Proponents list a host of benefits from FTAs, including:

- Expanded access to markets for both goods and services

- Greater protection of intellectual property rights

- Growth in jobs that would accompany the opening of new markets

Taking this into consideration, Management Dynamics offers a comprehensive Free Trade Agreement (FTA) management solution that provides solicitation and qualification in order to determine if a company’s product is eligible for preferential treatment. This can have a significant impact on the applicable duties for their products resulting in reduced total landed costs.

To learn more about the Free Trade Agreement Solution, read the full press release here.

Over the past year, the company’s European group has acquired multiple companies that now operate as TALIS Group subsidiaries, prompting TALIS to consolidate management of its global trade compliance capabilities. Since the beginning of May, Management Dynamics’ Export On-Demand solution has been running at all German entities in TALIS Group, with additional European entities scheduled to come online in stages over the coming weeks.

For more information please click here

The new INCOTERMS® 2010 became effective January 1, 2011. Incoterms–which is an abbreviation for International Commercial terms–are a series of sales terms. They are published by the International Chamber of Commerce (ICC) and are widely used in commercial transactions. In addition to providing a set of rules for the interpretation of commonly used trade terms, INCOTERMS® 2010 accomplish the following:

1. Significantly revises Group D listed in INCOTERMS® 2000;

2. Reduce Incoterms from four groups to two groups, allowing trade experts to choose the most suitable rule related to the mode of transport; and

3. Reduce the absolute number of Incoterms from 13 to 11.

Moreover, INCOTERMS® 2010 offer additional guidance which assists users in selecting the most appropriate Incoterm for each transaction. The revised terms also spell out rules regarding the use of electronic procedures; detail information on security-related clearances for shipments; and offer advice with respect to domestic trade.

Learn more about Incoterms 2010

If you still have questions regarding the new Incoterms 2010, please contact the Trade Information Center at 1-800-USA-TRADE (1-800-872-8723).

The U.S. Commercial Service (part of the U.S. Department of Commerce) will host a webinar for e-commerce exporters.  “Preparing Your Business for Global E-Commerce” will feature the authors of the DOC’s guide for e-commerce retailers, as well as successful e-retailers. Speakers will address topics such as best practices, ordering and payment, inventory management, tariffs and taxes, international shipping considerations, fraud issues, export controls, and country of origin.

Speaker Information:

• Shirley Drake, Director Import/Export/Hazmat Compliance – Bass Pro, Inc.
• Raimundo Martinez, President and Co-Founder – GlobalShopex LLC
• Greg Sack, President of Sales – Bongo International
• Ken Walsh, Commercial Officer – U.S. Commercial Service
• Scott Lewis, Director Mid-Market – Management Dynamics, Inc.
• Kathy Parks, Corporate Sales Manager – FedEx

Learn how your business can fulfill a high volume of international orders both efficiently and profitably.

The webinar costs $40 and will take place on Tuesday, February 1 at 2 pm (EST). 
Register today!

The Journal of Commerce has a great article about how enhancing your export control program ultimately raises supply chain security, prevents delays, and increases control the export process, resulting in increased revenue from new markets.

Experts recommend implementing a complete export compliance program that acts as a delivery mechanism for implementing export compliance standards and protocol within an organization and its supply chain. The key is to know the critical components to such a program and how automation can assist an exporter in supporting its overall objective: minimizing risk and streamlining the supply chain while keeping operational costs at bay.

The article states that there are 6 key components necessary to build an export compliance program: (Read detailed descriptions of these steps in the Building an Export Compliance Program white paper.)

1. Attaining Management Support
2. Performing a Company Profile and Risk Assessment
3. Ensuring Cross-Organization Accountability
4. Automating Compliance Process Control
5. Training the Individuals and Teams Involved in the Export Process
6. Scheduling and Performing Continuous Audits and Reassessments

Export regulations apply to all international shippers and are being enforced now more than ever. Automating your export process will secure your company’s supply chain and prepare your company for the ever-changing global marketplace.

Subscribers to the Journal of Commerce may access the full article here: Building a Better Export Control Program.

If you’re not a subscriber: either sign up (JOC has great global trade news) or read the Management Dynamics white paper, “Building an Export Compliance Program.

Key focus areas in the study include:

• The number – or “patchwork” – of systems leading firms are using to manage ITMS
• The business benefits of connecting the procure-to-pay cycle
• The increased volumes ITMS users were able to handle in 2010
• The increased visibility of successful ITMS users

Download your complimentary copy of the report here.

We have posted several videos to help educate & inform supply chain managers and trade compliance managers. Unfortunately I can’t embed them all into my blog, so please view the Global Trade Management Videos here.

If you missed it, you can still watch the recorded webinar online at anytime and download the slides for reference. The webinar was full of great tips to ensure success in raising the profile of your trade compliance department and securing the ever-elusive budget to implement enhancements. Here are four key takeaways that were discussed in the webinar.

What CEO’s Want and Don’t Want

The first step is to to think like an executive, talk like an executive, and walk like an executive. Getting into the mindset of your CEO is critical to be able to explain the importance of trade compliance in relation to his or her priorities.

If you conducted a survey of CEO’s top concerns, I would bet you would not see “Trade Compliance” on that list even once. Why? It’s just not on their radar when they’re trying to please shareholders, raise profits, and make headlines. That’s why it’s up to you to explain how trade compliance helps accomplish those goals, while preventing negative results like sales to bad guys and bad press.

How do global companies succeed?

Just like everyone else succeeds – they have a plan in place! To create a strategic GTM roadmap, first identify key systems objectives, such as integrating multiple systems onto one centralized platform, ensuring import and export compliance, and minimizing business continuity risk.

Then, benchmark and establish improvement objectives.  A great (and free) source of benchmarks is the new AberdeenGroup Report “Global Trade Management: Strategies for Mastering Trade Compliance and Supply Chain Complexity.”

Finally, it takes 5 steps to create a roadmap:

1. Develop consistent reference data
2. Establish baseline visibility across the organization
3. Achieve global control
4. Continuously improve through business intelligence data
5. Reduce future costs by planning new initiatives.

The deep effects of global trade on your company’s bottom line

One of the most surprising facts revealed during the webinar is that you may be the highest ranking person in your company who “gets” global trade.  If you are a director or VP, there probably isn’t a single person above you that can manage the company’s trade activities, and even analysts and administrators are not far behind.

Leverage your knowledge to communicate the importance of global trade on your company’s profitability. Don’t emphasize penalties, however, as scare tactics don’t always work to get your way. You ultimately want your trade compliance department to be seen as a strategic initiative to cut costs in the long run rather than prevent potential fines.

Speaking to CEO’s in their language

Putting yourself in you CEO’s shoes, analyze what your corporate history has been, what the CEO has prioritized in the past, and the potential agendas of the others in the boardroom. C-level executives aren’t familiar with all the complex regulations and hundreds of acronyms we use every day when talking about trade compliance, so “translate” the key benefits of an improved trade compliance program into terms everyone understands, and no one can turn down.

For example, stating that you could “decrease the cycle clearance time” is not as impactful to an executive as being able to state, “We will achieve cost savings through decreased clearance cycle time by enhancing our trade compliance program.” The key is stating the end result: Cost savings, improved customer retention, or higher margins.

View the Recording: “Bringing Trade Compliance into the Boardroom”

Our expert panel discusses best strategies for compliance professionals to gain executive-level cooperation and sponsorship of new compliance initiatives. This webinar, hosted by American Shipper magazine, and presented by Management Dynamics and BPE,  is a must-see to help you get the attention your trade compliance department deserves from your C-level executives.

Following the AberdeenGroup’s research with 136 enterprises from September and “regarding growth and complexity in global trade operations, we can see that changes in trade lanes, shifts in trade volume and increases in overall supply chain complexity have combined to place a renewed focus on the concept of global trade management and compliance,” said Bob Heaney, senior research analyst of supply chain management at Aberdeen.

Please join AberdeenGroup and distinguished industry executives (topic areas are considered sensitive and company names are not disclosed) as they discuss global trade management initiatives and practices within their enterprises around FTZ, Restricted Party Screening, 10+2 and other initiatives. Key topic areas covered in the recent report will also be highlighted.

After viewing this webinar, you will:

• Understand the pros and cons of FTZs and other duty reduction provisions.
• Lower your overall Landed Costs
• Improve Import/Export document generation

Register Now!

Presenters:

Bob Heaney, Sr. Research Analyst, Supply Chain Management
Aberdeen Group

Craig M., Head of Customs Compliance
Large Global Copier OEM

Brian C., Director International Trade Compliance
Large Electronics Firm

Philip T., CFO of the North American Manufacturing Operations
Global Automaker/ Manufacturer

From this article, I have composed 5 simple tips on how to reduce costs in your company as an importer:

1. View your import tax policy.

Unlike import tax duties, import duties can change dramatically. How you classify your product, the type of packaging and assembly determines the particular rate you receive. Knowing you have the ability (with a little research) to recatergorize your product can help reduce costs.

2. Understand the subtle differences with the tariff schedule.

Pay attention to how your product is labeled. An example from the article was an oversized t-shirt can be labeled as either a nightshirt or a swim suit cover. The swim suit cover had an increased rate of almost 7 percent compared to the nightshirt. Make sure its clear how your product is used. Furthermore, researching  the location your product is assembled can reduce costs. Should your product be imported pre-assembled? Or, is it more cost effective to import the parts and assemble domestically? You may be surprised from your research.

3. Audit your Supply chain.

This may be commonsense, but many companies may just go through the motions and not notice extra costs popping up here and there.  For example, a U.S.-based wholesaler orders $1,000 worth of handbags from a France vendor. The vendor, in turn, orders the handbags from a factory in Manila for $750. If the American wholesaler can show through purchase orders that there was an arms-length sale between the France and Manila companies, and the handbags are clearly destined for the United States, the customs duties would be assessed against the $750, rather than the $1,000. Your audit trail will prove this transaction to the American government for tax purposes.

4. Discuss tactics with your vendor.

Always keep your vendors in the loop about tax breaks! This can help keep costs low and give you more for your money. Deciding on where you manufacture your product and where it is assembled, again, makes a difference for both you and the vendor.

5. Practice “tariff engineering.”

According to CFO, “tariff engineering is the practice of designing and marketing a product with a tariff schedule in mind.” Understand how you will market the product. The terms and use of the product derives back to tip #2, how you classify your product can help you save money.

“How you import products is actually a science. If you know the [importing] categories and how to work with the categories, you’ll save your company money.” states  Billy Pymm, CFO of Maverik Lacrosse

White Paper: Automating the Import Supply Chain

A final way to optimize your import duties is by using trade compliance software to capture and review a complete audit trail of all import transaction activities from pre-entry to Customs to post-entry.

This white paper discusses how streamlining import compliance leads to reduced landed costs through duty savings.

Download our white paper, Automating the Import Supply Chain, to learn more.