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Philippines Export Strategy: 3 Things Korean Companies Must Know
- Writing language: Korean
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Summarized by durumis AI
- The Philippines is the fastest growing market in Southeast Asia, and it requires obtaining a Philippines FDA certification, legal official customs clearance, and securing local sales channels.
- Exporting to the Philippines requires complex administrative procedures, time, and costs, so it is more efficient to enter the market through Tams Corporation, a specialized company.
- Tams Corporation operates an import and export corporation in the Philippines and supports exporting companies with FDA certification, customs clearance, and sales channel acquisition.
Hello, this is Tomsco Corporation, a specialized export agency in the Philippines.
The Philippines is one of the fastest growing markets in Southeast Asia, offering many export opportunities for Korean companies. It is a vast market with a population of 120 million, a young market with over 30% youth, and a dynamic market growing 7% annually.
However, due to the Philippines' extremely complex and slow administrative system, our companies' entry into the Philippines requires a lot of time and money. Despite being a very attractive market, the entry of Korean companies has been limited. For Korean companies to enter the Philippine market, they need to go through a few important steps and prepare accordingly.
1. Obtaining Philippine FDA Certification
To export food, cosmetics, and medical devices to the Philippines, you must obtain certification from the Philippine FDA. This is essential to ensure the safety and quality of your products and to officially import them into the country. However, obtaining FDA certification directly by exporters involves a long and complex administrative process.
First, you need to be eligible for registration (LTO) with the Philippine FDA. Basically, only local companies can register, and for Korean companies, setting up a local corporation is essential. There are many other requirements for obtaining LTO, but we will omit them in this article. After going through all these steps, you need to register with the FDA to obtain a CPN, CPR, etc. You can check the registered products here.
The Philippine FDA's verification is becoming increasingly stricter and more rigorous due to safety concerns. More and more technical requirements are being added. If you are not an expert, you will inevitably spend a lot of time, money, and effort. Therefore, it is more reasonable and efficient in any way to go through a local certification, customs clearance, and IOR specialized company such as Tomsco Corporation.
Tomsco Corporation directly operates VAVLON Inc., an import and export corporation in the Philippines. It is not a third-party agency that is unreliable like a consignment. Export experts with over 30 years of experience directly handle all items, and have all the licenses required for FDA and customs clearance.
Export companies can focus on delivering high-quality products to the Philippines, forgetting about all the administrative processes.
2. Legal Formal Customs Clearance Procedures
To secure a legal distribution channel in the Philippines and achieve continuous product sales growth, you must comply with legal formal customs clearance procedures.
However, there are still many cases where goods are smuggled into the Philippines through gray channels, also known as 'blind customs clearance'. Gray channels allow goods to be brought into the country at a lower cost than formal customs clearance. You can save time and money spent on taxes and other administrative procedures.
But there are too many disadvantages and risks. It is also difficult to secure legal distribution channels, and it is not a method that helps the company's growth in the long run. In addition, the Philippine Customs is emphasizing the eradication of corruption and is becoming increasingly modernized, resulting in a continuous increase in the number of detections. If gray channel imports are detected, the products will be blacklisted, making it impossible to re-import and sell in the Philippines, and various penalties may occur.
Tomsco Corporation has a legal import permit issued by the local Customsand is a member of the Federation of Korean Businessmen in the Philippines. As such, we are a company that can resolve problems quickly and efficiently through various channels if problems arise.
Philippines Customs BOC qualifications and Philippines FDA LTO certificates
3. Securing Local Sales Outlets
Securing local sales outlets is important for entering the Philippine market. Tomsco Corporation has established various cooperative relationships to help Korean companies grow rapidly in the Philippine market, and through this, we support Korean companies in securing the best sales outlets in the Philippine market.
Even if you don't have a place to sell, you can start matching buyers after proactively obtaining certifications like FDA through Tomsco Corporation.
1) Matching Local Wholesale Companies
Now, all the certification procedures are complete, and you are ready to enter the Philippines legally. Korean products are popular in the Philippines, and major wholesale companies continue to receive inquiries about importing high-quality Korean products.
Through Tomsco Corporation's distribution network, you can supply large wholesale companies and quickly introduce your products to various retail companies in the Philippines.
2) Matching Major Local Shopping Malls
To build a higher level of trust, you can strategically enter major local shopping malls. It may cost more, but it can help your product's premium strategy.
3) Local Online and Offline Sales Consignment
You can proceed with consignment sales through local online and offline channels through Tomsco Corporation. We will provide you with further details after a separate consultation.
Tomsco Corporation is doing its best for the successful entry of Korean companies into the Philippines. For more details about the service, please visit Tomsco Corporation website.
By clicking the square below, you can also get a free consultation through KakaoTalk. We appreciate your interest and inquiries.
Copyright ⓒ 2024 Tomsco Corporation: Philippine Export Agency Specialist All rights reserved.