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Considerations for Customs Management in Multinational Companies

Logsitics Blog
Customs Management

Companies often rely on brokers for complex import procedures, but with new tech, Customs Management is now more accessible in-house than ever before. As digital platforms simplify documentation, compliance checks, and communication with customs authorities, businesses can take greater control of their supply chains. This shift not only reduces costs but also increases transparency and responsiveness in global trade operations.

In this article, we explore how businesses can navigate modern Customs Management more efficiently. We’ll guide you through the essentials of managing customs processes in-house with confidence.

Reasons Why Customs Management was Considered Difficult

Customs management was considered to be impossible for companies to handle on their own for a number of reasons.

  1. Firstly, the complexity of the filing process and the regulations involved were significant deterrents, which also led to the belief that it is necessary for a Customs Broker to handle the whole process.
  2. Secondly, most importers believe that they do not possess the expertise to manage compliance, customs filing, and the classifications of the goods that they import. Maintaining product classifications accordingly to relevant tariffs and managing compliance is almost impossible for a company without the expertise of a customs broker.
  3. Thirdly, there has been a massive increase in the number and complexity of regulatory requirements, which range from product safety to national security, making the task of customs management even more daunting.
  4. Lastly, technological solutions for facilitating interaction with customs had not existed. As a result, there was no information system that could maintain and easily provide regulatory information from several regulatory bodies pertaining to different products and supplier countries. This makes the task of executing a customs filing extremely difficult.

Technology

Customs Management has now become far more accessible for companies. This is because of the development of specialized customs management software designed specifically for importers. These software programs completely streamline the process of filing a customs entry. They facilitate the importer in:

  • Managing their accounts and products
  • Preparing a full entry (ISF,7501/3461, OGA) for an audit prior to entry
  • Submitting the entry via electronic means, either directly to customs or the broker
  • Updating the entry in customs

Benefits of Customs Management Software

Centralized Parts and Account Control

Customs Management software allows importers to take the data for their accounts from ERP systems and place it in the context of compliance and customs requirements.

EDI and XML message capabilities

Customs Management software allows importers to directly interact with their carriers and suppliers through XML and EDI messages. This allows them to acquire data, which is used in the creation of a customs import file.

Reduced Errors/Increased Compliance

Customs Management software allows importers to prepare a sheet that contains all ISF, 3461/7501, and OGA entries for auditing prior to transmitting to Customs.

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