Compliance, cost and control are three reasons customs clearance may soon be the purview of DIYers (Do-It-Yourselfers). Recent advances in technology have made this previously unthinkable function — direct filing of customs entries — not just feasible but attractive to small, midsize and large importers. With some research and consideration, direct filing may be done with ease and provide significant benefits. Here are the Top 10 reasons why now may be the opportune time to consider filing your own import entries.
1. No one has more product knowledge than the importer.
No one knows more about your product line, or the materials being imported, than you and your employees. If questions arise during the classification or entry process, your staff typically has easy access to specification sheets, schematic drawings, the merchant or buyer and lots of other detailed information about the imported product.
2. The importer is probably doing most of the work already.
In most cases the import transaction starts with you when you provide the essential entry data (such as tariff classification, value and origin) to the appointed broker. If that’s the case, the remaining data elements on the Customs entry document are elementary in nature (such as vessel name and import date) and can be entered with a few keystrokes.
3. Improved vendor and supplier interactions equal “reasonable care.”
Direct filing puts the importer in closer touch with foreign vendors and suppliers. If a vendor’s documentation falls short of expectations or is incorrect, mistakes are caught faster and repaired sooner because the importer sees them right away. This leads to greater consistency of data and improved levels of compliance and helps you meet your importer’s responsibility to exercise reasonable care.
4. Greater consistency of data and flexibility in sourcing.
Many direct-filing systems have a comprehensive parts database that keeps track of every item you import. This helps you manage and uniformly apply tariff classification, values, countries of origin, quantities and free-trade agreement terms. As a result, your company is flexible and able to adapt quickly to new sourcing strategies. As soon as a source changes or is added, you simply add it to your parts database to direct-file the entry.
5. Improved supply-chain velocities.
Direct filing gives you the ability to pre-file your entries with Customs and obtain clearance information up to five full days before the vessel arrives at the U.S. port. Assuming your consignment isn’t targeted by Customs for examination, pre-filed and pre-cleared shipments can be moved as soon as the vessel completes discharging. In some cases, you gain one or two full days from your transit time, resulting in greater efficiency and improved cash flow.
6. Enhanced visibilities.
Direct filing affords you greater visibility into the entire supply chain and entry process. You know exactly how long it takes for each shipment to clear, why there is a delay and where the problem spots are along the way. Once you know where and why, you can take steps to improve your import process.
7. Higher levels of compliance.
With little exception, one of the most compelling reasons to consider direct filing is improving your compliance rate with Customs. No one will take greater care in the preparation and processing of an entry than you and your employees. Once an importer can oversee all aspects of a customs entry, mistakes and errors are reduced, and compliance levels increase automatically. Additionally, as Customs increases its supply-chain security expectations in the post-9/11 environment, a direct-filing system will deliver timely, up-to-date methods for an importer to comply with the latest in Customs requirements. You will always be ahead of the compliance curve.
8. More control.
Direct filing gives you much greater control over the entire import process. You are not at the mercy of an outsider to advise you of shipment status. You can access the direct-filing system 24/7 in the event that you want to file an entry in the evening, on a weekend or on a holiday. And converting to direct filing can be accomplished at your own pace. Direct filing your entries is not an all-or-nothing proposition. The transition to direct filing can be done in a phased or gradual approach, while maintaining relationships with your existing service providers. You decide which entries you want to file and when.
9. Savings.
Fortunately, most importers will not risk compliance to save a few bucks on entry fees. That said, there could be a windfall of savings from direct filing, depending on your volumes and what you are currently paying to process your entries. These reduced expenses make you more competitive by lowering your overall landed cost and adding to your bottom line.
10. Because you always could and now it makes sense.
All U.S. importers have the right to direct-file entries for imported products or materials — without any requirement for licenses or Customs permits. And now the technology is accessible, affordable and you don’t have to go it alone. Importers are assigned a Customs Automated Broker Interface account representative for assistance and guidance in direct filing their entries with Customs.
In some cases, the direct-filing service also will provide the support of a licensed customs broker.
Determining whether direct filing is right for your company can be a simple process with some planning and the support of people knowledgeable about customs procedures and your im4ports. Enlist the help and expertise of the direct-filing systems providers to evaluate and determine what is the best solution for your business.