The focus today of most companies for importing is cost reduction. However, strategically addressing imports can enable a company to proactively improve import operations, reduce bottlenecks, grow profits and further add to the bottom line. Below are some key pieces necessary to create a strategic importing approach.

1. Get senior executive support

The single most important factor for successful import operations is executive buy in. The best way to do so is to speak their language and link successful import operations to the overall success of the company. Reducing costs and improving a company’s market share and return on investment are big motivators for C-level and other senior executives. Other concerns include containing risk (legal department); ensuring product availability and improving information exchanges with trading partners (supply chain); sourcing quality materials and ensuring acceptable supplier performance (procurement).

2. Take the time to ensure correct product classifications and review periodically

Correct product classifications are the cornerstone for complying with country-specific regulatory controls and smooth customs clearance operations. These classifications form the basis for nearly every tax, tariff, fee and export/import control imposed by governmental authorities. Missing or incorrect product classifications can often result in delays, penalties and loss of preferential duty rates. In addition, products that fail to meet admissibility standards can be excluded from entry, seized, or even recalled.

3. Perform regular audits of import operations

These audits should include a range of factors, including potential security, social, financial and quality risks. Pre shipment audit checklists ensure that all employees involved are taking a consistent approach to import process.  Post shipment audits provide the company with an opportunity to see the full picture, identify anomalies and share that information internally so that errors are not repeated. Results from annual audits should be presented to senior management for review and can be used to update import processes. Best practices include reviewing a certain percentage of files monthly, and ensuring the auditor was not the same person who created the shipment.

4. Provide compliance training

Training for compliance personnel – as well as those in other departments involved in the compliance department – should be ongoing, promote an overall awareness of the importance of compliance as well as details, and involve all aspects of compliance. These aspects include procedures, documentation, records, personnel and other important security issues. There should be follow-up training where there are security gaps and a written manual clearly stating compliance policies. Creating a corporate culture recognizing the importance of compliance and linking compliance to an individual’s job evaluation are other parts of a successful training program.