Consolidated Services Can Mitigate Filing Inaccuracies, Say Industry Executives
Costly penalties from inaccurate Importer Security Filing (ISF) reports can be mitigated by consolidating services within companies, while reducing other import-related concerns such as customs delays, Livingston International officials said during a Sept. 19 webinar. Chuck Stroupe, product manager for Livingston's customs brokerage, and the company's practice leader Jill Hurley, said integrating services within importers could reduce human error and rising compliance costs by streamlining the overall process.
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Despite these benefits, Stroupe and Hurley said an American Shipper Import Study indicated that there was a lack of convergence, especially among larger shippers. According to the study, over 60 percent of shippers have “no immediate plans to integrate their Global Trade Management and Transport Management System functions" (see 13090916).
Stroupe and Hurley encouraged shippers to consider consolidated services in order to reduce the number of brokers per importer, therefore reducing room for human error in ISFs or customs filings based on audit. Hurley said that increased export enforcement in general have led to enhanced security requirements for such filings, as well as increased compliance rates. She added that “poor oversight” from a “fragmented view of the supply chain” can cause increased duty or fee liabilities from a “lack of reasonable care,” whereas consolidation could provide better transparency for transactions, increased efficiency and improved data integrity. A single-service provider could significantly improve accuracy and “mitigate the risk of incurring penalties,” especially when paired with an automated import data process, presenters said. However, the study found that many importers still prefer to use manual or spreadsheet-based processes for import operations and compliance issues. Stroupe and Hurley both agreed that the lack of automated processes makes true integration within importers “impossible.”