Importing Business: How to? and Tips

[hammy]

Hi,

I am planning to open up a business that requires importing goods into the country. However, I have heard and read a lot of various feedbacks regarding importing, especially regarding the Philippine Customs. I have read from someone that the tax for importing the goods is almost 100%. I want to hear your comments/suggestions. If you have similar experiences, please feel free to post in this thread.

In a way, this will help all who are interested in opening a business that imports goods. So guys please post anything you can share.

[bleedingboi]

Export lang brad, sayun pa, makatabang paka sa nasod. Go to alibaba.com, you'll learn there.

[hammy]

I will look into it. Pero, nakasuway na ka ug importing?

[ey3s0nly]

Export lang brad, sayun pa, makatabang paka sa nasod. Go to alibaba.com, you'll learn there.

unsa man sad ang i-export?
anyway, we're trying to import some goods pd.. i hope someone can share some insider tips

[cristaldragon]

Hi! It really depends on the quantity of goods you are bringing in. For this discussion, I am assuming you are bringing in more than just a few as this will be for your business.

The first thing you need to do is make sure that you have a reliable supplier. You will be given a choice of paying by telegraphic transfer or letter of credit (LC). The safest would be the letter of credit. If your supplier allows you to pay by letter of credit, you can go to the bank and apply for one. The supplier designated bank in his country then presents documents as required by the buyer and the payment is then released to him by the bank. If the supplier fails to present documents, he will not be paid which is safer than telegraphic transfer where you have already sent your payment to the supplier who will eventually run off with the money. The most common LC is "15 or 30 days irrevocable LC at sight". Irrevocable meaning that it cannot be changed unless it is with the consent of buyer and seller. At sight means that the payment will be released upon presentation of particular documents within 15 or 30 days as specified. Documents can be specified by the buyer like for instance, shipping documents (bill of lading,insurance certificate, airway bill) or financial documents (commercial invoice or packing list).

You will also have to register with the Bureau of Customs. This will take a few weeks since the bureau will go to your office and inspect. You also need to present several documentary requirements. It would be a ideal to get an honest and inexpensive broker who can assist you with the registration procedures as well as the clearing procedures when your goods arrive. They also know the documentations required as well as the procedure at the bureau in order to hasten the clearing process.

The customs duties and taxes will really depend on the type of goods and the country they come from. There is an HS (Harmonized Systems) Code or Commodity Classification that lists down the different categories of products. This will serve as the basis for the % of tax that you will have to pay. For instance, if you are importing leather shoes, the commodity code is 6403.20 "Footwear with outer soles and uppers made of leather" . Next consideration is the country of origin. If it comes from the Asean Free Trade Area (Brunei, Indonesia, Malaysia,Singapore, Thailand, Myanmar,Cambodia, Laos, Vietnam), the tariff or customs duties and taxes are only between 0 (none) to 5%. Goods from other countries are subject to different tariff rates. The basis for the tax will be the cost of product + insurance + freight landed Cebu City if you want it shipped here.

PM me with your info and the goods you want to import if you want the recommendation of a good broker. He has been a broker for more than 10 years and has never had a problem.

[hammy]

unsa man sad ang i-export?
anyway, we're trying to import some goods pd.. i hope someone can share some insider tips

Bai ey3s0nly, mag-import mo in bulk or binagsa?

[hammy]

Hi! The first thing you need to do is make sure that you have a reliable supplier. You will be given a choice of paying by telegraphic transfer or letter of credit (LC). The safest would be the letter of credit. If your supplier allows you to pay by letter of credit, you can go to the bank and apply for one. The supplier designated bank in his country then presents documents as required by the buyer and the payment is then released to him by the bank. If the supplier fails to present documents, he will not be paid which is safer than telegraphic transfer where you have already sent your payment to the supplier who will eventually run off with the money. The most common LC is "15 or 30 days irrevocable LC at sight". Irrevocable meaning that it cannot be changed unless it is with the consent of buyer and seller. At sight means that the payment will be released upon presentation of particular documents within 15 or 30 days as specified. Documents can be specified by the buyer like for instance, shipping documents (bill of lading,insurance certificate, airway bill) or financial documents (commercial invoice or packing list).

You will also have to register with the Bureau of Customs. This will take a few weeks since the bureau will go to your office and inspect. You also need to present several documentary requirements. It would be a ideal to get an honest and inexpensive broker who can assist you with the registration procedures as well as the clearing procedures when your goods arrive. They also know the documentations required as well as the procedure at the bureau in order to hasten the clearing process.

The customs duties and taxes will really depend on the type of goods and the country they come from. There is an HS (Harmonized Systems) Code or Commodity Classification that lists down the different categories of products. This will serve as the basis for the % of tax that you will have to pay. For instance, if you are importing leather shoes, the commodity code is 6403.20 "Footwear with outer soles and uppers made of leather" . Next consideration is the country of origin. If it comes from the Asean Free Trade Area (Brunei, Indonesia, Malaysia,Singapore, Thailand, Myanmar,Cambodia, Laos, Vietnam), the tariff or customs duties and taxes are only between 0 (none) to 5%. Goods from other countries are subject to different tariff rates. The basis for the tax will be the cost of product + insurance + freight landed Cebu City if you want it shipped here.

PM me with your info and the goods you want to import if you want the recommendation of a good broker. He has been a broker for more than 10 years and has never had a problem.

Sir Cristaldragon,

Thank you sa inputs. Daku gyud kaayu ni nga tabang para sa ako since I am still trying to start a small business.

[cristaldragon]

For smaller importations, like for example you buy from Amazon and then resell it here, medyo lahi sad. Online sites usually take care of shipping and these are sent through the post office or through couriers after you have paid for them by paypal or with a credit card or telegraphic transfer. In this case, your customs duties will depend on the type of goods you bring in and its quantity. Sometimes sa post office, ok ra if usa ra and they think its not new kay wala ray tax. They only let you pay 35 or 40 pesos kay morag for personal use lang or gift sya. Kung usa usa of each kind, pwede ra sya nga ma-declare as sample. But when daghan sya of each kind nya considered as commercial quantity na, they will impose a tax but definitely dili gyud 100%.

If it is through couriers, they will take charge of clearing it through customs and then they will just let you pay when they deliver it. There are several other charges gawas sa customs duties nga icharge sad nila. You do not need to register kay naa man na silay mga exemptions ana but if you are ordering frequently and in large quantities, you will need to register as an importer with the bureau of customs.

[cristaldragon]

Sir Cristaldragon,

Thank you sa inputs. Daku gyud kaayu ni nga tabang para sa ako since I am still trying to start a small business.[/QUOTE]

Glad to be of help bisag gamay lang. PM lang if you need more info kay basi di ko kakita sa post. Lucrative baya sad kung mu-import ka bastaa ang imong product attractive or need sa daghang tawo.

[ey3s0nly]

Bai ey3s0nly, mag-import mo in bulk or binagsa?

Bai ey3s0nly, mag-import mo in bulk or binagsa?

in bulk sir.. i see no point in importing goods (for retail/wholesale) in small quantities.. not unless it's for personal use or gamiton sa imong business.. hehe!


@cristaldragon

It would be a ideal to get an honest and inexpensive broker who can assist you with the registration procedures as well as the clearing procedures when your goods arrive.

Need jud ug broker? actually, naa na man mi import license. can you elaborate more on the procedure once the goods arrive?

Thanks