International trade is the exchange of commodities and services between countries. It has been a major factor in the growth of world economies over the past few centuries, and it is still a major force in today’s economy. Global trade allows wealthy countries to use their resources more efficiently-for example, labor, technology, or capital-than would be possible if they were to produce everything themselves. This enables certain countries to produce the same commodity more efficiently; that is, faster and at a cheaper cost. This process of “global specialization” has helped to raise living standards around the world, and it is still a major force in the growth of world trade.

One of the hidden advantages of international trade is that it may provide a general practice of asking for payment upfront. When trading internationally, it may be more convenient to receive payment in advance rather than waiting to be paid after the sale is completed. This is especially true if you are selling products or services that take time to produce or deliver. Expanding your business overseas could help you manage cash flow better.

Those who add international trade to their portfolio may find that they also benefit from currency fluctuations. For example, if the US dollar falls, you may be able to export more because international buyers profit from the favorable currency exchange rate.

Quick Recap: Importing and Exporting Explained

But first, what is importing and exporting? Importing and exporting are the primary financial transactions in international trade. Imports involve any good or service brought in from one country to another, while exports are goods and services produced in the home country for sale to other markets. From importing interesting fashion items to exporting high growth potential products like fruits and ores, the international trade industry will take you everywhere in the globe and into every market. Importing and exporting is a complex process, yet it is fundamental to the seamless operation of our global economy.

What are the Benefits of Importing and Exporting Goods?

Whenever a business starts expanding, entrepreneurs strive to become more competitive- by importing or exporting goods. There are many benefits of importing and exporting products.

For businesses, importing can be an important first step in becoming more competitive. For one, importing products allows a business to get products that it would not be able to produce itself or purchase from local suppliers. This is particularly beneficial for businesses that cannot find the right manufacturing location or need specific components that are not produced locally. Additionally, importing allows a business to get a foothold in a new market, and can give them the opportunity to learn about the needs of the market and how to best serve it. It also allows entrepreneurs to build relationships with customers and suppliers, which can lead to future partnerships and business deals. Additionally, importing can provide a business with the resources and technology it needs to expand rapidly.

For individual consumers, importing and exporting products can have positive consequences as well. Not only can importing provide opportunities for personal economic growth and increased spending power, but it can also introduce a consumer to new cultures and lifestyles. Furthermore, purchasing products online from a business in another country often provides a wide selection of products not available locally. In addition, by supporting small businesses, consumers can benefit from the creativity and innovation of businesses located overseas.

Why Import?

There are many benefits to importing products. Purchased wholesale, imported products are often cheaper than those found at retail stores. This is because the producer or manufacturer has already incurred the costs of production and distribution. Furthermore, successful entrepreneurs often travel abroad in order to visit factories and other highly professional sellers in order to find high quality products that they can import into their own country. By doing so, they are able to bring low-cost, high-quality products to their customers.

Why Export?

While importing products help reduce costs, exporting, on the other hand, has a different focus. Exportations can be a very beneficial way for businesses to increase their sales potential. By exporting products, businesses can ensure that they are reaching new markets and expanding their vision beyond their local area. This can lead to increased profits and a greater chance of success in the long run. In order to maximize the benefits of exporting, it is important to focus on specific goals and objectives. For example, businesses can target regional, international or even global exports. By doing this, businesses can expand their reach and improve their chances for success.

Achieve your business goals!

When it comes to business, there are a few things that are always in demand-namely, products.Whether you’re a small or medium business, importing can help you develop and expand your market by reaching larger markets abroad. Exporting, on the other hand, can boost earnings for medium and big firms by cutting manufacturing costs and positioning your company as the market leader. So which is better for your business?It depends on what you’re trying to achieve. Thus, importing is unquestionably something to take into consideration if you’re looking to elevate your company to the top of its field or if you want to save production costs.

These are some of the common benefits of international trade that you may already know. Because of these benefits, there is no doubt that foreign trade will continue to grow and prosper. Here’s a great idea! YOU can also participate in foreign trade! With the e-commerce industry booming, you can import products from abroad and resell them in your country. You would be able to buy them at a cheaper and wholesale price, and thus getting more profits. Although there may be risks in ensuring its quality, supplier sourcing, price negotiations, documentations, logistics, and shipping, AsiaCommerce can help you out! You can just sit back, unwind, and wait for your things to come without having to worry about the importation process.

Hassle-free import/export of goods, only in AsiaCommerce — The convenience and comfort of the client is our #1 priority.  

China has been the largest exporter of goods in the world since 2009, and total Chinese exports amounted to $2.641 trillion in 2019. However, importing from China is difficult and not always a realistic option. It is a situation that we frequently observe while speaking with businesses, and many people struggle to comprehend the complexities involved. In fact, we frequently came across organizations that attempted to import without prior expertise or knowledge, and the results were plainly unfavorable.

Asiacommerce, as a Procurement company, has witnessed a wide range of issues that many businesses face and, in most cases, are unable to resolve satisfactorily. These challenges are not usually limited to small businesses. Importing products from China can cause a variety of issues if you lack proven competence in this area.

Difficulties encountered throughout the importation procedure frequently lead companies to conclude that importing from China is not a viable choice. This is a false statement. In general, problems arise when the procedure is not left in the capable hands of a strategic sourcing professional, allowing the entire foreign purchasing process to be effectively completed.

Main problems before starting manufacturing.

In many cases, problems with imports start at the beginning: during the research and selection process.

1. Supplier selection: Many organizations undertake erroneous market research that provides insufficient information on the competitiveness of the chosen supplier due to a lack of knowledge of the wide Chinese market. When you choose the wrong manufacturer, problems might arise quickly.
2. Cost reduction study: This is a problem that appears early in the process but is frequently overlooked. When estimating the cost per imported product, certain costs may be overlooked, such as the payment of customs duties or the cost of travel to China, which may be required if the buying process necessitates it.

More frequent complications during the manufacturing process.

The majority of people who consider making foreign purchases appear to understand that the production stage is where the most complications can develop. This is not always the case, as many setbacks in product production are the result of poor planning. As a result, let’s take a look at some of the most common roadblocks that businesses face at this point.

1. Communication issues: In many cases, this is unquestionably the source of the rest of the issues. It is not just language, but also specific Asian cultural characteristics and the standard forms of negotiating in China. The reality of “not comprehending” transcends language.
2. Possible product failures or defects: Due to poor communication or incorrect explanation of the requirements, the products to be imported may occasionally present design errors that can jeopardize importation. Failure to respond in time to anticipated difficulties in the first products results in some companies receiving entire containers that do not satisfy their expectations.
3. Quality standards: This is not a flaw in and of itself, but it can be a major issue. Quality standards in China are not always comparable to those in the destination country. This is something that, if not noticed in time, might cause a setback, perhaps making the ultimate sale of the things impossible.

The latest difficulties after manufacturing.

There are numerous examples of corporations that successfully pass the first two phases but then have a nightmare before obtaining the products in their country. This is attributable primarily to two things.

1. Long delivery times: Despite the fact that we live in a more connected world than ever before, acquiring a purchase from China is not synonymous with speed. In the worst-case scenario, the time it takes for things to leave the manufacturer and arrive at a company can range from two weeks to two months. This wait, in addition to being lengthy, can often be exacerbated by the inability to check the actual status of the import procedure.
2. Customs: If not properly managed, customs controls may be a real pain. In addition to the additional tariffs and fees that must be paid (which many companies did not consider during their original research), the product may not meet the conditions for importing.

As we have seen, the drawbacks of importing can be vast and diverse (especially when we try to buy certain types of products considered difficult to import). It is not always possible to guarantee a problem-free import. With AsiaCommerce, you may ensure that these issues are minimized and will have a solution.

Asia Commerce Network is a Global Sourcing & Import-Export Solution for your Business. We specialize in these 4 areas: Help you source the right products, negotiate with suppliers, and do quality inspections; Help you import/export the products to your countries, port to port or door-to-door; Help you do Marketplace Distribution in South East Asia Countries; Help you in providing the best education and training for your e-commerce business.

We are located in China, Indonesia, Malaysia, and Singapore, and I am proud that we have served many top 10 vendors in the e-commerce business across South East Asia.

How do I start a business? Is it possible for me to use imported products? What products are cheaper? Are imported products reliable for me to sell? How does it work?

Starting an import-export business in the Philippines is a respectable option for aspiring entrepreneurs who are ready to take on the world of business. With the right setup and smart choices, your investments will produce good returns.

Import is defined as goods or services authentic to a home country sold to a foreign nation. Because one group or country has a supply of a commodity or goods in demand by another, trade exists.

The business environment in the Philippines has a lot of opportunities for international entrepreneurs. The Philippines’ export-import destinations are the US, China, Hong Kong, Germany, Thailand, and Japan. The Philippines’ major imports are currently electronics, mineral fuels, and transportation equipment. However, supply and demand will fluctuate over time.

In the Philippines, there are still two separate systems for issuing import licenses: one for non-quota commodities and another for quota-controlled ones. Import permits for non-quota items are normally provided right away. However, applications must be filed at least two weeks prior to the expected delivery date. The licensing office collects license registration fees that are categorized by product.

To start off your business, you must first ensure that you have a business plan. This entails realistic details and forecasts on the expenses and operations. Registering your business is also essential along with obtaining an import license.

To begin your firm, you must ensure that there is a market for your product. If you decide to start an import business, research which products are the most valuable. Check the area’s historical statistics, economic forecasts, and recent business news. 

There are Import requirements in the Philippines wherein goods exported into the Philippines by air or by sea must complete an import customs procedure:

1. Providing export documentation of the goods to the customs.

2. Inspection and evaluation

3. Payment of taxes

4. Release of goods from customs areas

Philippine Customs applies official import declaration and non-trade declaration. The non-trade declaration applies to commercially imported goods of less than USD 500 or to portable household goods of no commercial value. The official statement applies to the remaining cases.

All importers or their agents must submit import declarations to the Philippine Bureau of Customs (BOC), after which the data will be processed through the Automated Customs Operating System (ACOS).

Logistics and freight forwarding companies come in a variety of options. When it comes to working with logistics businesses and freight forwarders, do your research. Check references and run background checks to ensure you don’t end up working with organizations that can’t follow through on their commitments. Obtaining dependable freight forwarding services is one of the most difficult aspects of developing a successful import export firm. Both suppliers and shippers will become almost like business partners, so you must be able to trust them and ensure that transactions are lawful.

AsiaCommerce as a technology oriented trading company, can provide services that will aid in import business. Import goods can be deposited in warehouses through AsiaCommerce. Additionally, the distribution of these goods can also be aided by the company. The availability of delivery to various addresses is also a service that can be done by activating drop ship through AsiaCommerce. The company values transparency and can provide detailed information on the imports upon the request of the client. With AsiaCommerce the process and experience of import business can be operated with ease.

If you’re looking for local importers in the Philippines from another country, you might want to look into the routes and strategies:

1. Locate local import agents and delegate the task of locating local pot clients to them.

2. To find and buy requests for your items from the Philippines, use trade portals.

3. Request contact information for the targeted companies from the Philippine chamber of commerce and other trade institutions.

4. Use the internet to find potential consumers and approach them directly.

5. Visit potential consumers across the country (if possible to travel)

6. Utilize digital marketing choices and channels such as LinkedIn and Google Adwords.

AsiaCommerce also offers a marketplace and distribution service to aid in your business. If you use our marketplace distribution service, we can help your product to integrate into domestic and international marketplaces.

Prior to receiving for consumption, import duties are paid along with all taxes and other shipping costs. Payments to the tax authorities are done through banks and are electronically linked. When the payment of taxes through banks is reported to the tax authorities, the opposite tax authorities unlock the taxes paid and allow the importer or the importer’s agent to collect the products, according to the online Release System (shipping; Philippines) (OLRS).

The majority of imported goods, like those made in the United States, are subject to a 12% value-added tax. Agricultural and marine food, raw – materials, petroleum goods, books, periodicals, magazines, freight ships, and passenger ships of 5000 tons are all exempt from VAT. of 5000 tons are all exempt from VAT. Several customs fees apply to imported goods, including processing, administration, registration, and laboratory expenses.

AsiaCommerce can assist in issuing and sending tax invoices.

Every country has its own guidelines and regulations regarding the labeling, tagging, and packing of imported goods. The most crucial concerns for labeling exported goods to the Philippines is provided below.

All imported or home-made goods need to show the following information:

• • Names of registered goods;
  • Legally register the trademark;
  • Address of manufacturer, importer, or packer of consumer products in the Philippines;
  • The general composition or composition of the product; Net weight, calculated in meters;
  • Country of manufacture, if imported
  • The mark must state the re-stocked or repackage under the original license from the manufacturer.

The authorities may request the following additional information:

• • Products are flammable or not flammable
  • Instructions for use, if necessary
  • Warning on toxins
  • Electricity (in watts), voltage (in volts),
  • The production methodology used if needed.

The business climate in the Philippines is not very hostile, but there are a rising number of opportunities. Before selecting whether to import from or export to this country, you should conduct market research. Starting your business through import with AsiaCommerce will relieve you of multiple obstacles.  AsiaCommerce can not only assist you but also provide services.

Procedure: Importing from China to Philippines

Now that you secured your product choosing, every country has its rules and regulation when it comes to bringing in products from an international marketplace.

Restrictions

Perhaps the most important step is to register as a legitimate importer with the appropriate government organizations and departments. Following the proper procedures, the Bureau of Internal Revenue will provide you an Import Clearance Certificate. The next step is to register your company with the Bureau of Customs, where you’ll create a Client Profile Registration System account. The Import Clearance Certificate has a three-year expiration date, while the Customs Client Profile Registration must be renewed every year. The renewal process takes up to 15 working days and costs roughly a thousand pesos Php 1000.00

Supplier

Having a credible supplier is a guarantee to your products but, what quality of items are you getting? Solutions include physically going to the place or warehouse itself to check or have it checked for you. In AsiaCommerce product sourcing and quality-checking are a few of our services.

Negotiation

Buying in bulk or big volumes? Lesser prices and discounts are a big assist. Negotiating payment terms, prices, quote, and time of delivery can be a fuss. With our membership, we will help you negotiate with your supplier.  Keep in mind that there should be a clear agreement between both parties as this is an important part of the process. 

Order

Once all terms are agreed and a decision has been made. Confirming your order is one step closer to your doorstep. Terms and agreements for payments are typically on downpayment agreed by both parties.

Logistics

In this step, you must now arrange for a forwarding business to transport your product to your country when the order draws nearer. Obtain quotations from them and choose the one that provides you with the best terms and rates.

Balance and Shipping

After the order is completed, instruct your designated logistics company to contact your supplier and pick up your shipment or ship from their factory or warehouse. Pay the supplier the remaining balance, and the order is chosen and be shipped from China to the Philippines. The forwarder or supplier will engage with Chinese customs as arranged between the two parties, after which the items will be put onto the ship and shipped to the Philippines.

Important Reminders

Documentations

At this point, importers must secure the set of following documents to the customs when the goods arrive in the country; (this can be obtained from your freight forwarding company)

 >Bill of lading in case of sea shipment or airway bill in case of shipment by air

>Commercial invoice

>Packing list

>Import license

>Certificate of the country of origin

>Declaration of import for customs

Other documents:

A separate Certificate of Product Registration issued by the Philippines’ Food and Drug Administration is required for cosmetics, food, beauty, and the like.

Shipping

Now that all are in order, you are excited to get your hands on your cargo. Don’t forget the time frame for logistics.

> Air Shipping (10-14 days)
Air shipping is used to transport light items that can be carried through an airplane. Typical transport time requires 10-14 days depending on the port of departure and discharge.
> Sea freight (30 days)
Sea freight is used to transport medium-heavy items usually weighed in CBM (Cubic Meter). Typically, this type of transport requires 25-30 days, since ocean shipping is slow moving than planes.