Obtaining an efficient and simple customs management can be perceived as a difficult and complex process by many companies. As an independent customs agent, we have helped many businesses transform the customs issue from a necessary evil into a strong competitive advantage. In this article, we gather some of our most important experiences and outline how cost savings can be realized while creating conditions for more efficient processes.

The most common cost drivers in customs management are:

• Untapped potential in free trade agreements and tariff reductions
• Outdated solutions with low utilization rates
• Unused return procedures
• Low prioritization of customs management on the agenda

Analysis of flows and needs

Identify potential through analysis of import, export, and any return flows. Many companies miss out on taking advantage of the various free trade agreements available. For example, the EU has free trade agreements with the UK, Bangladesh, Vietnam, Japan, Singapore, etc.

Benchmark of current solution

Conduct a benchmark of needs and explore relevant alternatives available in the market. The purpose of a benchmark is to verify the price and solution currently being used. It is important to be open to changes and curious to find the best solution!

Key aspects to evaluate:

• Internal time drivers related to customs management
• Which relevant actors can meet current and future needs?
• How do other companies operate?

Digitalized and flexible solution

The logistics industry has undergone significant changes in recent years, and some innovative actors now have highly digitized solutions. It is important that the supplier handling customs clearance is at the forefront and has automated processes in place, as well as offering solutions that fit the current needs. This will result in faster processes and lower prices.

Flexible solution

In today’s freight market, it has become increasingly important to have a flexible solution. Many companies currently use 3–4 different freight forwarders and transport solutions to ship goods from various parts of the world. By using a centralized and independent customs agent, flexibility in the freight solution increases, providing greater control over customs documents.

Delivery terms

It is important to have control over current delivery terms and the underlying reasons for their use. For example, if a party uses the delivery term DDP, one should be vigilant about the customs costs it generates. A common mistake is the fact that customs fees are based on the value of the goods up to the EU border. Therefore, there is significant potential in splitting the freight cost up to the EU border and the freight cost within the EU in the import declaration.

E-commerce and returns

Having good cost control over logistics is something all e-commerce businesses know is important. An attractive calculation can be significantly impaired by returns or an unstructured customs management process where costs increase and erode margins. It is of great importance to have an efficient process for export and any return flows required for e-commerce flows. For e-commerce businesses in need of delivery and return solutions, Logent Customs offers a simple and effective solution that helps keep logistics costs down.

By engaging Logent Customs, conditions are created not only to reduce costs but also to increase profitability through Logent’s approach and automated processes. As a partner with Logent, valuable expertise is also created internally in the company, which can contribute to issues regarding purchasing, logistics, and finance.

If your company needs support on how the analysis should be conducted, you are warmly welcome to contact Logent Customs for a comprehensive and cost-free analysis. Logent ensures that you pay the correct customs fees and provides concrete suggestions on how you can improve efficiency and quality in customs management.