The Benefits of Doing Customs Declarations Yourself

Customs declarations are an essential part of international trade, ensuring that goods entering or leaving a country comply with regulations, tariffs, and laws. Traditionally, many businesses rely on customs brokers to manage the complexities of customs declarations. However, handling customs declarations independently offers several advantages that can be crucial for businesses aiming for greater control, cost savings, and operational efficiency.

1. Cost Savings

One of the primary reasons businesses opt to handle their own customs declarations is to reduce costs associated with third-party intermediaries. Customs brokers charge fees for their services, which can add up, especially for businesses that frequently import or export goods. By managing declarations internally, companies can eliminate or significantly reduce these fees, allowing for greater profitability or the ability to reallocate resources to other

parts of the business.

Additionally, some customs brokers may have minimum service charges or offer tiered pricing, which may not align well with the needs of smaller businesses or occasional shipments. By taking control of the process, businesses only incur costs that are directly related to their own operations.

2. Increased Control and Transparency

Handling customs declarations in-house provides businesses with complete control over their shipping and compliance processes. By directly managing the process, companies can ensure that they fully understand every step involved, from product classification to tariff codes. This increases transparency and minimises the risk of mistakes, such as incorrect duty assessments or improper classification of goods.

Having control also means businesses can directly manage timing and coordination of shipments. They are not reliant on third-party brokers’ schedules, which may be subject to delays or miscommunications. Direct involvement with customs declarations helps businesses stay on top of deadlines, reducing the likelihood of delays, fines, or confiscated goods.

3. Enhanced Compliance and Risk Management

Customs regulations are dynamic and subject to change, with tariffs, documentation requirements, and regulations evolving frequently. By managing declarations internally, businesses can stay up to date with changes in import/export laws, new trade agreements, and country-specific requirements. This continuous monitoring of customs requirements fosters a deeper understanding of regulatory compliance and allows businesses to make informed decisions when navigating these complexities.

In-house handling also reduces the risk of relying on a third-party broker who may not fully understand specific aspects of a company’s products or operations, potentially leading to non-compliance or costly errors. When businesses do their own declarations, they can tailor their approach to their unique operations and reduce the chances of misunderstandings or violations.

4. Faster Processing and Greater Flexibility

Customs declarations are time-sensitive, and relying on third-party brokers can introduce delays into the process. A customs broker may have multiple clients and may not prioritise a specific shipment in the same way the company itself would. By completing the process in-house, businesses can ensure that their customs paperwork is submitted promptly, potentially expediting the clearance of goods through customs. In cases where a quick turnaround is necessary, internal management provides the flexibility to respond swiftly to changes or unexpected situations.

Moreover, businesses can customise their internal processes for handling customs documentation, optimising their workflow for greater speed and efficiency. This flexibility is particularly valuable for businesses that need to accommodate a range of different shipments, product types, or international regulations.

5. Improved Data Security and Confidentiality

Handling customs declarations in-house ensures that sensitive data remains within the business rather than being shared with external brokers or customs agencies. Information such as trade secrets, pricing data, and supplier relationships can be vulnerable when handled by third parties, increasing the risk of data breaches or leaks.

By taking responsibility for customs declarations internally, businesses can implement their own security protocols and ensure that their data is protected according to their standards. This is especially important for companies operating in competitive markets or dealing with sensitive or proprietary information.

6. Better Understanding of International Trade and Logistics

Managing customs declarations provides companies with valuable insights into the mechanics of international trade and logistics. This knowledge extends beyond the specific customs paperwork and regulations, giving businesses a broader understanding of global supply chains, trade agreements, and import/export strategies.

Employees responsible for customs declarations will become more proficient in areas such as tariff classification, valuation methods, and country-of-origin rules. This expertise can be leveraged to improve other aspects of the business, such as procurement, inventory management, and supplier negotiations, ultimately enhancing the company’s overall operations.

Additionally, as companies gain familiarity with the customs process, they are better equipped to handle new trade relationships, expand into new markets, or take advantage of changing trade agreements or tariff structures.

7. Greater Responsiveness to Regulatory Changes

International trade laws and regulations are subject to frequent changes. By managing their own customs declarations, businesses are better positioned to respond quickly to new regulations, trade policy shifts, or changes in tariffs. For example, companies that handle their own declarations can rapidly adjust to updated classification codes, new duty rates, or the introduction of additional documentation requirements.

This agility is particularly important for businesses operating in markets where trade agreements and regulations are regularly amended. With internal control, businesses can quickly update their procedures, ensuring continued compliance and minimising the risk of penalties or delays due to regulatory changes.

8. More Effective Dispute Resolution

In the event of a customs dispute or audit, businesses that handle their own declarations are in a stronger position to resolve the issue. They have direct access to the documentation and information necessary to defend their positions, such as shipment records, invoices, and product classifications.

When using a broker, there may be a communication gap during a dispute, and businesses may not have full visibility into the broker’s practices or the specifics of the submission. In-house handling allows companies to proactively address issues with the relevant authorities and provide clear, complete evidence when necessary.

9. Customisation to Business-Specific Needs

Customs declarations can vary significantly depending on the nature of the business and the types of goods being traded. When handling declarations internally, businesses can tailor the process to their specific needs, ensuring a smoother and more efficient operation. For example, businesses that regularly ship perishable goods or hazardous materials may need specialised documentation or compliance procedures that a general customs broker may not be equipped to handle. Internal teams can develop expertise specific to the business’s requirements, ensuring that all necessary protocols are followed.

Conclusion

While using a customs broker remains a valid option for some businesses, handling customs declarations internally offers a wide range of benefits. By assuming control over the customs process, businesses can enjoy cost savings, greater control, enhanced compliance, and a deeper understanding of international trade. Additionally, internal management allows businesses to stay agile in the face of regulatory changes, improve their data security, and resolve disputes more effectively. For companies with the capacity to handle the additional responsibility, the advantages of managing customs declarations in-house are significant and can lead to long-term benefits in terms of operational efficiency, cost-effectiveness, and business growth.

Typically, if you do 4 or more declarations a month you can save money by doing it yourself. We have saved our clients £000’s by showing them how easy it is. Our package includes obtaining the software and notifying and applying to UK Customs. Once set up you are good to go and we guarantee a continuing service should you encounter any problems.

For more info and a quote please email info@frmltd.co.uk