(James A. Cooke – DC Velocity) When trade documentation threatened to become a major chokepoint, engine maker Tognum America turned to software to rev up the process As any importer or exporter can attest, trade documentation is a necessary evil of doing business on the global stage. Tognum America is no exception. The U.S. subsidiary [...]
Risky Business: The Problem with Silo’s Back in October 2010 we introduced the foundational elements of why an Integrated Trade Compliance Strategy makes sense in todays global supply chain world. You can find the original piece titled; The Problems with Silo’s. In that original article we shared some insights as to why a silo based business may consider the [...]
A recent CITT appeal brings to point the need ensure that importers have due diligence with their vendors including indemnification clauses on their purchase orders when suppliers don’t follow through with requests from Customs Agencies, CBSA in this case, that it is not the supplier who is held at fault but the importer in this [...]
This is a real life example that we have sanitized for privacy, but provides you an understanding to the benefit of a an integrated trade compliance strategy including the enablement of horizontal and vertical channels of communications both internally to the organization and externally to trusted advisors. It all started with this question, we hear it often! [...]
A communication with a long time friend and experienced and certified trade professional lead to an awareness that a major manufacture did not know what assists were! They were looking for help to correct the situation.
Again we see the disconnect between sourcing (imports) and selling (exports) as the lines of communication are not connected as suggested by an Integrated Trade Compliance Strategy.
A leading US distributor of metal and plastic products, with clients worldwide, lacked a system to track country specific duties or anti-dumping levies. To remedy this, a comprehensive database of all products was built, and then cross-referenced with the regulatory elements of each market. As a result, the company was able to minimize trade related costs, and exposure to fines and penalties in this highly regulated industry sector.
Two of the world’s leading organizations in oil and gas equipment services incurred penalties of $610,000 and $800,000 in 2009 due to a licensing and classification violation. Both of the companies exported and re-exported various valve types and spare parts to a wide range of countries without the required licenses.
A “virtual” apparel manufacturer with globally subcontracted operations inadvertently failed to accurately declare the correct identity and origin
A leading manufacturer of household accessories was able to save over $6,000,000 annually in duty by designing and implementing an effective NAFTA management strategy.
This post highlights the importance of doing the appropriate research and background checks of all the cost and regulatory elements BEFORE you commit buying components or finished goods from new off shore vendors.
A large Canadian manufacturer was forced to comply with complex, new US regulations with potentially dire consequences. The company designed an integrated information management system to track trade-related information throughout the sourcing, production, and export stages. They were able to successfully avoid costly penalties or potential forfeiture of merchandise, resulting in cost certainty, and uninterrupted service to their US clients
Case in Point, Engineering a Product to meet a Beneficial Tariff Classification. The fact is that by understanding the how on both sides of the trade compliance equation can you maximize the ultimate value of a integrated Trade Compliance Strategy for your organization and make international trade a strategic benefit for your organization.
Ascertaining NAFTA in motor vehicles is a complex process as referenced in the case of Duhamel & Dewar Inc. vs. the Department of National Revenue. Just because you have an NAFTA Certificate signed by the United States Exporter doesn’t ensure ‘duty free status’. When claiming NAFTA the importer is always in a position of ‘Buyer Beware’.
Key issue is global supply chains created intersection of compliance between sourcing for manufacturing purposes against export costing including declaration that goods were NAFTA qualifying.