How to start importing from the Philippines: a step-by-step guide
If you're thinking about importing products from the Philippines, here's the practical, step-by-step process. No theory, just what you actually need to do.
Step 1: Choose your product
Start with one product category. Don't try to import furniture, food, and fashion all at once. Pick the category where you have the most market knowledge and buyer demand. Research the import regulations for that product in your country before you go any further.
Step 2: Find suppliers
Browse Philippine Source to find verified suppliers in your product category. You can also attend trade shows (the Philippine government runs several international trade fairs each year) or contact the Philippine Trade and Investment Center in your country.
Start with 5-10 potential suppliers. Message each one with the same brief: who you are, what you're looking for, your estimated quantities, and your target market.
Step 3: Request samples
Narrow your list to 3-4 suppliers based on their responses, product range, and pricing. Request samples from each. Expect to pay for samples and shipping. Test the samples thoroughly against your quality requirements.
Step 4: Negotiate terms
Once you've chosen your supplier, negotiate: pricing per unit, minimum order quantity, payment terms (30% deposit, 70% before shipment for your first order), packaging specifications, lead time from order to shipment, and quality standards.
Get everything in a written purchase order or supply agreement.
Step 5: Place a trial order
Your first order should be small. One pallet or a few hundred kilos, not a full container. This tests the entire process: production quality, packaging, documentation, and shipping. It costs more per unit at this scale, but it's cheaper than finding problems in a $20,000 container load.
Step 6: Production and quality control
During production, ask for progress updates and photos. If the order is large enough, consider hiring a third-party inspection company to check the goods before shipment. SGS, Bureau Veritas, and Intertek all operate in the Philippines.
Step 7: Arrange shipping
Use a freight forwarder who handles Philippine exports regularly. They'll arrange collection from the supplier, customs clearance in the Philippines, ocean or air freight, and delivery to your warehouse. Get quotes from 2-3 forwarders and compare total costs, not just the freight rate.
Step 8: Documentation
Your supplier provides: commercial invoice, packing list, certificate of origin, and any product-specific certificates. Your freight forwarder handles: bill of lading (sea) or airway bill (air), customs declarations. You need: import licence (if required for your product), customs broker at your end.
Step 9: Customs clearance
Your customs broker handles the import process. They'll need all the documentation from your supplier and freight forwarder. Make sure everything is ready before the shipment arrives. A container sitting at the port waiting for paperwork costs you demurrage charges every day.
Step 10: Receive and inspect
When the shipment arrives, inspect everything against the purchase order. Check quantities, quality, packaging, and labelling. Document any issues immediately and raise them with your supplier.
What it costs to get started
A realistic budget for your first Philippine import:
- Samples: $100-500 including shipping - Trial order: $2,000-5,000 for a small order - Freight: $500-2,000 depending on volume and mode - Customs duties: varies by product and country (5-25% is typical) - Customs broker: $200-500 per shipment - Total first order: roughly $3,000-8,000
Common mistakes
Skipping the trial order. Going straight to a full container saves money per unit but massively increases your risk.
Not checking import regulations first. Finding out your product needs a special licence after you've paid the supplier is expensive.
Paying 100% upfront. Standard is 30/70. If a supplier insists on full payment upfront, find another supplier.
Choosing the cheapest supplier. The cheapest quote often means corners are being cut on quality, packaging, or documentation. Middle-of-the-range pricing usually means a supplier who can deliver consistently.
Not budgeting for duties and fees. The product cost is not your total cost. Add freight, insurance, customs duties, broker fees, and local delivery to get your true landed cost.