A cost-effective supply chain means success to your business. There are a variety of steps you can take to ensure your supply chain is operating successfully. Sometimes it’s what you’re not doing that can really affect your bottom line. What if there are missed supply chain savings opportunities you are missing? Here are three opportunities you could be missing out on.
There are a variety of security programs that can provide potential cost-saving opportunities. In the United States, Customs-Trade Partnership Against Terrorism (C-TPAT) is the most common. C-TPAT is a volunteer government-business initiative to build cooperative relationships that strengthen and improve overall international supply chain and U.S. border security.Why is C-TPAT important? C-TPAT Certification allows importers to take advantage of faster import processing with a secure supply chain, meaning C-TPAT bolsters your reputation with the customs community. The various benefits are offered to companies with the certificate because Customs Border Protection knows the company has put in the time and effort to make border security a top priority. C-TPAT has been proven to reduce exposure to legal and financial risk as well, which could save your business money in the long run.
Many supply chains don’t utilize duty drawbacks, tax refunds from the government, enough. Consider this fact, an estimated $2.4 billion in duty drawbacks are left unclaimed each year. Filing for a duty drawback can provide extra revenue to businesses. Manufacturing Drawbacks, Same Condition Drawbacks and Substitution Manufacturing Drawbacks are three types of drawbacks that can be utilized. Drawbacks not only strengthen your business, but also strengthen U.S. foreign trade and the U.S. labor force by improving economic development and creating employment. In addition to a duty drawback, other fees can be claimed too. Harbor Maintenance Fees (HMF) and Merchandise Processing Fees (MPF) are two of these additional fees.
When importing into the U.S., it is important to have your goods classified properly. Not doing so, allows for delays at the border and could potentially mean reduced duty rates. The Harmonized Tariff Code (HTS) is an internationally recognized system of names and numbers to classify goods. With the correct product description, customs brokers are equipped to properly classify goods using the HTS number system.
Is your business taking advantage of these supply chain savings opportunities? If not, now is a good time to evaluate your business and see where you can potentially save money. Here at AFC International, we provide you with the tools and knowledge to help you manage your supply more effectively.