Introduction
SMEs or small and medium enterprises play an important role in our economy, building employment, boosting innovation and facilitating trade. But when it comes to international trade, they often face challenges with customs regulations. These regulations can be confusing and take time to accomplish, resulting in difficult compliance for SMEs. Unlike big companies, which have a dedicated team for compliance with necessary customs clearance documents, it is often required for the owners of SMEs to study and do these things alone. This is where customs brokers come into play; they provide assistance to businesses that will simplify the process and prevent unnecessary added expenses due to mistakes.
Understanding SMEs’ Challenges with Customs
For most SMEs, compliance with customs is like travelling a maze without a map. Below is some of the biggest problems owners of these small and medium enterprises face:
- Ever-changing Regulation – Different countries mean different regulations and it is always changing. It isn’t easy to understand, especially if there is no expert inside the business delegated to do these tasks.
- High Tariff and Taxes – Import taxes may cause a less to the business’ profitability, which gives SMEs a problem to maintain their competitiveness in the market.
- Processes Take Time – Clearance in customs may take so long that will cause delays to the supply chain, leading to the dissatisfaction of customers.
- Wrong Documentation – One mistake in complying with these customs forms may penalize the business and lead to delays.
- Lack of Knowledge in Complying with the Law – Due to the fact that SMEs usually don’t have a dedicated team for compliance, most of the time these businesses are having a hard time to follow all the legal requirements.
Role of Customs Brokers in Assisting SMEs
It is a relief for SMEs to have customs brokers assist them in this trade process. They are the ones who do the work of complying with the important documents and making sure that all regulations are followed, for the business owners to focus on growing their businesses. Here are some of the ways customs brokers will be helpful:
- Experts with the Regulations – Brokers are knowledgeable with the updated terms and the regulations and they make sure that the business is complying.
- Attention to the Documentation – They assist SMEs in making sure that documents submitted are complete and correct, to avoid causing delays.
- Optimized Tariff and Taxes – They help in classifying the products correctly to lessen the costs.
- Faster Customs Clearance – With their knowledge, moving through customs will be smooth and faster.
- Prevents Compliance Risks – They make sure that all regulations are complied to avoid penalties and fees.
Challenges in Choosing the Right Customs Brokerage Service
Not all customs brokers are the same, that is why SMEs must be careful in selecting the right company to assist them. Some of the common problems are:
- Hidden Costs – Some brokers are not upfront when it comes to the expenses, making it hard to budget properly.
- Slow Communication – If communication is slow with the brokers, it might cause delays to the supply chain.
- Lack of Expertise in the Industry – Not all brokers are experts in different types of products or businesses.
- Old Technology – Lack of digital tracking tools can also slow the process.
- Inability to Scale – Some brokers are not capable of scaling with the growing needs of SMEs.
Why is it Important for SMEs Here in Manila to Get a Reliable Customs Brokerage
For SMEs specifically located in Manila, a reliable customs broker can give huge relief when it comes to import and export. Here are some reasons why it is very important to get a trusted brokerage service:
- Experts in Manila Regulations – Local Brokers here in Manila have a deeper understanding towards the rules in the Philippines, easing up the process.
- Minimizing the Expenses – Avoiding penalties caused by noncompliance will help SMEs lessen their costs.
- Faster Process – A good broker will make sure that there are no unnecessary delays happening.
- Regulatory Compliance Support – Making sure that you comply will prevent legal issues down the line.
- Tailored Service According to Your Needs – The best brokers will give you service based on the SMEs’ needs.
Conclusion
Navigating the customs regulations is one of the hardest things faced by SMEs, but this should not slow them down. With the help of a reliable customs brokerage in Manila, small businesses can ease up the process, lessen their costs, and avoid having issues with the regulations. Instead of them studying the regulations and doing all these things by themselves, they can focus on growing their business and allocate time to more profitable aspects in their industry.
