducting research about the products that you wanted to import is critical for your success. Know more about the existing market and have an assessment to identify if there are people who will be willing to purchase your imported products. You also have to make sure that the products are allowed to enter the country.

In case you’re from the Philippines, below are some examples of items that are either prohibited or restricted for importation as mandated by the Philippine law according to the International Trade Administration:

Toy guns
Used motorcycle parts, except engine
Specific narcotics, or synthetic drugs (i.e., marijuana, opium, heroin, among others)
Gambling paraphernalia
Dynamite, ammunition, explosives
Laundry and industrial detergents containing hard surfactants

You can view the full list here.

Negotiate effectively with your supplier

Dealing with suppliers from another country can sometimes become a challenging task as the diversity of culture can hinder your chances of getting a favorable deal. Study more about the culture of the exporting country so that you can implement suitable strategies once you negotiate with your supplier. Have a thorough understanding of the terms before placing an order so that you avoid mistakes that often lead to additional expenses. Check if the calculations of all the costs that you have to pay are correct.

Analyze your insurance coverage

Make sure that you analyze the insurance aspect of your import transaction. Unexpected events might happen as your products are being transported, and this could help you identify the party responsible in case of a loss or damage.

Contact the customs authorities

There’s a good chance that you will have to comply with several permits as well as submit documents and forms before you can clear your imported products during the shipping process. This could be a very time-consuming stage for those who are relatively new in this kind of industry. Since time is a valuable resource that must never be allocated alone for shipping processes, it’s highly recommended to hire a licensed customs broker to prevent unnecessary delays on your shipment.

Maintain good relationships within your network

Every person or agency that you’re doing business with will always play an essential role in your success. From your supplier, freight forwarder, customs broker, carrier company and even the customs authority, you must treat them with utmost professionalism and respect. Maintaining social harmony in your business sphere will make your daily importing operations as smooth as possible.

5 Most Common Shipping Problems

excelsior on February 15, 2020

The shipping industry in countries like the Philippines is often involved with a lot of requirements when it comes to transporting goods from one place to another. Due to the complexity of the shipping process, it’s not surprising to know that issues and other problems might arise which could disrupt the supply chain of those businesses who rely on services like freight shipping.

Fortunately, such issues can be apprehended by hiring a trusted freight forwarder and customs broker. But still, it would be an advantage for those who are investing a lot in import and export business to be aware of the most shipping problems.

Problem #1 – Missing Documents

The most important document that must always be present at hand during the shipping process is no other than that original copy of the Bill of Lading (BOL). It might sound like a no-brainer but believe it or not, many shippers tend to misplace them due to certain reasons. If you ended up losing your Bill of Lading, there’s a high chance that you will experience delays with the release of your shipment. Make sure that your Bill of Lading is always secured via a reliable channel.

Problem #2 – Unanticipated Closures and Cancelations

One troublesome shipping problem that frustrates many businesses nowadays is when unexpected events happen, leading to the port getting closed or the freight carrier canceling its trip to the destination. The reasons may include strikes by port workers or truckers, and natural disasters. In cases of natural disasters, it’s always better to face the delays instead of the carrier risking the safety of everyone on board and your shipment.

Problem #3 – Overweight Cargo

Failure to properly check the weight of the cargo often results in several problems throughout the shipping process. First, there’s going to be inaccuracies to the documents as the cargo’s weight is essential information that must be submitted. Second, the shipment might become so heavy that it will require different lifting equipment, wasting you a lot of time and (and most likely, money) in the long run.

Problem #4 – Lost Shipment

In addition to missing documents, every shipper must know that if they’re going to have their goods transported on a massive carrier, chances of it going missing are quite high. Ports are now starting to grow larger, and with a plethora of other shipments, you will have to hire a trusted third-party agent to keep an eye on your products.

Problem #5 – Holidays

National holidays can be a good time for being merry and taking some rest from work, but it could mean delays on your part as the shipper. To prevent such problem, do some research on the upcoming port or terminal closures at both origin and destination. Anticipate the holidays by scheduling your shipment before the specific dates, unless you have to suffer a stressful shipping process filled with tons of other cargoes and port congestion.

Responsibilities of a Licensed Customs Broker – Infographic

excelsior on January 31, 2020

A customs broker is a licensed individual that offers services involving the shipment of imported goods as well as clearing the required documentation for export shipments and collecting taxes.

Many licensed customs brokers today tend to have connections with freight forwarders, shipping lines, private institutions, and even the trade authorities in order to serve as the intermediary between importers and the government.

Having a licensed customs broker is highly beneficial, especially if you’re a business owner looking for more customers abroad. Transporting your products is going to be quite an arduous process, with all of that complicated paperwork that must be complied to a given period of time. To lessen your stress and focus more on managing other aspects of your business, a licensed customs brokerage service is the key.

To make you more aware of what licensed customs brokers do, here is a list of their duties that are highly beneficial for businesses that need immediate help in product shipping:

Facilitate Customs Transactions

A licensed customs broker shall help their clients with all the required documents for clearing the imported goods from the receiving customs department. He/She must prepare the entry form which indicates essential information such as the source country, classification code, total weight, and quantity of the goods. Additionally, the broker can also handle other paperwork related to exporting goods.

Represent Their Clients

Since they mostly deal with customs authorities, customs brokers shall be the representative of their clients when it comes to customs-related transactions. A customs broker should be ready to enlighten their clients about the latest changes in customs laws and regulations.

Review the Classification of Goods

Errors in classifying goods can result in additional expenses in taxes and duties, so a licensed customs broker prevents this from happening by reviewing the classification of their client’s goods.

Payments of Duties and Fees

After the review and calculation, all of the expenses in customs duties must be properly calculated by the broker and gets it paid directly from the account.

Record Keeping

A customs broker must be liable to maintain the confidentiality of all transaction records and documents of their clients. And similar to what freight forwarders do, customs brokers should also keep track of their clients’ shipped goods to ensure its safe arrival upon the destination.

5 Questions to Ask When Looking for a New Licensed Customs Broker

excelsior on January 15, 2020

So you just decided to hire a new licensed customs broker to keep your supply chain from getting disrupted by the complexities of shipping processes. In addition to freight forwarders, having a trusted licensed customs broker can bring ease and save a lot of time in transporting your products especially on an international scale.

However, with the growing emergence of such a profession, finding the appropriate licensed customs broker for your business can become quite challenging as everyone will surely fight their way to have you as a client. Not all licensed customs brokers can provide the same level of service, which means that you must be ready to know more about them before making an agreement.

Here are five questions that you must remember when looking for a new licensed customs broker:

May I see your track record?

Knowing the track record can make you more confident that your new licensed customs broker can handle well all of the customs requirements and other related tasks for your business. This can be done after doing initial research. A licensed customs broker working for a company will most likely possess a good online presence. Try visiting their official website and see if they have other online platforms used for reaching out with potential clients. You might even take a glimpse of their track record by checking out some of their webpages, but you still have to ask them in person to see if they can give you consistent information. The more reliable the track record is, the better.

You can additionally look for any certification to verify their license.

Do you have any pending lawsuits?

Since licensed customs brokers frequently deal with customs authorities, dealing with any lawsuit could mean incompetence and a tarnished reputation. While the firm you’re talking with might avoid topics such as this, it’s still quite better to ask them and verify their answer by thorough research.

What is your vision?

Know more about the short and long term goals of the company. Remember the possibility of spending a great deal of time with them, so you better be aware of how assertive they can be. You can give more emphasis on their vision regarding the usage of modern technology in helping their clients clear different shipping processes.

How much will your service cost?

This question will most likely start a long conversation consisting of negotiations between you and the broker. Prices can vary based on your agreement but be sure to have a detailed breakdown of all the services that are going to be rendered. You should also talk about their payment processes to avoid hassles in the future.

Can you provide quality service based on client needs?

Your new licensed customs broker must at least have some experience when it comes to dealing with clients that are related to your industry. This can be an indicator that they will be able to provide your needs as well. Keep in mind that versatility is an attractive trait in business especially those that offer expert services.

5 Things A Professional Licensed Customs Broker Can Do For You – Infographic

excelsior on December 31, 2019

A licensed customs broker is a professional who offers services involving shipments and delivery of goods across countries. Not to be confused with freight forwarding, customs brokerage gives more emphasis on ensuring that no issues regarding legalities will arise during the importing or exporting process.

Many enterprises today prefer hiring customs brokers in addition to freight forwarders because of all the complexities associated with the requirements. If you have a company currently suffering from a lot of hassles in clearing their shipments, hiring a licensed customs broker is definitely the best solution.

Here are five things a professional licensed broker can do for you:

1. Take care of all the customs paperwork

The name implied, their primary job is to serve as the intermediary between you (the client) and the government, specifically the customs authorities. This means that they possess enough knowledge that can complete all of the customs paperwork and other formalities in your place. And if you’re quite worried due to the sudden changes in the customs regulations, a licensed customs broker is always required to be updated at all times to make sure that you will not experience any unnecessary hassles in transporting your goods.

2. Discover new and potential markets

Out to customers abroad is a challenging task, especially for small businesses. Fortunately, licensed customs brokers can help you accumulate more customers across borders as they have a wider significant presence brought by the nature of their profession. They can also aid in formulating strategies on locating new and potential markets so that you can gradually increase your profits over time.

3. Make good use of modern technology for a more affordable and time-efficient service

Is not the only tool of licensed customs brokers. Taking advantage of modern technology, customs brokerage is now more advanced thanks to the development of automated systems that enables the faster exchange of data across geographical borders. Some licensed customs brokers can even provide you access in specific systems that can be used to optimize your productivity and also minimize that chances of non-compliance, saving you more money and time in the process.

4. Offer personalized services

Businesses are precisely the same, and licensed customs brokers are aware of this fact. To be more versatile in offering their services, they are always ready to satisfy the needs of their clients by making it more personalized. Even a small business can attain benefits by hiring a licensed customs broker!

5. Provide expert advice

A professional licensed customs broker can make the most of a customs brokerage service by hearing expert advice from their trusted broker. The essence of being a licensed customs broker far exceeds in making a living out of clearing shipments, but to enlighten and guide their clients on the customs regulations, tariffs, valuation, classification, etc. So, if you’re new to the industry, you can study its nuts and bolts by simply hiring a licensed customs broker.

5 Common Shipping Mistakes to Avoid

excelsior on December 15, 2019

Mastering the nuts and bolts of shipping is a crucial skill for businesses that specialize in transporting their products from one place to another. While shipping is simply defined as placing goods or people on a carrier to be brought to its intended destination, it could be a pretty lengthy and complicated process for those with limited knowledge about logistics, as well as customs requirements.

Shipping also plays a vital role in the capability of an enterprise to provide the highest degree of customer experience to their clients. One way to do this is of course, avoiding mistakes in every shipping transaction as much as possible. Though such a task is easier said than done, the first step a business owner must do is identify the potential shipping errors ahead of time.

Fortunately, we’ve compiled some of the most common shipping mistakes as well as efficient methods of avoiding them:

Improper Packaging

An easy way to increase the chance of shipment damage is by incorrect packaging. Products may vary in shapes and sizes, and some might be even so fragile that a well-secured packaging is required in order for it to be safely moved from point A to point B.

When shipping a set of products, have a thorough assessment of the most appropriate type of box, and invest in high-quality protective cushioning if needed. Having a professional in the shipping industry is another surefire way of preventing damages in shipment brought by improper packaging.

Wrong Shipping Address

Once shippers failed to pay more attention to what is written on the Bill of Lading (BoL) miscommunications with the carrier company might arise. For example, a wrong shipping address could result in freight transporting the products in the wrong destination.

Checking the shipping address multiple times is one and the only solution to prevent this mistake. Make sure that every detail is correct, including the ZIP codes of the intended place.

Letting a Single Carrier handle all Shipments

Availing the service of a single carrier can help foster positive relationships between business the carrier company. However, relying on a single carrier could prove to be a risky option. In the event that a well-trusted carrier company experienced a strike or downscaling of its facilities, its clients could end up having large piles of shipment with no one to move it around.

Creating more connections with multiple carrier companies is one way of avoiding such hassle, not to mention access to opportunities in terms of having competitive rates and operations.

Inaccurate Shipment Weight

Carrier companies tend to be prudent and specific when it comes to weighing the shipments of their clients. They always have certified scales placed at their terminals to make sure that every shipment’s weight is worth the fee they require. Some businesses neglect to weigh their products and as a result, they are forced to pay an additional fee on their bills.

Purchasing a high-quality weighing scale and using it on products beforehand prevents any unnecessary expenditures in shipping.

Not Keeping Delivery Receipts

Delivery receipts serve as evidence that a shipment is free from any damage before the delivering process. Presenting these receipts on situations such as shipment damage provides validity that can save a business from bearing all the costs brought by the damages during the shipment process.

Sources:

Tips for Saving Money on Freight Shipping – Infographic

excelsior on November 30, 2019

For any business owner trying to sell their products overseas, saving money on shipping costs can be a breather. While it may seem like going for cheaper shipping services isn’t a good idea, there are several methods that can help any company in reducing their shipping expenses while increasing margins and enhancing customer satisfaction at the same time.

In case your shipping costs is giving a negative toll to your profit, here are some of the best ways of saving money on freight shipping:

Tip #1: Select the Most Suitable Mode of Transportation

To be an efficient importer/exporter, it is your duty to understand and assess which of the most common mode of transportations is the best one for you.

Here is a list of transportation models that are highly available today:

Air Shipment
Rail Shipment
Ocean Vessel
Over-the-Road Trucking

Knowing how to weigh your options in terms of choosing the mode of transportation can make it easier for you to select a specific carrier company to entrust your products.

Tip #2: Research a List of Carrier Companies and Compare their Rates

Expanding your choices of carrier companies enables you to periodically check whether you’re already using the least costly carrier service available or not. Try asking each carrier for a freight quote and invest in a reliable TMS software to automate this method.

Tip #3: Be Practical with Your Packaging Materials

If you’re running a retail store, reusing the packaging materials you received (like packing peanuts, air pillows, bubble wrap, etc.) from your suppliers is much more economical. You should also pay attention to the weight of your shipment. Make sure that you will prefer lighter packaging materials over the heavier ones. For example, it’s better to use packing peanuts instead of wool blankets.

Tip #4: Consolidate Your Shipment

Avoid sending over multiple boxes to the carrier if it’s possible to pack them together to form a single cargo. Consolidating your shipment can restrict its weight, density, and the odds of taking damage or loss.

Tip #5: Hire a Freight Forwarder

One of the most effective ways of minimizing your shipping expenses is by seeking the help of a freight forwarding agency. Having a reliable freight forwarder can be an advantage as they are well-connected with multiple carrier companies which enables them to negotiate the best rate for transporting your products. Moreover, freight forwarders can also provide you with knowledge about logistics in ways that could benefit your business.

Apply these five tips in your shipping operations to ensure that you will be able to conserve your resources and ultimately increase your profit!