In the global marketplace, importing or exporting goods to or from the Philippines is not without challenges, especially in terms of customs compliance that requires an effective customs broker in order to facilitate the whole procedure and adhere to the prerequisites of Philippine customs to avoid undue delays or monetary penalties.

However, this does not always mean that customs brokers would be a solution; moreover, working mistakes are encumbered with serious complications which we will list later on and explain the perks of working with MBT International Freight Forwarder Inc as your broker to your enterprise and why it will enhance your business!

To refrain from making mistakes in international trade, it will be helpful to acknowledge that a customs broker plays a very vital function in export and import processes. A licensed customs broker is a key working person who is responsible for ensuring a seamless flow of communication between importers/exporters and the respective government authorities as well as all necessary Philippine laws, regulations and standards about specific shipments.

The role of customs brokers entails:

Classification of goods: Aiming to ensure that products are accurately assigned with the appropriate HS Code. Importation of goods: This relates to liaising and paying any relevant import source taxes, legislated duties and other fees where necessary.

Documentation: Import/Export Documentation including Bill of Lading, Invoice and Other Essential Documentation, Preparation and Submission.

Guaranteeing Compliance: All belly shipments must comply with Philippine law as well as legal provisions and international treaties.

Now, having established the importance of customs brokers, let us look at problems that businesses face while engaging these professionals and how these problems can be avoided.

Not Doing Enough Due Diligence on Your Customs Broker

Error:

It is common for businesses to err in that while engaging a customs broker for the first time there is minimal due diligence, with most clients focusing only on cost and availability as successful factors getting the client what they need without any considerations toward qualification, experience, or reputation, which is a serious concern to have such a mentality is highly damaging.

Resolution: When selecting a customs broker in the Philippines, it is critical to appreciate their experience, the range of industries they have been involved with, and whether they hold relevant licensing. An experienced broker should have reasonable exposure and experience in Philippine customs rules, documentation procedures and systems, and requisition and supply related implementations. One such efficient customs broker is MBT International Freight Forwarder Inc who is able to efficiently fulfill a variety of shipping requirements without contradicting any Philippine laws.

Failing to Provide Accurate Information

Mistake: Providing incorrect or incomplete information, such as failing to provide the appropriate HS Code for your goods, incorrect invoices or even missing documentation, to your customs broker can lead to significant improvement in the delays and penalties which may be incurred.

Solution:

When communicating with a customs broker, it is crucial to maintain a high level of accuracy in information. Always inform them and keep them updated with any specifics regarding the nature of your goods such as descriptions, values, or origin. However mistakes tend to happen and one can significantly cut down on these error possibilities by using customs brokers, Mbt international freight forwarder Inc as an example, who has experts that do the paperwork for them and hence reduce chances of delays and non-compliance.

AU20: Employing Present Progressive Tense with Reduced Clauses in Intransitive Verbs Mistake: Non-compliance with any of these requirements would lead to compliance issues for your shipment as shipping regulations and customs laws change often. Such as but not limited to: tariff changes, amendments in import/export regulations or customs clearance procedures

Solution:

It is required that a professional customs broker maintains an understanding of relevant regulations and implements strategies that would assist your company comply with them. MBT International Freight Forwarder Inc is actively working on communicating important law or regulation changes to its clients and providing the necessary assistance to ensure compliance and timely delivery, while also keeping our clients updated and prepared for any changes that could affect the shipments.

Taking Lightly the Significance of Filing Customs Documents within the Time Limit

Mistake: It is usually seen that many businesses ignore the importance at all stating that doing so at the last moment is enough. But failing to respond timely and submitting the customs documentation and other required documents at the designated time is a blunder inviting unnecessary delays, loss, fines, and penalties.

Solution: In terms of successful customs clearance, time is the essence. A customs broker MBT International Freight Forwarder Inc would in this regard work to ensure that all such filings are made before the arrival of the shipment so that there are no delays and the goods’ customs procedures are completed expeditiously starting from its arrival.

Not Being Fully Aware of the Total Intention Cost of the Customs Brokerage

Mistake:

Some of the businesses rely on retainer. Then for example, if a quotation is received from a customs broker to perform specific services, they think it is the closing figure and actual expenses will not incur since they pay duties and taxes or special handling fees for certain types of goods instead.

Solution:

To avoid such a situation in the future, MBT International Freight Forwarder Inc has take it one step further by providing up front pricing for customs clearance services that contain both taxes and duties fees along with the possibilities of other miscellaneous costs that might be incurred. This helps eliminate the risk of surprises occurring while also ensuring that there are no unplanned additions to your logistics costs.

Overestimating the efficiency of the process of customs clearance and not providing for the possibility of delays in the process which might occur

Mistake:

Most companies expect their consignments to clear customs without any trouble but do not take into account such factors as the need to be inspected, the presence of anomalies in documents or any other changes in customs processes that might happen.

Solution: Through its collaboration with MBT International Freight Forwarder Inc, your company will develop contingency planning capabilities. They expect that there may be delays, but quickly resolve any problems faced so that the shipments reach the destination as soon as possible.

Misuse of Technology and Automation

Exploiting non technological means of tracing and managing shipments’ movement can be a disaster. Many organizations still stick to manual processes that result in prolonged customs clearance times and increased chances of making errors.

Solution:

Today, modern customs brokers such as MBT International Freight Forwarder Inc. make use of cutting edge technology in undertaking customs functions. Automated systems in their organizations allow tracking of shipment cargo, completion of documentation as well as constant contact to the clients for more effective control of logistics.

Underestimating the Value of Long-Term Partnership

Mistake: Some companies make the mistake of making ‘one off’ transactions with customs brokers, without any attempts to build long lasting relationships. The outcome is inadequate communication, varied levels of service and lack of knowledge of the client’s needs. This may result in communication breakdowns, service problems and poor understanding.

Solution:

An alliance with MBT International Freight Forwarder Inc. will guarantee smooth flow operations over the logistics cycle. They fully understand their clients’ needs and as such provide personalized services that are designed to suit each business’s needs on an ongoing basis.

Three Wrong Misconceptions Concerning Custom Brokers

Submission approach : Striving for a Long Lasting Relationship

Mistake: Some businesses presume in error that once they have signed a contract with a customs broker, this is all that is required – they agree in principle with documents and other materials that come later. This can lead to misunderstanding, lack of consistency in the quality of service rendered, and not enough understanding of your organization’s needs.

Solution: Making this a priority would make it easier to accomplish that goal. This way, you wouldn’t cut ties with a particular customs broker as soon as they have achieved one transaction with you. 

Mistake : Not confirming the broker’s license and points of accreditation.

Mistake: Unlicensed customs brokers may lead exposing your business to legal and financial risk and import processes in the Philippines legally require accreditation certificates from the Bureau of Customs.

Solution: Engaging an accredited and licensed customs broker is very important in international trade. – Each functional unit within MBT International Freight Forwarder Inc holds a license and active membership to the relevant professional body in the Philippines so this is completely worry free.

Mistake:

Forget to Assess Performance Periodically of the Customs Broker.

After the customs broker is engaged, numerous organizations tend to ignore performance checks as to whether that broker still meets the required efficiency, compliance and punctuality levels. This should not be the case – there is no such thing as a standard for a broker, they should all perform better than that!

Solution:

Make sure you review your customs broker from time to time to understand what they have done to meet your requirements. MBT International Freight Forwarder Inc. has impressive standards and is always keen on clients’ views to be able to improve service.