When should SME’s outsource customs clearance to an Australian freight forwarder

International regulatory customs requirements and complex brokerage processes are ever-changing. Have you ever considered whether you should outsource customs clearance to a freight forwarder?

When would you outsource customs clearance as a business process?

Outsourcing is sometimes seen in an unfavourable light; however, it does play an important role in business. There are situations when outsourcing saves time and money for an SME importer, exporter or retailer.

What is outsourcing?

Outsourcing is any process involving the transfer of tasks to a third party provider. This could simply be delegating customs clearance processes to an expert customs brokerage firm in Australia. It can, however, extend to sending relevant business data via system integration to make delegation of customs clearance more efficient.

Outsource customs clearance – When is a freight forwarder the solution?

What are the advantages of outsourcing my customs clearance processes?

Small to medium enterprises (SMEs) need to utilise their limited resources, including time, labour and money.

Outsourcing your customs clearance processes to reliable Australian third party providers frees you of importing and transportation paperwork. It eliminates the stress associated with logistics management. It gives you more time to focus on your core business.

An Australian third party customs clearance firm relieves you of this workload, saving you all the hours spent:

• Learning tariff classification, concessions and free trade agreements (FTA)
• Training staff to properly complete the required customs clearance forms
• Preparing pre-arrival release documents and post-entry forms
• Calculating the necessary duties and fees
• Dealing with clearance issues as they arise

When should you outsource your customs clearance processes?

Now is the right time to consider whether outsourcing your customs clearance processes is viable for you. The following questions will help you determine whether your business demands immediate outsourcing of customs clearance processes.

How much do you need to pay for an in-house licensed customs broker?

Compare the costs of hiring a part-time or full-time in-house licensed customs broker vs outsourcing your customs clearance. Rather than employing one or more part-time or full-time in-house licensed customs brokers, it may be more cost-effective to have an outsourced team of experts doing the job for you.

Is there someone providing you with regulatory guidance?

If you think customs clearance is simply filling out entries then you’ve got it all wrong. It requires knowledge and understanding of tariff classifications, concessions and FTAs.

• Do you have the time to train one of your employees to learn all of these?
• Can your business afford the penalties and fees if errors are made?

Freight Forwarder Quote Online can help you with these complex processes. We have a team of expert customs brokers, fully trained and knowledgeable on the latest customs rules and regulations.

Do you have the capacity to transmit information electronically to customs?

Aside from being knowledgeable on customs rules and regulations, customs brokerage firms have the technology and infrastructure to electronically submit entries to Customs. This requires an Automated Broker Interface (ABI) connection and an Automated Commercial Environment (ACE) programming system.

Engaging an Australian freight forwarder that can handle customs clearance allows you to enjoy all these features without impacting on your IT budget or resources. Why would you still spend money establishing your own IT infrastructure solely for this purpose?

Can the outsourced brokerage team also coordinate carriers, shipping lines, freight forwarders, trucks and warehouses?

We live in an era when almost all data, including logistics information, can be transferred electronically. Established Australian freight forwarders that can handle customs clearance have this data automatically transmitted into the systems of carriers, shipping lines, freight forwarders, trucks and warehouses. Why would you still prefer to hire a person just to communicate with all these parties by phone?

Do you have the ability to track and trace your cargo?

No-one wants to guess where their cargo is. Is it still at sea? Has it arrived at the port? Is the shipment being delivered to its destination? These are some of the questions for which you want immediate answers.

We can provide these details for you. Our track and trace system can easily follow your cargo to ensure it is transported accordingly. We can confirm arrival and delivery, giving you peace of mind and allowing you to focus on your core business.

Why to outsource customs clearance to a freight forwarder can be best solution

When considering outsourcing your customs clearance to a third party, it is best to choose a freight forwarder with a customer broker team. This means your freight forwarder can handle any shipping work you wish to delegate. It also makes it easy for you to achieve greater business efficiencies if you choose to eventually delegate all your shipping work.

Your freight forwarder will organise all aspects of your customs clearance. Their services cover securing freight location at best price, correlate shipping costs, organise long-term and short-term holding of goods, set up insurance, and tracing your cargo at all times.

As your freight forwarder uses their own shipping documentation, your admin workload is greatly reduced. Further, their network of partners ensures documents are delivered, separation of all shipment components, and pickup or delivery at landing place.

Through your freight forwarder’s many years of experience, you benefit from the vast network of partnerships they’ve developed. This ensures you favourable costs and timely communication. Also, should freighting options such as shipping by plane, train or vehicle be required, your freight forwarder can establish the optimal plan to ensure your freight arrives at its destination when and as expected, and at the best price.

Outsource or in-house customs clearance, what is the better option?

Calculate the hard costs to business of an in-house vs an outsourced customs clearance approach. List the services an outsourced customs broker team within a freight forwarder can offer that you cannot execute or efficiently perform in-house. Analyse the data you’ve gathered to determine whether customs clearance outsourcing is the best strategy.

If it seems outsourced customs clearance is the better option, then send us a message for call us on 1300651233. Check out our Linkedin profile and look through our weekly posts for more up-to-date information on customs clearance and freight forwarding.