Reduce Logistics Costs, Duties, Fees and Taxes

Customs Warehouse Management

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Issues and Challenges

As a global distributor, when you import products into Europe for storage, distribution or manufacturing, you're losing millions of dollars each year by paying your duties and taxes upfront - even if you later recover those fees upon export. That’s because, when you tie up that capital, you lose the chance to put it to work elsewhere. The opportunity cost of doing this could be as high as 10% in some instances.

It isn't just the CFO's job to manage supply chain costs; executives in every business area should be keyed-in to cost savings advantages that improve the company's cash flow. The best way to do this is to look for the ways to avoid spending where it’s unnecessary. Bonded Warehousing, also called Customs Warehousing, allows duties and taxes to be deferred upon entrance and paid on exit if required. Filing requirements and authorizations for procedures may vary by country, and even from company to company. For this reason, organizations have to navigate an increasingly complex regulatory, and competitive environment, while complying with customs declarations and customs clearance costs, so many don’t bother to participate in the beneficial program.

How Amber Road Can Help

Now you’re empowered to manage this complex regulatory and financial landscape with confidence using Amber Road’s Customs Warehouse Management solution for European bonded warehouses. This solution helps companies comply with the rigorous requirements of the various customs warehouse procedures while providing a reliable audit trail to mitigate future risk. Amber Road’s solution integrates with existing systems and can be leveraged as part of the Import and Export Management modules in the robust Global Trade Management platform. With this system, companies can increase supply chain agility and reduce costs by automating the duty deferral qualification process and inventory tracking.

 

Highlighted Capabilities
  • Customs Inventory Tracking

    • Register and maintain goods received into inventory with compliance attributes such as bonded status, classification, preferential status, and customs valuation
    • Reconcile inventory regularly with a WMS / ERP
    • Smart Inventory Tracking optimizes the inventory picking based on a bonded status
  • Maintain inventory visibility with receipt reports and customs stock sheet reports
  • Aggregate inventory for customs visibility from multiple in-transit and static locations
  • Optional integration with Warehouse Management System to record fundamental inventory movements such as receipts, goods issues, and adjustments
  • Integration with Supply Chain Visibility and Trade Import and Export Management modules
  • Configure significant events on transactions such as shipments and deliveries to receive and allocate inventory

Duty Management

Free trade agreements such as NAFTA, CAFTA and others represent an attractive opportunity for exporters to grow their business overseas by making their products more affordable in growing markets. And for importers, FTAs allow them to dramatically lower the duties and taxes they pay.

Today there are more than 500 free or preferential agreements around the world for companies to use.

KEY CUSTOMERS

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“With Amber Road, we have higher awareness and consideration of preferential customs tariffs, which enriches our strategic decision making.”

 

In-House Legal Counsel
ABB

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Global Trade Minute #3 - Duties versus Tariffs

While often used interchangeably, duties and tariffs are not the same. Take a minute to learn the difference -- it will help you identify cost savings opportunities within your supply chain!

 

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