Importation is a lucrative business if you know how to do it right and if you have the right connections and suppliers, however, just like any other business venture, it is hard to become one if you have not complied or had the necessary papers to become an Accredited Importer with the Bureau of Customs. It can be a grueling, most of the time time-consuming task, but like any other business if you do not have the will to pursue it, better leave the idea alone, or you can employ the services of a Third-Party Importer.
What is a Third-party Importer?
A third-party importer is an importer who acts on your behalf to be named as the importer on your Bill of Lading so that Customs will acknowledge your cargo as the importation of a duly recognized and entity with the Bureau of Customs. This set-up will enable you to jumpstart your importation business and test the waters as to which items can be profitable for you to introduce into the market.
Most of the time Third-Party importers only offer you the use of their Consignee’s name for a fee (royalty fee), but do take note to choose company’s who offer all-in-one solutions, to make sure that your cargoes are imported legally and with no risks, below are the checklists as to how to choose such company:
1. Duly Accredited by the Bureau of Customs – they should be in possession of Certificate of Registration and/or Certificate of Accreditation from the Bureau of Customs Accounts Management Office (BOC-AMO).
2. They should offer Logistics Services – A third-Party Importer must not only possess a valid accreditation from BOC but as well as having the capability to handle your freight forwarding and Customs Brokerage needs, having a streamlined operation will help you to make hassle-free transactions with them without the need for employing a Freight Forwarder or Customs agent. This way, you will be able to enjoy hassle-free transactions and save on costs as well, you will most likely get more savings on this kind of transaction and get to enjoy more discounts.
3. They can issue OR and Invoice for your goods – some companies would only offer you consignee’s name and freight and brokerage services, but are unable to issue ORs and receipts for the value of your goods. This is very risky, we have to understand that once you import an item you must be in possession of proof of where, to whom and how much you purchased your imported items. This will come in handy for audits made by the Bureau of Customs and Bureau of Internal Revenue, if you do not have this, it causes doubt on how and where you are able to purchase and distribute your goods, making it appear that you smuggled your items and that can cause civil and criminal liabilities.
Remember to choose the right company for you, if you are able to find a company willing to provide the services enumerated above, you can rest assured that your importation transactions are safe, risk-free and a profitable venture.