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How to Import to the Philippines?

excelsior on October 14, 2022

The Philippines is a strategic trading location as it shares maritime borders with many different countries, including China, Taiwan, Indonesia, Malaysia, Vietnam, Japan, and Palau. Its top import partners aren’t limited to its neighbors as it also imports goods from Korea and the United States. Because the Philippines continues to comply with ASEAN-wide economic integration, the opportunities for both importers and exporters will only continue to grow.

Importers and exporters will need to rely on experts knowledgeable on the latest updates in the shipping scene. For example, if any crises affect trade routes, customs brokers will be critical to ensure that products can still be imported and exported promptly.

Written below are the top things to keep in mind when importing products. Knowing how to import to the Philippines will ensure that businesses will have smooth customs clearances.

How can New Importers Start?

New importers will need first to submit the following relevant documents, as listed by the Bureau of Customs, to be accredited:

  • Duly notarized accomplished Application Form and signed by the owner, for Sole Proprietorship, Responsible Officer, for Corporations, the Chairman, for Cooperatives, or authorized partner, for Partnerships
  • Bureau of Customs Official Receipt or BCOR showing proof of payment of the Php1,000.00 processing fee
  • Corporate Secretary Certificate for Corporations / Affidavit for Sole Proprietorship / Partnership Resolution for Partnerships / BOD Resolution for Cooperatives designating its authorized signatories in the import entries
  • Two (2) valid government-issued IDs of Applicant, President, and Responsible Officers
    • Passport
    • Driver’s License
    • SSS ID
    • UMID Card
    • For aliens, Alien Certificate of Registration and Alien Employment Permit
  • Applicant’s NBI Clearance, issued within three (3) months preceding the application
  • Photocopy of either DTI Registration or SEC Registration / Articles of Partnership and Latest General Information Sheet or Cooperative Development Authority Registration and latest Cooperative Annual Progress Report
  • Applicant’s, President’s, and Responsible Officers’ Personal Profile
  • Proof of Lawful Occupancy of Warehoouse and Office Address
  • Updated Lease Contract under the Corporation or Proprietor’s name
  • Affidavit of Consent from the owner and the Title of the Property under their name
  • In case of Sublease, certification from the Lessor or Owner allowing the sharing of office
  • Printed Client Profile Registration System or CPRS of the Company and updated notification of “STORED” status
  • BIR Form 2303 or Certificate of Registration
  • If applicable, Income Tax Return or ITR for the past three (3) years duly received by the BIR
  • Valid Mayor’s Permit certified by the Bureau of Permits and Licensing Office
  • Proof of Financial capacity to import
  • Bank Certificate or other financial certification
  • The Top 1,000 Taxpayers and those under SGL Companies are exempt
  • If applicable, endorsement from the District Collector
  • Detailed sketch map ofthe  office and warehouse address
  • Company Profile with geotagged pictures of the office with proper and permanent signage and pictures of warehouse or storage area

After getting accredited, businesses can start importing products to the Philippines.

Documents Required when Importing Products

Businesses importing products must provide the following required import documents, as shown here, once their goods arrive:

  • Duly endorsed Airway Bill or Bill of Lading, or certification by the carrier or agent of the vessel or aircraft,
  • Commercial Invoice or any other verifiable commercial document proving payment if there is no sale for export
  • Packing list
  • Duly notarized Supplemental Declaration on Valuation or SDV
  • Certain documents as may be required by certain rules and regulations, including:
  • Import Permit or Clearance
  • Authority to Release Imported Goods or ATRIG
  • Proof of Origin for Free Trade Agreements or FTAs
  • Copy of an Advance Ruling, if the ruling was used in the goods declaration
  • Load Port Survey Reports or Discharge Port Survey Reports for bulk or break-bulk importations
  • Document evidencing exemption from duties and taxes
  • Other relevant documents like a Tax Credit Certificate or TCC or Tax Debit Memo or TDM

When importing animals, plants, food, medicine, or chemicals, importers must also obtain a Certificate of Product Registration from the Philippines’ Food and Drug Administration.

Not all items can be imported into the Philippines. For more information, see this list of prohibited and restricted items.

Conclusion

Knowing how to import to the Philippines involves plenty of technical know-how that reliable licensed customs brokers should know. Businesses must look for a reliable customs broker in the Philippines to ensure that their shipments will arrive on time without difficulty.

When importing goods to the Philippines, you’ll need to rely on a reputable international freight forwarding company and licensed customs broker. Let Excelsior Worldwide Freight Logistics help you handle both on your behalf.

Why are Customs Brokers Critical in Crises?

excelsior on September 15, 2022

The COVID-19 crisis and the Ukraine War heavily disrupted various supply lines worldwide. Different countries already had different laws and regulations in place that usually changed frequently, and the pandemic brought with it more regulations that customs brokers needed to navigate through. The war in Ukraine made things worse thanks to sanctions and the closure of air, sea, and land routes, among others, that disrupted shipping costs and the overall shipping process.

Even if crises are occurring anywhere in the world, businesses still need to import and export products to continue their operations, and it’s the customs broker’s job to ensure that the shipments get to their target destinations.

Customs brokers are vital parts of a supply line, and the following are some of the reasons why they’re critical in crises:

customs brokers

They are Knowledgeable about the Changes in Shipping

The COVID-19 pandemic changed freight requirements and regulations in line with the closing of borders and other changes in line with the pandemic. Because of this, customs brokers had to keep up with the changing rules and ensure that the shipments were delivered and received in compliance with regulations.

The war in Ukraine further negatively affected shipping, on top of the already difficult situation with the ongoing pandemic. Not only did fuel costs increase, but fast and efficient shipping corridors were also no longer safe for shipping, so international freight forwarding companies had to use other routes through other countries to ship cargo. New routes mean new regulations to keep in mind and a few new challenges.

Customs brokers must stay on top of changing regulations and new challenges as they adapt to new language barriers and document processing procedures to ensure that cargo and freight get to their target destinations. They can offer different transport options to ensure the timely arrival of shipments. Without customs brokers, freight forwarding companies and shipping lines will have difficulty with their shipments.

They can Handle the Documentation Process

The documentation process has always been a necessary pain to deal with for shipments. Many business owners had already had a stressful experience dealing with the required documentation before the pandemic started, and the war in Ukraine practically redrew route maps. The process is even more stressful now because previously established processes have changed.

Businesses can rely on reliable customs brokerage services to handle documentation. A licensed and reliable customs broker is versatile and can help open new opportunities because they know how to handle the documentation process. This also guarantees that shipments will arrive on time and businesses won’t miss deadlines.

They can Keep Costs Down

Customs brokers can help businesses reduce import costs basically by doing the following:

  • Save time on paperwork
  • Reduce errors on customs documentation
  • Handle duty payments

Customs brokers already kept costs down before the pandemic started, and they still do so to this day. Without customs brokers, businesses will have difficulty with their imports and exports. Customs brokers can also more readily adapt to the changes in the documentation process because they know all the necessary documents and the most efficient ways to prepare them.

Conclusion

Customs brokers are critical to keeping businesses from wasting money with missed deadlines to other costs resulting from the difficulties that sprung up from different crises. The world still hasn’t recovered from COVID-19, and the ongoing war in Ukraine made logistics worse as different shipments continue to sit in ports for weeks or months, so reliable customs brokers and freight forwarders, by extension, are necessary to keep the supply line up and running.

Without customs brokers, businesses will have difficulty importing and exporting products. Let Excelsior Worldwide Freight Logistics help you handle the following customs services on your behalf:

  • Prepare important shipping documents
  • Filing & processing customs entry
  • Expedite delivery of imported cargo to clients

Excelsior Worldwide Freight Logistics conducts free orientation for anyone willing to learn about import and export. It is our advocacy to share our knowledge & experience of more than 17 years in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Why are Fuel Costs High and How it Affects the Shipping Industry?

excelsior on June 30, 2022

The Philippines is currently seeing high fuel prices, and the public transportation sector is currently reeling from the effects as drivers are forced to pay for expensive gas. Although rollbacks could happen in the future, it won’t change the fact that fuel costs are still high worldwide.

From regular commuters to international freight forwarding companies, many people are heavily affected by rising fuel costs that effectively increase gas prices, transportation rates, and shipping costs.

international freight forwarding companies

Why is Gas Expensive?

Increased Demand After Strict Lockdowns

The price for crude oil initially went up when the demand for oil and gas returned as the global economy emerged from strict COVID lockdowns. Both oil and gas prices went up as major economies reopened. Because the Philippines is a net oil importer, gas prices in the country will naturally go up when international oil prices spike.

According to the U.S. Energy Information Administration, the top five oil producers in the world in 2021 are the following:

  • United States – 18.88 million barrels per day or 20% of the world’s total
  • Saudi Arabia – 10.84 million barrels per day or 11% of the world’s total
  • Russia – 10.78 million barrels per day or 11% of the world’s total
  • Canada – 5.54 million barrels per day or 6% of the world’s total
  • China – 4.99 million barrels per day or 5% of the world’s total

These five countries contribute 53% of the total world oil production, and anything that can affect both the production and sale of these countries’ oil will affect the cost of oil. Since oil becomes fuel when refined, expensive oil will then become expensive gas.

While the initial oil and fuel price hike were because of the increased demand, the situation worsened thanks to the Ukraine war.

Russia’s Invasion of Ukraine Cut Down Oil Supply

Because Russia invaded Ukraine on February 24, 2022, the world responded with multiple sanctions to penalize Russia. Due to the sanctions imposed by the European Union, the United States, and other economies, Russia has been selling less oil in the market, resulting in lower supply and higher prices.

Europe started ditching Russian oil by reducing the amount of oil they buy from Russia while shopping around for alternative sources. Some countries still buy some Russian oil because they have become too dependent on it, making it hard to look for alternatives. Because there aren’t enough oil alternatives in the market due to oil producers winding down production, oil prices will remain high until Russian oil returns to the market.

As the war sees no sign of ending anytime soon, it’s unlikely that the global oil supply and prices will return to normal anytime soon.

Effects on the Freight Forwarding and Shipping Industry

Even before the Ukraine War, shipping operators in the Philippines had already imposed bunker fuel surcharges to recover from high fuel costs. Fuel accounts for a freight forwarder and shipping company’s operating costs, so they’re recovering the losses through surcharges. In fact, the Philippine Civil Aeronautics Board has already upgraded the passenger fuel surcharge to Level 4, which equates to P108 to P411 per passenger for one-way domestic flights and P543 to P5,026 per passenger for one-way international flights.

The current surcharge is Level 11, which equates to P355 to P1,038 per passenger for one-way domestic flights and P1,172.07 to P8,714.84 per passenger for one-way international flights. Cargo fuel surcharge is also Level 11, which equates to increases of P1.82 to P5.34 per kg for domestic flights and P6.03 to P44.80 per kg for international flights.

Adding the war in Ukraine to the equation, fuel prices will naturally go up. Philippine Multimodal Transport and Logistics Association, or PMTLAI, president Marilyn Alberto noted that trucking costs would continue to spiral as fuel costs continue to increase. International air freight forwarders in the European Union and the United Kingdom were barred from flying in Russian airspace, creating difficulties in going to East Asia, effectively increasing fuel consumption which then increases fuel cost and transit times.

Alberto said that even if the Philippines does not make any significant trade with Russia and Ukraine, the country will still feel the ripple effect of the following:

  • Higher fuel costs
  • Long transit times
  • Suspension of services
  • Delays due to inspections of cargo bound to Russia to comply with sanctions

The ripple effect increases air and ocean freight rates due to longer container routes, high fuel prices, and possible high surcharges.

Conclusion

The reopening of multiple economies increased the demand for fuel and oil, resulting in higher fuel costs. Both the Ukraine War and the ripple effect of lower oil supply and longer transit times also added to the already high fuel costs. The cost of international freight forwarding will remain high, and it will take time for it to go down. Even so, freight forwarders and logistics companies will continue to operate, and it’s more important than ever to rely on a reputable company.

Excelsior Worldwide Freight Logistics conducts free orientation for those 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 excelsior.ph to learn more about our service.

The Current State of the Freight Forwarding Industry in the Philippines

excelsior on October 15, 2021

The freight forwarding industry has been around since the 1800s and has come a long way since then. In modern times, freight forwarding is a major factor in companies moving their products from one international location. With advances in technology and the Internet, freight forwarding is now more convenient and affordable than ever. A freight forwarder can easily send products and goods all over the world.

Many freight forwarding trends are happening across the globe today, especially in the Philippines. Let’s take a look at some of these freight forwarding trends in the Philippines.

More and more businesses and individuals are using freight forwarders to help them expedite their shipments. Small and big establishments have realized that a Filipino freight forwarder can greatly increase the speed of their shipments. They can also help businesses to save time and money in the long run.

Free stock photo of cargo, cargo ship, city

More Goods Overseas

Another popular trend in the freight forwarding industry in the Philippines is that more people are sending their goods overseas. Most people in the Philippines are familiar with the country’s long coastline. They also know how long it takes for international freight services to arrive at their desired destination. Because of this, most freight forwarders have plans to send freight from Manila to foreign countries regularly. This allows the shipment of large amounts of goods.

Two-Way Shipping Services

Freight forwarding service providers often offer two-way shipping services to help clients send shipments overseas. These shipping services enable clients to track the status of their goods in different parts of the globe. Since tracking your shipment is important, this is a great way to ensure that you receive the shipment in the quickest amount of time.

Why Freight Forwarding?

Other than regular shipments, many freight forwarding companies offer freight forwarding services for specific reasons. One of these is when a business or individual needs to ship their goods to a specific destination outside the country. For instance, if an American company wants to ship its products to China, it will first search for a freight forwarding company that can do so. After finding a provider, they will tell what products they want to ship and where they want the products to go. The provider will then search for a container in the area suitable for storing the shipment until it is shipped to its intended destination.

The freight forwarding industry is still growing in the Philippines. Many factors contribute to the growth of this industry, including the country’s economy, the growing number of international businesses that choose to ship goods to the Philippines, and the increasing popularity of shipping services such as Air Asia and Oceania. This growing industry has shown no signs of slowing down and will continue to thrive in the years to come. The key to success in the freight forwarding industry in the Philippines lies in continued research and development to improve on existing freight forwarding trends and develop new methods to make shipping easier and more efficient.

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.

A Guide for Searching a Reliable Freight Forwarding Partner

excelsior on September 20, 2021

Finding an excellent freight forwarder is very important, especially if you want your shipping business to run smoothly. A shipping company should always be able to provide their clients with great service and a great deal of flexibility in their operations. These two factors will help you maximize your profits and minimize the time you need to deliver your freight.

Of course, the best thing that you can do for your clients is to make sure that the freight company you are dealing with has excellent employees who can take care of the needs of their clients at any given time.

This article will focus on factors to look for a freight forwarder so you can ensure that you find the best one:

freight provider

Expanding Your Choices Online

A good way to find a good freight provider is to research online and then make some calls. Find out what companies other people are using to ship their products and how satisfied they are. You can also find out what type of pricing model they use and what other services are included in their shipping package.

It is best to find a freight company that will provide free quotes for their shipping services. A quote can be obtained by visiting freight websites and enter your shipping information. The quotes will give you a price range to compare. Choose a company that has the lowest quote and that fits your budget best. Make sure that the company has been in business for at least five years.

CRM

One of the things to look for in a freight forwarding company is its customer relations management or CRM. The company should have a system in place to keep track of its customers, the type of goods they are shipping, the contact information of the customer, and other important information about them. This system should give the customer information regarding the status of their package, what the shipping company’s name is, and other important information regarding the forwarding company.

If you want to save time whenever you talk with your customer or when you need to check on the status of a package, your customer should easily access this information through the company’s CRM. Customer relations management is extremely important because it streamlines operations, ensures customer satisfaction, and promotes brand loyalty among your customers.

Customer Service

The freight forwarding company should ensure that it maintains an excellent customer service program. For instance, your client may get in touch with you to ask you about the best rates available for their shipment. If you cannot provide them with the answer they are looking for, the customer may decide to change shipping companies in the future. It pays to always be ready with your client’s wants and needs.

The Type of Good to be Shipped

You will also have to consider the type of goods you will be shipping. There are different types of freight like cargo transportation, hazardous goods, international freight, and even items that are difficult to ship, like custom-made goods from countries outside the Philippines. When it comes to these kinds of shipments, the freight company you choose should have a good variety of options that it can use to transport your goods. Whether you want your products transported in a closed container or in an open trailer does not matter. The company you choose should determine the most appropriate container for your shipment based on the size and weight of your merchandise.

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.

7 Factors that Influence Ocean Freight Rates – Infographic

excelsior on September 16, 2021

Ocean freights are a lifeline for companies nowadays, especially for small and medium enterprises (SMEs) that engage in international business affairs. Without them, importing or exporting goods packed inside containers from one location to another is nearly impossible.

Besides, ocean freights are also a cost-efficient method, as a typical cargo ship can handle 18,000 containers at a time.  And that’s the reason why a logistics company in the Philippines and other related service providers gain popularity and is always on demand among companies that want to save money and assure that the customers’ orders will arrive on the exact date.

However, the cost of transporting goods isn’t constant, and it changes every time for varying reasons. Given such a fact, business owners and their companies should consider these different factors affecting ocean freight rates.

7 Factors that Influence Ocean Freight Rates-01

Container Route

The English Channel is said to be the busiest ocean freight route in the world. It serves as a passageway for more than 500 carriers each day, every year.

Before getting in touch with a logistics company in Manila, business owners should understand that if there is a high demand, the competition becomes more aggressive and it makes a particular route busier than usual. And this turn of events increases the price rate of transporting.

Currency

As the shipping fee covers all expenses, transporters like logistics freight in the Philippines need to pay attention to the exchange rate and the fluctuation factor during the transaction period to avoid delays at work.

We all know that countries have different currencies. Yet, in international transactions, the dollar serves as a common denominator. And this universal rule also applies to cargo shipment, as fuel value is always dollar-based. Also, the currency for port and operational charges also depends on the country where cargo ships will go.

Fuel Prices

Without fuel, maritime and land transportation won’t exist. Indeed, the availability of oil makes good transport possible. Yet, the ever-changing oil price affects the shipping fee of logistic companies. If there is an oil price spike, ocean freights service providers will pass the additional expenses to the company asking for shipment.

On the contrary, if fuel prices go down, there is the perfect opportunity for businesses to afford sea freights at a lower cost.

Additional Seasonal Charges

Sea carriers often apply extra seasonal charges if there is a high demand for them every year. Transporters may add Peak Season Surcharge (PSS) or congestion charges to their temporary overall ocean freight cost for transporting your goods.

Container Type and Size

Enterprises should know and understand that containers have different types and sizes, and their prices vary. Taller and larger containers cost bigger than their smaller counterparts. You may reduce the shipping fee by choosing the best container type and size fit for your goods, as well as secure them.

Space Availability

The cost of ocean freights also depends on the availability of space and equipment. During peak seasons, shipping companies use the high demand for shipment to wage their transport cost higher.

Terminal Service Charges

Shipping companies may apply charges to cover their expenses in processing containers from their origin and destination ports. Additional fees include labor fees, use of equipment, and limited time storage. Most importantly, terminal handling services are different in every country.

Transporting goods through ocean freights is a tricky task. Therefore, business owners should consider all the factors listed above to reduce costs and secure their cargo.

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 excelsior.ph to learn more about our service.

Attracting Foreign Buyers for Your Products Infographic

excelsior on July 15, 2021

In this age of technology, finding potential foreign buyers for your products is now more convenient. As simple as setting up a business website can expand your target market on an international scale.

If you have an online store, you can easily list your products for sale and attract buyers from all over the world. Most of the time, when a buyer searches for products on the internet, they are looking for the best deal. They want to save money and find a good quality product. With the current economic situation in the US, finding potential buyers of your products has never been easier.

Why is Online Commerce Booming Nowadays?

One of the main reasons that so many people are turning to the internet to sell their products is because it is cost-effective. The shipping costs are one of the biggest expenses for shipping products from one country to another. Even if you do not ship your items yourself, the shipping costs associated with shipping your items can eat into the profits you are trying to make.

Freight Forwarders Can Save Your Day

When you list your products on an online store, they will be shipped by freight forwarders. Freight forwarders are companies that will specialize in shipping merchandise from one country to another. They have storage space, and they have specialized shipping trucks that will be able to transport your items from place to place. The great thing about these types of companies is that they have access to various global ports. This means that your products will be shipped all around the world.

Finding the Best Freight Company

If you are only going to ship your items to Asian countries, you will need to make sure that you keep a few things in mind. You need to make sure that the freight company that you use has low shipping rates. You also need to make sure that the shipping rates do not hurt your bottom line. If you are only shipping to Asia once a year, and that is all you do, then you will not need to worry about the shipping costs as much as if you were frequently shipping.

If you are selling to non-Asians regularly, you will be able to take advantage of eBay’s marketplace. eBay has an interface for international sales. All you will need to do is register an account, login, and take a look at the listings. There, you will see the various countries around the world that someone might be interested in buying from you. You can also locate sellers near you that may be interested in selling to your customers. You will just need to advertise your products on eBay and wait for potential buyers to contact you.

So, there you have it. Now that you know the best ways for finding potential foreign buyers for your products, all that remains is for you to start your search. You should also remember to add your country of origin to your site’s address line, so you can be found by people who are searching for your products. Good luck!

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.

What Can You Get from a Freight Forwarding Service in the Philippines?-Infographic

excelsior on April 30, 2021

Hiring a freight forwarder in the Philippines may be one of the most important business decisions you’ll make. As a business owner, you would want to get the best services and facilities that can help your business grow.

Here are the benefits that you can get by hiring a freight forwarder in the Philippines:Freight Forwarding Service

Convenience and affordability

The Philippines is one of the busiest sea freight forwarding destinations in the world. Given that there are so many shipping services that are available to you, it would be very easy for you to get your products from other countries in no time. But since these services are not properly monitored, it would be easy for you to fall prey to frauds and scams. For this reason, it is imperative for you to have a logistics company that is well-connected to all the major shipping services. By hiring a freight forwarding company in the Philippines, you can be assured that the shipment would be delivered in the safest possible way. This would also give you great convenience, especially when you are operating in a foreign land.

Reputation and service

The good thing about the logistics industry in the Philippines is that the topmost companies have already established themselves in the country. This means that your goods will be delivered by the best logistics company in the Philippines. If there is any problem with your cargo, your nearest freight forwarding company would immediately be there to assist you.

Access to latest services

Even if you are operating in a foreign land, you still need to be updated about the latest technologies, equipment and methods of delivering your goods. There are a lot of innovative tools today that are being used by the freight forwarders in the Philippines. Therefore, it is up to you to keep yourself abreast about the latest advancements in the industry. By hiring a Filipino freight forwarder, you can easily receive updates on these and other tools. You can also request for demonstrations of these services so that you know how efficient the service provider really is.

Pricing and payment options

In any kind of industry, you will always find competitive prices and payment schemes. However, the situation with logistic companies in the Philippines may be a bit different. Since the service sector in the Philippines remains relatively new, most of the existing logistic companies have not yet established their pricing structure or payment plans. In order to ensure that you receive the best price for your goods, you should try to negotiate with a reputable freight forwarding company or agent. Although you cannot make changes on the pricing structure, you can always ask for price reductions and better payment plans.

Customer service

One of the most important factors that should come into play whenever you are looking for a logistics company is the customer service offered. For instance, should there be any breakdowns in the services? How prompt should they be? What should the company do in case of a breakdown? Before you hire a freight forwarder in the Philippines, you need to make sure that you understand all these things.

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.

What You Need to Know About Bill of Lading

excelsior on March 29, 2021

A bill of lading, also known as BOL or waybill, is a bill issued by a carrier to acknowledge receipt of consignment for shipping. While historically associated only with ocean-borne carriage by sea, today, a bill of lading can be used for almost any kind of transport of goods. The term originally referred only to a record of consignments, but in modern times it generally refers to a bill of lading that authorizes a shipper to undertake a specific transportation activity. In order for a bill of lading to legally define a particular transaction, it usually must be signed by a notary public. This notarial act provides protection to the shipper from both fraud and a civil penalty for non-delivery.

A bill of lading should be carefully tailored to describe the specific kind of service or item for which it is intended. Unlike a bill of lading, which typically identifies a particular carrier and the parties to a shipment, the bill of lading describes the parties to a transaction and the relationship between them. For instance, when describing a long-distance load involving a tank car, the bill should specify if the vehicle is delivered on a flatbed truck, enclosed in a container, or by air freight. It should also describe the mode of transportation and how the goods are shipped. It would be absurd to allow a bill of lading to specify the method of delivery of a television when the bill is actually for satellite transmission.

As the number of international shipments continues to grow, the need for a specialized bill of lading services has increased. In today’s international trade, the bill of lading is categorized into different types based on its purpose and information that must be carried over to the chosen carrier.

Here are the different types of bill of lading based on the mode of transportation:

Ocean Bill of Lading

The most common type of bill of lading, Ocean Bill of Lading, is issued to act as evidence that a contract has been made for the carrier to ship the goods to its destination.

Ocean Bill of Lading is typically a document in the form of three originals (signed, stamped, and negotiable), together with six non-negotiable copies.

Air Bill of Lading

As the name implied, an Air Bill of Lading is used if the shipment is to be carried via air transport. This bill of lading shall be given to the consignee upon the shipment’s arrival and is non-negotiable.

Direct Bill of Lading

Direct Bill of Lading can be issued in the event that the shipper was aware that the carrier that has the cargo would bring it to its target location. This form of arrangement is optimal for saving time as it allows the exporter or importer to organize the transport of the cargo from the warehouse directly to the shipping company.

Multimodal Bill of Lading

In case a shipment is to be moved by two or more means of transport, the bill of lading that must be issued will be a Multimodal Bill of Lading. The use of such a document is situational, especially if the shipper is located in a place that cannot be easily reached inland.

Inland Bill of Lading

This bill of lading can be issued if the shipment must be carried by a vehicle in order to reach the destination inland. Often used in the form of domestic transportation, an Inland Bill of Lading is prepared by the shipper, which will be signed by the person-in-charge of the carrying vehicle.

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.

Five Money-Saving Tips for Importers

excelsior on January 30, 2021

Money-Saving Tips for Importers

Saving money in importation is crucial for any business that aims to provide high-quality products to its loyal customers. However, successful importing requires effective communication, and getting good deals with international traders is not an easy task.

Some economic factors directly affect the practice of buying products overseas. One example is when a country imposes certain import duties on the goods coming from another country, the importer has to shell out a lot of money to get the goods at low duty rates. This further strengthens the need to learn ways to save money when importing goods.

If you own a business and is currently having some trouble with your expenses in the importation process, here are some tips that can help you minimize the costs:

Tip #1: Talk with Local Exporters

A straightforward way of saving money in importing is through getting in touch with local exporters. Most of these local exporters may have the details you need about the duties on imported goods and ways to save money in importation (from your country’s perspective). You can contact these local exporters directly and ask for advice on saving money on importation. The knowledge, especially in how they give rates to their products, will provide you with a rough idea of how you can deal with exporters from other countries.

Tip #2: Prefer Partnering with Suppliers for Neighboring Countries

As much as possible, try to negotiate with suppliers that are close to your home country. For example, if you are based in the Philippines, it would be better to partner with businesses situated in the East and Southeast Asian regions. Nearby countries can lower transportation costs and make it easier for your chosen freight forwarder to offer you better deals in carrying services.

Tip #3: Make a Checklist of Your Expenses

For those who are new in this practice, here are some of the expenses that you will likely incur to sustain your importation needs:

  • Trucking
  • Ocean Freight
  • Duty/Tax
  • Storage/Warehouse
  • Brokerage
  • Documentation
  • Shipping Charges

Tip #4: Buy in Large Quantities

Importing a large number of products on your first import can be a gamble as you don’t have any idea if it can sell well on your local market. Once you think that importation can be a promising venture for your business, it would be better if you will purchase in bulk. Large quantities are usually easier to negotiated deals with and will likely reduce the price per unit as you order more.

Tip #5: Track Your Imports

Knowing the condition of your imports, as well as being aware of its route, can provide you with details on how to speed up your other imports in the future. Freight forwarders are professionally trained to ensure that your imports will arrive on time and increase your chances of more saving money in the process.

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.

Excelsior Worldwide Logistics Corp.