At a recent retail seminar held in New York on Financial Returns in Global Trade, speakers reported that retailers engaging in global trade best practices can expect to see substantial financial benefits, improved operations and lower compliance risks. This event, hosted by Amber Road and Sandler & Travis Trade Advisory Services, Inc., focused on how retailers can automate trade compliance for increased financial returns.
Hung Lee, Senior Product Manager and Vin Ramundo, Solutions Consultant, both of Amber Road, spoke extensively on this subject and discussed methods for increasing financial returns such as utilizing First Sale and duty drawbacks. Ramundo noted that typical reductions include a five to eight percent reduction in transportation costs, ten to fifteen percent reduction in cycle stock inventory, and four to seven days’ compression in order cycle times.
“Typically, First Sale savings within the first five years are ten to twenty percent on duty,” commented Laura Siegel Rabinowitz, Of Counsel, Sandler, Travis & Rosenberg. First Sale bases the duty rate on what the manufacturer paid for the goods, rather than after a middleman’s markup, which is what Customs duties are typically assessed on.
Dawn Olesky, Director, Drawback Operations, Sandler & Travis Trade Advisory Services, Inc., noted that, “Duty drawback can offer as much as a 99 percent refund of import duties, taxes or fees.”
“With duty drawback, you have the ability to lower costs to customers and, therefore, should increase sales,” Olesky added.
Interested in learning more about how you can leverage compliance to increase financial returns? Join Amber Road and Sandler & Travis Trade Advisory Services, Inc. for a free webinar, Financial Returns in Global Trade: ROI of Compliance, on Wednesday, June 5th, at 2:00 pm.
Company executives may often perceive the compliance team as a cost center, but the opposite is actually true – compliance can yield a significant return on investment (ROI) and a competitive advantage.
