Understanding Entry Visibility: Explanations & Implications

© 2014 Integration Point www.IntegrationPoint.com
Understanding Entry Visibility:
Explanations & Implications

Today’s Global Trade Climate
• Heightened national security
• Higher penalties
• More global competition
• Cost reductions sought
• More automation possible
and required
• Customer safety
requirements
• Corporate responsibility reporting
Today’s Global trade climate is one of growing complexity.
Global trade is now the focus of a great amount of scrutiny.
There is an increase in security awareness, safety concerns
and economic implications.

© 2014 Integration Point www.IntegrationPoint.com 3
Global Trade Requirements
• Compliance
• Complexity
• Credentialing
• Confirmation
As a result of changing international policies and security
measures, global trade is fraught with challenges including:
Companies can address each of these challenges with
entry visibility.

Supply Chain Visibility vs. Entry Visibility –
What’s the Difference?
Supply Chain Visibility – knowing where your goods are
and monitoring the success of getting them where they
are needed
• Collect & analyze data from across the supply chain
• Create exception reports & recommendation for corrective action
Entry Visibility - proper use of trade compliance data for
importation of goods from foreign supplier to destination
• Pre-entry documentation & post-entry reconciliation
• Automatically validates filings
• Determines key compliance data is shared and used correctly by
all trading partners

Compliance Challenges
For example, a typical international transaction could include:
– 35 documents
– 25 parties complying
– 600+ regulations
– 500+ free trade agreements
Trade compliance can get complicated. There are
numerous documents required by various countries
for exportation and importation.

How can companies validate 100% of the time?

“The average trade compliance error rate is 25.7% on international orders.
For importers with 1,000 entries per year, that’s 257 entries with errors.”
Source: Aberdeen Global
Trade Compliance Priorities study

Complexity Challenges
It is imperative that everyone involved uses the same data
so that the correct data gets included in the entry filings.
However, given the complexity and disparate data sources
among the various parties involved, without an automated
process coordination, it may be impossible.

Credentialing Challenges
Timely records include:
– Value
– Quantities
– Classification
information
– Entry filings
Under the Mod Act, importers are required to maintain and
produce accurate records at the time of entry. An effective
post-entry audit solution must support the ability to compare
value, quantities, and classification information with what is
declared in the entry filings.

Confirmation Challenges
Companies strive for compliance. This requires validation not
only of the company’s records, but the records of brokers and
other service providers involved in the transaction. With
much of this work currently being done manually, the average
company is only able to audit approximately 10% of entries
filed as part of a "regular random audit process".

CBP’s Most Common Importer Errors
List
• Many (errors) are caused by a lack of communication between
various departments of the importer or between the importer and its
broker.
• Importers assume the broker is correctly classifying or valuing
imported merchandise
• Importers are required, but do not, maintain and produce timely
records required at time of entry
• Lack of accounting and financial records to support the value,
quantities, classification, and other information shown on Customs
entry documents.
• Claims for duty preference under Free Trade Agreements are often
incorrectly classified.
• Importers frequently do not verify that the foreign manufacturer or
producer of imports can support the claims for the special trade
program.
• Importers switch suppliers to take advantage of competing lower
costs, but neglect to adjust the value of HTSUS 9802 merchandise
on subsequent entries.
*U.S. Customs and Border Protection Office of Strategic Trade Regulatory Audit Division

Entry Visibility Requirements
Entry Visibility addresses the
common causes of entry errors by:
• Facilitating communication
throughout the supply chain
• Facilitating the document
collection process and helps
importers know what
requirements they face in
particular countries
• Automating the validation of
submissions and the
reconciliation process at a
global level

How Does Entry Visibility Work?
• Provides a global view of all trade activity
• Compares all entry data and activity against
classification and valuation data
• Compares entry against external data sources
such as shipper documents, internal data
sources such as material receipt files, and 10+2
filings
• Completes Post Entry Amendment and
Reconciliation
• Fully leverages existing Free Trade Agreements
• Stores supporting documents at part of an “on
line” entry packet

Entry Visibility Benefits
• Duty Savings
– 5 companies studied: $150 million saved through
better classifications (Aberdeen)
– Black and Decker increased NAFTA savings 240%,
saved over $4mil more
– Companies with multiple shipments that can be
combined into single entry
• Process Savings
– Free up personnel e.g. Eastern Worldwide: 1 minute
vs. 25 per shipment
– Reduce errors
– Reduce cycle time (1 day = .5% of total goods value)

Entry Visibility Benefits
• Compliance Savings
– Creating, maintaining,
distributing documentation
– Penalties for errors
• Special Program Savings
– Trade Zone tariffs and waivers
– Free Trade Agreement management

The full Entry Visibility Tutorial, including
audio, is available at
www.IntegrationPoint.com/LP/EntryVisib
ilityTutorial.html

Understanding Entry Visibility: Explanations & Implications

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