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The export sector in the Philippines has seen its share of ups and downs in recent years. However, the pandemic made a huge dent, with the country experiencing nearly 50% decline in the total amount of exports in 2020, reported the World Bank Group. Since social distancing measures kept many at home, it’s no surprise that some industries still brought it profits, with the furniture, home, and decor industry being one of them – do-it-yourself projects allowed the sector to seek opportunities for growth even amid lockdown.
The total revenue of the Philippines’ furniture market, according to Statista, amounts to US$672.7 million in 2022, with living room furniture occupying the largest share – US$312.90 million. While local trade shows like the MA’I bring businesses closer to both local and overseas buyers, most exporters have indicated preference for global sales as local revenue is not enough to sustain their business.
The furniture suppliers in the Philippines boast creativity and culture in furniture manufacturing. This is the basis for the furniture industry's success as they can create customized furnishing items based on buyers' requirements and preferences. These bespoke furniture pieces are in high demand by families, hotels, offices, and tourism-based enterprises.
To tap the unrealized destinations for global furniture exports, furniture suppliers can connect with potential customers in Russia, India, South Korea, and the United States to expand their export outreach further. These destinations hold lucrative opportunities for suppliers to start exporting and earning revenues. We tap on statistics by Trading Economics for insights:
Russia: Furniture with a total value of US$869,080 was exported from the Philippines to Russia in 2020.
India: A large amount of US$2.11 million of furniture was exported from the Philippines to India in 2021.
South Korea: A total value of furniture of US$1.67 million was exported from the Philippines to South Korea in 2021.
United States: The United States imports furniture from the Philippines with a total value of US$108.48 million in 2020.
A furniture exporter must have complete know-how of how they can export furniture items to overseas destinations. This includes:
Knowing the different customs and tax laws when exporting furniture in the Philippines is essential. Recently, the Philippines imposed a new 12% value-added tax (VAT) rate on exports that have incurred zero tax in the past.
There are specific packaging guidelines that a furniture exporter in the Philippines would need to follow. For instance, the labeling of the furniture should consist of the exporter’s registered trade name, manufacturing date, packaging date, etc.
The exporter should ensure that he has prepared all the necessary documents to export furniture. They include an air waybill or bill of lading, sales invoice, certificate of origin, import permits, and any other required document.
According to Philippines customs, goods, including furniture, made partly or wholly with gold, silver or other precious metals or alloys without any stamp, brand or mark that signifies the quality of these materials will not be allowed to leave the country.
Once the aforementioned formalities have been met, the next step is to ship the products abroad. For this, the exporter must partner with a reliable and competent logistics carrier that can ensure the timely and secure delivery of shipments to all destinations.
DHL Express has played a significant role in the Philippines for over 50 years by helping local exporters reach the global market. With its widespread logistics network in 220 countries and territories worldwide, you can be assured that your shipment will reach its destination smoothly. Open an account with DHL Express today and enjoy exclusive benefits such as world-class shipping services and flexible delivery options.