BenefitsCustoms Related Savings
Customs Related Savings
There is broad agreement that the benefits of participating in supply chain security programs are significant. Those benefits are well known and codified by the World Customs Organization (WCO) SAFE Framework of Standards.
But there is also considerable debate about those same benefits. For example: Are they sufficient? Are they measurable? Are they consistently applied across all programs?
These are all issues for the relevant customs authorities to discuss. BASC, as a member of the Business Consultative Group to the World Customs Organization, is actively involved in those discussions, working as a representative of our members.
At Global BASC, our mission is to provide practical solutions for the business community. Therefore our approach to these issues is much more central and narrowly focused:
How do we integrate the various requirements of multiple security programs in this complex trade environment and help our members maximize their benefits of participation?
Our solution is Global BASC
The Global BASC compliance portal contains five key components designed to work together to integrate the requirements of the major security programs:
- Online compliance center – Inexpensive, standardized, and easy to use
- BASC Index – Standardized measure of trust in your company to mitigate risk
- Risk Assessment – Measure risk in the supply chain
- Customs Connect – Share compliance and risk assessment data with customs
- Member Directory – Find secure partners around the world
Savings related to customs clearance and inspection
There are significant costs incurred by the supply chain related to reviewing, upgrading, implementing, and maintaining a trade security program. These costs are now part of a shipment’s total landed costs. However, the following costs are also part of the total landed cost of a shipment and are usually unnecessay, and always unwanted:
- Costs of supply chain disruptions
- Costs of delayed shipment release and delivery
- Additional port or bonded warehouse fees
- Inspection fees
- Transportation expenses to and from the exam sites
- Additional logistics service fees
- Fines and penalties
- Damage to customer relations
All companies involved in the supply chain need to recognize that implementing and practicing basic security procedures can greatly mitigate these unplanned and unwanted costs.
In fact, Customs administrations word wide are pushing the global trade towards using trusted supply chains. We call this the Trusted Partner Advantage: