We currently live in a globalized world, in which interaction between countries has become indispensable. Factors such as new technologies, trade agreements, product innovation, as well as continuous improvements in international freight transport networks, among others, drive the process of internationalization of companies.
To cope with the irrepressible advance in international markets and increasingly competitive economies, companies create foreign trade strategies where exports and imports are increasingly relevant, entering different markets, with different regulations and requirements.
Foreign trade involves numerous and delicate customs procedures to be able to conclude a transaction, such as the tariff classification, which consists in assigning a numerical code created by the World Customs Organization to goods, this way companies can identify the goods that are imported and exported to set taxes, obligations and duties.
Every time a company commits an import/export of goods, a tariff classification has to be made even if it’s the same good, which involves a lot of time spent resolving the paperwork.
Also, there are divergent opinions on the tariff classification leading to varied interpretations and applications within the legal framework.
The classification of tariff fractions is very important for companies, as they are an instrument for planning their marketing logistics including the payment of taxes, checking the origin of the goods and applying preferential treatment. However, misclassification can result in sanctions, supplementary tax payments and in extreme cases it can lead to the destruction of the goods or their return to the country of origin.
In LOVIS EOS these classifications are preconfigured so that before making the acquisition of the imported goods, companies can work with the forwarding agent to establish the most appropriate tariff fraction.
By doing this effort one time, LOVIS EOS will communicate the proper tariff code and description of the goods to the supplier and forwarding agency in subsequent imports, which helps to streamline and optimize customs and logistical procedures.
This results in companies making benefits such as:
- Improving exchange of trade and information.
- Simplifying description and coding of goods.
- Schedule import payments, making the cash flow more efficient.
- Streamline the import process and reduce time in custom duties.