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Guide for Successful Exporting

excelsior on July 15, 2020

 

Exporting or the act of trading goods by sending them over to another country has been an attractive venture for many people for as early as the prehistoric times. From the barter system, up to the modern forms of trade, exported products have become so popular that it is one of the primary reasons for the development of globalization and cross-cultural communication.

In the Philippines, a number of products manufactured locally have a considerable amount of export markets to offer on an international scale. According to the Department of Trade and Industry, one of the top export markets of the country can be found in countries such as Japan, the United States, China, South Korea, and Singapore. Along with the country’s growing economy, the Philippines is now more than capable of mass-producing exportable products like electronic materials, minerals, and fruits.

Selling products abroad can be a lucrative business, especially if you know certain methods and techniques in practicing your trade. In case you’re planning to start an exporting company, there are several benefits that you should anticipate.

Benefits of Exporting

Vast markets – Exporting allows an enterprise to gain access to a great number of potential markets. Doing thorough research can help you identify a list of specific locations where you can sell your products and gain maximum profit.

Increased sales – Exporters can enhance their sales potential since they can reach out to more customers.

Better profit margins – More customers lead to increased demands, which in turn results in fairly profitable business.

Makes budget for research a worthy investment – Conducting market studies can help an exporter improve specific products in order to meet the needs and satisfaction of new markets.

Tips for Successful Importing

Despite having some advantages, exporting products is a challenging task. Such practice requires you to establish healthy connections with foreign consumers, which can be very difficult due to cultural and language barriers. You need to learn how you can promote your products and convince international markets on why they should view your brand as a trusted supplier.

To help you increase your chances of success, here are some of the best tips for exporting your goods:

  1. Prepare a well-detailed research

Research is one of the most crucial steps in starting an exporting business. The data that you will receive from the results can give you a proper understanding regarding the demand for your chosen product. When conducting market research, make sure that you establish achievable goals like identifying the economic rate of a potential market, the demographics, as well as closest competitors.

  1. Plan accordingly

You have to consider the following factors:

Capacity – Determine whether you have the adequate capacity (resources) to meet the changing demands of different markets.

Knowledge – Study your products, mainly the driving reasons that can make it valuable and worthy of people in other parts of the world.

Packaging – The design of your packaging reflects a significant portion of your brand’s identity.

  1. Select a marketing route

In order to reach out to a massive number of customers across borders, you can choose one of the marketing routes below:

  • Using a distributor
  • Creating a joint venture
  • Using a sales agent
  • Be a direct seller

  1. Understand the nuts and bolts of the exporting process

Exporting comes with several procedures that involve varying rules and regulations of bringing exported products from one country to another. Remember to check if the goods you’re trying to export will require some paperwork to be done before they can be cleared by the authorities.

  1. Hire a freight forwarder

Freight forwarders are highly skilled professionals that possess immediate knowledge in logistics and can ensure seamless documentation and customs clearing processes when exporting your products. Consider hiring a freight forwarding agency for your business if you want to avoid any unnecessary delays and other related hassles associated with exporting.

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.

 

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Ways of Preventing Shipment Delays

excelsior on June 15, 2020

Ways of Preventing Shipment Delays

Untimely arrival of shipment is perhaps one of the most common problems of businesses nowadays.  With the world currently facing the COVID-19 outbreak, supplies can deplete faster, and delayed shipments could result in poor customer service and wasted profit opportunities.

On the other hand, those who specialize in manufacturing are more likely to suffer from the effects of delayed shipment. Based on a study, around 62% of respondents believed that they are less likely to negotiate again with a supplier whose products were not delivered to them within the promised dates.

If you’re running an import/export business trying to transport your products with minimal to no delays, then here are some of the ways to do so.

Know the Cause of the Delay

The first step for preventing delayed shipment is through having an understanding of what causes the delay in the first place. This will enable you to prepare solutions the next time around.

Examples of scenario that are usually attributed to the untimely arrival of shipment include:

  • Bad Weather – Typhoons and even other forms of natural calamities are purely unavoidable, which make it the most tolerable cause of shipment delays.
  • Errors in Documentation – Any errors in documentation, such as the misspelling of the address, incorrect order forms, and incomplete information, can also lead to unnecessary late deliveries.
  • Package Redirection – A change in information, especially the address, can usually make a shipment be transferred in a different time of arrival.
  • Customs Delay – Customs authorities typically require a list of requirements before you can clear your shipment. Failure to submit these documents in time will guarantee a late shipment.

Practicing utmost care and planning ahead of time are the best measures that you can do to prevent any of these indicators from happening.

Make your Warehouse More Organized

Keep your warehouse well-organized, especially if you receive tons of orders every day. Arrange your products based on how popular they are, and make sure that the packages that you will transfer are all in a separate place so that they can be easier to find upon dispatching.

Utilize Logistics Software

Automation can be considered as one of the efficient ways of combating delayed shipment. However, you should take note that using software for managing logistics can prompt you to invest more money, as they can be quite expensive. But in case you don’t have enough resources to afford logistics software, you can still go for an alternative way. Formulate a step-by-step checklist that will guide your employees while doing logistics tasks.

Hire a Freight Forwarder or Customs Broker

Partnering with a freight forwarding agency or a customs broker in the Philippines comes with a lot of benefits, which include preventing any delays in your shipment. Since both professions are very knowledgeable in logistics, they can provide you some helpful advice of the best carrier company that will ensure the timely arrival of your goods. And if you have issues with your documents, a customs broker will surely help you clear everything up as they are very familiar with the process involving customs requirements.

If you want to know more about what freight forwarders and customs brokers do, check out the infographic here.

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.

Top 5 Products Exported by The Philippines

excelsior on September 15, 2019

Top 5 Products Exported by The Philippines

The Philippines is a country in Southeast Asia that is rich in natural resources. Several of these resources are quite rare in some areas of the world, which gives the Filipinos an opportunity to earn a living by converting it into products that we export today.

If you’re one of those business folks who are either looking for an ideal line of products to sell in an international scale or in the verge of expanding your business internationally, this article is for you. In addition to looking for a suitable freight forwarding company to keep your supply chain up and going, you must also familiarize yourself in five of the top-selling products exported by the Philippines:

  1. Gems, and other precious metals

As recent as last year, the Philippines was able to accumulate an amount of $1.5 billion in exporting precious metals and gems on international markets. According to records, the leading and most expensive precious metal in the country is gold. The amount of gold exported from the Philippines is ten times greater than the amount spent by importers who bring gold into the archipelago.

Additionally, there is also a growing demand in pearls found in various seas of the Philippines. Those that were produced by the largest immobile bivalve mollusk in the world, Tridacna Gigas can weigh over 34kg and can be a couple of feet long. Filipino pearl exporters earned an amount of $15.3 million by selling pearls globally. As for gems, organic gemstones are also on the rise, with exporters making a million dollars per year.

  1. Fruits, nuts

Examples of fruits and nuts that are widely exported in the Philippines are coconut, banana, pineapple, soursop (guyabano), papaya, guava, calamansi, tamarind, peanuts, among others. Filipino cultivators of these fruits earn a total amount of $2.1 billion, which comprises 3.3% of overall exports from the country. The Philippines is the second-largest coconut user on the world, next only to Indonesia.

  1. Optical, technical, and medical apparatus

Aside from natural resources like fruits nuts, gems, and other precious metals, the Philippines is also a competitive exporter of tools and equipment used in the medical field. Filipino manufacturers of these products gained a whopping $2.2 billion from international buyers around the globe.  Examples of this equipment are:

  • Optical Fibres, Optical Fibre Bundles, and Cables
  • Photographic Cameras; Photographic Flashlight Apparatus
  • Oscilloscopes, Spectrum Analysers
  • Liquid Crystal Devices, Lasers
  • Other measuring or checking instruments and machines

  1. Machinery, i.e., computers

Machinery and computers that are widely used in some parts of the world actually came from the Philippines. These can range from office machine parts, integrated circuits, semiconductor devices, insulated wires, and even whole computers itself. Companies selling machinery and computers in the Philippines earned $9.6 billion in the year 2018 alone.

  1. Electrical machinery, and other similar equipment

Based on the 2018 records, electrical products are still in leading products exported by the Philippines. Even the government acknowledged this fact as the Department of Trade and Industry (DTI) stated that such products are the key exports of the country. The Philippines exported $32.9 billion worth of electrical machinery and other similar equipment which account for almost half (48.7%) of the country’s total exports for last year.

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The Importance of Being an Accredited Importer and Exporter in the Philippines

excelsior on September 14, 2018

The Importance of Being an Accredited Importer and Exporter in the Philippines

Over the last five years, the Philippines has become one of the most competitive economies being the 38th largest export economy worldwide and forecasted by HSBC as a potential 16th largest economy by the year 2050. Given the fact that the country’s economy itself has advanced, the implementation of trade policies is stricter and the standards, higher. Having that said, here is a detailed list and account of the importance of being an accredited importer and exporter in the Philippines:

Recognition

Businesses who aspire to be accredited are carefully assessed and evaluated by a neutral accrediting body based on numerous requirements and conditions, providing clients with a reliable and fair basis when choosing an import and export company and a guarantee of quality service. After getting accredited, chances are you will be a premier choice in the import and export industry.

Promotion and advertising

Getting accredited is an excellent marketing strategy because after passing the accreditation assessment, you will be awarded a certificate of accreditation that you can publish in your website to demonstrate your commitment to providing quality to your present and potential clients.

Keeping ahead of the competition

Not every import and export business volunteers to undergo the accreditation process because they lack knowledge of its importance and only a few passes the assessment done by the accreditation body.  That is why getting accredited gives you an edge over your competitors.

Exemptions

As an accredited importer, you have the privilege of getting exempted from payment of import duties upon the observance of formalities and regulations, while an unaccredited business doesn’t.

Minimized expenses

If you have numerous shipments to be made, you can reduce your expenditures by directly processing your entries with the Bureau of Customs instead of paying third-party consignees to do the job.

The main objectives of accreditations in the Philippines are to prevent smuggling, combat tax fraud, and evasion, and to transform the Philippines into an exporting nation through cooperation between government and private entities.

But, as you can see in this article, it is just as beneficial to every business inside the country because it encourages each business to improve and excel in their chosen industries constantly.

Here at Excelsior Worldwide Freight Logistics, we have equipped people who are knowledgeable regarding import and export legalities and are willing to help you get accredited.

We also conduct free orientation for those who are willing to learn about importation & exportation. It is our advocacy to share our knowledge & experience for 17 years in the business. 

Contact us today at (063) 525-9775 or email us at wecare@excelsior.ph

To learn more about the importance of being an accredited importer in the Philippines, see this infographic on the advantages of being an accredited importer.

 

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Exporter Guide: Steps to Make Sure You Will Get Paid

excelsior on April 15, 2018

Exporter Guide - Steps to Make Sure You Will Get Paid

In our previous post, we discussed how you could effectively find overseas clients for your export goods. Provided that you have already established a substantial client base, the next you need to do is to make sure that all your efforts will pay off.

So, while learning to grow your export business and getting familiar with common mistakes that exporters must avoid is crucial, making sure you collect what you are owed is just as important.

To help you out, we compiled on this the actionable ways to ensure your export customers will always pay you on time.

  1. Negotiate Payments Terms Ahead

The first step to ensure payment is to negotiate payment terms that work for both you and your customers. Most customers would prefer to pay 100% of what they owe sometime after they have received the goods, while you would rather be paid in full before you even ship.

To strike a balance between the interest of your business and of your customers, ask them to pay for a deposit shortly after the order. This not only helps your cash flow, but it also commits your client to work with you, and it reduces the likelihood that they will cancel their order.

  1. Obtain Letter of Credit

A letter of credit (L/C) is an effective tool to establish trust between you and your client. Essentially, L/C is an agreement between your bank and the customer’s bank stating that the customer bank will send payment to your bank once you show proof that you have shipped the goods.

With an L/C in place, you can expect to receive payment within about three to four weeks following shipment. Although L/C come at some financial expense—typically around 0.5% to 1% of the payment to be made – it is definitely worth the price as it greatly reduces your risk of not receiving payment.

  1. Use Sight Draft

Another common financing tool used by many small- and medium-sized export businesses is the sight draft. To use one, you need some help from your bank and your shipping company or freight forwarder.

In essence, a sight draft allows you to draw a check on your client’s bank account and comes hand to hand with a letter of credit. Unless your client signs a document that a shipment has been made, they will not be able to take possession of the shipment.

  1. Consider Getting a Trade Credit Insurance

Trade credit insurance is an effective financial risk management tool that protects your export business against losses from non-payment of trade-related debts. In the Philippines, many trade financing companies such as UCPB and QBE offers trade credit insurance and other trade finance programs which helps minimise the financial risks that growing export businesses face.

  1. If All Else Fails

When nothing else works, – the client cannot pay due for whatever reason there is – do everything possible to address the non-payment issue to receive at least partial payment. Surely, you would rather have 80% of the payment in the bank than to sue for 100%.

Not only pursuing legal action in a foreign country can be expensive, but it is also time-consuming and frustrating as well. If your export product includes a warranty or a component which needs to be serviced regularly, you can use those as leverage to extract payment.

Allow Excelsior Worldwide Freight Logistics Corp. to help you navigate the world of import and export. For any queries that you may have about our customs brokerage service, you may call us at (063) 525-9775, or you can send us an e-mail through wecare@excelsior.ph

Why Now is the Best Time to Establish an Import-Export Business in the Philippines? (Infographic)

excelsior on March 28, 2018

The import-export sector in the Philippines is on the rise. According to Philippine Statistics Authority (PSA), the country’s total trade grew by 8.6% in December 2017, pushing a full-year trade growth to its current rate. This is better than the 5.8% full-year trade growth recorded in 2016.

Imports and exports posted 10.2 percent and 9.5 percent growth rates, respectively, exceeding the Development Budget Coordinating Committee’s emerging estimates (as of December 2017) of 9.0 percent for imports and 8.0 percent for exports.

Such improvement has made the Philippines one of the fastest growing economies in the world, according to the World Bank’s latest edition of Global Economic Prospects. As the country emerges as a growing economic hub, it is wise to ride the wave and make the most out of it by establishing an import-export business in the Philippines.

Read on as we detail in this infographic the reasons why now is the best time to establish an import-export business in the Philippines.

Why Now is the Best Time to Establish an Import-Export Business in the Philippines
1. Presence of Trade Programs and Affiliations

Plenty of government and non-government organizations promote importing and exporting in the country. These organizations have programs which goal is to help aspiring importers and exporters start their business with a firm foundation as possible.

The Philippine Exporters Confederation, the Bureau of Export Trade Promotion, and the Philippine International Trading Corporation are the most popular of these groups. The Philippine government is ramping up these organizations – hoping to promote the country as a destination for foreign investment and exports.

These groups also help to negotiate trade agreements which also open many opportunities for exporters and importers. Some of the trade agreements that are currently in place are the Philippine-Japan Economic Partnership Agreement (PJEPA), ASEAN-India Comprehensive Economic Cooperation Agreement, ASEAN Free Trade Area, and ASEAN-[Republic of] Korea Comprehensive Economic Cooperation Agreement, among others.

2. Relaxing Foreign Ownership Limitations

Foreign ownership restrictions have been a significant issue in the Philippine international trading sector for many years. However, President Rodrigo Duterte is planning to ease these foreign ownership limits in Philippines businesses.

In 2017, the President has directed the National Economic Development Authority to take “immediate steps” to lift restrictions on foreign investments. The NEDA’s efforts to ease restrictions include labor recruitment, public services, rice and corn production, milling, processing, and trading – among others.

The opening of the Philippine economy reveals previously unreachable markets. Whether you are looking to set up an import-export business there, or simply find a supplier, the future is bright.

3. Monetary and Tax Incentives

The Philippines boasts 326 economic zones across the country – which are composed of export processing zones, free trade zones, and industrial estates. Establishing a trading company in economic zones can benefit you from duty-free imports, with some exemptions from particular taxes and other import restrictions as well.

The Asia Development Bank (ABD) also offers to finance to businesses looking to invest in the Philippines. Businesses can also avoid local taxes, duties on event materials, and travel fees – all depending on the situation.

4. Increased Support for Private Businesses

One of the biggest development in the Philippines international trade scene is the privatization. President Rodrigo Duterte plans to move many Government Owned and Controlled Corporations (GOCCs) into the private sector which would allow local businesses and investors to participate to previously untapped industries such as healthcare, energy, transportation, etc.

While there are domestic concerns for this shift, allowing more private businesses to participate in government projects may increase innovation and is expected to create more investment opportunities for international companies.

To be successful in the Philippines, or any international region, import-export businesses need a reliable and trustworthy logistics partner. A reliable and honest freight forwarding company provide significant advantages that will not only help you gain a competitive edge but also ensures that all your import and export transactions are done legally, ethically, on budget and on time.

If you 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 2018 and beyond. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph.

Importers/Exporters Primer for Break Bulk Shipment and Container Loading

excelsior on January 16, 2018

If you are just new in the import/export business, then one of the first shipping methods you should get familiar with is the break bulk shipping, better known as Less Container Load (LCL). Probably it is because you are still testing the waters first, i.e., your first orders are likely to be small or, perhaps, your product’s dimensions do not fit or utilize standard shipping containers or cargo bins. Either way, knowing when to use break bulk shipment is essential as you grow your trading business.

What is Break Bulk

In the old-world context, break bulk means the extraction of a portion of the cargo on a ship or the beginning of the unloading process from the ship’s holds.

In the modern context, break bulk is meant to encompass cargo that is transported in bags, boxes, crates, drums, or barrels – or items of extreme length or size. Compared to Full Container Loading, this type of shipping involves paying for space your load takes up in a standard container.

To be considered break bulk, these goods must be loaded individually, not in intermodal containers nor in bulk as with liquids or grains.It is without a doubt the most common form of cargo ever since time immemorial. Examples of commonly shipped break bulk cargo include:

  • Bagged or sacked cargo.
  • Baled goods
  • Barrel, drums, and casks,
  • Corrugated and wooden boxes or containers
  • Reels and rolls
  • Equipment, vehicles, and components
  • Steel girders and structural steel
  • Any long, heavy, or over-sized cargo

Benefits of Break Bulk Shipment

The main advantage of this shipping method is that it allows you to move oversized, over-weight load that would not otherwise fit into a container or cargo bin. It can also be an affordable way to ship large cargo since the item will not have to be dismantled to ship

Take note, however, that even when you are not shipping over-sized cargo, break bulk shipment can still be a very advantageous mode of shipment. If you can find a freight forwarding company that specializes in break bulk, you will be able to control your shipping expense when you are shipping a small trial order.

For exporters, shipping in break bulk requires them to put an extra care in packing and labeling goods because break bulk shipments are more prone to theft and damage. Typically, break bulk cargos are packed using the following materials:

  • Pallets
  • Slip sheets
  • Crates

Container Loading

Since the late 1960s, break bulk cargo has declined while containerized cargo has grown significantly. Moving containers on and off a ship are much more efficient than having to move individual goods. This efficiency, therefore allows ships to minimize time in ports and spend more time on the sea.

There are different types of container units that cater to different types and sizes of cargo. The most commonly used by small to medium-sized importers/exporters are the 20-foot container, while large-sized companies often use the 40-foot and 45-foot containers.

The following are approximations of how many pallets or skids can into each type of containers:

  • Ten standards (40”x48”x48”) pallets can fit into a 20’ dry ocean container.
  • 22 standard (40”x48”x48”) pallets can fit into a 40’ or 40HC (high cube) dry ocean container.
  • 24 standard (40”x48”x48”) pallets can fit into a 45’ dry ocean container.

Overall, choosing between break bulk and container loading are mainly depends on the type and quantity of your goods.

Allow Excelsior Worldwide Freight Logistics Corp. to help you navigate the world of import and export. For more information on our breakbulk service, visit our website today at www. excelsior.ph. For any queries that you may have, you may call us at (063) 5259775, or send us an e-mail through wecare@excelsior.ph

 

 

How to Find Foreign Buyers for Your Export Products

excelsior on December 15, 2017

Your export business would not be successful unless you have a substantial client base that trusts your company. Finding export customers can be a challenging task, especially if you are just starting out or entering a new market. However, with the right knowledge and strategy, you will be able to find export trade customers for your products and keep them as regular customers.

Here are five simple ways to find and acquire foreign buyers for your export business:

  1. Attend Trade Shows for Your Industry in the Philippines and Overseas

Numerous trade shows that cater to different industries are conducted in the Philippines every year. It is a great place to start if you want to expand your business, as well as to keep updated with the latest news in your industry. These trade shows let budding export business owners contact international customers, especially they have a complicated product to offer.

  1. Contact Philippine Embassies Located in Countries You Want to Find Customers

Philippine Embassies have an appointed commercial counselor whom you can request a list of companies that might be a good fit for your products as well as buying agents that are actively looking for suppliers like you. These records are usually made available at no cost, but occasionally you may be asked to pay a fee. The websites of Philippine Embassies also have economy and trade section which posts up-to-date industry analyses and manufacturing reports that may be helpful.

  1. Globalize Your Website

Many people and businesses nowadays use the internet to search for the product they need. To fully maximize the potential of your website, you should include the contact information of your international liaison, if you have, on your contact us page. You should also consider translating your website and marketing materials into the language of the countries you are trying to target. Doing so will make you visible to Internet searches conducted in different languages.

  1. Connect with Commission Agents

Foreign wholesalers often have their own commissioned agents or middlemen abroad to find and buy great export products on their behalf. Dealing with these local authorized agents can be far more comfortable than dealing with a foreign-based agent as they require less effort to reach and are more motivated since they are paid on commission.

  1. Use the Tradeline Philippines’ Business Matching System

The Business Matching System is a platform created by Department of Trade and Industry which allows exporters to find foreign buyers for their products. It is one of the most efficient ways for an export business operator to meet with pre-screened potential cross-border business associates, whether you are seeking an agent, a distributor or a joint-venture partner. You can take advantage of this service by contacting your nearest Export Marketing Bureau.

Common Mistakes in Import & Export Business (Infographic)

excelsior on October 31, 2017

The import and export business is still the most lucrative industry anyone could venture into. Aside from the wide range of goods to choose from, playing a critical role as an importer/exporter can help you generate anywhere from a few thousand to millions of dollars monthly in revenue.

While the import/export business may be highly attractive to those who want to start a business with great potentials to generate large revenues, not playing your cards right or making petty mistakes can cause you to lose a great portion of you import/export business, here are six common import/export mistakes to avoid at all costs:

Common Mistakes in Importing and Exporting Business

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