How to Navigate the New US Customs Era
The new tariffs on imports coming into the US may seem fairly straightforward – a charge will be applied to goods once they reach American shores, ranging from 10 per cent upwards. But for companies whose supply chain is more complex, and those who operate internationally, it may not be as clear-cut.
Often, these businesses lack full visibility of the duties they pay, as this data is normally scattered across multiple customs brokers, shippers, systems, formats, and countries.
John Wegman, the CEO of Customs Support Group, Europe’s No.1 Independent Provider of Customs & Trade Solutions, explains how businesses can navigate the upcoming changes and ensure they understand the impact on them.
Understanding the Complexities: Analyse Before Acting
Companies engaged in international trade should act swiftly to assess the potential impact of these new tariffs on their operations. Before making any big decisions, they should ensure a complete understanding of the complexities of the new rules. This will not only help them navigate the immediate clearance procedures and avoid potential customs delays but also enable them to understand the broader implications for their businesses.
Customs Data Consolidation: A Holistic View of a Complex System
For international companies, consolidating and analysing the data about what duties they pay can give crucial insights into their exposure and allow them to explore mitigation strategies, rethinking their supply chains or sourcing decisions as needed. A proactive approach could prevent costly disruptions and create long-term efficiencies in global trade operations.
Streamlining customs operations presents a complex challenge, even for companies equipped with advanced enterprise resource planning (ERP) systems. The situation is likely even more daunting for those still operating with fragmented, siloed data. There is a possible solution, though: establishing a centralised data footprint with a customs control tower. By centralising customs clearance through a broker, businesses can consolidate their processes and gain access to unified data analysis, enabling greater efficiency, compliance, and strategic oversight across borders.
What are the Implications? The Slow-Burning Fuse
It may be difficult for companies to see the full implications of the tariffs right now, especially with ongoing negotiations and countermeasures being introduced. This is compounding the already challenging situation in customs, as penalties are often assessed months or years later. This means that today’s customs exposure may not become apparent for a while.
However, it’s not quite as simple as a blanket figure being imposed on all goods entering the US from each country. There are numerous exemptions, while some materials face higher tariffs.
Reviewing Goods Classifications: Small Differences Could Make a Large Cost Impact
Because of the complexities of certain goods being subject to different tariffs, companies should look to review their harmonised system (HS) classifications – the global method used by customs authorities to classify goods coming through their borders, to determine the tariffs and duties that apply.
By reviewing their classifications, businesses can identify opportunities for duty optimisation and ensure they are fully leveraging existing free trade agreements with other countries. A strategic review of classifications and trade agreements could unlock significant cost savings and help businesses remain competitive in a shifting global trade environment.
We don’t yet know how these changes will impact the world, and it may take a while before the tariffs and countermeasures are finalised. It’s only by having a clear handle on their data and the nuances within the customs system that companies can minimise the impact of the tariffs on their international trade operations and, ultimately, on their profits.
Take control today: partner with customs professionals and protect your business from avoidable risks.
For any customs-related questions, contact Customs Support Group – Europe’s No.1 Independent Provider of Customs & Trade Solutions, serving over 60,000 clients across Europe.
The article is originally published on Wired, under the Business Reporter: www.wired.com/sponsored/story/customssupportgroup/
