How to export from the Philippines: A step-by-step guide for first-time SMEs

A growing global appetite for Filipino products, from unique crafts and fashion to delicious food items, presents a huge opportunity for local businesses. Yet, many small to medium-sized enterprises (SMEs) hesitate, intimidated by the perceived complexities of paperwork, customs, and high costs.

To simplify the process, we’ve put together this step-by-step guide on the export procedures in the Philippines. Focusing on streamlined express delivery rather than bulk freight, this article demonstrates that exporting is no longer exclusive to large corporations.

Step 1: Identify what products you can export

Before you can confidently export from the Philippines, you must first identify what products can be legally shipped overseas. This involves more than just import demands within specific markets. You also need to be aware of the export procedures and regulations in the Philippines. 

Regulated, Restricted, and Prohibited Goods

The Philippine Bureau of Customs categorizes goods into three key groups that dictate whether they can be shipped¹:

• Regulated Goods: These are products that can be exported but require a specific permit, clearance, or license from a government regulatory agency. This category encompasses items such as food products, plant or animal-based products, pharmaceuticals, chemicals, and even telecommunications equipment.
• Restricted Goods: This category covers items that can only be exported when explicitly authorized by law. Examples include firearms, explosives, gambling equipment, and narcotics. Note that the restriction on these goods also applies to their transit through the Philippines.
• Prohibited Goods: These are goods that are unlawful to export by their very nature. Known as "contrabands," these include items that incite treason, materials for unlawful abortions, obscene materials, counterfeit goods, and any misbranded food or drugs.

Demand in overseas markets

Once you have a clear understanding of these regulations, your next step is to research overseas markets to find viable opportunities. While traditional markets for electronics and machinery remain strong, a growing demand exists for Philippine-made home, lifestyle, and fashion products due to their artisanal quality and sustainable materials. This has been evident at major trade events in Asia, including Hong Kong Home InStyle, APTEXPO Singapore, and Mega Show Bangkok². 

You can also tap into the thriving beauty and wellness market among Filipino communities abroad, who seek products like rejuv sets, sunscreens formulated for Asian skin, and health drinks that promote skin whitening and immunity boost. A successful local brand like Jonhrev Skinceuticals, for example, has leveraged this demand to successfully export beauty products to international markets, including Canada, Taiwan, Australia, and Singapore.

Product compliance

As you consider your product, remember to also research product compliance in your target destination, including labeling and safety requirements. This proactive approach is crucial for ensuring that your goods pass through customs smoothly and meet all relevant legal standards.

Step 2: Register your business and secure necessary permits

Once you've identified the products you want to export, the next step is to formalize your business. To legally ship goods to international destinations, you must ensure your business is properly registered with the Department of Trade and Industry (DTI) for sole proprietorships or the Securities and Exchange Commission (SEC) for partnerships and corporations. 

At the same time, you need to register your business with the Bureau of Internal Revenue (BIR) to get a Tax Identification Number (TIN) and secure a Barangay and Mayor's Permit. The most critical step for exporters is registering with the Bureau of Customs to obtain an Importer/Exporter Registration Number (IEN). 

While optional, accreditations under programs like the DTI’s Philippine Export Development Plan can be helpful to access government support and specialized export services.

Step 3: Prepare your export documents

Preparing the correct list of documents required for export is a critical step to ensure a smooth customs process. For small shipments via DHL Express, the primary documents include a commercial invoice, an air waybill (AWB), and an export declaration.

Here is a breakdown of the key documents for small shipments:

• Commercial Invoice: This document serves as a bill of sale, detailing the value, description, and quantity of your goods.
• Air Waybill: This document acts as your contract of carriage and receipt for the shipment.
• Export Declaration: All export shipments, regardless of whether they’re subject to duties, must be accompanied by an export declaration. This document contains essential details, including the names of the exporter and consignee, the destination, date of loading, quantity, a description of the goods, their value, and their weight.
• Packing List (if applicable): This document details the contents of each box, which is particularly useful for multi-package shipments.

Step 4: Understand duties, taxes, and customs regulations

Each country has its own set of import regulations, so research the rules of your target market to ensure smooth customs clearance. Tariffs for goods imported into the U.S., for example, can be different from those in Japan. While the U.S. imposed a 19% tariff rate on goods from the Philippines, Japan's rates vary depending on the commodity³. The average rate on all goods is 1.8%, but the percentage can increase to around 10.1% if you’re exporting agricultural products to Japan⁴.

Another key concept to learn is the landed cost, which is the total cost of your product once it has reached the buyer's doorstep. This includes not just the product's price and shipping fees but also taxes and import duties. 

Also, avoid the mistake of under-declaring the value of your goods to avoid fees, as this can lead to severe penalties, customs delays, or even seizure. Remember to provide accurate information to ensure a transparent and efficient exporting experience.

Step 5: Package your items correctly for international shipping

Poor packaging is one of the most common reasons for a damaged shipment. Furthermore, it can lead to delays, return-to-sender scenarios, and a suboptimal customer experience. 

To ensure a smooth process, remember these packaging tips:

• Use strong boxes and internal cushioning: Choose a rigid, high-quality box that's suited for international shipping. Fill all empty spaces with internal cushioning, such as bubble wrap, foam, or airbags, to prevent items from shifting and absorbing shocks during transit.
• Label fragile items clearly: Use "Fragile" or "Handle with Care" labels on all sides of the box to alert handlers about its contents. While this doesn't guarantee special handling, it significantly reduces the risk of damage.
• Avoid excessive packaging that adds weight: Use only the necessary material to secure your items without overstuffing the box. Remember, international shipping rates are often based on either the actual or volumetric weight of a parcel. Excessive packaging can increase your shipping costs.

Step 6: Book a shipment with DHL Express Philippines

If you want to learn how to export products from the Philippines efficiently, consider booking your shipment with a trusted logistics partner, such as DHL Express. And if you want to access better rates and dedicated support, we recommend opening a DHL Express business account. 

The MyDHL+ platform simplifies the process into a few easy steps:

• Create an Account: Start by creating a MyDHL+ account. This platform provides you with access to essential shipping tools, including rate quotes and tracking information.
• Enter Shipment Details: Provide accurate information about your shipment, including the origin, destination, and dimensions of the goods you are exporting.
• Print Waybill and Invoice: Once the details are confirmed, you can print critical documents required for export, such as your waybill and commercial invoice.
• Schedule Pickup or Drop Off: You can schedule a pickup from your address or bring your package to the nearest DHL Service Point, making the process convenient for you.

Step 7: Track your delivery and keep customers informed

Your role as an exporter doesn't end when you ship your package, and keeping customers informed is a key part of post-sale service. Fortunately, DHL Express offers a user-friendly package tracker that provides you and your customers with end-to-end visibility. You can easily share the tracking link with your customer, allowing them to monitor their delivery status in real-time.

To give your customers even more control, we also offer On Demand Delivery. This service sends notifications via email or SMS, allowing the recipient to reschedule their delivery, authorize a signature release, or reroute the package to a nearby Service Point. Remember, providing transparent updates on delivery builds trust, enhances customer satisfaction, and encourages repeat orders, ultimately helping your export business grow.

Tips to help you succeed as a new exporter

While starting your first exporting journey can seem daunting, these beginner-friendly tips will help you navigate the process and find success.

• Start with a small test market: Instead of launching into a large, unknown market, consider starting with a familiar one, such as Filipino communities in the U.S., Japan, or the U.A.E. This allows you to test your export process and goods on a smaller scale.
• Monitor performance and feedback: Continuously track your shipping performance and actively seek customer feedback. This insight is invaluable for enhancing your product and service offerings.
• Take advantage of expert resources: Leverage resources provided by your logistics partner. DHL Express, for instance, offers webinars, export clinics, and small business consultations to help you with your shipping strategies.
• Start small, then scale: Remember that exporting is a learning process. Begin with a few shipments, refine your process, and slowly increase your volume as you gain experience and confidence.

Frequently asked questions