Customs broker Archives - Excelsior Worldwide Logistics Corp.

How Customs Brokerage Firms Help the Philippine Economy

excelsior on April 15, 2020

There are several factors that affect the economy of a country. From the total population, natural resources, to technological growth, it is highly essential for such a massive social unit to thrive and make efforts to enhance and develop its own economy.

In the Philippines, one particular industry is becoming more renowned as a great contributor to the country’s economic growth. Customs brokerage refers to the profession of rendering services to an organization, usually an exporter or importer, to assist them in clearing customs requirements and processes so that they can transfer their products in different locations without facing any legal issues.

The Bureau of Customs, the Philippine government’s agency that facilitates the nation’s trade through an effective customs system, had been touted local customs brokerage firms to be their partners in maintaining the economy. Why did the government say so?

Customs Brokers Helps the Government to Fight Corruption

Customs brokers, as licensed professionals, spent considerable time studying different customs regulations, as well as the most effective ways of negotiating with the authorities. This means that they are well educated on how the government agency operates. Since customs brokers are always dealing with them, it can be easy to spot and report any irregularities committed by any customs authority.

Customs Brokers Aid in Encouraging Investors in the Country

The Philippine government raises funds from taxes. Greater portions of taxes came from businesses. Customs brokers, in a way, encourage investors to do business in the country hence augmenting the country’s economic growth and providing the government with more funds more developing many projects such as infrastructure, public facilities, and combating poverty.

Customs Brokers Can Help Create More Jobs

This is inlined with the profession’s capability to trigger a chain of events that leads to attracting more people to invest in the Philippines. More businesses result in increased job demands, reducing the unemployment rate. This is perhaps one of the best benefits that are often neglected, as many people thought customs brokers only affects what’s going on within the field of the trade itself.

Customs Brokers as an Integral Profession

The Philippine government is currently in full support of the continuous rise of customs brokerage firms. As it was stated in the Customs Modernization and Tariff Act (CMTA), one of the state’s ruling policies is that a priority and support must be given “to professionalizing the practice of customs brokers profession in the Philippines which will be beneficial to the country in general and to the economy in particular.” This further highlights the integrity of customs brokers as key players in maintaining the stability and growth of the Philippine economy in general.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

Traits of a Reliable Customs Clearance Service Provider – Infographic

excelsior on March 31, 2020

Dealing with customs authorities for shipping your products is one of the most time-consuming and stressful parts of running an export or import business. Apart from hiring a reliable freight forwarder, getting a customs broker in the Philippines is also essential towards clearing your transported goods and keeping your supply chain in stable condition. But not all agents can be considered as “reliable” and “trustworthy.”

To make the most out of a customs brokerage service, one must be able to identify an agent or company that can provide the highest quality of service, with a considerable amount of experience and knowledge in the field.

Here are some signs that a customs broker is definitely a worthy investment for your business

A Reliable Customs Broker Is a Licensed Professional

Every country has its own laws that regulate the individuals that practice customs brokerage. The Bureau of Customs (BOC) in the Philippines is the one that issues information regarding accreditation guidelines for customs brokers. With a licensed customs broker, expect that you will experience a seamless and trustworthy service that keeps your shipping goals on the right track.

A Reliable Customs Broker Possess Excellent Organizational Skills

With a plethora of documents and requirements that must be cleared, being organized must always be a staple trait of every customs broker. The client will be the one to suffer in case something during the shipping process goes wrong, so a reliable customs broker should be able to prevent unnecessary errors and ensure that the goods will be able to arrive at its destination without delays.

A Reliable Customs Broker Must Be Well-Educated and Trained

Similar to other professions, customs brokers should spend a significant amount of time for training and keeping an ample amount of knowledge on different topics such as logistics and laws that concern product transportation. Being a reliable customs broker in the Philippines requires familiarization of laws and regulations, including trade-related information, and basically everything about customs processes and requirements for clearing shipments.

A Reliable Customs Broker Must Be Always Updated With Any Recent Changes in Customs Policies and Freight Forwarding Process

One of the reasons why many businesses today are more inclined to hiring freight forwarders and customs brokers in the Philippines is that requirements for clearing shipments can change at any given moment. Customs brokerage service providers that are top-notch in the industry tend to experience lesser problems when complying with the requirements because they always keep themselves updated with everything that is going on, especially in customs and freight forwarding policies.

A Reliable Customs Broker Must Have Adequate Knowledge about Your Business

It is highly beneficial for your business if your chosen customs broker is equipped with enough knowledge regarding the nature of your shipment. This way, you can get expert advice that can make save you a lot of resources when transporting your goods in the future.

Why You Need a Licensed Customs Broker in the Philippines

excelsior on March 16, 2020

Commercial businesses in the Philippines, especially those that specialize in importing and exporting, are always facing challenges that are often involved with shipping and customs processes. Transporting products in and out of the country requires an enterprise to comply with specific rules and regulations that can be complex and time-consuming. This became the reason why customs brokerage has become an ever-growing business trend as hiring a licensed customs broker can save a business owner from getting worried about preparing the necessary documents.

Are you planning to run an import/export business in the country? Then you better know more about how customs brokers and why you need to hire one:

Reason #1: To Establish Effective Communication with the Government Authorities

Dealing with government authorities to ship your products can be a tedious process that requires technical knowledge in the existing laws and regulations. For your shipment to be released by Philippine Customs and other government bodies, you will have to submit a number of documents and fill-out forms. Failure to effectively communicate while complying with such requirements can result in wrong shipment information and further delay in your supply chain.

Customs brokers can get rid of this problem because they are well-connected with those in authority, speeding up the clearing process and avoid any problems usually associated with customs requirements.

Reason #2: To Help You Focus More on Other Areas of Your Business

With a trusted customs broker taking care of your shipment tasks that you were supposed to do, you will find yourself in a more convenient situation. More time means more opportunity for addressing other important areas of your business, such as managing your employees, daily operations, etc.

Reason #3: To Prevent Unnecessary Expenses

There are some businesses today who gets fallen on the trap of clearing shipments themselves because they thought that it would save them more money. This is a clear misconception because the rules and regulations in cross-border transactions can fluctuate at any given moment, making it easy for know-it-all companies to experience delays, and others unwittingly commit violations that could prompt them to spend more money in the long run.

Reason #4: To Save Time and Effort

Time, as a precious resource for an import/export business. Depending on the nature of your products, ensuring that it will arrive at its destination on time is a must. Customs brokers in the Philippines are trained and skilled enough to work in a way that can optimize the flow of your overall supply chain, especially in the aspect of product shipping.

Reason #5: To Help You Find the Best Option for Shipping

A customs broker can serve as a guide for your shipping options. By considering several factors, customs brokers can recommend the best carrier, be it via air, ocean freight, or truck freight.

Responsibilities of a Licensed Customs Broker – Infographic

excelsior on January 31, 2020

A customs broker is a licensed individual that offers services involving the shipment of imported goods as well as clearing the required documentation for export shipments and collecting taxes.

Many licensed customs brokers today tend to have connections with freight forwarders, shipping lines, private institutions, and even the trade authorities in order to serve as the intermediary between importers and the government.

Having a licensed customs broker is highly beneficial, especially if you’re a business owner looking for more customers abroad. Transporting your products is going to be quite an arduous process, with all of that complicated paperwork that must be complied to a given period of time. To lessen your stress and focus more on managing other aspects of your business, a licensed customs brokerage service is the key.

To make you more aware of what licensed customs brokers do, here is a list of their duties that are highly beneficial for businesses that need immediate help in product shipping:

Facilitate Customs Transactions

A licensed customs broker shall help their clients with all the required documents for clearing the imported goods from the receiving customs department. He/She must prepare the entry form which indicates essential information such as the source country, classification code, total weight, and quantity of the goods. Additionally, the broker can also handle other paperwork related to exporting goods.

Represent Their Clients

Since they mostly deal with customs authorities, customs brokers shall be the representative of their clients when it comes to customs-related transactions. A customs broker should be ready to enlighten their clients about the latest changes in customs laws and regulations.

Review the Classification of Goods

Errors in classifying goods can result in additional expenses in taxes and duties, so a licensed customs broker prevents this from happening by reviewing the classification of their client’s goods.

Payments of Duties and Fees

After the review and calculation, all of the expenses in customs duties must be properly calculated by the broker and gets it paid directly from the account.

Record Keeping

A customs broker must be liable to maintain the confidentiality of all transaction records and documents of their clients. And similar to what freight forwarders do, customs brokers should also keep track of their clients’ shipped goods to ensure its safe arrival upon the destination.

5 Questions to Ask When Looking for a New Licensed Customs Broker

excelsior on January 15, 2020

So you just decided to hire a new licensed customs broker to keep your supply chain from getting disrupted by the complexities of shipping processes. In addition to freight forwarders, having a trusted licensed customs broker can bring ease and save a lot of time in transporting your products especially on an international scale.

However, with the growing emergence of such a profession, finding the appropriate licensed customs broker for your business can become quite challenging as everyone will surely fight their way to have you as a client. Not all licensed customs brokers can provide the same level of service, which means that you must be ready to know more about them before making an agreement.

Here are five questions that you must remember when looking for a new licensed customs broker:

May I see your track record?

Knowing the track record can make you more confident that your new licensed customs broker can handle well all of the customs requirements and other related tasks for your business. This can be done after doing initial research. A licensed customs broker working for a company will most likely possess a good online presence. Try visiting their official website and see if they have other online platforms used for reaching out with potential clients. You might even take a glimpse of their track record by checking out some of their webpages, but you still have to ask them in person to see if they can give you consistent information. The more reliable the track record is, the better.

You can additionally look for any certification to verify their license.

Do you have any pending lawsuits?

Since licensed customs brokers frequently deal with customs authorities, dealing with any lawsuit could mean incompetence and a tarnished reputation. While the firm you’re talking with might avoid topics such as this, it’s still quite better to ask them and verify their answer by thorough research.

What is your vision?

Know more about the short and long term goals of the company. Remember the possibility of spending a great deal of time with them, so you better be aware of how assertive they can be. You can give more emphasis on their vision regarding the usage of modern technology in helping their clients clear different shipping processes.

How much will your service cost?

This question will most likely start a long conversation consisting of negotiations between you and the broker. Prices can vary based on your agreement but be sure to have a detailed breakdown of all the services that are going to be rendered. You should also talk about their payment processes to avoid hassles in the future.

Can you provide quality service based on client needs?

Your new licensed customs broker must at least have some experience when it comes to dealing with clients that are related to your industry. This can be an indicator that they will be able to provide your needs as well. Keep in mind that versatility is an attractive trait in business especially those that offer expert services.

5 Things A Professional Licensed Customs Broker Can Do For You – Infographic

excelsior on December 31, 2019

A licensed customs broker is a professional who offers services involving shipments and delivery of goods across countries. Not to be confused with freight forwarding, customs brokerage gives more emphasis on ensuring that no issues regarding legalities will arise during the importing or exporting process.

Many enterprises today prefer hiring customs brokers in addition to freight forwarders because of all the complexities associated with the requirements. If you have a company currently suffering from a lot of hassles in clearing their shipments, hiring a licensed customs broker is definitely the best solution.

Here are five things a professional licensed broker can do for you:

1. Take care of all the customs paperwork

The name implied, their primary job is to serve as the intermediary between you (the client) and the government, specifically the customs authorities. This means that they possess enough knowledge that can complete all of the customs paperwork and other formalities in your place. And if you’re quite worried due to the sudden changes in the customs regulations, a licensed customs broker is always required to be updated at all times to make sure that you will not experience any unnecessary hassles in transporting your goods.

2. Discover new and potential markets

Out to customers abroad is a challenging task, especially for small businesses. Fortunately, licensed customs brokers can help you accumulate more customers across borders as they have a wider significant presence brought by the nature of their profession. They can also aid in formulating strategies on locating new and potential markets so that you can gradually increase your profits over time.

3. Make good use of modern technology for a more affordable and time-efficient service

Is not the only tool of licensed customs brokers. Taking advantage of modern technology, customs brokerage is now more advanced thanks to the development of automated systems that enables the faster exchange of data across geographical borders. Some licensed customs brokers can even provide you access in specific systems that can be used to optimize your productivity and also minimize that chances of non-compliance, saving you more money and time in the process.

4. Offer personalized services

Businesses are precisely the same, and licensed customs brokers are aware of this fact. To be more versatile in offering their services, they are always ready to satisfy the needs of their clients by making it more personalized. Even a small business can attain benefits by hiring a licensed customs broker!

5. Provide expert advice

A professional licensed customs broker can make the most of a customs brokerage service by hearing expert advice from their trusted broker. The essence of being a licensed customs broker far exceeds in making a living out of clearing shipments, but to enlighten and guide their clients on the customs regulations, tariffs, valuation, classification, etc. So, if you’re new to the industry, you can study its nuts and bolts by simply hiring a licensed customs broker.

What’s the Difference Between a Freight Forwarder and a Customs Broker – Infographic

excelsior on January 31, 2019

Some exporters nowadays often mistook a freight forwarder for a customs broker and vice versa. While may be working in the same industry, both are fairly different from each other. Here are some of the telltale facts that draw the fine line between the two professions.

1. Definitions

A Freight Forwarder is an agent or company that specializes in logistics and organizing of shipments in place of an individual or a company, to transport their goods. This kind of service usually requires a great deal of connection in the supply chain.

On the other hand, a Customs Broker is a private individual or firm that serves as guide for both importers and exporters in meeting the necessary requirements given by the customs authorities.

2. Duties and Responsibilities

Freight Forwarders are the ones responsible for handling all the processes when it comes in exportation of a cargo. From bringing the goods to its mode of shipment (e.g. truck, plane, or ship) to its arrival at the target destination, the freight forwarders have it all covered. They also give advice as to how to get the best deal for the cost of transportation, as well as guarantee the safety and timely arrival of the goods. To know more about the importance of a freight forwarder please check out the infographic

here.

Customs Brokers are in charge of submitting all important documents like clearances in order for the shipments to be legally allowed to enter its country of destination. They also tend to have a wide area of knowledge when it comes in every entry procedure, including other payments like taxes and fees for imported merchandise. In addition to that they can also help shippers through the following:

Customs bonds
Importer Security Fillings
Dispatching for final delivery
Duty drawback
Reconciliation

One thing custom broker can be similar with freight forwarders is that they can as well give recommendations. Only this time, they do it for the purpose of providing the client on getting the most efficient way of clearing their goods in accordance to customs entry rules and regulations.

3. Can a Freight Forwarder be a Customs Broker at the same time?

Since Freight forwarders can be a wider term compared to customs brokers which has a more specific job, there are cases in which a freight forwarder can offer services similar to that of a customs broker. However, not every customs broker can be a freight forwarder.

For many business owners trying import or export their goods, having both freight forwarders and customs brokers are very critical in ensuring its proper arrival on time while adhering to the complicated rules and process of international shipment.

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.

6 Signs that it’s Time for you to Find a New Freight Forwarder and Customs Broker (Infographic)

excelsior on September 28, 2018

Many businesses resist changes because they overestimate the value of what they have and underestimate the value of what they might gain by giving that up, including finding a new freight forwarder and customs broker. Yes, finding a new and better one may cost a lot of time and effort, but it’s still not enough reason to settle for a partnership that doesn’t work anymore. Here are six signs that it’s time for you to find a new freight forwarder and customs broker:

Your business is growing

As your business grows, your service needs also increase that’s why you need a freight forwarder that can provide you with a complete range of services.

Your freight forwarder must also be stable and established so that you won’t have to jump from one freight forwarder to another all over again, considering that your business is on the verge of developing and expanding.

If your current freight forwarder is not stable and established, you can’t guarantee whether they will last in the business or not. One day, it might even get dissolved while you’re caught unprepared and have adverse effects on your business. It’s best to look for a freight forwarder that you can grow and succeed with.

Poor customer service

In every business transaction, effective communication skills are highly essential because it fosters efficient service provision and a healthy business relationship between two (or more) parties.

If you are having a hard time communicating with your current freight forwarder and customs broker, if it’s not because of poor communication skills perhaps you’re dealing with another contact person every time.

If you don’t make a move as early as now, it won’t only make you uncomfortable with the business relationship; it might also affect the productivity and profitability of your business.

Outdated technology

Using modern technology doesn’t only help a business save time and avoid hassles, it also helps in keeping ahead of the competition.

Most freight forwarders now use online tracking, electronic proof of delivery, and electronic billing among others to make sure that the products will reach its destination intact and on time.

However, there are still some freight forwarders who refuse to keep up with the trends, thinking that it works just the same or it’s too expensive. What about your freight forwarder? Are they helping you keep ahead or are you falling behind your competitors?

Recurring service failures

Although occasional problems are unavoidable in the freight forwarding business due to factors like weather, calamities, strikes, and transportation problems, it shouldn’t be used as an excuse for recurring service failures because it’s probably caused by lack of knowledge and experience, poor customer service, or outdated technologies as mentioned above.

Uncompetitive rates

Is your current freight forwarder charging you a reasonable rate? Do the quality of service that they provide match its price? If you think that you’re paying more than how much you should, why not canvass on other freight forwarders and compare the amounts? Who knows, you might even find a freight forwarder with cheaper yet better services or one that you can bid with for a lower rate.

Is it a partnership?

Last but not the least, you should assess whether your freight forwarder and customs broker treats you like a partner. Are they committed to providing you with the best services? Do they care about your success?

In the end, it’s not just the skills and knowledge that counts. It’s the business ethics that make transactions smooth and business partnerships last.

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 & exportation. It is our advocacy to share our knowledge & experience for 17 years in the business.

Sources:

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.

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