Import & Export Business Archives - Excelsior Worldwide Logistics Corp.

Integrity in Business By Excelsior Team (Infographic)

excelsior on May 15, 2018

Several decades have passed, yet nothing rings truer than the words of Zig Ziglar: “Honesty and integrity are by far the most important assets of an entrepreneur.”

Many businesses today have been seen to close shop after 10 years; sometimes it only takes 7, or even just 5 years. If you ask entrepreneurs whose businesses have endured past the 10-year mark, they are likely to tell you that the key, the fundamental ingredient is this: integrity.

Business giants and industry leaders attest to the primacy and indispensability of integrity in their business success. Bill Gates openly speaks of how honesty and good morals have served as his stepping-stones towards his success. Warren Buffet has both verbalized and lived out how an unwavering adherence to high moral standards has paved the way for an untainted reputation, which has positioned him to be the most successful investor today.

Indeed, integrity is the crux of every business’ system infrastructure, the cornerstone on which a business’ success is founded on.

But what exactly is integrity and why does it matter so much?

Integrity comes from a Latin adjective integer, which means whole and complete. Imagine a bicycle wheel with several spokes that connect the center of the wheel to the rim. The spokes, when whole and complete in its assembly, enable the wheel to turn effectively. When one breaks, goes missing, or starts to rust, this compromises the structure of the wheel, thus contributing to feeble and ineffective functioning and progressive deterioration.

In an organization, being whole and complete has to do with establishing moral standards and living up to them, so much so that it becomes the very glue that holds the company together. Examples of such moral standards include honesty and transparency. Failure to adhere to these leads to collapse, first internally wherein mistrust occurs among employees and partners, and then externally, between the business itself and its customers.

The absence of an established set of moral values deprives companies of a “true north”. With nothing to guide them, they are capriciously directed by profit, trends, and other external mechanisms, which are all elusive at best.

Acting in integrity allows the company to be the “go-to company” for clients’ needs. Why? For the simple reason that the business has earned the trust of customers. No other factor – no amount of net worth, network, or company size – can be a better measure of a business’ trustworthiness than its integrity.

A company that has seen the powerful impact of customer trust on their business’ success is Excelsior, a budding industry leader in customs brokerage & international freight forwarding services. Today, 90% of their sales are by referral. Their clients have become their biggest marketing and sales force.

Clients of Excelsior have been a witness to their high moral standards, values of honesty and transparency, and uncompromised quality of client-centered service. Excelsior likewise upholds utmost integrity in their customer service, business dealings, and business operations. They have been in service for the past 17 years.

Truly, with integrity as the foundation of any business, it is sure to move from good to great and withstand the test of time.

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.

Guide to Starting an Import and Export Business in the Philippines

excelsior on March 27, 2017

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.

1. Types of Import/Export Business

image from tradeexim.com

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

image from 1.bp.blogspot.com

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.

3. Develop a Comprehensive Business Plan

image from emutuo.it

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.

4. Make Your Business Legal

image from jvlegal.com.au

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).

5. Coordinate with Other Local Start-ups

image from mobilenewsmag.com

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

image from gillanitransport.com

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.

Types of Bill of Lading That Affects Your Import & Export Business (Infographic)

excelsior on November 21, 2016

Bill of Lading (BOL, Waybill) is a legal document between the shipping carrier and the business which acts as 1) a proof of contract of carriage, 2) receipt of goods, and 3) document of title of goods. It is considered as one of the most important documents in the whole shipping and freight process. Unknown to many, bill lading has many types, and each of these has its own purpose and set of specific instructions for the shipping carrier.

Check out this visual guide as we present some of the most common types of bill of lading used in the importing and exporting business.

New Cebu international port project may start in August

excelsior on June 24, 2016

Lorenciana, Carlo and Braga, Michael Vencynth (2016, June 24). The Freeman. New Cebu international port project may start in August. Retrieved from http://www.philstar.com/cebu-news/2016/04/29/1577985/new-cebu-international-port-project-may-start-august

CEBU, Philippines – The new Cebu international container port may start construction by August this year if the National Economic and Development Authority Board would approve the project.

Cebu Port Authority General Manager Edmund Tan, however, could not say if the port project will be approved within President Aquino’s term which ends this June. The President chairs the NEDA.

Tan said he was hoping the project would be approved as soon as possible.

Speaking at the Visayas Shipping Conference 2016 yesterday in Cebu City, Tan said NEDA is currently awaiting from the Department of Transportation and Communications “the submission of requisite documents for the said project to facilitate NEDA Board-ICC (Investment Coordination Committee) processing and approval.”

These documents include the feasibility study which was completed in July 2015 and ICC project evaluation forms.

The project, Tan added, is scheduled to be presented to DOTC secretary for approval and subsequent endorsement to the NEDA Board-ICC.

According to the project’s implementation timeline, the target schedule for the construction is August this year and completion is second quarter of 2019.

The feasibility study on the new Cebu port, done by Korean experts, pointed a location in Tayud, Consolacion as the project site.

Among the study’s recommendations include funding from the Korea’s Economic Development Cooperation Fund as the project, which has an estimated project cost of P10 billion, has a poor financial viability.

Tan said the new port will need an access road to connect the port to and from the Cebu North Coastal Road.

The study noted that the traffic on the existing road linked to the access road to the new port will increase due to the increased cargo transport.

“It is recommended to expand lane of the existing road and set up a countermeasure for traffic improvement,” Tan said.

He said the CPA will have to ask the Department of Public Works and Highways for the possibility of funding the road access project.

The study also recommended the application of Korea’s container port development experience to Cebu new port.

The new container port is geared to meet the demands of dynamic and growing economy of Cebu and of the region.

It is expected to provide a long-term solution to the congestion at the existing Cebu International Port due to increasing cargo volume and the shallow water depth of its container berths.

The new port project was included in the Comprehensive and Integrated Infrastructure Program (CIIP) on April 11.

The municipality of Consolacion welcomes the idea of establishing the international port in Barangay Tayud.

Mayor Teresa Alegado believes that transferring the port to other areas like Consolacion will decongest the traffic in the cities of Mandaue and Cebu.

She added that it would also spur economic development of the town.

The traffic congestion at the Cebu International Port area is reportedly caused by big trucks hauling cargoes inside the area.

Duterte OKs P39-B project in Davao

excelsior on June 24, 2016

Nawal, Allan (2016, June 24). Inquirer Mindanao. Duterte OKs P39-B project in Davao. Retrieved from http://newsinfo.inquirer.net/792194/duterte-oks-p39-b-project-in-davao

Backers say one of Digong’s last acts as mayor shows he’s probusiness

DAVAO City Mayor Rodrigo Duterte, who would officially be President on June 30, signs a P39-billion deal on June 21 for a city project to develop some of its coastal areas. CONTRIBUTED PHOTO

DAVAO CITY—About a week before he leaves this city as mayor to assume the presidency, Rodrigo “Digong” Duterte signed a P39-billion project for port and coastal development that project proponents said was a showcase of Duterte’s support for business that he would bring to Malacañang.

Giving his seal of approval to the project could be one of Duterte’s last acts as mayor of the city.

Duterte signed the agreement with Mega Harbour Port and Development (MHPD) during ceremonies here on Tuesday. MHPD president Victor Songco signed for the developer.

Last year, the city council approved the proposed reclamation project, which involves turning a total of 214 hectares along the coastline of the city between the villages of Bucana and Agdao into a world-class, well-planned, environment-friendly and self-contained community.

Under the joint venture project, none of the area’s estimated 3,500 families would be displaced.

Marcelito Manalili, of Mega Harbour, said the company would immediately start to secure permits from the Philippine Reclamation Authority, the National Economic and Development Authority and other agencies, including those that oversee environmental compliance, before starting with the project.

“This is a unique project because this will not just spur economic development but also uplift the conditions of the people living along the coastline,” Manalili said.

MHPD, in a statement, said the approval by Duterte of the project showed the incoming President “has hit the ground running” in improving the economy.

The statement said the project “is an urban renewal and poverty alleviation program” for residents of the area.

“Basic utilities and services will be put in place, main roads will be cleared and zoning will be enhanced to allow a free flow of safety and security vehicles,” said the company.

“A flood control system and other calamity mitigating measures will form part of the undertaking. Recreational, commercial and sanitation centers will be developed to ensure a holistic approach to community development,” the company said.

MPHD said it would also build a commercial business district and industrial park in the project site.

“It will host establishments that will generate employment for Davaoeños and attract investors to locate in this self-contained development,” it said.

The project, the company added, would adopt environment-friendly technologies “following the natural footprint of Davao.”

Duterte said he wanted to see tangible results within a year from the day the project started.

Councilor Danilo Dayanghirang said it would also be best to study the possibility of integrating the controversial P19-billion Sasa Port expansion project into the Mega Harbour project.

The city council has opposed the Sasa port project on several grounds, including the lack of consultation when the Department of Transportation and Communications conceived it.

“Since there is a port component in the mega harbor, why don’t we explore its integration?” said Dayanghirang.

Philippines Top 10 Exports

excelsior on June 21, 2016

Workman, Daniel (2016, June 21). Philippines Top 10 Exports. Retrieved from http://www.worldstopexports.com/philippines-top-10-exports/

Exports from the Philippines amounted to US$58.6 billion in 2015, up 22.1% since 2011 but down -5.1% from 2014 to 2015. Philippines top 10 exports accounted for 80.1% of the overall value of its global shipments.

Based on statistics from the International Monetary Fund’s World Economic Outlook Database, the Philippines’ total Gross Domestic Product amounted to $742.3 billion in 2015.

Therefore, exports accounted for about 7.9% of total Filipino economic output.

From a continental perspective, 67.1% of Filipino exports by value are delivered to other Asian countries while 16.8% are sold to North American importers. The Philippines ships another 12.8% worth of goods to European clients with 1.3% going to Africa.

Given the Philippines’ population of 101 million people, its total $58.6 billion in 2015 exports translates to roughly $581 for every resident in that island country.

The unemployment rate for the Philippines was 5.8% as of January 2016 per Trading Economics.

Top 10

The following export product groups represent the highest dollar value in Filipino global shipments during 2015. Also shown is the percentage share each export category represents in terms of overall exports from the Philippines.

Electronic equipment: US$26 billion (44.3% of total exports)
Machines, engines, pumps: $8.2 billion (14%)
Wood: $2.9 billion (5%)
Medical, technical equipment: $2.4 billion (4.1%)
Ores, slag, ash: $1.6 billion (2.8%)
Ships, boats: $1.5 billion (2.6%)
Vehicles: $1.4 billion (2.4%)
Animal/vegetable fats and oils: $1.2 billion (2%)
Knit or crochet clothing: $872.4 million (1.5%)
Copper: $860.2 million (1.5%)

Medical and technical equipment was the fastest-growing among the top 10 export categories, up 276.5% for the 5-year period starting in 2011.

In second place for improving export sales were Philippines-made ships and boats which rose in value by 139.5% led by cargo vessels.

Filipino electronic equipment posted the third-fastest gain in value at 118.8%.
Leading the decliners among the top 10 Filipino exports were copper shipments declining by -36.8% and vehicles’ -35.8% slowdown in international sales.

Advantages

The following types of Filipino product shipments represent positive net exports or a trade balance surplus. Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports.

In a nutshell, net exports is the amount by which foreign spending on a home country’s goods or services exceeds or lags the home country’s spending on foreign goods or services.

Electronic equipment: US$6.1 billion (Up by 98.9% since 2011)
Wood: $2.5 billion (Up by 70.6%)
Medical, technical equipment: $1.5 billion (Down by -6,408%)
Ships, boats: $1.4 billion (Up by 160.8%)
Ores, slag, ash: $1.3 billion (Up by 357.3%)
Knit or crochet clothing: $722.7 million (Up by 0.1%)
Fruits, nuts: $588.7 million (Down by -24.9%)
Animal/vegetable fats and oils: $577.1 million (Down by -36.3%)
Vegetable/fruit preparations: $479.9 million (Up by 53.5%)
Copper: $423.9 million (Down by -40.8%)

The Philippines has highly positive net exports in the international trade of electronic equipment including consumer electronics. In turn, these cashflows indicate the Philippines’ strong competitive advantages under the electronic equipment category.

Opportunities

Below are exports from the Philippines that result in negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on home country the Philippines’ goods trail Filipino importer spending on foreign products.

Oil: -US$7.6 billion (Down by -34.1% since 2011)
Vehicles: -$3.4 billion (Up by 433.2%)
Iron and steel: -$1.6 billion (Up by 48.6%)
Cereals: -$1.6 billion (Up by 16.6%)
Plastics: -$1.5 billion (Down by -2.9%)
Pharmaceuticals: -$1.2 billion (Up by 45.2%)
Food waste, animal fodder: -$971.5 million (Up by 16.3%)
Paper: -$864.5 million (Up by 32.5%)
Meat: -$814.2 million (Up by 97.7%)
Other food preparations: -$802.2 million (Up by 50.8%)

The Philippines has highly negative net exports and therefore deep international trade deficits for fossil fuels including crude and refined oils, coal and petroleum gases.

These cashflow deficiencies clearly indicate the Philippines’ competitive disadvantages in the international fossil fuel market, but also represent key opportunities for the Philippines to improve its position in the global economy through focused innovations particularly in alternative energy sources.

Companies

Filipino Export Companies

Ten Filipino corporations rank among Forbes Global 2000 for 2015. Below is a sample of the major export companies headquartered in the Philippines that Forbes included:

San Miguel (industrial conglomerates)
PLDT (telecommunications services)
Ayala (industrial conglomerates)
Aboitiz Equity Ventures (industrial conglomerates)
Alliance Global Group (industrial conglomerates)

According to global trade intelligence firm Zepol, the following companies are also examples of Filipino export companies:

Acbel Polytech Philippines (electric static converters, primary batteries)
Calfurn Mfg Philippines (bamboo/wood furniture, kitchenware, tableware)
Yuenthai Philippines (shirts, blouses)
Pacific Paint Boysen Philippines (polymers, oils)
Aruze G A Philippines Branch (machine tools, printers, copiers, operated games)