Client
A leading U.S.-based aerospace manufacturer importing specialized components, machinery, and materials from multiple global suppliers.
Challenge
The company faced significant challenges in managing its customs compliance and import operations:
- Complex and Time-Sensitive Shipments:
- Aerospace components are highly regulated and subject to strict U.S. Customs and Border Protection (CBP) oversight.
- Delays in clearance disrupted the production schedule, leading to financial and operational setbacks.
- Compliance Risks:
- Misclassification of components and incomplete documentation created risks of penalties and shipment holds.
- The company needed real-time oversight to ensure compliance with U.S. import laws and regulations.
- Coordination Issues:
- Relying on offsite customs brokers created delays in communication and response times.
- Lack of visibility into the brokerage process led to operational inefficiencies and errors.
Solution
To address these issues, the aerospace manufacturer implemented an onsite customs brokerage program in partnership with a licensed customs brokerage firm. Key components of the solution included:
- Deploying Onsite Customs Brokerage Employees
- Real-Time Clearance and Compliance
- Onsite brokers ensured all documentation, including commercial invoices, packing lists, and certificates of origin, were reviewed and submitted in real time.
- Provided instant HS code classification and valuation accuracy to eliminate errors.
- Proactive Compliance Management
- Established Standard Operating Procedures (SOPs) for compliance processes, ensuring alignment with CBP regulations and ITAR/EAR requirements for controlled goods.
- Conducted regular internal audits and risk assessments to prevent penalties and maintain compliance.
- Integrated Technology Solutions
- Integrated with customers ERP system and JMR’s customs brokerage software platform to centralize data, centralize HTS code, and generate reports for audit trails.
- Connected the software with the client’s Enterprise Resource Planning (ERP) system for real-time visibility of import operations.
- Training and Knowledge Sharing
Results and Benefits
Outcome
- Improved Customs Clearance Efficiency
- Clearance times for critical aerospace components reduced by 50%, preventing production delays.
- Real-time issue resolution by onsite brokers minimized shipment holds and expedited urgent deliveries.
- Enhanced Compliance
- Achieved 100% accuracy in HS code classification and customs declarations, reducing compliance risks.
- Successfully avoided penalties and maintained trusted trader status with CBP.
- Cost Savings
- Reduced demurrage, detention, and storage fees by resolving clearance issues onsite.
- Identified opportunities for duty drawback programs, recovering significant amounts in overpaid duties.
- Operational Streamlining
- Improved communication and coordination between import operations, brokers, and supply chain teams.
- Increased visibility of import activities, enabling proactive decision-making.
- Long-Term Compliance Stability
- Established a robust framework for managing complex aerospace imports, ensuring continued compliance with CBP, ITAR, and EAR regulations.
Key Takeaways
- Embedding onsite customs brokerage employees at a client’s facility creates a streamlined, proactive, and efficient approach to managing complex imports.
- Real-time oversight reduces clearance delays, mitigates compliance risks, and improves overall supply chain performance.
- For highly regulated industries like aerospace, onsite brokerage services ensure adherence to trade laws while supporting production continuity.