{"id":10879,"date":"2021-07-07T16:48:02","date_gmt":"2021-07-07T23:48:02","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=10879"},"modified":"2023-01-18T16:49:06","modified_gmt":"2023-01-19T00:49:06","slug":"3-minute-explainer-understanding-import-management","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2021\/07\/3-minute-explainer-understanding-import-management","title":{"rendered":"3 Minute Explainer: Understanding Import Management"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;10880&#8243; img_size=&#8221;full&#8221;][vc_column_text]<i><span style=\"font-weight: 400;\">International trading comes with numerous regulations. In this 3 Minute Explainer, we look at the basics of import management.<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">Governments around the world need to track goods coming into their countries. Tracking import activity allows customs authorities to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determine whether or not a good is admissible<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Assess duties and taxes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Collect trade statistics<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Monitor controlled goods, such as narcotics, chemical weapons or even endangered species<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As a result, there are many regulations controlling the inbound movement of goods. Poor processes can result in shipments getting \u201cstuck in Customs\u201d, fines and penalties, or in some cases, shipments being destroyed. Let\u2019s take a look at the basics of import management.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Getting the Classification Correct<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Companies engaged in global trade must properly classify their goods with the correct commodity codes. Import and export management begins with the classification of goods.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Almost all traded goods are classified with a six-digit code, called a subheading. These subheadings come from the Harmonized Commodity Description and Coding System \u2014 or Harmonized System (HS) \u2014 an internationally recognized tariff classification system.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Almost every country in the world uses the HS. It gives customs authorities a common way of classifying goods to track imports and exports. No matter where a good is from, or where it is going, its six-digit subheading will be the same.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the importing country may require more information than the six-digit subheading. Countries can add extra digits to subheadings for more granular information. For example, both the European Union and the United States use ten-digit commodity codes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Getting the classification correct is therefore crucial. If you classify your goods incorrectly, you could be over- or underpaying duties. You could also be missing out on lower or zero duties under a FTA.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Companies may never misclassify goods in order to pay less duties or bypass other government regulations. To do this is to commit fraud.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Understanding Admissibility Requirements<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Certain goods may be subject to admissibility requirements. For example, certain goods may require certificates from government agencies before they can be imported. Other goods may be subject to anti-dumping and countervailing duties.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Classifying goods early on in the import process gives you advanced visibility to these issues. Therefore, you can proactively address any admissibility requirements before your goods arrive at a port of entry. If you have not met all admissibility criteria, your goods are likely to be held up in customs. This could also result in unexpected fees.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Where you buy your goods from can be almost as important as what the goods are. Goods from certain countries may be subject to higher tariffs. Conversely, goods from other countries may be eligible for duty free entry under a free trade agreement.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Therefore, it is important to perform a competitive analysis between potential suppliers and source countries beforehand.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The Customs Entry<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Companies must provide authorities with a customs entry. Ideally, an enterprise should do an internal pre-entry to check their data before filing this with customs authorities. Companies can either file their own customs entries or use a broker to do this on their behalf.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Importer Security Filing \u2014 10+2<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Companies importing goods into the United States via ocean carrier must provide an Import Security Filing (ISF). The ISF is commonly known as 10+2. This must be filed with Customs and Border Protection (CBP) 24 hours before the goods are loaded onto the carrier. The importer must supply these ten data elements:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Manufacturer (or supplier) name and address<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Seller (or owner) name and address<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Buyer (or owner) name and address<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ship-to name and address<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Container stuffing location<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consolidator (stuffer) name and address<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Importer of record number\/foreign trade zone applicant ID<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consignee number(s)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Country of origin<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">HS subheading to six digits<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The ocean carrier supplies the final two data elements:\u00a0<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Vessel stow plan<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Container status messages<\/span><\/li>\n<\/ol>\n<h2><span style=\"font-weight: 400;\">Simplifying Imports<\/span><\/h2>\n<p><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/import-management\" rel=\"noopener\"><span style=\"font-weight: 400;\">Import management software<\/span><\/a><span style=\"font-weight: 400;\"> helps organizations to adhere to these laws. Import management solutions can also help companies to reduce costs and optimize their trade operations. As a result, companies using best-in-class processes gain a competitive advantage.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">With import management software, companies can:\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Achieve a consistent classification process for ongoing compliance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gain advance visibility to goods that have special admissibility requirements<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Perform competitive analysis between suppliers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automatically screen suppliers and other supply chain partners<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determine eligibility for preferential duties under a free trade agreement<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Comply with free trade agreement regulations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automate supporting documentation production, including customs documentation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Enable electronic filing of customs documentation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Track import metrics and enable recordkeeping<\/span><\/li>\n<\/ul>\n<p>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;10880&#8243; img_size=&#8221;full&#8221;][vc_column_text]International trading comes with numerous regulations. In this 3 Minute Explainer, we look at the basics of import management. Governments around the world need to track goods coming into their countries. Tracking import activity allows customs authorities to: Determine whether or not a good is admissible Assess duties and taxes Collect trade statistics [&hellip;]<\/p>\n","protected":false},"author":64,"featured_media":10880,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2045],"tags":[2578,2579,516,2577,406,1830],"class_list":["post-10879","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-supply-chain-trends","tag-classification","tag-commodity-codes","tag-global-trade-management","tag-import-management","tag-trade-compliance","tag-trade-optimization"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>3 Minute Explainer: Understanding Import Management | QAD Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.qad.com\/blog\/2021\/07\/3-minute-explainer-understanding-import-management\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"3 Minute Explainer: Understanding Import Management | QAD Blog\" \/>\n<meta property=\"og:description\" content=\"[vc_row][vc_column][vc_single_image image=&#8221;10880&#8243; img_size=&#8221;full&#8221;][vc_column_text]International trading comes with numerous regulations. In this 3 Minute Explainer, we look at the basics of import management. Governments around the world need to track goods coming into their countries. Tracking import activity allows customs authorities to: Determine whether or not a good is admissible Assess duties and taxes Collect trade statistics [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.qad.com\/blog\/2021\/07\/3-minute-explainer-understanding-import-management\" \/>\n<meta property=\"og:site_name\" content=\"QAD Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/QADerp\" \/>\n<meta property=\"article:published_time\" content=\"2021-07-07T23:48:02+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-01-19T00:49:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2023\/01\/Container-Yard-Woman-Walking.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Anne Sexton\" \/>\n<meta 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She writes extensively about global trade, transportation and logistics. When she surfaces from her laptop, Anne enjoys hiking, travelling and cooking. She also owns far too many books.\",\"url\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/author\\\/anne-sexton\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"3 Minute Explainer: Understanding Import Management | QAD Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.qad.com\/blog\/2021\/07\/3-minute-explainer-understanding-import-management","og_locale":"en_US","og_type":"article","og_title":"3 Minute Explainer: Understanding Import Management | QAD Blog","og_description":"[vc_row][vc_column][vc_single_image image=&#8221;10880&#8243; img_size=&#8221;full&#8221;][vc_column_text]International trading comes with numerous regulations. 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