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

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.

Sources:

Why Importers Choose Freight Forwarders Over Shipping Lines (Infographic)

excelsior on June 23, 2018

For the past years, freight forwarding companies have been doing good in the world of logistics, wherein most of the importers right now is choosing to use the service of Freight Forwarder rather than choosing the service of Shipping Line. 

In order to understand why more and more importers rely on the service of freight forwarding companies, we detail in this infographic the biggest advantages that freight forwarders have over traditional shipping lines.

Why Importers Choose Freight Forwarders Over Shipping Lines1. Flexibility 

Freight Forwarder could be more flexible in terms of quality service and rate which is very critical for importers these days. Instead of going directly with the shipping line, a freight forwarder will negotiate on your behalf to get a competitive deal and discover the most suitable arrangement for your shipments.

2. Service 

A freight forwarder is a total logistics provider, which means that an importer can access a wide variety of services more conveniently. Freight forwarder could offer different types of Incoterms depending on what arrangement of importer wanted to do.

In fact, there are shipping arrangements that a freight forwarder could offer to a budding importer that a shipping line cannot, such as such as Ex-Works and Air Freight. Lastly, freight forwarders provide brokerage services which are a critical aspect when running a legitimate importing business.

3. Rate 

Of course, a freight forwarder will still use the service of a shipping line to transport the goods since they do not have their own vessel to do so. However, to make their rates more competitive than shipping lines, freight forwarders use the extreme competition in shipping line industry as leverage. They do this by proposing rates to all shipping lines instead of using only one shipping line, allowing them to charge the most cost-effective rates to their customer more effectively.

4. Reliability 

One of the hardest parts on the side of importers is the communication. Most importers – especially those that are new in the business – can testify how hard to contact shipping line and how inconsistent their service when it comes to updating the arrival details of their shipment.

On the contrary, freight forwarders are known in the industry as reliable service providers. They can come up with solutions on-the-go be it for harsh weather, customs errors, inaccessible routes, vehicle breakdowns, and other problems that could arise and delay the transport of your shipment.  

5. Contract Agreement 

A reliable and trustworthy freight forwarder could get not only the best and most competitive rates but other cost-privileges such as Demurrage, Detention, Ocean Freight, Credit Term and ability not to be affected by General Rate Increase.

By choosing to work with a freight forwarder, you will also be able to choose from a wide variety of shipping line options. They know where to load best in terms of your need/demand. It’s either low rate or transit schedule. You can also enjoy the service contracts/agreements they have with different shipping lines in terms of extended free time and waive of unnecessary charges, thus helping you lower your overall importation cost.

Excelsior Worldwide 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. Visit our website today at www.excelsior.ph to learn more about our service.

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.

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

Cargo Insurance: Top Reasons Why Your Import/Export Business Needs It!

excelsior on June 26, 2017

In every type of business, it’s minimizing risk is equally important as achieving maximum return. If your business imports or exports its products, it means you’re putting an investment at stake every time you ship cargo. This is why it is extremely vital to have your cargo covered with cargo insurance because your business could lose an absolutely insane amount of money in case everything went spiraling down.

In the Philippines, under Sec.99 of Presidential Decree No. 612, also known as Insurance Code of the Philippines, a marine insurance should cover you against damages or loss on:

  • Vessels, craft, aircraft, vehicles, goods, freights, cargoes, merchandise, effects, disbursements, profits, moneys, securities, chooses in action, evidences of debts, valuable papers, bottomry, and respondentia interests and all other kinds of property and interests therein, in respect to, appertaining to or in connection with any and all risks or perils of navigation, transit or transportation, or while being assembled, packed, crated, baled, compressed or similarly prepared for shipment or while awaiting shipment, or during any delays, storage, transhipment, or reshipment incident thereto, including war risks, marine builder’s risks, and all personal property floater risks;
  • Person or property in connection with or appertaining to a marine, inland marine, transit or transportation insurance, including liability for loss of or damage arising out of or in connection with the construction, repair, operation, maintenance or use of the subject matter of such insurance (but not including life insurance or surety bonds nor insurance against loss by reason of bodily injury to any person arising out of ownership, maintenance, or use of automobiles);
  • Precious stones, jewels, jewelry, precious metals, whether in course of transportation or otherwise.
  • Bridges, tunnels and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents and supplies held in storage); piers, wharves, docks and slips, and other aids to navigation and transportation, including dry docks and marine railways, dams and appurtenant facilities for the control of waterways.
  • “Marine protection and indemnity insurance,” meaning insurance against, or against legal liability of the insured for loss, damage, or expense incident to ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft or instrumentality in use of ocean or inland waterways, including liability of the insured for personal injury, illness or death or for loss of or damage to the property of another person.

Whether exporting or importing or using an air freight or ocean freight for your international shipping, marine cargo insurance covers loss and/or damage of cargo while it is in transit between the points or origin and final destination.

Here are five reasons why your import/export business need to protect your freight with cargo insurance.

  1. Reduce Risk of Financial Loss

Whether you’re an exporter who has not been paid for the goods at the time of shipment or an importer who has paid for all of the goods prior to receiving the, having your cargo insured protects you from potential financial loss if the goods are lost or damaged during the transit.

  1. General Average – Speed up the Release of Your Cargo

In cargo insurance, general average means general loss. When the general average is declared, both the ocean carrier and the cargo owners are liable for loss or damage to all the cargos aboard in the ship, as well as the ship itself. Under this circumstance, you may be required to post a bond and/or cash deposit in order to obtain the release of your cargo following a general average – even though there was no loss or damage to your goods.

By availing cargo insurance, you take the load off your shoulder as the insurance company assumes the responsibility and expedites the release of your cargo.

  1. Contractual Requirement

If your customers obligate you through a contract to provide ocean cargo insurance, that is because they want to protect their interest and or their bank’s interest as well. This is especially true when selling goods in CIP or CIF (click the link to learn more about Incoterms). Failing to avail cargo insurance cannot only subject you to financial loss if there is loss or damage to the goods, but non-compliance with the terms of your contract with the buyer can also result in loss of sales and legal problems.

  1. Coverage for Limited Carrier Liability

By law, carriers are not fully responsible for many common causes of loss in transit e.g. Acts of God, general average, etc. In the event they are liable, their liability is also limited – either by contract stipulated in the bill of lading or by law. To make up for the limited carrier liability, the best thing that you can do is to purchase a cargo insurance.

  1. More Control Over Terms

While counting on your buyer’s or seller’s insurance may be a viable option, having a cargo insurance provides another layer of security and peace of mind. Purchasing a cargo insurance puts you on the higher ground by giving you more control over insuring terms, valuation, and limits provided by each insurer, ensuring that all these are a perfect match to your business’ needs. As an importer, purchasing your own cargo insurance saves you a lot of time and effort from dealing with foreign insurance company provided by the seller, especially from a country with a different language.

These are the top compelling reasons why you should definitely need cargo insurance for your import/export business. Want to know more? Contact Excelsior Worldwide Freight Logistics Corp. and let us help you in your journey in the import-export industry in 2026 and beyond. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph.

Top 10 Ports in the World (Infographic)

excelsior on March 15, 2017

For centuries, ports have played a critical role in global commerce, making it possible for different countries to acquire its much-needed resources and products that are impossible to transport through other means. For importers and exporters, ports provide them with benefits that come from foreign resources and investments, as well as the advantage of having access to larger and more open markets.

With such importance, there has been a steady support for constructing new ports around the world in the past recent years. According to World Port Source, there are more than 4,500 ports that are currently serving the global market.
That said, there are ports that are “busier” than others. In this post, we will present the top ten ports in the world in terms of container traffic passing through them.

Top 10 Ports in the World-01

Importer & Exporter Fact: Culture of Honesty, Find an Honest Broker (Infographic)

excelsior on January 4, 2017

The advent of new technology has made it easier for anyone to start their own import and export business nowadays. However, with tight competition, complex environment, and demanding processes, it is very sporadic for an importer-exporter to prepare the customs work on its own.

Customs broker is an individual that provides professional and expert service for customs clearance of goods during importing and exporting. Their help ensures that all your freights arrive at its point of destination without evading any rules and regulations of international trade.

Importer & Exporter Fact - Culture of Honesty, Find an Honest Broker HD

Types of Bill of Lading That Affects Your Import & Export Business (Infographic)

excelsior on November 21, 2016

Bill of Lading (BOL, Waybill) is a legal document between the shipping carrier and the business which acts as 1) a proof of contract of carriage, 2) receipt of goods, and 3) document of title of goods. It is considered as one of the most important documents in the whole shipping and freight process. Unknown to many, bill lading has many types, and each of these has its own purpose and set of specific instructions for the shipping carrier.

Check out this visual guide as we present some of the most common types of bill of lading used in the importing and exporting business.

types-of-bill-of-lading-that-affects-your-import-export-business-hd

Excelsior Worldwide Logistics Corp.