70 Best Practices Your Customs Ecosystem Can Perform Today to Generate Revenue & Protect Your Profits
Supply Chain Study: Part 1 of 5
Did you know,for every $100,000 recovered and/or protected, by your Customs Ecosystem, this is potentially equivalent to an additional $20,000,000 * in new sales. (*: based on a 5% EBITDA)
In this 5-part series, you will learn how companies today, are easily transforming their in-house Customs team, from a cost centre, to a revenue producer. For those simply interested in obtaining a copy of the complete report a link is provided at the bottom of this post.
- Part 1: What is a Customs Ecosystem?
- Part 2: 8 Stakeholders Who Benefit from a Best-In-Class Customs Ecosystem; #1: Global Sourcing & #2: Procurement
- Part 3: 8 Stakeholders Who Benefit from a Best-In-Class Customs Ecosystem; #3: Logistics , #4: International Transportation, #5: Warehousing, & #6: Distribution
- Part 4: 8 Stakeholders Who Benefit from a Best-In-Class Customs Ecosystem; #7: Accounting & Finance & #8: Legal, Risk & Control, & Internal Audit
- Part 5: Summary and Recommendations
Over the last year, we have complied a comprehensive checklist of 70 Best Practices that Best-in-Class Customs Ecosystems have implemented, to increase their revenue & protect their company profits.
How many of the 70 best practises is your Customs Ecosystem utilizing?
What is a Customs Ecosystem?
More than just your Customs Department, a Customs Ecosystem consist of three parts:
- The Internal Customs Department
- The Strategic Integrator
- The Operational Overseer
- The Customs Broker
- The real-time Operational Executor
- The Customs Compliance Advisory Firm
- The trusted Strategic Advisor, Auditor, & Performance Optimizer
Why use both, a Customs Broker & Customs Compliance Advisory Firm?
The Customs Broker and Customs Compliance Advisory Firm provide distinct differences in order to optimize your Internal Customs Department.
| Customs Broker | Customs Compliance Advisory Firm | |
| Primary Objective | Ensure the timely & efficient release of your goods | Optimize cost, improve compliance, & reduce your risk |
| Day-to-Day Activities | H.S. Classification, entry filing, & obtaining your customs releases | Audits, risk assessments, & execution of compliance programs |
| Regulatory Interaction | Operational interface with the Customs Administration | Provide strategic guidance & government policy interpretation to your team |
How a Customs Broker Contributes to a Customs Ecosystem
The core support provided by the Customs Broker includes:
- Electronic submission of customs entries
- Tariff classification and valuation
- Managing other government department requirements
- Record retention and audit support (transactional)
While the observed strengths of the Customs Broker includes:
- Speed and accuracy in processing shipments
- Deep familiarity with customs procedures and automation
How a Customs Compliance Advisory Firm Contributes to a Customs Ecosystem
The core support provided by the Customs Compliance Advisory Firm includes:
- Trade compliance program design
- Risk assessments and gap analysis
- Duty & Tariff recovery and refund audits
- Valuation, origin, assists, and transfer pricing compliance
- Preparation for customs audits or verification visits
- Internal training for import/export stakeholder groups
While the observed strengths of the Customs Compliance Advisory Firm includes:
- Strategic, program-level insights
- Cross-departmental coordination (Purchasing, Logistics, Supply Chain, Accounting/Finance, & Legal)
- Long-term compliance and cost reduction focus
Summary: A Best-in-Class Customs Ecosystem
A common characteristic observed in Best-in-Class Customs Ecosystems, was the ability of the Customs Broker & Customs Compliance Advisory Firm, to work collaboratively and not competitively, with the Internal Customs Department
The Customs Broker’s lens was trained at the transactional filing level, while the Customs Compliance Advisory Firm was focused at the program strategic level. One did not replace the other, but instead, complemented each other.
The Custom Broker acts like a Frontline Paramedic: Fast, Transactional, Reactive
The Customs Compliance Advisory Firm acts like a Doctor: Strategic, Preventive, Programmatic
Together, the Customs Broker & Customs Compliance Advisory Firm,
working in concert with the internal Customs Department,
creates the environment for a best-in-class Customs Ecosystem.
This Customs Ecosystem,
has the ability to become a very powerful enabler
of revenue generation & profit protection,
benefiting a variety of stakeholder groups, across the entire enterprise.
Download this Report
This concludes Part 1 of 5: What is a Customs Ecosystem?
For those interested in downloading the full report
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