Why is learning how to export an important business skill to acquire? The importance of exporting is illustrated by how a successful export system is an essential component of all expanding businesses. Startups and small businesses that establish an effective export process early on will set themselves up better for expansion, increased profits and increased productivity.
Despite this, many small and medium enterprises (SMEs) struggle to develop a strong export segment. With effective research and preparation, businesses can better identify and overcome salient challenges of exporting, allowing them to diversify their market and develop into a global brand. We’ve outlined a few tips on how to export from the Philippines to make the process smooth and productive.
SMEs looking to develop and strengthen their export industry should perform thorough research on their target country. This is an essential first step when learning how to export effectively; no two countries ship the same— there are various rules and tax brackets for clearing different commodities and shipments with different values. By researching this beforehand, you provide your business with the best chance of passing customs and ultimately succeeding in this novel market.
As a rule of thumb, the higher your shipment’s value, the costlier the tax will be. An air waybill (AWB) will be tagged to a single shipping invoice. However, it is not uncommon to see businesses squeeze more pieces or items to a single AWB to save on shipping costs. What seems like a cost-effective idea on the surface actually isn’t. Due to the cumulative value of the shipping invoice, the taxation percentage may exceed the price of dividing your shipment into multiple AWBs.
One of the problems faced by exporters occurs when shipments are put on hold at customs clearance when they are pending for duties and taxes payment. Unfortunately, this could further drag out the process. Ensure your shipment accounts for the various duties and taxes your goods are subject to. By planning your finances when exporting, you avoid an unpleasant surprise when you have to pay import fees. Businesses should be aware of trade agreements they can take advantage of to minimize associated export and import costs. By planning your export, your business can be financially savvy and prepared for any hidden costs.
Clearing customs is no mean feat - there are countless variables to consider when thinking about how to export commodities and countries having differing requirements.
On top of that, finding a courier service that fits your organization’s unique needs isn’t easy. The logistics industry is notoriously resistant to digitisation and technological evolution. By choosing a courier service that is technologically advanced and global, your business can benefit from the best the digital revolution has to offer.
An international organization dedicated to digitalization, DHL Express is a leading provider in the global logistics industry and an excellent option for SMEs looking to expand their export capacity. At DHL Express, we strive to do our utmost to offer you a seamless international express and on-demand delivery experience.
Businesses exporting from the Philippines will need to register for export with the Client Profile Registration System (CPRS) . This body provides an export accreditation which must be renewed annually.
Some exporters must attain additional registration for their goods. For example, exporters operating within a special economic zone (SEZ) must register with the Philippine Economic Zone Authority (PEZA), while businesses operating out of free port zones must register with the specific port and exporters of certain goods, like coffee, must register with certain bureaus and institutions.
The importance of these steps cannot be underestimated as these are the official documentation needed to begin exporting. Once successfully registered, businesses will receive a unique registration number which is necessary for all export activity.
When it comes to exporting, managers should remember the 5 Ps of how to export: Proper Preparation Prevents Poor Performance. There are a number of documents organizations need to prepare when exporting to the Philippines, to prevent their goods being seized or returned. These must be presented on arrival and include:
Bill of lading
Customs Import Declaration
Certificate of Origin
Ensure you have these filled out properly in accordance with export regulations of the Philippines to ensure your export journey goes smoothly.
By now you should be able to answer the question ‘what is export trade and how do I do it well?’ Using the process we’ve outlined, businesses can navigate the problems faced by exporters with confidence. The importance of exporting for SMEs cannot be overstated. With proper research and preparation, your business can pursue opportunities to grow and fortify your enterprise. Take the first step to build your business empire by partnering with a leading logistics service such as DHL Express and start exporting with ease by signing up for an account with us.