Minimizing duties is one of the fastest and easiest ways to squeeze significant financial returns out of a company’s global supply chain. A dollar, yen, pound, or euro saved in duties goes straight to a company’s bottom line, which is what makes these programs so appealing. Duty minimization opportunities come in many forms, including preferential trade agreements, foreign trade zones and duty drawback. In order to take advantage of them, organizations must first determine eligibility. After determining eligibility, organizations must establish the appropriate procedures and documentation to qualify for them. Finally, organizations must track and administer the programs on an ongoing basis, for every qualifying product shipped.
Unfortunately, despite the associated cost savings, many companies fail to take advantage of duty minimization programs due to the perceived difficulty of qualifying for and administering them.
The Amber Road Solution
Amber Road’s duty management solutions help companies simplify and automate the qualification and administration process along with managing Foreign-Trade Zones. In the area of preferential trade programs, for example, Amber Road’s solution automates the supplier solicitation, qualification and certificate management processes for importers and exporters. By associating certifications with products, the system maintains audit trails of preferential claims and how they were achieved. This enables importers and exporters to streamline the process of determining how much money Customs agencies owe you, and make it easier and more efficient to reduce and eliminate duties.