Channel Background

In the Philippines, agricultural film distribution is mainly based on village-level community group buying: distributors purchase full rolls and then sell them by the kilogram to farmers in villages and towns, who cut the film themselves. Distributor clients across Luzon Island cover multiple provinces, with typical minimum order quantities of 5 tons per batch; greenhouse films are concentrated at 10–25 mils (100–250 microns), with widths primarily at 2.8, 3.1, 3.7, and 6.2 meters, each roll pre-cut into fixed lengths of approximately 52.5 meters and weighing around 50 kilograms.

Solution Configuration

Local customers set only two strict requirements for greenhouse films: a service life of about 3 years and mandatory UV resistance. Based on this, yongguan optimized the formulation to an advanced UV-resistant system and determined the proportion of anti-aging additives according to intense tropical sunlight conditions. All 14 specifications currently sold by the customer are fully matched—25-mil thickness grades, non-standard widths of 2.8/3.1/3.7 meters, black and yellow films, 3-mil silver-black mulch films, and 52.5-meter fixed-length pre-cut rolls—all standardized during production. Quotations are provided per kilogram and in 5-ton batches, without splitting or repackaging, aligning perfectly with the sales model of "buying full rolls and selling by the kilogram."

Tariffs and Settlement

The customer’s existing supply includes agricultural film manufactured in Taiwan, China. As there is no free trade agreement between Taiwan and the Philippines, a most-favored-nation tariff rate of 15% applies; Chinese goods qualify for the China-ASEAN preferential tariff rate of 5% under Form E, resulting in an 8.7% lower landed cost under CIF terms. This price difference directly translates into margin space at the retail level. The customer receives payments in Philippine pesos and makes payments in U.S. dollars; peso depreciation erodes profits. Yongguan supports partial settlement in RMB, eliminating one currency conversion step.

Delivery Terms

Sea freight from Qingdao Port to Manila takes 7–10 days; T/T payment terms are 30% deposit plus 70% against copy of bill of lading, with Yongguan arranging booking under CIF terms. Small batches are packed in woven bags, while bulk shipments use roll packaging on pallets wrapped in stretch film; custom packaging can be arranged per customer request (carton packaging charged separately).