Export Procedures
Exporting is both challenging and rewarding. Export procedures are simple and the export documentation required has been lessened.
Build your knowledge and develop skills on the dynamics of exporting by attending seminars/training courses on the basics of exporting, letters of credit, negotiating with the foreign buyers, and other similar courses. The Philippine Trade Training Center (PTTC) offers courses on these topics.
If you are not yet in business and would like to set up an export company, register with the ?DTI or the Securities and Exchange Commission (SEC); with the city or the municipality where you intend to operate the business; and with the Bureau of Internal Revenue (BIR).?
However, business registration itself does not ensure success unless the basic foundations for a viable export enterprise are present. These are:
- Organization Readiness – Management is willing to commit resources of the enterprise.
- Product Readiness – Product meets foreign buyers? requirements in both quality and price.
Procedures:
- Upon receipt of a purchase order from a foreign buyer, immediately send him a proforma invoice for confirmation. An order is confirmed when the proforma invoice is signed and returned to you by the buyer.
- Payment for exports is normally made through the banks. The foreign buyer?s interest in the Philippines is represented by a local authorized agent bank, which is designated by the foreign buyer?s bank. The local Authorized Agent Bank (AAB) will assist you in negotiating the collection of the payment for your exports.
- The AAB will explain to you all the instructions concerning your shipment to ensure its acceptability for payment. Make sure that you understand all the instructions provided by the bank. If the instructions are written in a non-English language, ask the bank to give you an official translation in English or to officially recognize a translation of the instructions, if the translation was made by someone other than the bank.
- Exporters may be paid through banks by means letters of credit (L/C), documents against payment (D/P), documents against acceptance (D/A), open account (O/A), cash against documents (CAD), prepayment/export advance, inter-company open account, offset arrangement, consignment, or telegraphic transfer.
- You may or may not need outside financing to produce export products ordered by the buyer. However, should you find the need for outside financing, you can either tap the assistance of government or non-government financial institutions.