The Trade & Customs function of a company is often overlooked. Executives are rarely aware of how much customs duties they pay per year and how inefficient supply chains and other trade barriers create hidden costs. Nowadays, it’s becoming even more important to control this function due to the nature of trade and the uncertainty of the global trading environment.
The consequences of a lack of control and understanding of trade and customs processes can be costly. Uncoordinated strategies and operational inefficiencies can lead to supply chain disruptions, delays or blockage of goods and unanticipated costs. This translates into a loss of sales and the erosion of profit margins.
One aspect that is often forgotten are the potential legal charges and reputational damages arising from noncompliant processes. These vary from financial penalties to criminal persecution or personal liability as well as the withdrawal of customs simplifications (e.g. approved exporter). When the infraction is a violation of the US (re)-export controls and sanctions, the company could be blacklisted from the US.
At KPMG, our team of Trade & Customs experts assists clients with a compliant trade strategy that is sustainable, assures certainty and readiness for the supply chain and maximizes the benefits of the trade legal Framework.