Shipping Industry Archives - Page 2 of 2 - Excelsior Worldwide Logistics Corp.

Why Shipping FOB is Better Than CIF?

excelsior on February 17, 2017

Choosing the right Incoterms is a vital part of the shipping process. This ensures that both parties – the seller and the buyer – understands their responsibilities, and at the same time, streamlines the whole shipping process so that the freights are delivered efficiently and in a timely manner.

For shipments that are transported through the inland waterway transport, shippers have four Incoterms to choose from: Free Alongside Ship (FAS), Free on Board (FOB), Cost and Freight (CFR), and Cost, Insurance, Freight (CIF). A detailed explanation of these Incoterms is provided in our previous blog Importer Facts: Choosing Your Agreement Between Your Supplier – Incoterms 2010.
In this post, we will focus on the advantages of FOB over CIF, and why it is a more convenient option for shippers.

Free on Board

image from techjuice

The seller fulfills their obligation when the goods have been delivered on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered. This Incoterms indicates that the seller has to shoulder all the costs and risks of loss and damage to the goods until the goods have finally arrived on board the vessel, and the buyer will bear all costs from that moment onwards.

Cost, Insurance, Freight

image from campulromanesc

The seller fulfills their obligation to deliver when the goods are already placed on board the vessel nominated by the seller or procure the goods already so delivered. The risks of loss and damage pass when the goods are on board the vessel. Aside from freight and clearance cost, the seller needs to procure and pay for a marine insurance against the buyer’s risks of loss of or damage to the goods while in transit.

Advantages of FOB

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One of the main reason why many shippers choose FOB than CIF as the term of sale is because it allows for greater control over the freight and the freight expenses. This greater control can help you have an upper hand in minimizing the overall import cost while providing you with maximum convenience as possible.

Most first-time importers usually use CIF to transport small quantities of goods because it also offers convenience by having the seller deal with all the shipping and freight details. However, choosing this agreement can only lead to higher freight cost at the end. This is because the seller can collaborate with their forwarder to increase the markup of the freight cost, allowing them to make a profit. As an importer, you can’t do anything to affect the invoice given to you by the forwarder.

When shipping FOB, you have the power to control the overall shipping process, allowing to make significant cost savings. You can select your own freight carrier, you can choose which route has to be taken, select your own agents to handle the shipments when it arrives, organize an insurance policy as well as set your own transit time.

Another benefit that FOB provides is the convenience and transparency of working with only one contact agency throughout the process. This means that whenever you have questions or issues regarding your freight, you don’t have to meddle with different entities just to get a clear answer and feedbacks. This also ensures that the carrier will be working with only your best interest in mind because their sole purpose is to deliver your goods to its destination.

Shipping CIF on the other hand, is more disadvantageous, especially if your goal is to save money from your shipping cost. It relinquishes you with any control over your shipments while also passing more responsibilities and risks to your part.
The seller can use their preferred shipper and their own transit times. Delayed shipments are also harder to resolve since transportation is beyond your control, and there are other parties that may be involved in different stages which make it harder to obtain information about the cargo. Another factor to consider is that since it was the seller who paid the carrier, there is no obligation to fulfill your needs.

From the buyer’s perspective, FOB offers greater control over the shipping process compared to what CIF does. Not only it provides greater flexibility, but also gives you control over the shipping cost, and subsequently, the overall cost of the cargos.

Contact Excelsior Worldwide Freight Logistics Corp. now and let us help you in your journey in the international trade this 2017 and beyond. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph.

How To Choose The Best Customs Broker

excelsior on September 2, 2016

Image from LinkedIn

Customs brokers provide professional and expert service on customs clearance
of goods during importing and exporting. Customs brokers are in charge of
making sure that the rules and regulations of international trade are consistently
met, and they are responsible for the interaction and communication with the
customs of a shipment’s country destination.

There are several factors that must be taken into consideration when it comes to
choosing the best customs broker.

1. Eligibility

The very first thing that you need to check with your customs broker is their
eligibility. Your customs broker must be a license holder, which means that he or
she is an accredited customs broker, and he or she has been able to pass the
licensure examination specific for customs brokers. Moreover, if you are looking
for a customs brokerage company, this company must empower its employees to
become licensed customs brokers.

In order to become a licensed customs broker, one must go through a four-year
course and take a licensure exam, which in the Philippines is administered and
regulated by the Philippine Regulatory Committee (PRC). The intensive
education process that licensed customs brokers goes through enables them to
have the confidence and efficiency that they need to carry out their
responsibilities.

Every country usually has an official list of active brokers from the government. It
will be wise to first check with this list for any customs broker that you will be able
to get in touch with.

For the official list released by the Bureau of Customs of the Philippines, the list
can be found here.

2. Technical Knowledge and Skills

Interfacing with the local and international customs is no mean feat.

The laws, rules, and regulatory requirements pertaining to transport of goods can
be very complex. This is why it is critical for your customs broker to have a high
level of technical knowledge, as well as access to up-to-date information when it
comes to shipments, importation, and exportation. Your customs broker must
have high understanding of entry protocols and requirements, valuation, fines and penalties, taxes, and the like.

3. Track record

It is also wise to ask industry peers for recommended customs brokers, as well
as existing clients of customs brokers for feedback regarding their performance.
This way, you can gauge their integrity, professionalism, and level expertise.

You might also want to consider making sure that your customs broker of choice
has no pending case with the customs of any country.

4. Specialty and experience

The ease of any work always depends on the experience of the one doing the
work. Customs brokerage is no different. You need to consider working with a
customs broker who has had experience, or better yet, has a specialization in the
handling of the goods that you will be shipping.

This way, you will not be caught off guard when it comes to duties, taxes, and regulations, or even obscure agreements and provisions, special cases, or some
exceptions to the rule, if there are any. After all, each country has a unique set of
shipping rules and regulations, and all goods are handled and shipped in a
specific way.

5. Professionalism and Integrity

The customs broker is the one who interfaces with customs in behalf of the
importer or exporter. This means that the customs broker is the one who
represents you and your business. In this regard, it is important to have a
customs broker who is able to satisfy all legal requirements in an efficient,
effective, and ethical way.

Moreover, the goods that you are shipping are valuable, and oftentimes irreplaceable. It is therefore important to make sure that these goods are being
handled by people only with utmost professionalism and unbreakable integrity.

Choosing to work with a customs broker is one thing, and choosing the best
customs broker for your business and your goods is another thing. It is important
to make sure that the customs broker you are working with actually has what it
takes to get the job done for you, and provide you with a service that is
exceptional and efficient.

Excelsior is a freight logistics corporation who not only moves your shipment, but
also takes care of customs clearance on your behalf. Excelsior has been
providing exceptional, excellent, and experienced service for 15 years,
throughout all the phases of shipment – from freight forwarding to customs
brokerage.

You can also be assured that at Excelsior, we value or partners (we treat our
people as partners, not employees). We support and encourage all partners to
become licensed customs brokers. This is to make sure that our clients are
provided only with excellent customs expertise and superior customer service. To
date, 80% of Excelsior Partners are customs administration graduates. Six of the
Excelsior Partners are licensed customs brokers; we are proud to note that this
number exceeds industry average today.

Allow Excelsior Worldwide to help you navigate through the world of import and
export. For more information on our customs brokerage services and to know
more about Excelsior, visit our website today at /. For any
queries that you may have, you may call us at (063) 5259775, or send us an
e-mail through wecare@excelsior.ph.

What Is the Best Freight Forwarding Company?

excelsior on September 2, 2016

Freight forwarding is the process of preparing goods for
transport in behalf of the shipper. The shipping process
includes moving the goods from one carrier to another,
transport tracking, freight consolidation, negotiation of freight
charges, and preparation of necessary documents.

The shipment of goods can be via air, sea, or land.

There are many freight forwarding companies, especially in
this day and age where the importing and exporting industry
is seeing a rising trend. After all, the transportation of goods
across the world is considered to be the keystone of modern society. So how does one know and decide which freight
forwarding company to choose?

1. Owns the carrier

Technically, fright forwarders serve as the middleman
between the shipper and various transportation services to
get the shipment to its destination. However, there are some
freight forwarding companies that own transportation
services like trucks and ships, thus eliminating the need to
coordinate with a third party carrier. As a result, such
companies are able to take full control of the freight
transport, thereby reducing cost, and promoting efficiency
and reliability.

2. Has a significant amount of knowledge and
experience

Of course, a good freight forwarding company needs to have
a good amount of knowledge and experience about
international transportation processes, as well as rules and
regulations on goods transfer.

It is critical for a freight forwarding company to have a
streamlined process of shipping goods in order to promote
efficiency at all times, regardless of the freight being shipped
and the destination of the shipment.

A good freight forwarding company also needs to have
excellent communication, administrative skills, and attention
to detail. Since freight forwarding involves different steps and
involves different people from different companies (such as
supplier, carriers, and warehouse), it is important to make
sure that there is a seamless coordination and a seamless
transaction among all parties involved.

3. Has problem solving skills

It is also important for a freight forwarding company to have
excellent problem solving skills. They need to be able to
identify the problem across the logistics and supply chain,
and provide the necessary solution to prevent any delays in
delivery, as well as to prevent the recurrence of shipping
problems.

4. Ethical and Professional

Lastly, freight forwarding companies must consistently abide
by rules and regulations of goods transfer, and they must
also have a high level of professionalism.

Professionalism can be seen in the way that the company
coordinates and communications with the shipper, as well as
with all other people involved in the shipping process.
Professionalism can also be seen in how the freight
forwarding company keeps their word with regard to
deadlines and shipping schedules.

Allow Excelsior Worldwide to help guide you through the import & export world. Contact us today to learn more about our global logistics . Call (063) 5259775 or email us at wecare@excelsior.ph

No pressing need for DTI reforms, says incoming chief

excelsior on June 20, 2016

Mercurio, Richmond (2016, June 20). The Philippine Star. No pressing need for DTI reforms, says incoming chief. Retrieved from http://www.philstar.com/business/2016/06/20/1594535/no-pressing-need-dti-reforms-says-incoming-chief

MANILA, Philippines – Change is coming with the Duterte administration but that may not be necessary to the Department of Trade and Industry (DTI), said incoming secretary Ramon Lopez who sees no need to initiate drastic reforms in the agency.

“It’s not complicated because DTI as we all know is doing a lot of good things so definitely all the good programs will have to continue and even be enhanced. Of course there will be a continuing review of programs that will probably be prioritized and less prioritized,” Lopez said in an interview.

“In terms of the officials, I gave my commitment for continuity. I’m willing to retain the undersecretaries and assistant secretaries, The question is if they also want to. But for me, I’m open but I have to also review their performance,” he added.

Lopez said he met with outgoing Trade Secretary Adrian Cristobal Jr. last week to discuss and facilitate the transition at the agency.

ccording to Lopez, incoming president Rodrigo Duterte has only two primary mandates for him as head of the country’s trade and investment promotions agency – uplift the quality of life of Filipinos through entrepreneurship and no corruption.

“At the focus of the incoming president is uplifting the poor, the quality of life through entrepreneurship, through business. To support the growth of micro, small and medium enterprises (MSMEs) through interventions and to build a climate that is conducive to business,” he said.

“So the priorities will be programs that will help MSMEs like enabling training and accelerate further Negosyo Centers and shared-service facilities,” Lopez said.

In terms of the country’s international trade negotiations, the incoming DTI chief has likewise aired his full support at pursuing them.

“No change because I am all for fair trade and liberalization. Calibrated liberalization is the way to go, we cannot backtrack. We are part of the global system and if we backtrack, we will be out of that global system,” Lopez said.

“What we are going to do is work on how we can maximize these free trade agreements (FTA) so that it can benefit not only the existing (exporters), but even those who are not yet exporting. That not only the big firms will benefit but even the small ones,” he added.

The Philippines has started last month initial round of negotiations for an FTA with the 28-member European Union (EU).

The negotiations will aim to conclude a deal that covers a broad range of issues such as elimination of customs duties and other barriers to trade, services and investment, access to public procurement markets, and additional disciplines in the area of competition and protection of intellectual property rights.

In addition, the Philippines is hoping to join the Trans-Pacific Partnership, the 12-country economic bloc which currently accounts for more than a quarter of world trade.

“I think Mr. Lopez’ experience on the ground with MSMEs will really be a big boost to what DTI does, from ease of doing business all the way to international trade. His experience in capacity building of MSMEs is really the starting point. We have to simplify rules for businesses to benefit MSMEs, they have to be front and center. We negotiate trade agreements so they can import and export,” Cristobal said.

Prior to his appointment, Lopez has been the Philippine Center for Entrepreneurship-Go Negosyo’s executive director for the past 11 years and has served the business sector for 22 years.

Dominguez readies Customs reforms

excelsior on June 15, 2016

Magtulis, Prinz (2016, June 15). The Philippine Star. Dominguez readies Customs reforms. Retrieved from http://www.philstar.com/business/2016/06/15/1592969/dominguez-readies-customs-reforms

In this April 2016 photo, Incoming Customs Commissioner Nicanor Faeldon speaks at a press conference at the Philippine Star building in Manila. Philstar.com / Efigenio Toledo IV

To rid agency of ‘most corrupt’ tag

MANILA, Philippines – The incoming administration will initiate reform measures at the Bureau of Customs to rid the agency of corrupt practices, incoming finance secretary Cesar Dominguez said yesterday.

“The public is telling us something and we better listen. Are we going to change? Otherwise we will have to force it,” Dominguez said.

“The perception of Customs as the most corrupt agency has to stop,” he added.

Dominguez met with outgoing Customs commissioner Alberto Lina and his successor, Nicanor Faeldon to facilitate the transition at the agency.

ustoms’ tag of being “most corrupt” came from a survey of Social Weather Stations in August last year where it was rated “very bad” by businessmen. Lina could not be reached for comment yesterday. The Department of Finance (DOF) oversees revenue offices such as Customs.

Under incoming president Duterte, Faeldon said the BOC would focus more on trade facilitation instead of just revenue collections.

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The bureau, which traditionally accounts for a fifth of state revenues, had persistently fallen below its collection targets and was even down two percent from previous year as of the first quarter.

Specifically, Customs collected P90.5 billion as of March, lower than P92.3 billion raised in the same period last year, Treasury data showed.

“Performance indicators should contain grading on ease of doing business and facility of trade,” Faeldon said in the same statement.

Transparency will also be prioritized, Faeldon said, adding he will improve accuracy in product valuations by adopting a “trade transparency unit” similar in the US.

Valuations are used as bases for the amount of Customs duties. Under the present administration, weekly valuations of select products were made public through the Customs website.

According to Faeldon, there should be a “daily” monitoring of shipment valuation coupled with updated scanning systems to prevent smuggling.

On the flip side, Faeldon said he would keep the ongoing graveyard shifts and 24/7 operations of Customs personnel, which was meant to declog ports.

For his part, Dominguez said he would continue filing charges against smugglers and erring Customs officials under separate programs to deter illicit trade and raise revenues.

Dominguez, however, expressed dismay that no Customs officer has been fired despite pending cases with the Ombudsman.

As of May 15, there were a total of 282 cases against revenue officials filed by the DOF’s Revenue Integrity Protection Service, 157 of which were filed since 2010.

The cases involved 282 personalities, 216 of whom were sued before the Ombudsman, 61 before the Civil Service Commission and five were referred to their concerned agencies for action.

Of the persons sued, 24 were dismissed from office under President Aquino, while 29 others were suspended and six were fined, DOF data showed.

“We will file as many cases against violators… as we have evidence to justify such actions,” Dominguez said.

“As leaders of the institution, you have to send the message down…,” he said in the statement.