Exporting isn't only for the big boys
by Salvador I. Sibayan
You’ve been in business for some time, and it’s time to reflect. You know your production capabilities at the back of your head. You have a skilled and loyal workforce and a following of repeat buyers. In other words, you have a domestic market base, and now you’d like to try exporting.
But you don’t want to deal with export orders far beyond your capacity. Of course, you can always subcontract part of the volume, but you don’t want to do this just yet – not if you don’t have subcontractors you can depend on. So how do you get your feet wet?
Getting a piece of the action
How? By servicing a smaller volume. One way to do this is through a buying office or agent based here. In fact, they have an organization called FOBAP or –
FOREIGN BUYERS ASSOCIATION OF THE PHILIPPINES
Unit 2002 Cityland 10 Tower I, 156 H.V. de la Costa Street
Salcedo Village, 1227 Makati City
Tel. No./s: (632) 812-7073/892-8492 Fax No: (632) 893-5126
Email: fbap@edsamail.com.ph
Note: FOBAP will move to Unit 1215 of Cityland 10 by February this year.
Either one may represent one or several foreign buyers. In either case, they source products locally based on instructions of their respective buyers abroad. And the order you’d be comfortable with is a fraction of a container load or a part of a mixed shipment.
Complying with the terms
Each one farms out the orders of the foreign company/ies it represents to local manufacturers like you. It does this with a purchase order (PO). This indicates the product specifications and quantities, packing and labeling, delivery dates, terms of payment and the like. Be sure to follow what’s specified to the letter. Or else!
But assuming you do and you’re done with production, the usual practice of big foreign buyers is for you to get in touch with their local representative to inspect the goods prior to shipment. Once he or she certifies acceptance, you deliver these to a designated place so these can be consolidated in one container for export.
Along with your shipment and depending on instructions from your buyer, you may be required to prepare the following:
Packing List. An enumeration of the contents of a particular package or crate, indicating the corresponding quantity, weight and measurements. This is sometimes called the manifest.
Commercial Invoice. A bill for the goods transferred from seller to buyer.
Export Declaration. Documents prescribed by the Bangko Sentral ng Pilipinas and Customs for every export shipment. These specify, among others, the goods you’re exporting, their value, name of exporter and consignee.
There may be export clearances and permits you have to get. This will depend on the nature of your product or requirements of your buyer. You may refer to www.philexport.ph and www.boi.gov.ph to find out if you need these.
Too much? Think of the positives.
First, there’s less documentation compared to what’s required if you were to export on your own. Second, you don’t need an “in-house” group for you to export. So you save on start-up and overhead costs. Third, you don’t need to know the details of exporting to a particular country. The instructions that you receive are enough, the local representative takes care of the rest. And more importantly, if there’s on-site inspection before shipment, there’s practically no risk of your goods being rejected when it gets to the foreign buyer.
Kaya mo ‘yan!
top
