Learn how one company saved $3 million in reduced duties. Could it work for you?
Global businesses must figure out how to efficiently navigate complex trade agreements, maintain compliance with a host of international regulations, and be attentive to national and international security. This applies to businesses no matter their size.
The business case for exporting – and to more than one country – is clear. More than 70 percent of the world’s purchasing power is located outside of the United States, reports the U.S. Commercial Service. On average, sales grow faster, more jobs are created, and employees earn more than in non-exporting firms, the USCS says. Businesses that export are 8.5 percent less likely to go out of business, according to a study published by the Peterson Institute for International Economics, in Washington, D.C.
UPS can help make doing business globally easier, despite the complications. With a seamless process for moving freight and packages across borders, UPS Customs Brokerage® is a good solution.
Major monetary implications
One customer asked UPS Trade Management Services to monitor the compliance of what the company was exporting. TMS discovered that in many cases its merchandise was not properly classified causing the customer to pay excess duty. Even when properly classified, the merchandise also qualified as duty free under an existing free trade agreement. Fortunately, the grace period to allow such changes was still in effect, and TMS was able to facilitate the necessary paperwork in order to provide the customer $3 million in savings.
It’s important to bring in experts who know how to handle duties to where you’re shipping. “If you’re dealing in highly complex or valuable goods that could be subject to significant duties, you want to dedicate the right amount of time and effort to processing clearances correctly to avoid a lot of problems,” says Greg Maddaleni, a UPS Customs Brokerage marketing manager.
“There are two sets of risks associated with exporting,” he says: complying with U.S. regulations as your products leave the country and then the requirements at the final destination.
“UPS has an export compliance group to help manage these risks, along with the global infrastructure needed to move your goods through and move them accurately,” he says.
Scalability and reliability
“In addition to scaling up in terms of shipment size, UPS Customs Brokerage is available 24/7 and can scale up to handle a customer’s peak season needs," Maddaleni says. "Our client team-based approach means that we can dedicate the staff needed to make sure your shipments clear on time.”
Customs Brokerage offers a range of services to meet the needs of various businesses, including:
- Global coverage and reliable service for customs clearance
- A portfolio of international trade consulting services
- Trade management so you can outsource daily management of international trade activities
- Access to import and export tools that help navigate trade regulations and tariffs
Keep your shipments moving across borders. Go to Customs Brokerage to take advantage of UPS’s customs knowledge.