Foreign Trade Zones serve multiple purposes including managing transshipping operations and saving money on manufacturing processing fees. Typically companies use FTZs for exports. However, Foreign Trade Zones can also be used to take advantage of crossdocking and transferring goods from one FTZ to another – often referred to as zone to zone transfers - without … Continue reading “Waived customs duties on zone to zone transfers”
As supply chains have become global, it is very common for companies to either procure or ship goods to and from a transit country. What is a transit country Transit countries are countries in which goods are transported from the originating country to a final destination through a third country. For example, if goods were … Continue reading “Export Control for Transit Countries”
There are a few factors to consider when weighing the pros and cons of Batch Processing. Let’s outline the disadvantages of having a Global Trade Management (GTM) system fed by batch data from the ERP. Key disadvantages of a batch processing model vs real time data integration: Transaction Velocity Business impact of compliance blocks (such … Continue reading “Disadvantages of Batch Processing”
Most US importers are familiar with duty. They pay duty (and applicable MPF/HMF) on many of their imported goods – particularly those that are not granted 0 duty by virtue of a free trade deal. Unfortunately, too many companies consider this cost a “necessary cost of business” and simply plan for it in their budgets. These … Continue reading “Duty Drawback – Benefits and Challenges”
A recent OFAC press release, and guidance document, offers some good advice, but also risks misleading readers. A careful read of the case and guidance will reveal a hidden lesson to be learned. At first glance, the guidance simply reminds companies to ensure their Sanctioned Party Lists (SPL) are updated and reviewed, and most readers … Continue reading “The hidden lesson in OFAC guidance on “false hit lists””
DSP-5 Scenario based on real events Your company has been working for months, maybe even years to cultivate a contract to manufacture your company’s first satellite for a Singapore Cellular Provider. It’s a $10,000,000 contract and your manufacturing team has just completed the final product. Months ago, you were given a forecast of when the … Continue reading “What you need to know about DSP-5”
