trade shipping Archives

Having international shipping capabilities has practically become a must for any serious online store. At the very least, you need to have a solid shipping service within your country if your company is going to grow and properly sell your product. So, it stands to reason that having an overall efficient shipping service is something you really ought to invest in. Luckily, we are here to give you a couple of ideas on how to improve your company’s shipping process.

Why is it important to have an efficient shipping process

The shipping process is, in essence, delivering goods from point A to point B. So, why should you spend your time and money on improving this basic service? Well, to put it simply, it is because people have grown to expect efficient shipping. Now, you can opt for outsourcing your shipping, but this is often the more expensive, less efficient way. With a bit of research and investment, you can organize your own e-commerce shipping process, and therefore have the necessary freedom to improve it.

Ways to improve your company’s shipping process

There are literally thousands of different ways to improve your company’s shipping process. Depending on where your shipping services are at now, you can be looking at smaller improvements like boosting your navigation process, to larger ones like implementing a major overhaul of your logistics equipment. So, before you decide on any of these upgrades, we suggest that you take a closer look at your company. More often then not, there is at least one improvement that will give you huge value for your investment. So, plan long and hard before you implement anything.

Streamline shipping orders

A surprising number of shipping issues have nothing to do with bad navigation or poor equipment. Most of them are due to poor internal communication and bad optimization of the beginning of the shipping process. So, if there is one place we suggest you start, it’s at the beginning. Try to pick up on the little details that make the shipping process needlessly long. These details may look insignificant on their own, but once they pile up and combine, they can easily take up a lot of time and energy. Go through the whole process both as a shipping coordinator and a customer. If you don’t have much experience with shipping, you can always hire a professional to go over your process and give you tips on how to improve.

Improve communication

In order to have an efficient shipping service, you need to have a top-notch communication system within your company. This means that your workers need to be able to communicate with each other whenever, wherever. If this is not the case currently, make it so. There are a ton of mobile apps that can make communication easier. Among the ones we can recommend are:

-Slack

-Chanty

-Troop Messenger

-Brosix

Be sure to try out a couple and to read reviews before you opt for one. To make communication more efficient, you can even look into digitalizing your shipping process as much as possible. Recent events with COVID-19 have certainly incentivized shipping companies to adopt digital shipping solutions.

Use tracking technology

One of the ways to both improve your company’s shipping process and keep your customers happy is to utilize tracking technology. Being able to have a live feed of where your shipments are will make the whole process much easier to handle. And, if you can give that info to your customers, you will effectively make them happier. In fact, most customers have grown to expect shipment tracking. This is why, sooner or later, you will probably have to implement it within your shipping process.

Be aware of courier services

When it comes to international shipping, you can rarely afford to work on your own. More often than not, you will have to coordinate with other shipping companies and courier services in order to ship efficiently. So, our advice is to prepare for your international shipments and look for local courier companies in advance. While you may have an easy time finding a shipping company in the U.S., finding one in Europe or Asia can prove to be a time-consuming process. Especially if you have to overcome the language barrier in order to set up a shipping agreement. So, do yourself a favor and prepare the groundwork for different areas before you start shipping internationally.

Prepare for customs clearance

Another way to make international shipping more efficient is to prepare for customs clearance. Keep in mind that your shipments will spend a lot of time at customs, especially if you don’t have the necessary paperwork and you don’t follow the strict guidelines. So, before you ship off your goods, ensure that the person in charge of them has everything necessary for smooth customs clearance.

Keep your customers informed

The final way in which you can better your shipping process is to always keep your customers informed. Issues and hiccups do happen, even with the most efficient shipping companies. So, while you should do all that is possible to improve your company’s shipping process, don’t expect to have a full-proof system. If and when a delay does happen, you shouldn’t shy away from informing your customers. In the long run, this act will ensure that you have better reviews.

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Jonas Myers has worked as a professional shipping coordinator for over 20 years. During that time he helped companies like U. Santini Moving and Storage improve their shipping capabilities and increase their travel efficiency. He now focuses on raising his daughters, woodworking, and on writing helpful articles about shipping.

As COVID-19 continues to wreak havoc on the world economy, it’s prudent to find ways to keep your shipping business afloat by finding economic relief if and whenever possible. First off, being aware of the changing complexities of the China-U.S. trade war is essential. According to the Census Bureau’s Foreign Trade Statistics, China is one of our country’s largest trading partners, which means companies large and small are likely affected by the trade situation. Last year, the U.S. imported $452 billion from China, which made up about 14% of overall U.S. imports by value.

Section 301 of the Trade Act of 1974 allows the U.S. to impose trade sanctions as recourse for unfair foreign trade practices. In 2017, China was under investigation for issues regarding innovation practices, intellectual property rights, and technology transfer. Since then, retaliation measures have been put in place for the past couple of years and remain in effect for an indefinite amount of time. While the USTR recently announced reductions on some tariff measures and a suspension of others, about two-thirds of U.S. imports from China are still taxed an additional 7.5% to 25%, covering about $350 billion worth of product. Keep in mind, the average duty rate for U.S. imports is only 2%; thus, China’s products are incurring additional costs on top of that.

The current tariffs are extremely broad and cover many industries including food/beverage, industrial supplies, transport equipment, consumption goods, and fuels and lubricants. As of this month, the U.S. Customs and Border Protection (CBP) reports collecting $52 billion in Section 301 duties since the trade remedies took effect.

This is a hot issue for importers and we’re currently seeing more industry associations and companies pushing for relief from these measures. While the period to request exclusions from the Section 301 tariffs is now closed, it is a great time to confirm that you are doing all you can to potentially recover duties previously paid, and potentially apply on a go-forward basis the exclusions that the USTR has been granting against certain products.

How to seek relief now and in the future

Cost savings and refunds are top of mind for all, so to help provide some relief, the USTR has released many tariff exclusions shippers can apply for. The important thing to keep in mind here is that ample work is involved. It’s not just a one-time process, because you’ll likely need to continuously apply for new exemptions where applicable. Some of the exclusions being granted are product-specific whereas some are granted at the HTS classification. You’ll also want to be ready in case CBP asks for proof of eligibility. Staying organized is paramount to identify the opportunities and defend against CBP scrutiny.

Each exclusion round also has a validity period, and many of those expiration dates are coming up fast! We’re seeing the USTR opening several new short-window comment periods to consider extending previously granted tariff exclusions. This could be your chance to drop commentary to protect and extend your granted exclusions or to oppose competitors, if applicable and necessary so that your company is not left at a disadvantage.

What are the eligibility requirements?

Eligibility is simple – companies affected by the China 301 tariffs.

Exclusions can be granted based on sourcing, impact on U.S. jobs and product type and need. Producers of goods used to combat COVID-19 can also be eligible for exclusions.

Also, tariff exclusions are retroactive to the date the tariffs were first applied, and exclusions generally expire after one year from the date of publication of the granted exclusion.

Important Reminder for Process

The customs entry and liquidation process is complicated, spanning a lengthy period. It can take up to 480 days and is broken down into these windows of time:

1. Day 1: Customs entry is filed

2. Day 1 – 300: Post Summary Correction (PSC) – can be filed to request refund prior to the entry liquidating

3. Day 300: PSC no longer eligible as entry is deemed liquidated (importer may request suspension or extension of liquidation prior to this point).

4. Day 301 – 480: Entry is liquidated, and protest must be filed to request a refund

5. Day 480+: Entry may be past protest period and is no longer eligible for a refund request via PSC or protest.

Since the process is lengthy, make sure you consider these tips when conducting your duty recovery analysis:

-Know your product (10-digit HTS codes and know the barcodes toward the products)

-Apply their qualifications

-Narrow down lists of products impacted by tariffs

-Identify which ones have exclusions granted – work with that list

-Run a report and gather import activity

-Start looking at validity dates

-Make sure brokers are applying it to the new shipments of the products

-File petitions if you want to continue to take advantage of it

Insights for the future

The trade war is not ending soon and it’s hard to unravel, but we know it’s an important issue that we can expect to see in the spotlight for the foreseeable future. Customers are advised to stay close to this and to pay attention to the advisories from C.H. Robinson and USTR.

To check for exclusion status against your products click the resources here:

1. $34 Billion Trade Action (List 1),

2. $16 Billion Trade Action (List 2),

3. $200 Billion Trade Action (List 3)

4. $300 Billion Trade Action (List 4)

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Kevin Koch is the product development manager for C.H. Robinson’s U.S. Customs brokerage service. For the last ten years, he has served C.H. Robinson in numerous roles, from account management, business technology and process leadership, and ultimately to customs and trade compliance – where he found a strong sense of pride in the critical role that Customs brokers play today in international trade. He is a licensed U.S. Customs broker that is passionate about analyzing the macro trade trends and applying the vast knowledge and experience of the C.H. Robinson Customs and Trade Policy teams to support clients in designing and implementing solutions to strengthen trade compliance programs while maintaining keen focus on streamlining process and reducing spend. He holds a bachelor’s degree from the University of Illinois and is eager to finish his MBA in global business this year from the Lake Forest Graduate School of Management.

How to Improve Your Company’s Shipping Process