Easy Steps to Reduce Your Customs Liability.

While companies realize that there is liability when shipping across the border, most do not give it the attention it deserves. Each of your shipments have a minimum liability of $10,000 and up to three times the value of the products, if higher. This liability is left open until your shipment liquidates - a process that takes about a year in most cases.

While we encourage you to seek a reasonable fee structure when selecting a Customs Broker, much thought must be placed on compliance. As Customs continues to retool its systems to focus on compliance, ensure that your supply chain partners can adequately manage your information to prevent unnecessary liability. Saving a few dollars on brokerage fees may end up costing you thousands of dollars in penalties, legal fees, or preparation for an audit.

Look for People and Technology

We feel there are two primary ways of assessing your supply chain partners and their management of your Customs liability. The first is by judging its people, specifically those working directly with you. Here you want people with a lot of experience and who have adequate training or certifications in their field. In Customs Brokerage, experience is best measured in years and area of expertise, and certifications are given by the US Government to Licensed Customs Brokers. Less than 5% of examiners pass the Customs Brokerage exam.

The second thing to look for is the infrastructure and technology that facilitates the compliant flow of information from you to US Customs.

In each case, bigger isn't necessarily better. Bigger brokers tend to have older systems which might not be updated or "optimized" to meet the changing requirements of Customs. They also may not have the types of functionality that let their people easily find and prevent compliance issues. Bigger brokers tend to have infrastructures that remove experienced people and Licensed Brokers from working with your account on a daily basis. In most cases, those people are managing new people, producing reports, and attending meetings instead of giving you the attention you deserve.

How ITS can Reduce Your Liability

At International Trade Solutions, we have hired some great people. People who are recognized in the industry as experts. They are excited to be working directly with clients, and to leave the reports, meetings, and middle management to the other guys. But, it's not just the people that make use better, it's also the technology.

Xport is an interactive program designed for companies exporting to the United States. It simplifies the US Customs process and decreases your liability by reducing the fire drill that happens when you fax your paperwork to the border within hours of shipment arrival. With Xport, you input your products and consignees into a simple interface, as soon as you have new ones. This gives us additional time, even if it's just 10 minutes, to verify them with US Customs. That significantly reduces your liability.

Xport can be used as a document preparation software, or it can be used strictly as a liability reduction tool if you already have a process for producing exporting documentation. Anyway you look at it, Xport reduces your Customs liability – saving you money immediately and down the road.