Hong Kong is a powerful gateway to Asia. Consequently, it is a key global trading hub. Its efficient logistics and strategic location make importing from Hong Kong a popular choice for Philippine businesses. However, its unique business environment means specific mistakes are often made. We break down the five most common errors. We also show you how to avoid them for a smooth, cost-effective process.
1.Treating Hong Kong as Just Another Chinese Province
Hong Kong operates under a “one country, two systems” framework. Therefore, it maintains its own customs territory, currency, and legal system.
• The Mistake: Many importers assume the customs and documentation procedures are the same as those for mainland China.
• The Solution: Recognize that goods from Hong Kong require specific documentation. These declarations are different from mainland Chinese goods.
2. Underestimating the Importance of Shipping Documents
Accurate paperwork is essential for any international transaction. This is especially true when importing from Hong Kong due to its transshipment hub role.
• The Mistake: Importers incorrectly declare the country of origin on commercial invoices. Another error is forgetting necessary certificates for certain goods.
• The Solution: Double-check that your Commercial Invoice, Packing List, and Bill of Lading are accurate. In addition, make sure they are consistent.
3. Ignoring Philippine Customs Value Thresholds
Philippine customs regulations have specific rules regarding valuation. These rules can impact your duties and taxes.
• The Mistake: Failing to properly declare all costs in the total customs value. This includes freight and insurance. This mistake can trigger an inspection or a valuation dispute.
• The Solution: Use the correct Incoterms (like FOB or CIF). Consequently, ensure the declared value reflects the true transaction price plus all required add-ons.
4. Using a Courier for Commercial Volumes
The choice between a courier vs freight forwarder is critical.
• The Mistake: Using express courier services for large, commercial-quantity shipments. However, couriers become extremely expensive for heavy or bulk cargo.
• The Solution: Use a freight forwarder like HBK for commercial shipments. Freight forwarders offer cost-effective LCL and FCL services. Thus, this significantly reduces the cost per unit.
5. Lack of Communication with the Logistics Partner
A communication breakdown causes many import delays.
• The Mistake: Assuming your logistics partner knows everything about your cargo. They may not know if it is hazardous, needs refrigeration, or has fragile components.
• The Solution: Clearly communicate the exact nature of your goods to your freight forwarder. Do this before the shipment is booked. Moreover, state any special handling needs upfront.
The HBK Advantage: Your Proactive Partner Our entire import process is designed to act as a safeguard against these common mistakes. By providing a central receiving hub, expert documentation review, and in-house customs brokerage, we serve as your single point of control and expertise, ensuring your import from Hong Kong is managed correctly from start to finish.
Streamlining Your Imports
By understanding these five common pitfalls, you can streamline your next shipment. HBK Global Trading has the expertise to navigate the unique requirements of importing from Hong Kong. We ensure compliance and efficiency from the port of origin to your warehouse.
