Advance Solutions
in International Business
Priceless Resource Consulting Group (PRCG) is pleased to offer various international trade services.
Following are just some examples of the services we provide.
Taking Advantage of Cost Savings
PRCG has the knowledge and experience to help an importer and/or exporter strengthen its advantage in the global marketplace by reducing or eliminating unnecessary costs.
Transportation
Insurance
Intellectual Property Rights
Harmonized Tariff Schedule Classification
Global Financing
Customs Programs
- Duty Drawback
- Foreign Trade Zone
- Free Trade Agreements
- First Sale
The Importance of Compliance
Adherence to the rules, regulations and laws of government agencies is an essential part of a sound business. Negligence to do so can result in severe penalties and liquidated damages.
Internal Audits for Regulatory Compliance with Government Agencies
- U.S. Customs and Border Protection
- U.S. Census Bureau
- Bureau of Industry and Security
- Federal Communications Commission
- Food and Drug Administration
- Department of Agriculture
- Fish and Wildlife Service
- Department of Commerce
A Secured International Supply-Chain
- Certification
- Validation or Re-validation
- Vendor Management
Contact PRCG today for a quote on these services and more.
Introduction to
International Trade
The business of international trade has never been more prevalent. The U.S. ports continue to hold status as some of the largest ports in the world in terms of volume. On the other hand, there is also a growing trend in exports, as U.S. companies begin to learn that this is one of the prime ways to take advantage of the country’s economic situation. From origin to the end user and all the services in between, the prosperity of global commerce is evident.
The Many Facets
of International Trade
International trade accounts for massive job opportunities in the U.S. For example, over 450,000 jobs in the Los Angeles area alone are tied to international trade. That is one out of every 7 jobs, confirming that most businesses are tied to global trade in one form or another. Whether the company is in the business of an importer, exporter, carrier, freight forwarder, customs broker, attorney, accountant or other service providers, it experiences similar types of operational expenses and complies with the same U.S. government regulations. In global trade, these two areas are keys in the difference between competitions. Priceless Resource Consulting Group, LLC. (PRCG) has the knowledge to strengthen the advantage and lead a company to a successful international business.
The Cost of Importing
Most companies view its import process as strictly a cost center. In most cases, it is. There is cost in the purchase of goods, payment of transportation and insurance fees, and payment of customs clearance, duties and taxes. Since these costs cannot be avoided, then it is prudent to lessen the costs. Cost savings simply equal a better bottom line.
PRCG can provide the solution with multiple (and sometimes little-known) programs and systems to streamline import operations.
Cost of Goods
PRCG can assist in the review of sourcing of goods and materials. No matter what the product is, there is likely a better buy elsewhere, even if it is from another country of origin. Established experience in global trade allows PRCG to recommend alternative sourcing solutions to the importer.
Transportation
International freight and incidental charges, in many cases, represent a significant expense and the costs rise every year. The lack of savvy negotiation with the carriers can cost a company to pay unnecessary and overcharged fees. PRCG understands the transportation industry and uses its knowledge to enhance bargaining powers on behalf of its clients.
Insurance
Insurance and bonds protect the company and the government, but it should be a minimal expense to the importer. If it is not, PRCG can help to arrange a direct purchase and consolidation of these policies to maximize the coverage and keep costs at bay.
Customs
Customs duties must be paid to the government, but it does not have to be at the standard rate. Duty may be significantly reduced in a number of ways and the methods to do so are offered by the U.S. government. One must know where to look, how to find it, and how to implement it. The following are just a few examples of the programs available.
Duty Drawback:
A refund of 99% of duties paid for goods imported and then subsequently exported. Claimants may claim retroactive refund up to five years prior.
Free Trade Agreements:
International contracts such as Free Trade Agreements and Generalized System of Preferences are meant to benefit the foreign country and the U.S. importer.
Classification:
Harmonized Tariff Schedule classification determines the duty rate of an imported commodity. Navigation through related court cases and prior rulings ensure that proper classification is made and establishes a controlled expense budget for Customs duty.
First Sale:
Duty is based on the primary level of sale – the sale prior to the sale to the U.S.; thus, lowering duty obligations.
Finance:
There are numerous opportunities to take advantage of special finance options for corporations doing business with foreign entities. PRCG assesses the best option and least risk for its client, may it be Letter of Credit terms or international credit insurance. PRCG can help to establish a sound financial structure for its client in the global arena.
Foreign Trade Zone:
An entity may be designated as territory out of the commerce of the U.S. A foreign trade zone is entitled to eliminate duty for imported goods destined for export; defer duty payment for goods until it is shipped to the customer; lower the duty rate based on its manufacturing process; consolidate its payments to Customs weekly and much, much more.
The Importance of Compliance
Many companies fail to realize or weigh the importance of government compliance. Adherence to the rules, regulations and laws of government agencies is an essential part of a sound business. Negligence to do so, especially with U.S. Customs and Border Protection (CBP), can result in severe penalties and liquidated damages. The Federal Code of Regulations, Part 19, Section 171 explains in detail the consequences of fines, penalties and forfeitures to parties who engage in foreign trade.
Compliance extends not only to CBP, but to all other government entities. Each commodity may generally have to meet the requirements of several agencies. Most commonly regulated industries require approval from agencies such as: U.S. Census Bureau, Bureau of Industry and Security, Federal Communications Commission, Food and Drug Administration, Department of Agriculture, Fish and Wildlife Service and Department of Commerce.
PRCG can conduct an on-site internal audit of the company to find out what the specific problem areas may be. Utilizing similar audit measures as that of a CBP Focused Assessment audit or under the guidance of the Census Bureau’s mandated export requirements, PRCG can target the most common-made mistakes in a company and advise appropriate action. A compliant company is a profitable company.
A Secured International Supply-Chain
Customs – Trade Partnership Against Terrorism (C-TPAT) has been dubbed as the most successful Government-Industry program ever designed. C-TPAT boasts 11,000 participants, made up of various stakeholders in the business of international trade. Its mission is to extend the U.S. borders to the foreign place of shipping in an effort to secure the entire supply chain against potential acts of terrorism. A secured supply chain entails all facets of international warehousing, transportation and operations including but not limited to structural, information technology and personnel security.
Since its inception after 9/11, participants have gone through the process of certification, validation and re-validation by CBP, Department of Homeland Security. While CBP has attempted to validate each participant’s minimum security requirements under the program, the lack of manpower for these types of audits are backlogged for months. Nonetheless, CBP receives its budgets for this program to continue to hire and train Supply Chain Specialists every year. With the passage of the Safe Port Act, CBP is mandated by law to promptly complete each process of C-TPAT within a certain time frame.
PRCG provides participants and would-be-participants the resource and assistance to conduct the extensive and broad range of processes under C-TPAT scrutiny for a successful passage of validation audits.
Conclusion
International trade is apparent everywhere we look, everywhere we go and in everything we do. It affords the valuable opportunity of expansion for corporations in the U.S. PRCG can help its clients master the art business with companies overseas. As a value-added service and to stand behind its belief in the smooth facilitation of trade, PRCG offers recommendations to various trade associations whose services may also be helpful to its clients. This would help ensure that PRCG client’s staff may continue to be educated on all new regulations and proposals and prepare internal measures as necessary to avoid potential disruption to its business. PRCG serves to be the advanced solution to your international business needs.