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Case Study

Onsite Customs Brokerage Employees for a Major U.S. Aerospace Manufacturing Importer
By implementing an onsite customs brokerage program, a leading aerospace manufacturer reduced clearance times by 50%, achieved 100% compliance in HS code classification, and enhanced supply chain efficiency, ensuring uninterrupted production and long-term regulatory adherence.

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:

  1. 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.
  2. 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.
  3. 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:

  1. Deploying Onsite Customs Brokerage Employees
  2. 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.
  3. 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.
  4. 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.
  5. Training and Knowledge Sharing

Results and Benefits

Outcome

  1. 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.
  2. 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.
  3. 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.
  4. Operational Streamlining
    • Improved communication and coordination between import operations, brokers, and supply chain teams.
    • Increased visibility of import activities, enabling proactive decision-making.
  5. 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.