CALISTA Trade Advisory

Customs and compliance matters go beyond import and export procedures and the payment of duties and taxes. Traders must understand specific documentation requirements for each shipment type, submission timelines for different modes of transport, rules of origin, applicable permits and licenses, free trade agreements, HS code classification, and more. Here’s how CALISTA Trade Advisory can help.

 

Intense competition has also put pressure on businesses to reduce costs and optimize supply chain processes. There is an urgent need for reliable and cost-effective shipping routes, logistics service providers (LSPs), and innovative technology that coordinates and streamlines activities.

 

Businesses engaged in international trade understand that the regulatory environment is constantly evolving. Customs regulations and clearance requirements vary by country and sometimes even by port, and navigating these rules can get complicated and expensive.

 

However, few organizations can afford to build in-house departments with a team of dedicated trade professionals and sophisticated trade systems; it is more common to work with third parties who can provide expertise, technology and other services at an affordable cost.

 

Meeting Trade Challenges with CALISTA Trade Advisory

 

Trade Compliance Issues

 

Issues surrounding trade compliance are specific to national and regional markets. Trade policies change frequently, and it is the responsibility of trade participants to keep abreast of these changes. Some key issues in many countries are bureaucracy in customs processing, knowledge gaps among supply chain participants, and legacy technology. SMEs in particular can be at a disadvantage when it comes to optimizing compliance if they cannot access the resources they need.

 

Thanks to new rules (like the increased de minimis thresholds in Canada and Mexico) that favor cross-border ecommerce, retailers and importers can look forward to reduced paperwork and fees associated with processing low-value shipments. However, there is still much to be done in order to leverage opportunities to the fullest. Deploying smart technology that automates data entry and simplifies trade declaration ensures that businesses are positioned for ecommerce success.

 

HS Code Classification

 

The Harmonized System (HS) is a system used by customs agencies in more than 190 countries to classify goods, calculate tariffs, and control imports and exports. Traders are required to use a four- or six-digit classification system, but the remaining numbers are determined at the national level. The tariff classification or HS code (and the country of origin) is used to determine the duty rate and applicable tariff treatment for imported goods.

 

The HS code must be accurate in order to calculate duties and taxes, as well as apply any trade benefits to imports. For example, products classified under specific HS codes may be eligible for a reduced duty rate upon entry. The actual fees to be paid depend on additional documentation, such as certificates of origin for goods eligible for free trade agreement benefits.

 

HS classification is one of the most tedious and time-consuming processes in cross-border trade, especially for high-volume traders. Importers generally rely on licensed customs brokers or third-party experts for HS classification.

 

Managing Costs

 

Most businesses today focus on cost reduction and optimizing efficiency. Traders are always looking for opportunities to save money and time. While the current economic slump brought on by the COVID-19 pandemic has created massive opportunities in trade and logistics, many businesses are adopting a cautious approach to investments. Now is the perfect time to find fast and reliable but affordable logistics services, as well as innovative technology that impacts the bottom line. Trade advisory services can uncover cost saving opportunities in your organization and make processes more efficient.

 

Do You Need a Trade Advisory Partner?

Consultancy firm Forrester predicts an annual global ecommerce growth of 17 percent between 2017 and 2022 and 12 percent for overall ecommerce (cross‑border, domestic, B2B, B2C). Compliance requirements continue to change (and often increase) as the global ecommerce market expands.

 

Organizations may find that customs agencies ask for additional information particularly for inbound shipments and enforce stricter control over trade accounting. It’s critical now more than ever to provide complete, accurate and timely cargo data in order to expedite clearance and delivery to the end customer.

 

If your business is struggling to meet customs compliance and regulatory demands, it might be time to work with an experienced trade advisory partner. A knowledgeable expert can help your organization:

• Understand the impact of customs requirements on supply chain activities, from product design to delivery
• Calculate the cost of compliance and customs duties and their impact on the bottom line
• Take advantage of all available trade benefits, including reducing duties and compliance costs
• Optimize customs planning, compliance and risk management
• Deploy intelligent technology that increases transparency and collaboration and makes data work for your business

 

Businesses can look forward to significant savings and improved performance by working with a trusted trade advisory partner who can help address trade compliance challenges.

 

CALISTA Trade Advisory and CALISTA Intelligent Agent (IA)

Powered by artificial intelligence, CALISTA Intelligent Agent (IA) is built to orchestrate global supply chains, spanning across logistics, compliance and financial activities. It provides insights on freight options, free trade agreements, and import/export procedures.

 

CALISTA Intelligent Agent can recommend optimal freight solutions, provide alerts, and trigger actions to orchestrate supply chain activities based on budget, preferred timelines, and modalities. Users receive updates on cargo status and movements.

 

In the event of unforeseen circumstances, CALISTA Intelligent Agent will advise on the next best steps to take. These options and recommendations allow users to better optimize their supply chain.

 

Features and benefits:

• Orchestration. Provides freight options, free trade agreements, customs formalities
• Optimization. Optimizes the supply chain based on budget, preferred timelines and modalities
• Alerts. Provides alerts on cargo status and movements
• Triggers. Provides next best steps in case of any unforeseen circumstance

 

CALISTA Trade Advisory

Trade Advisory is part of CALISTA Intelligent Agent, designed to help businesses stay on top of trade regulations. Trade Advisory features trade compliance information, HS code smart search, and landed cost calculator to help you save time and money.

 

Powered by Artificial Intelligence, CALISTA Trade Advisory recommends HS codes based on the product

description through natural language processing (NLP). The system also provides the latest information on Free Trade Agreements (FTAs), duties and taxes, customs regulations, and required trade documents. This service is ideal for importers, exporters, customs brokers, and other trade participants.

 

Features:

 

HS Code Smart Search

 

CALISTA Trade Advisory helps importers find the correct HS codes efficiently. Our smart HS code classification service is powered by machine learning, drawing on past approved trade declaration records and generating matching HS codes based on the product description. HS Code Smart search reduces lead time to declare products and increases chances of customs approval.

 

Trade Compliance Information

 

Trade Advisory allows clients to access an extensive knowledge base on trade compliance. This includes up-to-date information on free trade agreements (FTA), customs regulations, required trade documents, and duties and taxes in different countries, including the U.S., Canada, Mexico, Panama, Japan, and Singapore.

 

Landed Cost Calculator

 

Use CALISTA Trade Advisory’s landed cost calculator to easily identify the best and most cost-effective delivery providers, shipping routes, and ports of entry for your shipments.

 

Benefits:

• Keep up to date on the latest trade regulatory changes
• Access the knowledge base of import and export trade formalities
• Understand current trade barriers that may impede the flow of goods between countries
• Maximize profits by utilizing available Free Trade Agreements ( FTAs)

 

Learn more by visiting our CALISTA Trade Advisory page or contact us today!

   

Related Pages:

eCommerce Compliance

CALISTA

Trade Document Processing

GeTS and PSA Building Global Trade, Supply Chain Platform