The Importance of Sustainability in the Shipping Sector

According to the World Bank, the international freight forwarding industry is responsible for 3% of the world’s total greenhouse gas emissions (GHG) annually. If no action is taken, the international freight forwarding industry will account for 17% of global GHG emissions by 2050. 

Every international freight forwarding company is responsible for these emissions, and sustainable transport is the biggest challenge for the shipping industry. Shipping is crucial for economic growth, helping nations move essential products to cater to the demand. Every logistics company in the Philippines, freight forwarding enterprise, and shipping company should do their best to make shipping sustainable. 

Here are some reasons why sustainability in the shipping industry is essential. 

Why is Sustainability Important in International Freight Forwarding?

Online e-commerce has grown exponentially since the pandemic, and the global shipping industry is needed now more than ever. Joining the fight against climate change is a way for the worldwide shipping industry to thrive more. Shipping companies choosing to continue their operations via sustainable means reduce environmental threats as they step towards green and sustainable shipping.

Sustainability is also the current trend when it comes to different transport industries. Automobile manufacturers have constantly been developing electric cars for the longest time. The aviation sector is also doing its part to reduce carbon dioxide emissions to the point where flights today generate 50% fewer emissions than flights in the 1990s. 

A sustainable shipping industry does not only reduce global carbon dioxide emissions. It also prevents oceans from having oil spills which can harm various organisms living in different water bodies and limit people’s access to clean water.  

How Can the Global Shipping Industry be More Sustainable?

Compliance with environmental regulations is one of the best ways to have a sustainable shipping industry in a country. Nations and businesses in the maritime world have agreed to comply with the global conservation goals of the following three decades set by the International Maritime Organization and the Sustainable Shipping Initiative

Creating a sustainable work environment can also promote sustainability in the sector. Making eco-friendly ports, switching to alternative fuels, and investing in green technologies can go a long way in fighting the rising global greenhouse emissions. Having a greener shipping environment also benefits the safety and trust of workers within the industry, enabling them to build more vital trust and transparency in the workplace. 

In addition, increasing vessel efficiency can also be a game changer for many international forwarding firms. They can do this by using cleaner ballast water, decreasing marine litter, using alternative fuel sources, and enhancing the ship recycling process. And when vessel efficiency is optimized, less carbon footprint is produced. 

Shipping Companies that Go Green

As economies rebuild after the negative impact of the COVID-19 pandemic, the shipping industry will continue to be an essential part of society. But various traditional practices in the sector have led to the rise of GHG emissions over the years, resulting in the need to adopt sustainable methods to protect the environment and workers in the industry. 

If you need a sustainable international freight forwarding company with exceptional service, Excelsior Worldwide Freight Logistics has been one of the leading shipping companies in the Philippines for almost 20 years. We provide freight services for land, sea, and air. Excelsior has everything you need regarding logistics, and our mission is to ensure that your shipment will arrive at its destination safely.

If you want to know more, call us at (+632) 8525-9775, email us at wecare@excelsior.ph, or message us through our contact page

How to Import to the Philippines?

The Philippines is a strategic trading location as it shares maritime borders with many different countries, including China, Taiwan, Indonesia, Malaysia, Vietnam, Japan, and Palau. Its top import partners aren’t limited to its neighbors as it also imports goods from Korea and the United States. Because the Philippines continues to comply with ASEAN-wide economic integration, the opportunities for both importers and exporters will only continue to grow.

Importers and exporters will need to rely on experts knowledgeable on the latest updates in the shipping scene. For example, if any crises affect trade routes, customs brokers will be critical to ensure that products can still be imported and exported promptly.

Written below are the top things to keep in mind when importing products. Knowing how to import to the Philippines will ensure that businesses will have smooth customs clearances.

How can New Importers Start?

New importers will need first to submit the following relevant documents, as listed by the Bureau of Customs, to be accredited:

  • Duly notarized accomplished Application Form and signed by the owner, for Sole Proprietorship, Responsible Officer, for Corporations, the Chairman, for Cooperatives, or authorized partner, for Partnerships
  • Bureau of Customs Official Receipt or BCOR showing proof of payment of the Php1,000.00 processing fee
  • Corporate Secretary Certificate for Corporations / Affidavit for Sole Proprietorship / Partnership Resolution for Partnerships / BOD Resolution for Cooperatives designating its authorized signatories in the import entries
  • Two (2) valid government-issued IDs of Applicant, President, and Responsible Officers
    • Passport
    • Driver’s License
    • SSS ID
    • UMID Card
    • For aliens, Alien Certificate of Registration and Alien Employment Permit
  • Applicant’s NBI Clearance, issued within three (3) months preceding the application
  • Photocopy of either DTI Registration or SEC Registration / Articles of Partnership and Latest General Information Sheet or Cooperative Development Authority Registration and latest Cooperative Annual Progress Report
  • Applicant’s, President’s, and Responsible Officers’ Personal Profile
  • Proof of Lawful Occupancy of Warehoouse and Office Address
  • Updated Lease Contract under the Corporation or Proprietor’s name
  • Affidavit of Consent from the owner and the Title of the Property under their name
  • In case of Sublease, certification from the Lessor or Owner allowing the sharing of office
  • Printed Client Profile Registration System or CPRS of the Company and updated notification of “STORED” status
  • BIR Form 2303 or Certificate of Registration
  • If applicable, Income Tax Return or ITR for the past three (3) years duly received by the BIR
  • Valid Mayor’s Permit certified by the Bureau of Permits and Licensing Office
  • Proof of Financial capacity to import
  • Bank Certificate or other financial certification
  • The Top 1,000 Taxpayers and those under SGL Companies are exempt
  • If applicable, endorsement from the District Collector
  • Detailed sketch map ofthe  office and warehouse address
  • Company Profile with geotagged pictures of the office with proper and permanent signage and pictures of warehouse or storage area

After getting accredited, businesses can start importing products to the Philippines.

Documents Required when Importing Products

Businesses importing products must provide the following required import documents, as shown here, once their goods arrive:

  • Duly endorsed Airway Bill or Bill of Lading, or certification by the carrier or agent of the vessel or aircraft,
  • Commercial Invoice or any other verifiable commercial document proving payment if there is no sale for export
  • Packing list
  • Duly notarized Supplemental Declaration on Valuation or SDV
  • Certain documents as may be required by certain rules and regulations, including:
  • Import Permit or Clearance
  • Authority to Release Imported Goods or ATRIG
  • Proof of Origin for Free Trade Agreements or FTAs
  • Copy of an Advance Ruling, if the ruling was used in the goods declaration
  • Load Port Survey Reports or Discharge Port Survey Reports for bulk or break-bulk importations
  • Document evidencing exemption from duties and taxes
  • Other relevant documents like a Tax Credit Certificate or TCC or Tax Debit Memo or TDM

When importing animals, plants, food, medicine, or chemicals, importers must also obtain a Certificate of Product Registration from the Philippines’ Food and Drug Administration.

Not all items can be imported into the Philippines. For more information, see this list of prohibited and restricted items.

Conclusion

Knowing how to import to the Philippines involves plenty of technical know-how that reliable licensed customs brokers should know. Businesses must look for a reliable customs broker in the Philippines to ensure that their shipments will arrive on time without difficulty.

When importing goods to the Philippines, you’ll need to rely on a reputable international freight forwarding company and licensed customs broker. Let Excelsior Worldwide Freight Logistics help you handle both on your behalf.

Excelsior Worldwide Logistics Corp.