While expanding into new territories can open up lucrative opportunities for any organization, the prospect of navigating complex international shipping regulations often discourages shippers from making the move. Whether businesses are looking to make their first international shipping venture or optimizing their global freight audit and payment strategy, one seemingly small misstep can result in a mountain of fees and legal obstacles.
But shippers with their sights set on building a cross-border business shouldn’t be deterred by these challenges. By understanding today’s international shipping regulations, businesses can make logistics decisions that support full compliance with each country’s laws and standards. And with a transportation management system (TMS) on their side, shippers gain even more support to help them save money, optimize operations, and tackle the complexities of global shipments.
Take on regional customs compliance
Every country has unique customs laws and regulations to consider, including:
- Clearance and valuation requirements
- Import duties and taxes
- Tariff classifications
- Trade agreements
Customs considerations may even differ depending on the product type. When shippers fail to understand and comply with these regulations, they risk delivery delays and seizures of imported and exported goods—and can even face fees, penalties, and other legal ramifications.
Address trade compliance and security expectations
Shippers conducting international business must navigate strict regulations on everything from supply chains and export controls to sanctions, embargoes, and restricted items—not to mention security protocols for moving goods and materials that risk national security. Understanding these regulations can prepare shippers to craft and deploy sound trade compliance and security measures on international shipments.
Meet documentation requirements
Shippers engaging in global trade have to submit a litany of documentation to the proper governing bodies. These documents can include, but may not be limited to:
- Commercial invoices
- Packing lists
- Bills of lading
- Certificates of origin
- Import licenses
- Permits
Compliance with applicable customs regulations means ensuring every document is accurate and complete, as discrepancies and missing information can expose shippers to clearance delays and increased costs. By turning to a TMS for effective, scalable document management and permissions practices, shippers can work to avoid compliance issues due to missing or error-filled documents.
Manage tariffs, duties, and taxes
High volumes of tariffs, duties, and taxes on imported goods can pose a significant financial threat to shippers doing international business. What’s more, these fees vary based on the product’s type, origin, and value—and every country has unique tariff structures and duty rates to consider. Shippers should be aware of all these financial factors to correctly anticipate the costs of global shipping before making the investment.
Additionally, proper good classifications are necessary to correctly apply tariff codes to products—and in doing so, avoid the under- or overpayment of duties. Following tariff rate and code guidelines like the US’ Harmonized Tariff Schedule can help shippers navigate the myriad financial complexities of international product and service sales.
Promote supply chain sustainability
Businesses and countries may not work with shippers that significantly contribute to the decline of the world’s environments. Shippers doing international business should therefore take measures to green their supply chains and support global sustainability initiatives.
Implementing a tool like CTSI-Global’s Honeybee TMS helps shippers tap into cost savings and improve supply chain sustainability by reducing emissions with features such as:
- Load optimization for consolidating cargo into fewer shipments
- Carrier selection for enabling shippers to partner with environmentally responsible carriers
- Route optimization for identifying optimal routes for air, land, and ocean freight
And with business intelligence insights delivered on every shipment, adhering to sustainable practices becomes even easier.
A wider perspective eases the challenges of international shipping
Successful commerce in today’s interconnected and competitive supply chain landscape demands a firm command of international shipping. For that, shippers need a partner with logistics footholds in key markets throughout the world, one that can help with anything from efficiently moving freight between countries to breaking down a country’s specific customs requirements.
Honeybee TMS offers shippers more than just compelling logistics management features—it gives them a partnership with CTSI-Global, a world-class international logistics leader. Our experts can help shippers navigate international shipping complexities and thrive on the world stage, while maintaining compliance with regional customs and regulations. Over the long run, shippers trade unnecessary fees and legal complications for streamlined processes and significant time and resource savings.
Ready to do more global business? Contact CTSI-Global to tackle international shipping regulations with a robust transportation management system and a trusted partner.
