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5 Important Tips for New Importers

excelsior on May 16, 2019

Importing basically refers to the act of buying goods and services from abroad in order for it to be sold for the customers of the home country. Many business owners nowadays prefer to sell imported products due to its ability to increase profit margins. Moreover, an importer can provide higher quality goods that can potentially surpass those produced by local competitors. If done in moderation, importing can help bolster the national economy as well as widen up the global market.

Despite the benefits of this practice, importing can be a pretty risky option especially for those who are still establishing their foothold in the world of commerce. Purchasing goods from a foreign land requires a specific set of knowledge and skills and a deeper understanding of complex processes of importation.

If you’re starting to think that importing is the next big step for your business, here are some of the most important tips you should be aware of before making any move:

Make sure you are legible to do the importing

Speaking about legibility, it means that you have to be legally allowed to bring those imported goods to your home country. Before you can spend any time, money, and effort into something such as importing, you’ll need thorough research about the laws especially the restrictions of items that you are going to import. Some chemicals and medicines, in particular, are examples of products that could have certain restrictions. Check the legality of the products that you wanted to import first.

Assess all the possible expenses

Planning your budget ahead of time is very important if you wanted to be a successful importer. Be mindful of all the possible expenses before you can place an order to a company abroad. These charges can range from the transport and insurance costs, as well as other legal documents that you need to go through. A good way to limit or minimize these expenses is by hiring freight forwarders and customs brokers since they have the expertise to guide you through the process and find all the best deals for shipping available.

Pay attention to sudden exchange rate fluctuations

One notable example of risks that every importer should know is sudden fluctuations in the exchange rate. Remember that you are buying goods from another country with prices that are not the same as your local currency. So be mindful of the current exchange rate as it greatly affects the final amount that you will need to pay. The rate could either become beneficial or detrimental to your success.

Learn to interact with your foreign suppliers

It’s not easy to deal with suppliers from another country. Language and culture barriers are some of the challenges an importer has to face. Miscommunication could become pretty common in these areas, so better study a lot about the business industry of their country as much as possible.

Determine if there is a local market for the goods you wanted to import

It is your responsibility as the importer to know if there is a growing demand for the goods that you are opting to resale. Determining your potential customers in the local market can help you identify the profitability of that imported product. Conducting some surveys is also a good way for you to come up with a decision on whether importation is definitely the right choice or not.

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The Impact of Natural Disasters on Freight Shipping

excelsior on April 15, 2019

In terms of economy, any country will always rely on the continuous transportation of goods and materials that keeps the relationship between suppliers and manufacturers in harmony. This process is very critical for maintaining economic growth because any moment of disruption could bring serious adverse effects. Some of these disruptions are caused by certain deregulations in the financial industry that are to some extent, quite avoidable. However, another thing that can affect a country’s economy is freight shipping, which can sometimes depend on several factors that unfortunately are beyond our control: natural disasters.

Speaking about natural disasters in the Philippines, the likes of floods, typhoons, and earthquakes, are quite common. These calamities typically leave most of the routes that are essential for freight shipping operations unsafe such as roads and seas. This reason is also why you should also be aware of the following ways of how nature can make a significant impact on freight shipping:

The Price of Fuel

One of the most critical prices to look out for when there’s a natural calamity going on is the price of fuel in the world market. Since the cost of most goods and other services are very much dependent on the value of fuel as the source of transportation, your chosen carrier can charge you more than usual. The worst-case scenario in this situation is when there’s a typhoon going on oil refineries strong enough to make it temporarily shut down due to damages.

The Expected Arrival of your Goods

Time is more than just gold in the world of business. Importing your goods in a faraway place requires a definite amount of time to keep up against competitors that are nearer than your target customer. Moreover, if you sell something that thrives on punctuality to retain its usefulness such as food, you should know by now that delayed delivery can ruin its condition. So, if you just shipped your goods during a storm, you better expect for the worse. Carriers tend to choose longer routes over the shorter ones if they find the latter impassable due to the dangers involved.

Refusal of Carriers to take your Cargo

Natural disasters will always make most carriers to be more vigilant to take anyone’s goods. Denial of your goods directly gives detrimental effects on your supply chain, eventually losing considerable revenues in the long run. Just imagine all of your business operations being halted in such a significant amount of time.

Freight Shipping Rates

Rates for freight shipping is always flexible especially on the event of calamities. A domino-effect will most likely happen until it makes its way for you. From the impassable roads making the fuel much more expensive to the delayed accomplishment of shipping service, most financial burdens will be passed into you.

Conclusion

As a business owner looking to ship your goods, anticipating natural disasters is a key for preventing any financial loses that can delay your company’s growth. Always take heed of the weather updates and recent news before making any move.

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Indications of a Reliable and Trustworthy Freight Forwarding Company

excelsior on February 15, 2019

A freight forwarding company is a firm that offers the arrangement of shipping goods in place of an individual client or company. Many businesses today prefer hiring the service of freight forwarders in order to sustain their competence in the world market.

While there can be a wide variety of companies to choose from, finding the most reliable and trustworthy freight forwarder can become quite tricky since there are indeed some risks involved concerning the safety and timely arrival of your products from one place to another.

So, without further ado, here are the telltale qualities that can easily help you determine a reliable and trustworthy freight forwarding company:

Possesses good credentials

One of the most easily identifiable signs of a competitive freight forwarding company is a list of credentials. These can be awards, testimonials from former and existing clients, and specific accreditations from the government. Knowing this can almost guarantee that a freight forwarder is capable of providing the best quality of services available.

Strong and wide network of contacts

A strong and wide network of contacts is an essential tool of a reliable freight forwarder, especially when conducting international shipments. The company must utilize their contacts with carriers to move the goods. They should also maintain friendly relations with several custom brokers as well as other forwarding agents in foreign countries. This will help them establish effective communication when they are trying to request for any updates about the status of the package, which can prevent possible delays on the arrival of goods.

A range of quality services

A trustworthy freight forwarding company usually doesn’t only provide one kind of service. Instead, aside from product shipping, they also specialize in an extensive range of services such as trucking, assistance in the requirements of importing and exporting, breakbulk agency, among others. Having a range of services is a testament to a company’s ability in singlehandedly managing a set of complicated but important business requirements.

Excellent knowledge in document processes

Being an expert in the nuts and bolts of running the documentation procedures of shipping is a perk of a trustworthy freight forwarding company. This enables them to do their job efficiently by properly guiding and assisting the clients in the step-by-step process that can prevent them from spending too much money as well as precious time due to utter confusion.

Customer Service

Most experienced clients prefer a freight forwarding company that grants them information regarding their best rates and options. Moreover, having an active website, email, or contact number that regularly interacts with the customers looking for inquiries makes that kind of company a highly sought-after one.

A decent packaging service

Another trait of a trustworthy freight forwarding company is its skill in sustaining the safety of the products through a proper and foolproof packaging service. Packaging serves as the main protection of goods during the shipping time, so it is most vital for the company to have the proper kind of packaging regardless of what kind of goods they’re transporting.

Excelsior Worldwide Freight Logistics conduct free orientation for those who are willing to learn more about importation and 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.

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Steps to Get An Accurate Freight Rate Quote

excelsior on December 14, 2018

There is a famous proverb that says, ‘There is nothing certain, but the uncertain.’ Yes, this statement is true and evident in our daily lives but in doing business and transactions, it’s better to dip your toes first into the water before taking the plunge ̶ you need to know what to expect before closing a deal and that is what a freight rate quote can provide you.

Through these steps, you will be able to have an accurate information on your total shipping expenses and obtain the best freight rate:

Decide where to get a freight quote

Deciding where to get a freight quote can be quite tricky because of the number of options available. To make it easier for you, here are some details on shipping partners that you can choose from:

• Freight Forwarders

If you’re looking for a “one stop shop” that can provide you brokerage, carrier, and international freight forwarding services, then freight forwarders are your best pick.

Be specific with your shipment details

In order for your freight forwarder provide you with an accurate freight quote, you must provide them with the following details:

What are you shipping?
What is the value of your shipment?
What is the size and weight of your shipment?
Where is your shipment going?
When does it need to arrive?

Prepare an RFQ (Request For Quotation)

Once you’ve prepared all the details above, the next step to provide them to your chosen shipping provider. Depending on the services they provide, you may receive just one quote or several to choose from. After you pick a price and service, review all the details to make sure it’s accurate and in order.

Here at Excelsior Worldwide Freight Logistics, we treat our clients as partners. We also conduct free orientation for those who are willing to learn about importation and exportation. It is our advocacy to share our knowledge and experience for 17 years in the business.

5 Steps To Save When Importing From China

excelsior on October 15, 2018

In 2017, China replaced Japan as the top bilateral trading partner of the Philippines with a 20.7% increase in imports from 2010.

This 2018, the imports shoot up to 51.2%, which is more than twice as it was last year. The said imports include electronics and machinery, mineral fuels, iron and steel, plastics, vehicles, ceramic products, furniture and lighting, and paper among others. No wonder why many businesses, whether big or small, import from China. If you’re one of them, here are five steps to help you reduce your expenses:

Plan ahead of time

China is 3,096 kilometers away from the Philippines, which means that the importation of your goods will likely take five days or more, depending on the mode of transportation. Although you can request for faster transportation, you will be asked to pay for a rush fee.

If you want your goods to arrive on-time without the extra charges, it’s better to plan it in advance. Moreover, it will also give you more time to find a local freight forwarder that will assist you throughout the importation procedure.

Find a local freight forwarder

Most freight forwarders in the Philippines are affiliated with numerous international transport organizations and companies worldwide, including local Chinese logistic companies. Hence, you should choose a freight forwarder that can and will use its connections to negotiate for better prices on your behalf.

Furthermore, your chosen freight forwarder should also be knowledgeable about the freight peak seasons in China (e.g., Chinese New Year) because during peak seasons, importing can become complicated due to high demand, high prices, and a probability of container shortage.

If this is a no-brainer for your local freight forwarder, you’re in the right hands. Knowing the peak seasons beforehand will help you save by importing non-urgent goods during regular seasons and avoid struggling to find a container spot during peak seasons.

Choose a suitable transportation method

You can import either by sea or by air. Sea freight is ideal for large shipments that aren’t urgently needed. On the other hand, air freight is suitable for smaller and lighter shipments that are time-sensitive.

Importing by air is more expensive than importing by sea because it’s faster and more secure. It goes through fewer hands, therefore minimizing the risk of damages and theft. To cut back on expenses, use air freight only if its necessary.

Another option that you could try is splitting your shipments. For instance, if you have one hundred boxes of imports wherein thirty boxes need to be delivered immediately, and the other seventy aren’t, consider putting the thirty on a plane and the rest on a cargo ship.

Although split shipments might seem inconvenient because it involves preparing two invoices, packing lists and handling charges among others, once you already have a local freight forwarder, it will be hassle-free because they will assist you in accomplishing the necessary paperwork.

A friendly tip: When importing by air, it is best to book six to seven days in advance of the Cargo Ready Date (CRD) while when importing by sea, consider booking three to four weeks ahead of the CRD.

Ensure proper product packaging and insurance

Proper packaging reduces the risk of product damage and loss while in transit (especially fragile and perishable products), whereas cargo insurances can be converted into cash claims in case of damage and loss.

Although the proper packaging and cargo insurances might seem more like spending than saving, neglecting them will cost you a fortune in case your goods get damaged or lost. Better safe than sorry, right?

Obtain rates with the lowest GRI (General Rate Increase) possible

General Rate Increase is the adjustment of container shipping rates and is only applicable when importing by sea.

General Rate Increase and demand are directly correlated. When the demand is high, the GRI also goes up and vice versa, which means that GRIs go up during peak seasons.

The good news is, if you followed the first four steps mentioned earlier, especially planning ahead of time, you will be able to choose between multiple ocean freight rates and obtain the lowest GRI even during a peak season because as the saying goes ‘the early bird catches the worm.’

These five steps only prove that there are always ways to save when you are determined to look for them.

Here at Excelsior Worldwide Freight Logistics, we have equipped people who are knowledgeable regarding import procedures and are committed to reducing your expenditures as much as you are.

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.

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Importer Tips: Tips to Effectively Manage Your Import Supply Chain

excelsior on June 11, 2018

Most importers will testify that managing shipments – from proper documentation to clearing cargos at the docks – is not a simple task. The import process involves a plethora of interactions and complying with dozens of regulations. These requisites can have a significant impact on your supply chain. Therefore, careful planning and fluid supply chain execution are required to minimize the uncertainties throughout the whole process.

Here are some tips that you can implement to optimize imports supply chain and speed up cycle time while complying with increased regulatory requirements in the industry.

1. Identify All Potential Pain Points

To optimize your supply chain, you must identify all the potential pain points that may cause hiccups in your operations along the way. Knowing these disruptions before they arise will enable you to create a proactive strategy with your service providers.

Aside from factors such as weather and catastrophic events, planning for the following common pain points in the supply chain will help ensure seamless import operations in the long run:

Port congestion and labor disputes
An unexpected change in vessel route
In-transit capacity crunches
Holidays, especially Chinese New Year.

2. Weigh the Benefits of LCL vs. FCL Shipping

When importing from overseas, you will likely choose between less than container load (LCL) and full container load (FCL) as a means of shipping your cargo. Each method has its own advantages and drawbacks. For instance, LCL will help you save on cost since the shipping price is shared among other importers. One of the drawbacks of this shipping method, however, is that the arrival schedule of shipments is often inconsistent. Nonetheless, there are services providers that offer regularly scheduled LCL services.

3. Hire a Trustworthy Customs Broker

Auditing your customs documents consistently is must to protect the operations and the namesake of your import business. If time is an issue, you can hire a trustworthy customs broker who will look over your records and will make sure everything matches up. In doing so, you will not only be able to ensure legitimate import operations, but you will also be able to focus on other important aspects of your growing business.

4. Ensure All Your Logistics Service Providers are Linked

Finally, a streamlined import-based supply chain will ultimately depend on the ability of your transportation and logistics partners to communicate with you and one another.

Since there are so many moving parts within international logistics, failures tend to occur in the spaces between each parties. If your service providers are communicating well with you, but you are still encountering issues, you may want to ensure that they are on the same page with each other.

It is very easy to get overwhelmed by the nuts and bolts of the complex import-based supply chain management. Being well-informed and asking your trusted customs broker and freight forwarder the right questions can significantly help you avoid costly surprises.

Excelsior Worldwide Freight Logistics 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 to learn more about our service.

Is Your Customs Broker Helping You Save Money from Import Cost?

excelsior on May 14, 2018

When getting your goods into a country as an importer, passing through customs is an inevitable hurdle. As with any situation, you can either decide to whether or not you should do all the legwork alone or use a local customs broker to help you steer through often-rough seas of customs compliance.

Another question to be answered when looking at using customs broker is whether the price of doing so affects total import cost.

An Honest Customs Broker Can Impact Your Total Import Cost

If you to clear their goods at customs alone, you’re going to have to be at points of entry to receive goods, handle the tariffs, taxes and documentation and get the goods warehoused and/or moving into the supply chain themselves. Working with an honest customs broker that are experienced with all of the above is the best way to stay compliant and up to date with the importing process.

As a business owner, it is very important to work with someone who understands your unique requirements and delivers the level of service you need to succeed in your marketplace. And most importantly, you only want to work with a broker that will help your business save money in a legal and ethical manner in all your import dealings.

To know if your customs brokers are helping you save money from import cost, you must ask yourself if they are providing you with the following benefits:

Saving time on paperwork

The customs clearing process can be an extremely laborious task. If your customs broker is still giving you tons of paperwork to fill out, you may be missing precious time from other aspects of your business. Your customs broker should take care of all the necessary documentation for you, which will help you save time, which in the business world, equates to money.

Reduce errors on customs documentation

In relation to previous point, all the documentation that your customs broker has done on you behalf must be free from any mistakes or issues. If your current broker filled out the forms and made a mistake, your goods may be held up at the customs yard.

Ultimately, that can slow order processing down significantly. It can also make clients unhappy, which can tarnish your business reputation. Finally, it may result in product returns. All of that can cost your business but turning to a trusted and reliable customs broker can help you avoid costly documentation mistakes.

Handling duty payments

Lastly, an honest customs broker should help you create a reasonable appraisal of your items. If necessary, they should also be able to negotiate with the customs officials to keep the valuation relatively low, and subsequently, keep the duties low as well. These negotiations are another way that a customs broker helps to save your business money.

Excelsior Worldwide conduct free orientation for those who are willing to learn about importation & exportation. It is our advocacy to share our knowledge & experienced for 17 years in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Philippine Importers: Here’s How to Compute Your Import Tax and Duty

excelsior on April 26, 2018

Paying the right customs tax and duty in your import business is crucial to ensure that your operations are legitimate. That is why it important that you hire a legitimate licensed customs broker is critical to avoid the hassle of facing significant penalties or even legal ramifications from the Bureau of Customs.

In the Philippines, the Customs Law indicates that all imported goods above P10,000 are subject to payment of duties, taxes, and other local charges. If you have just started your import business and not sure on how your trusted customs broker will come up with the import tax and duty for your upcoming shipment, we detail in this post how to calculate import tax and some of the additional charges which you should be aware of.

How to Calculate Import Tax and Duty

Customs Duties or Import duty will be pending and need to be cleared while importing goods into the Philippines. Customs clearance can be executed either by a private individual or a commercial entity. The valuation method often used to arrive at dutiable value is CIF (Cost Insurance and Freight), i.e., the cost of the imported goods, the shipping cost, and the insurance cost. Imports are also subjected to Sales Tax.

Excelsior conducts free orientation for those who are willing to learn about importation and exportation. It is our advocacy to share our knowledge and 17 years of experience in business. You can contact Excelsior Worldwide Freight Logistics Corp. today at (+632) 525-9775 or email us at wecare@excelsior.ph

Things to Consider When Shipping for Trade Shows

excelsior on March 16, 2018

As mentioned in our previous post, attending trade shows is one of the most effective ways to grow the client base of your import-export business. In fact, studies have shown that 81% of trade show display attendees have buying authority – which means that 4 out of 5 people that you might talk to during the event could be your next customer!
Since potential customers and quality leads thrive in this kind of event, it is only essential that you give your best when presenting your product. One of the first steps to ensure a successful trade show is to ensure a smooth logistics.

Successful attendance at trade shows requires timely arrival of your materials at the destination. To help, we detail in this post the things you need to consider when shipping for trade shows.

1. Ensure Efficient Transportation Planning

Trade shows are very time-dependent events. Thus poor transportation planning could lead to a variety of penalties even before the show begins. It is therefore critical to choose a logistics partner with proven event logistics expertise.

There are certain types of information that your chosen carrier will need to know to ensure that your trade show shipments will arrive on time at the convention center. These are:

Name and address of the convention center
Name of the show
Specific event room or hall
The booth number
Name and contact number of your company’s on-site contact
Dock number for delivery

2. Plan for Show’s Conclusion as Well

The numerous instances when your company can incur penalties during move out.
One of such is not meeting requirements included in the Material Handling Agreement (MHA). MHA is the bill of lading for the movement of your booth, and it basically lists all pieces that the shipment contains as well as what company is assigned to the carrier.
If the company is not specified, the decorator will not allow the carrier to pick up the freight after the show. Due to this delay, the decorator may take control of your shipment and picks another carrier to transport your freight. This can increase your transportation cost significantly.

3. Build Relationship with the Parties Involved in the Logistics Process

Facilitating a successful trade show requires collaboration between Installation and Dismantle (I&D) teams, freight forwarders, decorator, and exhibitor. If you plan to maximize your trade show experience, you need to have a clear understanding of the entire logistics process – from unloading and installing to dismantling and loading out.

Penalties and additional overtime costs can escalate quickly if there are any inefficiencies in these processes. Having the right logistics partners, therefore, can help you navigate these time-critical tasks and avoid the heavy penalties that trade shows levy.
Overall, attending trade shows, though quite demanding and exhausting, can be an effective way to grow your import-export business. By partnering with a trustworthy and reliable logistics provider, you can improve your chances of achieving a successful trade show event.

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 services, you may call us at (063) 525-9775, or you can send us an e-mail through wecare@excelsior.ph

Customs Broker vs. Attorney in Fact

excelsior on February 16, 2018

During the process of importing-exporting, many companies will decide to hire a licensed Customs Broker to clear goods through customs and ensure all documentation is filled correctly. Customs Brokers are regulated by the Philippine Bureau of Customs (BoC) and are therefore authorized to assist importer-exporters in meeting the rules and regulations governing imports and exports.

However, with the passing of Customs Modernization and Tariff Act (CMTA) in 2016, the BoC has declared that engaging the services of licensed customs broker by an importer or exporter is now optional. According to BoC, the Act provides the importers and exporters with the option to

1) engage the service of a licensed customs broker,
2) assign an attorney in fact that will deal with the customs authorities on their behalf,
3) clear their import/export goods by themselves.

Since the customs clearing process involves a series of tedious tasks, the latter may not be a viable option for most importer-exporters. This leaves us the question of who is more apt to do the customs clearing process: a customs broker or an attorney in fact?

What is a Customs Broker?

The Section 102(n) of the CMTA states that term Customs Broker refers to any person who is a bona fide holder of a valid Certificate of Registration/Professional Identification Card issued by the Professional Regulatory Board and Professional Regulation Commission pursuant to Republic Act No. 9280, as amended, otherwise known as the “Customs Brokers Act of 2004”.

Advantages of Hiring Customs Broker

Expertise in customs laws, rules and regulations for the clearance of imported or exported goods.
Has basic knowledge of how to prepare customs documentation and ensure that shipments meet all applicable laws to facilitate the import and export goods.
Can sign documents under power of attorney.

What is an Attorney in Fact?

According to Investopedia, an Attorney in Fact is a is a person who is authorized to perform business-related transactions on behalf of someone else (the principal, or in this context, the importer/exporter). To become someone’s attorney in fact, a person must have the principal sign a power of attorney document. This document designates the person as an agent, allowing him to perform actions in the principal’s stead.

Two Forms of Attorney in Fact

General Power of Attorney – Allows the attorney in fact to conduct all business and sign any document on behalf of the principal.
Special Power of Attorney – Allows the persons to sign documents and conduct business on the principal’s behalf only in specific situations.

Advantage of Hiring Attorney in Fact

Has knowledge on legal matters.

Overall, a licensed customs broker can provide more specific expertise about customs regulations and laws compared to an attorney in fact. This specialized knowledge very handy especially if you are new in the import-export business.

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

Allow Excelsior 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

Make sure you are legible to do the importing

Assess all the possible expenses

Pay attention to sudden exchange rate fluctuations

Learn to interact with your foreign suppliers

Determine if there is a local market for the goods you wanted to import