excelsior, Author at Excelsior Worldwide Logistics Corp.

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.

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.

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.

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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!

Tips Before Starting an Import/Export Business

excelsior on November 15, 2019

Setting up a business is not a simple task, let alone offering products that can reach more people on an international scale. If you’re an aspiring entrepreneur looking to plunge into the tough competition of foreign commerce, you must be equipped with adequate skills and knowledge in order to survive.

Running an import-export business is now much more convenient than before with the advent of modern technology. The use of the internet to communicate with customers has become commonplace and the learning curve in managing different operations mostly requires competent organizational skills.

While you don’t have to be an expert in this kind of industry, it is still a necessity to be aware of certain things that can optimize your chance of growth as well as minimize the effects of potential risks. The possibility of failure is always present in any form of business, so you should always pay attention to every detail.

Here are some of the best tips that can help you when starting out an import or export business:

Consider Your Products

Since you will be taking on an import-export trade, the products that you’re going to sell can become the X factor for fate of your company for the following years. Think carefully when deciding which product should you sell and be sure to stick with it. Once you figured out the best products for you, use your judging skills to know whether these products are worth your investment or not.

Always keep these two important questions in mind:

Do people want those products?
Do you know how to sell it properly?

If you are confident that your products can become something that is sought-after by many people across cultures and you know at least the fundamentals of selling it properly, then you now have a set of products to sell.

Find Your Target Market

So you already have some products to sell, and the next problem you need to solve is how you can find the people that are more than willing to buy them. Those people are your customers, your target market. Identifying them from a specific country can be a herculean task, so you’ll be needing extra time and probably a hand to do this the right way.

Prepare in-depth research regarding the latest market trends of the particular location where you desire to offer your products. There are several agencies that can do this for you in case you have a pretty hectic schedule.

Set up a Website and Develop an Online Presence

Creating a website provides your company and your products the needed exposure for online users around the world. Take advantage of multiple online platforms to market your products especially your target market. Be responsive to customer feedback and complaints and establish an online community that can enhance their loyalty and ultimately accumulate sales for your company.

Amp up Your Logistics Connection

One of the most challenging things that your import-transport business will have to overcome is making a solid system or plan on transporting your products. With a bunch of legal processes that concern your line of profession, you must be ready to outsource services in logistics. Take for example freight forwarders. Hiring a freight forwarding agency can significantly lessen your load of tasks in complying with customs requirements and other legal processes. They can even help you find the best carrier so that you can cut down your expenses in shipping.

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5 Questions a Logistics Expert Might Ask You – Infographic

excelsior on October 31, 2019

Given the scenario that you’re a business owner looking to ship your goods from coast to coast, you will definitely need someone that can guide you through the process. Requirements that are needed to transfer your shipment could further encumber your already busy schedule. What’s even worse is that unchecked cargo could lead to delayed arrivals and other similar problems which could bring detrimental effects to your supply chain.

Fortunately, you have one option: hire a freight forwarder. In case you don’t know what freight forwarders are, they can be an agent or a company that offers services such as organizing shipments in place of their clients. They always make sure that the client will get the proper assistance they need with all of the customs requirements, other legal processes, etc. They also ensure the safe and timely arrival of goods to its intended destination.

Since they’re dealing with a network of carriers and customs authorities, you should’ve realized by now that freight forwarders are experts in the field of logistics. If you wanted to contact one of them, you must be ready to ask these five questions first so that they can provide you the highest and appropriate kind of service you deserved.

Question no. 1: What type of commodity you’re planning to ship?

Your chosen freight forwarder will most likely ask what type of commodity you’re planning to ship. Is it something perishable, like fresh meat, fruits, seafood? Or non-perishables such as canned goods, machinery, tools, etc.? Moreover, they will also become curious as to whether your goods are hazardous or requires careful handling and temperature controls.

Question no. 2: What type of carrier would you prefer?

Shipping your goods in air is very different from shipping it in the ocean. The condition of your products (especially the perishable ones) are required depending on the environment of your selected carrier.

Question no. 3: How many cartons do you plan to ship?

Knowing the exact quantity of your shipment is another responsibility of freight forwarders so that they can be certain that all of it will leave point A and will successfully reach point B. You need to be particular in number especially if you have a lot of cartons with different sizes.

Question no. 4: Where are you going to your goods?

Normally, the location would be the manufacturer’s factory. In case you’re going to ship your goods abroad, knowing the location of your shipment’s destination will help a lot in complying with specific documents that may vary from country to country.

Question no. 5: Would you like to stack your cartons on a pallet?

Knowing whether you will stack your cartons on a pallet will enable your freight forwarder to estimate the weight and cubic space that it will occupy. This can help a lot when calculating the total weight and volume of the shipment appropriately.

Excelsior Worldwide Freight Logistics conduct 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.