Emery Worldwide has launched a new customs brokerage programme that will assist the growing number of manufacturers who now must assume duty costs and customs compliance for international shipments as part of doing business with their customers.
Emery developed this "Non-Resident Importer of Record Program" in response to a rapid and significant migration from the traditional term of sale "free on board" (FOB) to "delivery duties paid" (DDP). DDP is an internationally recognised term of sale used to define cost responsibilities and transfer of risk for goods shipped in international trade. The significance of this is that the entire responsibility for the shipment now belongs to the seller. This responsibility includes all transportation expenses (pick-up, international carriage, destination deliver), insurance and all the responsibilities for customs clearance, including the broker's fee, all duties/fees/taxes paid to customs and compliance. The critical element is the shift of the burden for compliance.
"More and more of our customers are doing business DDP," said Simon Yam, Emery division manager, Hong Kong, China and Macau, "and are finding themselves immersed in customs compliance issues and need learn more about them. This new program helps them shift to the DDP term of sale with relative ease."
Concurrent with the new initiative, Emery announced the promotion of Julie Hurst, an 11-year veteran of Emery Customs Brokers, to the new position of manager, global customs compliance.
"Emery is one of the few international forwarders/brokers to recognize this trend in DDP, and the only one to formalize a program for the seller to get set up as a non-resident importer," Hurst explained. She also noted that, while the trend is mostly confined to the high-tech and contract manufacturer arena and shipments to the US, "we are starting to see other industries jump onto the DDP bandwagon. It also is spreading to other countries where their laws allow for this practice."
Hurst said the seller, with advanced preparation, can become a "Non-Resident Importer of Record" possessing the same level of responsibility and accountability to customs as that of a national/resident importer. Emery's formalised programme for shippers includes a formal activation kit, compliance information and tools, and the resources of an excellent support team in Cleveland, Ohio, where Emery's customs brokerage unit is based.
"Sellers in Asia, particularly those in the high-tech industry, are quickly finding that to retain their current customers, they have to be able to shift to the DDP term of sale," Hurst said. "Also, a seller can compete at a completely new level within an international market once they position themselves to conduct business in this fashion."
"Selling goods DDP allows a buyer to conduct a complex international transaction with the simplicity of a domestic transaction," Hurst added. "The DDP trend is often part of a vendor hub, which has become very popular." Vendor hubs allow the foreign shipper/seller to keep their product in close geographical proximity to their customer. Their customer places an order and can have the product delivered in a matter of a few hours.哩
Hurst has made two trips to Asia to work with foreign sellers to educate them on U.S. compliance. She will also will be developing databases worldwide for Emery's clearance services and compliance information, and developing new systems programs, such as global pricing matrices. She will work with Emery's marketers on formulating bids and assist sales teams in securing new business. Additionally, she is coordinating compliance training programmes in the U.S. and internationally.
Emery established its first office in Hong Kong in 1962. It manages 20 logistics centres in the Asia Pacific and maintains a regional headquarters in Singapore.