In global trade, efficient customs clearance is a key factor for a company`s economic success. Legal requirements, rising costs associated with logistics and international trade barriers demand a precise and efficient approach. Even small adjustments can potentially lead to significant cost savings and improved process quality. In our Q&A, Damaris Lutz, Senior Sales Executive Customs Solutions at SupplyX, discusses the aspects that companies should consider in order to benefit from optimized customs clearance.
What major challenges are companies currently facing in the area of customs and foreign trade law?
Damaris Lutz: Significant challenges that companies are currently facing in the area of customs and foreign trade law are primarily manifested in increasing regulatory complexity and geopolitical tensions. At the customs level, the introduction of anti-dumping and protective tariffs on a growing number of goods is making it particularly difficult for European production sites to continue to operate. New EU regulations, such as the Carbon Border Adjustment Mechanism (CBAM), the Deforestation Regulation or the import control of fluorinated greenhouse gases, as well as suppliers’ declarations that steel and iron products do not originate from Russia, increase the administrative burden and lead to uncertainties regarding compliance with regulations.
In the area of foreign trade regulations, the continuous expansion of sanctions against individuals, companies and product groups poses a major challenge. The associated export controls are becoming increasingly complex and risky, as the relevant regulations can often change at short notice. This requires increased flexibility and vigilance on the part of companies.
Why should companies rely on external expertise for their customs clearance?
Damaris Lutz: Specialized service providers have broad and always up-to-date expertise in customs clearance and support companies in the strategic optimization of this business area. With our 360-degree scan, for example, we analyze existing customs and foreign trade processes in order to identify weak points. On this basis, we can develop targeted improvement measures. In addition, we offer comprehensive training that not only includes the customs department, but also employees in purchasing and sales. This awareness-raising ensures that customs law aspects are taken into account and optimally utilized even before purchase or sales transactions are concluded.
At SupplyX, we also provide flexible support to companies, whether through temporary replacements to cover for employees’ holidays or setting up their own customs department, depending on the individual needs of the customer. Customs processes are optimized through the introduction of suitable procedures and simplifications, such as the procurement of permits, training or the practical implementation of new processes. Our customs consultation hour is available for all questions and also offers competent help on site.
The close integration of Supply Chain Management (SCM) and customs processing is also particularly valuable, as supplier data can be integrated directly into the customs system. An interface to the customer enables the automatic transmission of customs instructions – such as goods tariff numbers and goods descriptions – from the merchandise management system directly to our ATLAS software. This process reduces manual entries and the resulting errors and ensures smooth, transparent processing, including the automatic transfer of releases to freight forwarders and customers.
Why is the local presence of a customs service provider so important?
Damaris Lutz: The presence of a customs service provider is crucial, as the complexity of customs clearance requires close cooperation on site. Only through direct insight into the production processes, workflows and traffic flows can a customized strategy for customs savings be developed. In addition, direct on-site analysis makes it possible to identify optimization potential, which reduces the workload in day-to-day business.
Customs training courses are also particularly effective when they are conducted face-to-face rather than virtually. Since customs topics tend to be quite theoretical, participants benefit considerably from practical examples and experiences that are conveyed in a more tangible and understandable way in face-to-face dialog. If these training courses take place on site at the customer’s premises, more employees can participate. This in turn promotes an internal exchange of knowledge within the company. The learning effect increases and the content conveyed can be successfully implemented.
How can the interface between customs and Supply Chain Management (SCM) be strengthened?
Damaris Lutz: A stronger link between SCM and customs is achieved by taking all key aspects of transportation into account. The customs area is often neglected, while the focus lies on traffic flows and the costs associated with logistics. However, customs has a significant impact on the delivery times and costs of goods. It is therefore essential to actively include this area when optimizing processes – by data integration, cooperation and process monitoring, for example, and by involving the customs team at an early stage.
To what extent do 360-degree analyses of customs processes increase a company’s efficiency?
Damaris Lutz: A 360-degree scan of customs processes allows you to gain a comprehensive overview of the company’s workflows. By examining the production processes, the type of goods processed and sold, as well as the import and distribution channels, we can develop customized solutions. Significant cost savings can be achieved through the correct application of goods tariff numbers, while more complex customs procedures can lead to further efficiency gains.
Customs simplifications optimize processes, reduce the time required and thus indirectly cut costs. The 360-degree scan also ensures that companies adhere to compliance, customs and foreign trade regulations. At the same time, necessary measures that need to be taken in order to meet legal requirements in the future are identified. At SupplyX, we support our customers in implementing these optimizations so that they not only benefit from lower costs and more efficient processes, but can also rely on legal compliance and competitive advantages in the long term.
Mrs. Lutz, thank you very much for the interview.
Further Q&As relating to logistics and supply chain management
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- Q&A: How do Bypass Solutions contribute to an improved supply chain performance?
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