70 Best Practices Your Customs Ecosystem Can Perform Today to Generate Revenue & Protect Your Profits
Supply Chain Study: Part 3 of 5
In Part 1 of 5: What is a Customs Ecosystem?, we reviewed what a Customs Ecosystem is, and how the Best-in-Class ecosystems are dependent on three key parts working together; your in-house Customs Team, your Customs Broker, and your Customs Compliance Advisory Firm.
In Part 2 of 5, we reviewed the 8 stakeholder groups in your organization who benefit from a best-in-class Customs Ecosystem. Taking a deeper dive into two specific stakeholder groups; Global Sourcing & Procurement.
In Part 3, we will continue to take deeper dives into the 8 stakeholder groups who benefit from a best-in-class Customs Ecosystem, focusing on four specific and related groups; Logistics, International Transportation, Warehousing, and Distribution.
For those who are simply interested in obtaining a copy of the complete report, a link is provided at the bottom of this post to request a copy.
8 Stakeholder Groups Who Benefit from a Best-In-Class Customs Ecosystem
#3: Logistics
Common importer/exporter concerns & challenges involving the Logistics team
Below is a listing of common concerns and challenges shared by importers and exporters:
- Customs Release Optimization
- How to efficiently reduce demurrage and storage fees, while accelerating supply chain velocity
- Automated Document Compliance Checks
- How can we prevent customs clearance delays due to incomplete commercial documentation/data?
- Streamlined Broker Management
- Establishing & maintaining standard operating procedures with customs brokers to reduce errors & costs
- Feasibility of utilizing Free Trade Zones or Bonded Warehouse Use
- Exploring strategies that can be used to defer duty payments & managing inventory flow more strategically
- Trade Compliance Alerts to Manage Port Delays or Regulatory Updates
- Being provided with timely advance notice of disruptions and/or regulatory changes impacting the supply chain
Best practises that your Customs Ecosystem can provide to the benefit of your Logistics team to generate revenue & protect your profits
Of the 70 Best Practises identified in the study, below are those that benefited the Logistics stakeholder group.
Internal Customs Department:
- Ensure timely and accurate document/data provision to the customs broker to avoid release delays
- Coordinate with Customs Administration on urgent release issues
Customs Broker:
- Execute real-time clearance, flag holds and fines associated with Customs Administration & other government departments
- Efficient Management of data transmissions with Customs Administration
Customs Compliance Advisory Firm:
- Audit non-compliance fees for recoverability
- Recommend and develop supply chain process improvements
- Provide customs broker performance analytics
#4: International Transportation
Common importer/exporter concerns & challenges involving the International Transportation team
Below is a listing of common concerns and challenges shared by importers and exporters:
- Data Accuracy & Timeliness
- Minimizing Customs Administration & other government departmentโs non-compliance penalties & border delays
- Duty Planning Based on Mode of Transport (Air vs Ocean vs Truck vs Rail)
- Developing and executing cost-optimized routing strategies/decisions
- Some examples include; Freight Optimization Modeling, Port Allocation Modelling, Shipping Calendars, etc.
- Export Compliance for Returns & Re-exports
- How best to avoid and minimize customs violations or seizures
- Broker Performance Monitoring Dashboard
- Identifying customs clearance bottlenecks tied to specific carriers or lanes
- Container Optimization for Multi-Business Units Imports
- Customs coordination, reducing redundancies when co-loading shipments, and how best to maximize transload opportunities
Best practises that your Customs Ecosystem can provide to the benefit of your International Transportation team to generate revenue & protect your profits
Of the 70 Best Practises identified in the study, below are those that benefited the International Transportation stakeholder group.
Internal Customs Department:
- Oversee import/export data accuracy
- Coordinate shipment-level compliance
- Support correct use of Incoterms
Customs Broker:
- File timely and accurate data transmission with the Customs Administration & other government departments
- Advise on carrier-specific customs administration rules and other government departmental requirements
Customs Compliance Advisory Firm:
- Design Data Transmission Standard Operating Procedures & perform accuracy audits
- Develop Freight Optimization Tools & Shipping Calendars
- Optimize Incoterm strategies to minimize duties
- Advise on export compliance
- Provide training on government compliance
- Verify & support export control classifications
#5: Warehousing
Common importer/exporter concerns & challenges involving the Warehousing team
Below is a listing of common concerns and challenges shared by importers and exporters:
- Correct Use of In-Transit, & Duty Deferral Programs
- How best to avoid unnecessary cash flow impacts on goods stored before sale
- Valuation Adjustments for Non-Conforming Goods
- Timely Communication & execution of post-entry corrections & recoveries with respect to overages, shortages and damages to imported goods
- Inventory Accuracy for Origin-Sensitive Products
- Enabling compliance with Free Trade Agreement audits
- Compliance with Labelling & Marking Laws
- Preventing shipment holds due to packaging & labelling issues
- Coordination on Foreign Trade Zone or Bonded Warehousing
- Establishing staged releases & efficiently reducing inventory carrying costs
Best practises that your Customs Ecosystem can provide to the benefit of your Warehousing team to generate revenue & protect your profits
Of the 70 Best Practises identified in the study, below are those that benefited the Warehousing stakeholder group.
Internal Customs Department:
- Manage reconciliation of received inventory with Customs Administration’s records
- Support bonded or in-transit procedures
Customs Broker:
- Process adjustments & transfer entries
- Advise on bonded warehouse entry types
Customs Compliance Advisory Firm:
- Design and execute bonded warehouse duty-deferral strategies
- Audit for storage-related duty inefficiencies
- Develop and deploy standard operating procedures for correct item withdrawal processes
- Provide training on labeling and customs requirements
#6: Distribution (Domestic & International)
Common importer/exporter concerns & challenges involving the Distribution team
Below is a listing of common concerns and challenges shared by importers and exporters:
- Assistance with Export Documentation
- What is required to ensure goods can move freely without delays or violations
- Origin Certificates for Foreign Customers
- Providing support to assist them in claiming duty-free treatment & enhancing their competitiveness in their domestic markets
- Use of Drawback or Duty Refund Programs
- Obtaining required information/date to enable the ability to reclaim duties on exported goods
- Split Shipment Compliance Management
- Ensuring each partial shipment is properly documented
- Support for Returns Handling Process
- Facilitating customs compliant returns under the applicable Customs Administration’s regulations
Best practises that your Customs Ecosystem can provide to the benefit of your Distribution team to generate revenue & protect your profits
Of the 70 Best Practises identified in the study, below are those that benefited the Distribution stakeholder group.
Internal Customs Department:
- Ensure and verify compliant documentation/data for exports and returns
- Manage returns process for customs duty recovery
Customs Broker:
- Process export declarations with applicable Customs Administration(s)
- Ensure classification/origin support for cross-border trade
Customs Compliance Advisory Firm:
- Recover duties on returned or re-exported goods
- Audit returns for duty recovery
- Audit documentation/data trails for denied refunds
- Design and execute systems for โsold then returnedโ export flows
- Ensure foreign customers can access duty-free preferences
Download this Report
This concludes Part 3 of 5: 8 Stakeholders Who Benefit from a Best-in-Class Customs Ecosystem; #3. Logistics, #4. International Transportation, #5. Warehousing, & #6. Distribution.
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