Many companies fail to realise that there can be savings opportunities available to them in terms of reduced import tax bases, preferential tariff rates, and potential penalties simply by conducting a comprehensive self-assessment of their customs functions.
This self-assessment must be part of a well conceived and well executed customs management plan.
It has been observed that a large number of companies in the Asia Pacific region are highly dependent (almost entirely) on third-party service providers (e.g. brokers) for the management of their customs functions, without realisng the risks and missed opportunities such arrangements can bring.
This fact, coupled with frequent changes made to trade and customs rules in the region, underscore the necessity for companies to undertake proactive and responsive customs planning measures.
Without sufficient planning, companies may be overtaken by competitors with more cost-efficient customs processes or, in cases of non-compliance, face heavy penalties from customs authorities.
Cost-effective customs management planning will allow companies to mitigate compliance risk and streamline their cross-border operations to further their competitiveness.