Your export business would not be successful unless you have a substantial client base that trusts your company. Finding export customers can be a challenging task, especially if you are just starting out or entering a new market. However, with the right knowledge and strategy, you will be able to find export trade customers for your products and keep them as regular customers.
Here are five simple ways to find and acquire foreign buyers for your export business:
Attend Trade Shows for Your Industry in the Philippines and Overseas
Numerous trade shows that cater to different industries are conducted in the Philippines every year. It is a great place to start if you want to expand your business, as well as to keep updated with the latest news in your industry. These trade shows let budding export business owners contact international customers, especially they have a complicated product to offer.
Contact Philippine Embassies Located in Countries You Want to Find Customers
Philippine Embassies have an appointed commercial counselor whom you can request a list of companies that might be a good fit for your products as well as buying agents that are actively looking for suppliers like you. These records are usually made available at no cost, but occasionally you may be asked to pay a fee. The websites of Philippine Embassies also have economy and trade section which posts up-to-date industry analyses and manufacturing reports that may be helpful.
Globalize Your Website
Many people and businesses nowadays use the internet to search for the product they need. To fully maximize the potential of your website, you should include the contact information of your international liaison, if you have, on your contact us page. You should also consider translating your website and marketing materials into the language of the countries you are trying to target. Doing so will make you visible to Internet searches conducted in different languages.
Connect with Commission Agents
Foreign wholesalers often have their own commissioned agents or middlemen abroad to find and buy great export products on their behalf. Dealing with these local authorized agents can be far more comfortable than dealing with a foreign-based agent as they require less effort to reach and are more motivated since they are paid on commission.
Use the Tradeline Philippines’ Business Matching System
The Business Matching System is a platform created by Department of Trade and Industry which allows exporters to find foreign buyers for their products. It is one of the most efficient ways for an export business operator to meet with pre-screened potential cross-border business associates, whether you are seeking an agent, a distributor or a joint-venture partner. You can take advantage of this service by contacting your nearest Export Marketing Bureau.
In our previous post, we’ve discussed the process of clearing your imported goods from the Philippine Customs.
While nobody enjoys getting their freight shipments suspended by customs, it can also result in frustrating and costly delays, especially if the goods awaiting customs clearance are meant to be sold at retail. Not only that but with the possibility of some rather sharp penalties for non-compliance, it’s crucial to follow correct customs procedure at all costs to ensure no additional costs or charges on your cargo.
With that in mind, now that you know the step by step of customs clearing, it’s time for you to learn the ways to fast-track the release of your consignment once it reached the Philippine soil. Here’s how:
1. Have Specific Description of the Cargo in All Documents
Make sure that all necessary import documents are properly filled-out to avoid any delays of you receiving your cargos in a timely manner. By detailed description, it is good to follow your SKU description. If it is a box of red shirts, size medium, indicate that exactly. This will aid the process if an exam is required.
Moreover, you need to mark your goods legibly and conspicuously with the country of origin unless exempted. Exemptions usually apply to goods that cannot be individually marked, like tiny items, such as screws. You should, however, mark the sale packaging of these types of items.
At the bottom of customs invoice, including any markings on the packages, and add a notify party, such as your customs broker.
2. Be Ready for the Import Permit (if necessary)
If you’re an accredited importer, the Bureau of Customs will grant you a special permit in the form of a document which you may need to present during the customs clearing process if you’re a first-time importer. Prepare this, along with other necessary documents to prove that you’re a legitimate importer in the Philippines and to avoid possible legal troubles.
3. Provide Proof of Payment
All goods coming from a foreign country needs to be declared, such as their description, quantity, and their value which will be the basis for assessment of duties and taxes. After the right duties and taxes are paid and registered by the customs authority, you will be provided with a proof of payment which you also need to provide during the customs clearing process.
4. Hire Trustworthy Brokerage Company
Having the wrong person handle your customs brokerage can be very problematic. Shipping containers are warehoused as they go through customs clearance. Warehousing and storage fees can add up quickly. If there is a problem with your customs brokerage and your customs clearance does not happen smoothly, your shipping costs could go up by hundreds to thousands of dollars.
By a hiring legitimate and trustworthy brokerage company, you will be able to experience many advantages – one of such is faster customs clearing process. A trustworthy customs broker not only know the shipping industry, but they know the laws better than anyone and can help you not only meet deadlines, but they can save you the headaches associated with importing. Overall, they help ensure the clean reputation of your business in the eyes of the government and market as well.
If you need a professional help to ensure a fast and hassle-free release of your import goods, contact Excelsior Worldwide Logistics Corp. today at (063) 525-9775 or send an email to wecare@excelsior.ph
In this post, we will walk you through the steps by step guide on how to release your imported shipments from the Philippine Bureau of Customs (BoC)
Step 1: For new company or individual who wants to import any commodities with commercial value and or in commercial quantity, you first need an Import Clearance Certificate from the Bureau of Internal Revenue. Then you need to apply for Importer’s Accreditation to the Bureau of Customs. Only accredited importers have the privileges to imports any commodities whether regulated imported commodities or freely imported commodities.
Step 2: Import documents required for shipments to the Philippines include:
1. Commercial invoice/Pro-Forma invoice
Should include a detailed description of the goods i.e. what is it made of, what is it part of, what is it used for.
The value indicated must be correct. If the shipment consists of more than one item, the importer must provide a value breakdown and ensure that the total amount tally to the total value of the shipment.
The value must be transaction value – the price paid or payable – for the item/s in case the item has been provided free of charge or as a gift.
Putting “No Commercial Value” will lead to Customs asking the consignee to provide value evidence such as proof of payment, purchase order, or telegraphic transfer.
The invoice should also include the quantity, weight, unit price, currency and country of origin (COO).
2. Bill of lading (for sea freight) or air waybill (for air freight)
Should be filled out completely and accurately.
Make sure all the information is consistent with the commercial invoice.
A revision in the declared value once a shipment reaches the destination port is subject to Customs approval.
Make sure to include a reachable consignee contact so the destination port can easily inform them about the shipment’s arrival and advise of any necessary clearance paperwork.
3. Packing list – A document that details the merchandise in the shipment, along with information on how it was packed, how the items are numbered, the serial numbers, and the weight and dimensions of each item.
4. Applicable special certificates/import clearance/permit depending on the nature of goods being shipped and/or requested by the importer/bank/letter of credit clause, e.g., Food and Drug Administration (FDA) license; and
5. Commercial Invoice of Returned Philippine Goods and/or Supplemental Declaration on Valuation.
6. For a Letter of Credit (L/C) transaction, a duly accomplished L/C, including a Pro-Forma Invoice and Import Entry Declaration for Advance Customs Import Duty (ACID) is required. A Pro-Forma Invoice is required for non-L/C transactions (e.g., Draft Documents against Acceptance (D/A), Documents against Payment (D/P), Open Account (OA) or self-funded documentation).
7. Additional documents for certain imports – Importers bringing in animals, plants, foodstuff, medicine or chemicals must additionally obtain a Certificate of Product Registration from the Philippines’ Food and Drug Administration.
Step 3: File an Entry Entry must be filed in the Customhouse within 30 days from the date of discharge of the last package from the vessel, which shall not be extendible. Failure to file the entry constitutes implied abandonment and will result in the ‘ipso facto’ forfeiture of the goods/shipment. You or your customs broker may have the software to file Bill of Entry at office or home. If you do not have such facility, you can approach private EDI (Electronic Data Information) service providers who can arrange to submit the data on behalf of you.
Step 4: Payment of Duties and Taxes for ATRIG
An ATRIG is an authority issued by the BIR, addressed to the Commissioner of Customs, allowing the release of imported goods from customs custody upon payment of applicable taxes, or proof of exemption from payment thereof, whichever is applicable.
The BIR Revenue Memorandum Order (RMO) No. 1-2016 directs all applications for ATRIGs for excisable products be processed and issued centrally at the BIR National Office in Quezon City.
Only applications of importer-applicant and broker-representative who are duly registered BIR taxpayers will be processed.
An individual importer-applicant must present a photocopy of his/her latest annual income tax return together with the audited financial statements duly stamped received by the BIR. These will be used in the valuation of the individual importer-applicant’s financial capacity to import.
Prior ocular inspection of the imported goods would be conducted if necessary.
Step 5: Release of Cargo Upon satisfying all these requirements of, you can now retrieve your import goods from the Customs.
The import customs clearance procedure in the Philippines can be very lengthy and tedious, especially for those small and medium businesses. If you need a professional help to ensure a fast and hassle-free release of your import goods, contact Excelsior Worldwide Logistics Corp. today at (063) 525-9775 or send an email to wecare@excelsior.ph
In this post, we will give you some proven tips and tricks that will surely help you run a successful importation business today.
Create Your Website and Start Blogging
One of the most effective ways to find networks, potential investors, and customers is through a website. According to statistics, over 6 billion searches are being made each day, making it the most cost-effective platform you can use to market your business today.
Get a domain name. While it is very common for businesses to have domain names that are the same as their business names (such as walmart.com), you can pick a domain name to include any text phrase you want as long as it is not already taken.
Choose a website builder. Website builders are tools that typically allow the construction of websites without manual code editing. To know more about this, check this guide to choosing the right website builder.
After you build your business website, it’s time to fill your website with content and information relevant to your products and services. Check out this post to learn more about successful business blogging.
Select a Product to Import
There are a lot of ways to select the product you want to import and sell in your locality. For example, you can import the products which are currently trending in your area but is not fully satisfied yet by the local providers.
You can also create your own product, such as handmade crafts, then source the raw materials from other countries. Whatever it is you want to sell, make sure that there is a viable market for it, and you know exactly the selling points of that product in the market.
Find the Right Market
After you identified the product you want to sell, you need to pick someplace to sell it. Here are some tips to help you pick the right market for your product:
Know what you are offering and you will be able to determine who will be buying it.
Do the right amount of research. By collecting some useful data on the market situations, needs and customer’s profitability you can design marketing strategy which will work in the targeted niche.
Your business model matters. Running a B2B or B2C business determines the niche strategy you should develop for your import business.
Find a Reputable Supplier
The easiest way to find a supplier for the product you want to import is to consult some specialized online resources: Alibaba, Global Sources, ThomasNet, Makers Row, and MFG. You can also try searching the internet for specific keywords, for example, “Taiwan, bicycle parts manufacturers” to see what is currently available online. Either way, ensure the following when choosing an overseas supplier:
Make sure they are a good fit for your company: provides impressive product information, packaging, process, and has a world-class reputation in the industry.
Make sure they have the capacity to keep up with the demand.
Make sure you have what it takes to out the import partnership you’re about to make.
Set the Price of Your Product
Typically, importers use the cost-plus pricing method to price their import goods. In this method, the importer takes a markup percentage over cost – which is the price charged by the overseas supplier to you when you buy from them. That markup becomes your profit or commission.
The goal is to price your product with markup that will not exceed what your target market is willing to spend. The more goods you sell, the more profits you’ll generate.
Find Customers
As long as your website ranks well in search engines, customers will be able to find you in the online space. However, you should also use other ways to find customers. Check with local contacts, such as trade organizations, Philippine Chamber of Commerce & Industry, embassies and trade consulates.
These organizations can provide you with contact lists specific to your industry and also suggest trade shows that are taking place locally and internationally that might help you connect with potential customers.
You can also use other digital platforms such as social media to connect with your customers in a faster and efficient manner. Facebook, LinkedIn, and Twitter are full of users seeking for products and services, so using these platforms can help you stay relevant and present to potential customers worldwide.
Select a Trustworthy Freight Forwarder
Your chosen freight forwarder can make or break your import business, so choose one wisely. Excelsior Worldwide Freight Logistics Corp. is a global freight forwarder that can help you transport your import goods to where you will be selling it in an efficient and timely manner.
Our trustworthy and reliable international freight forwarding service has been the backbone of many import business in the Philippines for 16 years. Catering to different industries, our logistics service has saved all our clients a lot of time, effort and anxiety. Not only we help our clients with their transport needs, we also help them prepare all the necessary shipping arrangements to ensure a seamless import process. With our expertise in Philippine importation process, you will be able to ensure a more successful importation business than you could have ever imagined!
These are the proven tips that will help you run a successful importation business in the Philippines. If you want to learn more about our freight forwarding services, Contact Excelsior Worldwide Freight Logistics Corp. today at (+632) 525-9775 or email us at wecare@excelsior.ph.
In every type of business, it’s minimizing risk is equally important as achieving maximum return. If your business imports or exports its products, it means you’re putting an investment at stake every time you ship cargo. This is why it is extremely vital to have your cargo covered with cargo insurance because your business could lose an absolutely insane amount of money in case everything went spiraling down.
In the Philippines, under Sec.99 of Presidential Decree No. 612, also known as Insurance Code of the Philippines, a marine insurance should cover you against damages or loss on:
• Vessels, craft, aircraft, vehicles, goods, freights, cargoes, merchandise, effects, disbursements, profits, moneys, securities, chooses in action, evidences of debts, valuable papers, bottomry, and respondentia interests and all other kinds of property and interests therein, in respect to, appertaining to or in connection with any and all risks or perils of navigation, transit or transportation, or while being assembled, packed, crated, baled, compressed or similarly prepared for shipment or while awaiting shipment, or during any delays, storage, transhipment, or reshipment incident thereto, including war risks, marine builder’s risks, and all personal property floater risks;
• Person or property in connection with or appertaining to a marine, inland marine, transit or transportation insurance, including liability for loss of or damage arising out of or in connection with the construction, repair, operation, maintenance or use of the subject matter of such insurance (but not including life insurance or surety bonds nor insurance against loss by reason of bodily injury to any person arising out of ownership, maintenance, or use of automobiles);
• Precious stones, jewels, jewelry, precious metals, whether in course of transportation or otherwise.
• Bridges, tunnels and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents and supplies held in storage); piers, wharves, docks and slips, and other aids to navigation and transportation, including dry docks and marine railways, dams and appurtenant facilities for the control of waterways.
• “Marine protection and indemnity insurance,” meaning insurance against, or against legal liability of the insured for loss, damage, or expense incident to ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft or instrumentality in use of ocean or inland waterways, including liability of the insured for personal injury, illness or death or for loss of or damage to the property of another person.
Whether exporting or importing or using an air freight or ocean freight for your international shipping, marine cargo insurance covers loss and/or damage of cargo while it is in transit between the points or origin and final destination.
Here are five reasons why your import/export business need to protect your freight with cargo insurance.
Whether you’re an exporter who has not been paid for the goods at the time of shipment or an importer who has paid for all of the goods prior to receiving the, having your cargo insured protects you from potential financial loss if the goods are lost or damaged during the transit.
2. General Average – Speed up the Release of Your Cargo
In cargo insurance, general average means general loss. When the general average is declared, both the ocean carrier and the cargo owners are liable for loss or damage to all the cargos aboard in the ship, as well as the ship itself. Under this circumstance, you may be required to post a bond and/or cash deposit in order to obtain the release of your cargo following a general average – even though there was no loss or damage to your goods.
By availing cargo insurance, you take the load off your shoulder as the insurance company assumes the responsibility and expedites the release of your cargo.
If your customers obligate you through a contract to provide ocean cargo insurance, that is because they want to protect their interest and or their bank’s interest as well. This is especially true when selling goods in CIP or CIF (click the link to learn more about Incoterms). Failing to avail cargo insurance cannot only subject you to financial loss if there is loss or damage to the goods, but non-compliance with the terms of your contract with the buyer can also result in loss of sales and legal problems.
By law, carriers are not fully responsible for many common causes of loss in transit e.g. Acts of God, general average, etc. In the event they are liable, their liability is also limited – either by contract stipulated in the bill of lading or by law. To make up for the limited carrier liability, the best thing that you can do is to purchase a cargo insurance.
While counting on your buyer’s or seller’s insurance may be a viable option, having a cargo insurance provides another layer of security and peace of mind. Purchasing a cargo insurance puts you on the higher ground by giving you more control over insuring terms, valuation, and limits provided by each insurer, ensuring that all these are a perfect match to your business’ needs. As an importer, purchasing your own cargo insurance saves you a lot of time and effort from dealing with foreign insurance company provided by the seller, especially from a country with a different language.
These are the top compelling reasons why you should definitely need a cargo insurance for your import/export business. Want to know more? Contact Excelsior Worldwide Freight Logistics Corp. and let us help you in your journey in the import-export industry this 2017 and beyond. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph.
If you’re a business owner looking for ways to minimize importing cost, then you should familiarize yourself with one of the salient features Customs Modernization and Tariff Act (CMTA) which was implemented October last year.
Under Customs Administrative order no. 02-2016, De minimis provision of the CMTA is implemented which states that imported goods in the Philippines with a freight on board (FOB) or free carrier (FCA) value of P10,000 and below are no longer subject to duties and taxes.
This said provision aims and targets to 1) minimize the importation costs and customs administration costs of clearing such importations, without compromising customs border enforcement patrol and; 2) adapt the growing trend toward trade liberalization and facilitation and harmonize the country’s customs laws with different applicable international trade agreements.
Here are some facts one needs to know in order to assess whether your importation might be free of duty and taxes.
a.) Importations brought in by passengers or sent thru balikbayan boxes may be considered as de minimis when they have complied the parameters of Conditionally Free Importations.
c.) Random and non-intrusive examination will be conducted but customs examiners may also physically examine and inspect the goods in order to prevent the entry of contraband goods.
f.) Shipments which are declared as “without commercial value” or “of no commercial value” are excluded from immediate release as de minimis importations.
These are only several and important facts about the de minimis provision. The said provision will also be reviewed every 3 years and amended or revised, if necessary. Your shipment might qualify in this provision. For assistance, feel free to contact Excelsior Customs Brokerage where peace of mind of clients is our service.
Importers and exporters are very much familiar with how the final steps of importing in the Philippines should take place: they must for their imported articles to processed by customs, pay the necessary customs duties and fees, and the delivery of the imported goods to its final consignee can finally take place.
However, consignees cannot simply send their delivery trucks and trailers to the premises of Manila South Harbor and Manila International Container Terminal without booking an appointment first. And in order to do that, consignees must use the Terminal Appointment and Booking System or TABS. Went into on October 2015, this system is an electronic platform is implemented in the aforementioned ports in Manila where the majority of the importations are brought in.
According to its proponents, the Asian Terminals Inc., TABS is designed to keep the movement of goods flowing at Manila’s international trade gateways. Specifically, the web-based platform serves as a platform by which brokers, forwarders, importers/exporters, and shipping line representatives to schedule the withdrawal and delivery of containers at Manila Ports based on time zones spread throughout the 24-hour period. It is also intended to be in line with the government’s truck ban, ultimately resulting in lesser road traffic and also to minimize and lessen the port congestion in such ports.
On October 22, 2015, Manila North Harbour Port Inc. CEO Richard Barclay said in a presentation at the Procurement and Supply Institute of Asia (PASIA) that TABS will benefit its stakeholders in terms of more efficient truck trips, leading to reduced cost; prioritization of cargo release and acceptance; and management of volumes, forecasting, and planning.
While many appreciate the objective of TABS to facilitate smooth flow of traffic and goods around the ports, it also received strong opposition from various groups which includes the Chamber of Customs Brokers Inc., Professional Customs Brokers Association of the Philippines, and Aduana Business Club.
According to an interview with these groups, while TABS can significantly improve the importing process, the imposition of high fees to its end users (importers/exporters, forwarders, etc.) is simply wide of the mark because “…the TABS is an inherent part of the port operators’ mandate that is supposed to enhance their service.”
Also, despite the supposed facilitation objectives under TABS, a lot of customs brokers and truckers using the system have complained of 24-hour waiting time for the trucks to enter the ports. The groups explain that “One possible reason for the long queue to the port is the rush to avoid truck ban hours and penalties, such as that there are now overlapping of truck schedules depending on which truck arrives first.”
Moreover, the said booking platform is also inherently flawed which results for customs brokers and companies to rush. According to them, TABS has some slots with booking free and some come with absolutely no charge, which is why many trucks their way to the terminal just to avail a free booking. Outside the pier, traffic still remains rampant and is a major headache not just for commuters but also to transport and delivery providers which cause them to miss their reserved time of booking.
Regardless, this situation gives rise to the problem of delays in getting in the port and being penalized. The penalty for late arrivals (trucks that come two hours after their booked slot) is P1,625. Trucks that are not able to arrive three hours or more after their appointment will be fined for P3,251. These expenses are especially painful for smaller firms and causes a delay in the target delivery of the goods.
Overall, while the intention and aim of TABS are good but is still in need of several improvements to better cater clients and to provide an excellent customer service. There might be flaws in the system but through improvements and adjustments, it could properly and effectively achieve its goals and be able to address the issues which are related to logistics services.
Efficiency and productivity are two of the most important metrics that business owners are determined to achieve both on a short and long-term basis. And this is especially true in the brokerage industry. Because of the complexity of the international trade, along with other intricacies in the industry, managing a customs brokerage firm can be really challenging sometimes.
That said, in order to provide the maximum level of service quality, customs brokers must ensure a fast and efficient process. To help you with that, consider these tips that will help boost the efficiency and productivity of your brokerage operation today.
We’re practically living in the future, so do not fail to take advantage of the technological tools that can help streamline your business’s operations.
New digital tools such as track and trace apps, web reporting, document imaging, electronic billing, etc., make it easier to submit documents to your clients, track the movements of goods, manage paperwork more efficiently, and stay up to date with the latest news in the international trade.
Though they require significant upfront investment, equipping your business with digital tools will surely pay off in the long run.
As a broker, it is not only your job to get the shipments on their final destination legally, but also give your clients more chance save significant money in the shipping process. You should always seek ways to legally reduce the import cost.
For example, you need to be aware of certain goods that may qualify for preferential access, granted under Preferential Trade Agreements. In this circumstance, import tariffs are significantly reduced, helping your client to reduce their importing expenses.
Brokerage companies must always keep a well-maintained record of all shipments, from procurement to payment for seven years. This includes documents such as invoices, shipping records, proof of origin, markings, value adjustments, and others.
Selecting a niche to focus on will help you develop a specific domain expertise that your competitors won’t have. A niche can be a country or region, a specific industry like automotive or garment, a specific mode of transportation like ocean or trucking, or specific service levels like high interaction, high compliance or lowest cost. It could also be the size of clients you want to have business with.
For sure, all brokerage company will encounter a few occasion problems on their operations, but it is when the failure of the service become chronic that you have to consider dropping the carrier from your timetable.
Carriers who don’t deliver on their promise will not only affect your reputation but will also keep you from having loyal customers. While it’s one thing to give them a second chance, you need to draw the line before the problems affect your own business.
To avoid disputes with your clients, you need to clearly outline your duties and responsibilities as a broker. In doing so, you also give them a clear idea of the scope of your service. For instance, when they ask for your expertise about a very specific case, you must tell them outright if the cost of such services (consulting) is already included in the regular brokerage fee or if they are charged additionally.
International trade is always changing. So, to avoid accidental non-compliance, you must keep up with the latest rulings, trade news, regulatory changes, and cross-border issues which can impact your and your client’s business. It is also advisable if you attend educational events such as compliance and risk management seminars regularly. These events will not only help you improve your knowledge but also give you the chance to expand your network.
As a broker, you are tasked to represent your client to the best of your abilities – and this includes full adherence to applicable customs laws. If you fail to observe these laws while doing business on behalf of your clients, it can result in irreversible damages, delays and revenue losses. Worse, it can damage the reputation of your brokerage firm and of your client.
You must know your scope of authority, make effort to improve your skills and conduct internal audits to improve operational efficiency. An honest broker also provides accurate data and discloses any false or misleading information to their client.
These are just some of the ways to ensure that the productivity and efficiency of your brokerage firm are always at the optimum level. Need a helping hand on starting your import and export business today? Contact Excelsior Worldwide Freight Logistics Corp. and let us help you in your journey in the import-export industry this 2017 and beyond. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph.
Starting an import and export business is one thing, knowing how to grow it from the ground up is another. It is true that this line of business can be so rewarding. But just like any other ventures, import/export also requires you to effectively move within the intricacies of its internal and external environment.
For most enlightened part of import and export business, having the right idea, the right amount of capital, and right tools and knowledge are the three basic components of success. Given that you have already established an import-export business you wanted to pursue, the next thing that you should do next is to learn how to grow your business in a smart way.
In this post, we will discuss the top five tips to keep your import-export business running and thriving this 2017 and beyond.
Perhaps the most obvious one. While the success of a business relies on relationship – whether with suppliers or customers – not all business owner knows this. If you are just starting out in your import-export business, then you should make networking with people in the countries you wish to export to one of your top priorities.
You can make use of social networking sites such as LinkedIn to help you with this task. It is a great place where many business owners engage with each other these days, as it allows you to expand your network and build a reputable name for your brand.
Also, while it is important to build a relationship with your suppliers, clients, and your own employees, you must not forget about those helping you with the logistics of your import-export business – your freight forwarder. If you don’t have a freight forwarder you trust, Excelsior Worldwide Freight Logistics Corp. is ready to be your partner and use our years of experience in importing and exporting to help you.
In any kind of business, efficient and organization and management is a must to ensure that all the company’s resources are maximized and is helping you reach your desired goals. This is especially true in import and export industry, where you will most likely deal with different trading partners from different regions.
To keep your business organized and make sure you don’t get lost on track with your international dealings, make sure to use online tools to your advantage. This could range from to-do apps such as Trello, Evernote, and Wunderlist, to online invoicing platforms such as Due, Sighted and Invoicera. The advantage of using an online invoicing service over email is that it keeps all your payments administration and communication in one place, plus it allows you to work collaboratively with your clients despite geographical constraints.
Dealing with different clients and suppliers around the world also mean encountering and managing different cultures and preferences in doing business and completing transactions. It is important to keep your business adaptable and to work with your clients regarding their preferred modes of delivery and payment options. Doing so will allow you to build a stronger relationship with your clients which is essential to your business’s success.
Just as important as an organized business is an efficient cash flow. Even if you know to yourself that you are perfectly profitable and have a number of pending payments and potential clients in the pipeline, it is still good to have a solid pool of working capital at hand to help your business manage cost when payments get delayed for any reason.
If you are exporting, you may consider asking your clients to pay at least half of the payment first before sending a lot of high-value product. Remember: facilitating a payment of an invoice, we take on all the risk of late payment – or worst, non-payment of that transaction.
While most busin ess people would want to expand their business to different regions, this is not the smartest thing to do for most of the time. If you export to China, there is nothing wrong with wanting to export to New Zealand, Japan, and European countries too. But as you spread your operations to those other countries, you must consider if your current business model can provide the same service you were giving to your clients in China.
Focusing in on how you can further improve the services you provide to your current customers and how you can be more effective in a region to which you already export can be much more profitable than exporting to a new region. Focus on what you do best first in order to ensure that your business is standing on a very strong foundation. This will result in expanding your client base in a region which you currently serve, and makes exporting to other regions much easier.
As the old adage goes: “Growth is never by mere chance; it is the result of forces working together”. To ensure that all your efforts will come to fruition, you must know how to steer your organization – from the employees up to top-level executive – towards a common a goal. Make sure to consider these tips and you will surely propel your import and export business forward into success.
Need a helping hand on starting your import and export business today? Contact Excelsior Worldwide Freight Logistics Corp. and let us help you in your journey in the import-export industry this 2017 and beyond. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph
In our recent blog, we have talked about the latest business ideas that you should consider if you are planning to start an import and export business in the Philippines this 2017. As we have discussed, establishing an international trading business in the Philippines is a good idea for it allows you to take advantage of the most in-demand products from all over the world and earn above-average profit from it.
Given that you already have a specific product in mind that you want to import or export, the next step you need to take is to learn how to set up an import and export business properly. In this post, we will discuss a simple guide that will help you jumpstart on your international trading business today.
There are different variations of this business, which includes the following:
• Export Management Company (EMC) – Handles export operations for a domestic company that wants to sell its product overseas but doesn’t have the technical know-how or doesn’t have the resources to conduct the operation in-house.
• Export Trading Company (ETC) – Identifies the in-demand products in a foreign market and then hunts down domestic sources willing to export such products.
• Import/Export Merchant – More of like a freelance agent who purchases goods directly from a domestic or foreign manufacturer and then packs, ships and resells the goods on his own.
2. Know the Top Trading Partners of the Philippines
Below is a list of the top 5 countries with which Philippines trades (in order of largest import and export dollars to smallest) are:
• Japan
• United States
• China
• Hong Kong, China
• Singapore
You didn’t have to secure trade deals with importers and exporters in these countries since there are other emerging markets in other countries like in Europe and the Middle East. But as a beginner in the industry, you should familiarize yourself with the biggest trading partners and see what they have to offer.
A comprehensive business plan is essential for every starting business. A business plan describes what you plan to do and how you plan to do it. It should include the following:
• Your business structure, industry, the product or service you specialize in.
• Start-up cost, income and billing, operations structure, budget forecast.
• Your target market; their demographics, buying motives and your plan to win them.
• Your projected income and cash flow statement, balance sheet and other financial ratios.
After you developed a business plan, you will need to register your new business with the Department of Trade and Industry if it’s a sole proprietorship, and to Securities and Exchange Commission (SEC) if it is a partnership or corporation. You will also need various types of licenses depending on the types of products you will be importing and/or exporting. You will also need to register with the city or the municipality where you intend to operate the business as well as with the Bureau of Internal Revenue (BIR).
As a beginner in the international trading scene, it is wise if you talk to other business owners who are already running a startup venture in the Philippines. They can give some useful advice on how to react to the challenges you will be facing as you take the first steps in your business, and even some practical tips on where to find a good source of suppliers for your products.
6. Find a Reliable and Trustworthy Freight Forwarding Firm
One of the most crucial, yet often overlooked decision when it comes starting an import and export business is choosing the right freight forwarding partner. A reliable and honest freight forwarding company provide significant advantages that will not only help you gain a competitive edge but also ensures that all your import and export transactions are done legally, ethically, on budget and on time.
These are just some the basic steps that you should consider when starting an import and export business here in the Philippines. Follow these tips and you can certainly start your very own business that can literally take you all over the world today.
Need a helping hand on starting your import and export business today? Contact Excelsior Worldwide Freight Logistics Corp. today and let us help you in your journey in the import-export industry this 2017 and beyond. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph.
