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How to Release Imported Item from Philippine Customs

excelsior on October 16, 2017

In this post, we will walk you through the steps by step guide on how to release your imported shipments from the Philippine Bureau of Customs (BoC)

Step 1: For new company or individual who wants to import any commodities with commercial value and or in commercial quantity, you first need an Import Clearance Certificate from the Bureau of Internal Revenue. Then you need to apply for Importer’s Accreditation to the Bureau of Customs. Only accredited importers have the privileges to imports any commodities whether regulated imported commodities or freely imported commodities.

Step 2: Import documents required for shipments to the Philippines include:

1. Commercial invoice/Pro-Forma invoice

  •  Should include a detailed description of the goods i.e. what is it made of, what is it part of, what is it used for.
  • The value indicated must be correct. If the shipment consists of more than one item, the importer must provide a value breakdown and ensure that the total amount tally to the total value of the shipment.
  • The value must be transaction value – the price paid or payable – for the item/s in case the item has been provided free of charge or as a gift.
  •  Putting “No Commercial Value” will lead to Customs asking the consignee to provide value evidence such as proof of payment, purchase order, or telegraphic transfer.
  • The invoice should also include the quantity, weight, unit price, currency and country of origin (COO).

2. Bill of lading (for sea freight) or air waybill (for air freight)

  •  Should be filled out completely and accurately.
  •  Make sure all the information is consistent with the commercial invoice.
  •  A revision in the declared value once a shipment reaches the destination port is subject to Customs approval.
  •  Make sure to include a reachable consignee contact so the destination port can easily inform them about the shipment’s arrival and advise of any necessary clearance paperwork.

3. Packing list – A document that details the merchandise in the shipment, along with information on how it was packed, how the items are numbered, the serial numbers, and the weight and dimensions of each item.

4. Applicable special certificates/import clearance/permit depending on the nature of goods being shipped and/or requested by the importer/bank/letter of credit clause, e.g., Food and Drug Administration (FDA) license; and

5. Commercial Invoice of Returned Philippine Goods and/or Supplemental Declaration on Valuation.

6. For a Letter of Credit (L/C) transaction, a duly accomplished L/C, including a Pro-Forma Invoice and Import Entry Declaration for Advance Customs Import Duty (ACID) is required. A Pro-Forma Invoice is required for non-L/C transactions (e.g., Draft Documents against Acceptance (D/A), Documents against Payment (D/P), Open Account (OA) or self-funded documentation).

7. Additional documents for certain imports – Importers bringing in animals, plants, foodstuff, medicine or chemicals must additionally obtain a Certificate of Product Registration from the Philippines’ Food and Drug Administration.

Step 3: File an Entry
Entry must be filed in the Customhouse within 30 days from the date of discharge of the last package from the vessel, which shall not be extendible. Failure to file the entry constitutes implied abandonment and will result in the ‘ipso facto’ forfeiture of the goods/shipment.
You or your customs broker may have the software to file Bill of Entry at office or home. If you do not have such facility, you can approach private EDI (Electronic Data Information) service providers who can arrange to submit the data on behalf of you.

Step 4: Payment of Duties and Taxes for ATRIG

  •  An ATRIG is an authority issued by the BIR, addressed to the Commissioner of Customs, allowing the release of imported goods from customs custody upon payment of applicable taxes, or proof of exemption from payment thereof, whichever is applicable.
  • The BIR Revenue Memorandum Order (RMO) No. 1-2016 directs all applications for ATRIGs for excisable products be processed and issued centrally at the BIR National Office in Quezon City.
  •  Only applications of importer-applicant and broker-representative who are duly registered BIR taxpayers will be processed.
  •  An individual importer-applicant must present a photocopy of his/her latest annual income tax return together with the audited financial statements duly stamped received by the BIR. These will be used in the valuation of the individual importer-applicant’s financial capacity to import.
  •  Prior ocular inspection of the imported goods would be conducted if necessary.

Step 5: Release of Cargo
Upon satisfying all these requirements of, you can now retrieve your import goods from the Customs.

The import customs clearance procedure in the Philippines can be very lengthy and tedious, especially for those small and medium businesses. If you need a professional help to ensure a fast and hassle-free release of your import goods, contact Excelsior Worldwide Logistics Corp. today at (063) 525-9775 or send an email to wecare@excelsior.ph

 

Ideas for More Efficient & Productive Brokerage Operation

excelsior on April 19, 2017

Efficiency and productivity are two of the most important metrics that business owners are determined to achieve both on a short- and long-term basis. And this is especially true in the brokerage industry. Because of the complexity of international trade, along with other intricacies in the industry, managing a customs brokerage firm can be really challenging sometimes.

That said, to provide the maximum level of service quality, customs brokers must ensure a fast and efficient process. To help you with that, consider these tips that will help boost the efficiency and productivity of your brokerage operation today.

1. Take Advantage of Digital Tools

We’re practically living in the future, so do not fail to take advantage of the technological tools that can help streamline your business’s operations.

New digital tools such as track and trace apps, web reporting, document imaging, electronic billing, etc., make it easier to submit documents to your clients, track the movements of goods, manage paperwork more efficiently, and stay up to date with the latest news in the international trade.

Though they require significant upfront investment, equipping your business with digital tools will surely pay off in the long run.

2. Find Ways to Lower Import Cost

As a broker, it is not only your job to get the shipments to their final destination legally, but also give your clients more chance save significant money in the shipping process. You should always seek ways to legally reduce the import cost.

For example, you need to be aware of certain goods that may qualify for preferential access, granted under Preferential Trade Agreements. In this circumstance, import tariffs are significantly reduced, helping your client to reduce their importing expenses.

3. Keep Your Records Up-to-Date

Brokerage companies must always keep a well-maintained record of all shipments, from procurement to payment for seven years. This includes documents such as invoices, shipping records, proof of origin, markings, value adjustments, and others.

4. Choose a Niche to Specialize In

Selecting a niche to focus on will help you develop a specific domain expertise that your competitors won’t have. A niche can be a country or region, a specific industry like automotive or garment, a specific mode of transportation like ocean or trucking, or specific service levels like high interaction, high compliance or lowest cost. It could also be the size of clients you want to have business with.

5. Stop Working with Carriers that Under-Perform

For sure, all brokerage company will encounter a few occasion problems on their operations, but it is when the failure of the service become chronic that you have to consider dropping the carrier from your timetable.

Carriers who don’t deliver on their promise will not only affect your reputation but will also keep you from having loyal customers. While it’s one thing to give them a second chance, you need to draw the line before the problems affect your own business.

6. Outline the Scope of Your Service

To avoid disputes with your clients, you need to clearly outline your duties and responsibilities as a broker. In doing so, you also give them a clear idea of the scope of your service. For instance, when they ask for your expertise about a very specific case, you must tell them outright if the cost of such services (consulting) is already included in the regular brokerage fee or if they are charged additionally.

7. Stay Updated

International trade is always changing. So, to avoid accidental non-compliance, you must keep up with the latest rulings, trade news, regulatory changes, and cross-border issues which can impact your and your client’s business. It is also advisable if you attend educational events such as compliance and risk management seminars regularly. These events will not only help you improve your knowledge but also give you the chance to expand your network.

8. Be Responsible and Trustworthy

As a broker, you are tasked to represent your client to the best of your abilities – and this includes full adherence to applicable customs laws. If you fail to observe these laws while doing business on behalf of your clients, it can result in irreversible damages, delays and revenue losses. Worse, it can damage the reputation of your brokerage firm and of your client.

You must know your scope of authority, make effort to improve your skills and conduct internal audits to improve operational efficiency. An honest broker also provides accurate data and discloses any false or misleading information to their client.

These are just some of the ways to ensure that the productivity and efficiency of your brokerage firm are always at the optimum level. Need a helping hand on starting your import and export business today? Contact Excelsior Worldwide Freight Logistics Corp. and let us help you in your journey in the import-export industry this 2017 and beyond. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph.

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.

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

excelsior on September 2, 2016

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

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

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

This is where a customs broker plays an important role.

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

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

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

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

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

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

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

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

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

Excelsior Worldwide Logistics Corp.