5. Leverage free trade agreements and other duty avoidance strategies
Duties and tariffs can have a significant impact on cost. Similarly, taking advantage of a free trade agreement or other preferential trade program can shave millions off the bottom line. For example, according to an Aberdeen Group report, companies that utilize free trade zones (FTZ) save nearly three percent in duties. Additional FTZ benefits include reduced shipment delays, operating cost reductions, and optimized total landed costing. Utilizing free trade agreements, duty drawback and other duty avoidance strategies can further lower costs.
6. Invest in technology
Using automation can alleviate many burdens associated with importing, particularly when importing large numbers of items or dealing with multiple countries. With high volume operations it can be extremely difficult, if not impossible, to manage manually. The data needed for classifying goods, for example, is voluminous and frequently changes and must be pulled from country-specific lists. Software that has this information in a central repository with automatic updates can pull information from different systems and use that data for Customs filing and inventory management. Look for a technology system with a flexible, cloud based infrastructure, trade content integration, integration capabilities and reporting tools.
7. Create a collaborative compliance culture
Great import teams include individuals from sales, accounting, manufacturing, customer service and legal departments. All departments involved in the import transaction should be identified and included on the team to garner their support for meeting company objectives. Furthermore, having regular communications across departments regarding compliance demonstrates due diligence and reasonable care, which can mitigate penalties if they occur. |