How to Import Products Abroad
What You Need To Know About Importing
Many people would benefit in knowing more about importation. Topping the list of those who should learn more are the proprietors of the importing companies themselves. Next are employees who may have work that is in some way involved in the importation process. Knowing about importation procedures is also valuable to those involved in providing letters of credit, like credit managers.
Even if you do not intend to take on any of the work currently done by your customs broker, it may make your customs broker offer better service if he/she knows that you understand the terms and procedures being done.
The following are just some of the basic importation topics and why it is important that you understand them:
Liabilities of importer. It is crucial that you understand the legal requirements to avoid liabilities. You should know what the corresponding penalties would be for a particular violation. Knowing this would enable you to give the proper attention to the requirements, especially those which would have the most damaging effect if neglected.
Accreditation of importers. You must comply with the registration requirements with the Bureau of Customs. Only importers who have complied with the accreditation requirement are legally capable of importation.
International Commercial Term (Incoterms). These are commercial terms published by the International Chamber of Commerce that are widely used in international commercial transactions. These terms are normally accepted by governments in the interpretation of documents in international trade. Errors in Incoterms may cause transportation problems or added costs, among other potential problems.
Classification of imports. Duties and taxes vary according to the type of shipment. An error in classification may result in either paying too much taxes or being penalized for underpayment.
How to compute duties and taxes. It is not sufficient to be able to classify the shipment. You must also be able to compute what the proper taxes and duties are on the item. Again, a mistake in computation will mean either overpayment or penalties for underpayment.
Knowing the different shipping documents. There are many documents that you should know about. Among these are the bill of lading, packing list and commercial invoice. Learning the proper way of accomplishing and reading these documents would greatly facilitate a problem-free importation.
Importation is not a simple process, but it isn’t rocket science either. With a little effort, you could have enough knowledge about importation to greatly improve your capability to avoid problems.
To know more about this, BusinessCoach, Inc., a leading business seminar provider, conducts a seminar entitled, “How to Import: Procedures and Documentations.” Contact (02) 727-5628, (02) 727-8860, (0915) 205-0133 or visit www.businesscoachphil.com for details.
Click here to view details of the seminar: How to Import: Procedures and Documentations »
*Originally published by the Manila Bulletin. C-6, Sunday, August 25, 2013. Written by Ruben Anlacan, Jr. (President, BusinessCoach, Inc.) All rights reserved. May not be reproduced or copied without express written permission of the copyright holders.