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How to Release Imported Item from Philippine Customs

excelsior on October 16, 2017

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

 

Tips to Grow Your Import/Export Business

excelsior on April 12, 2017

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.

 

1. Build Relationship

image from blogs.pb.com

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.

2. Keep Your Business Organized

image from i2.wp.com

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.

3. But Keep It Flexible

image from caterergoodman.com

 

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.

4. Ensure a Healthy Cash Flow

image from glorious.com.my

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.

5. Consider Improving Instead of Expanding


image from openit.com

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

Excelsior Worldwide Logistics Corp.