Borderfree : Why You Need a Customs Expert to Ship Internationally

Why You Need a Customs Expert to Ship Internationally

It's a retailer's nightmare. Your international shipments have been held up in Customs, and there's no telling when your customers will receive their packages. Customers are calling to complain and threatening to return their purchases, which they needed ahead of their local holiday.

When your international business starts to take off, managing trade and Customs compliance across the world becomes a bigger challenge than you anticipated. The ability to successfully comply with diverse and constantly changing trade regulations is critical to scaling your international operations and becoming a truly global retailer.

Customs delays that result from incomplete paperwork, returned packages that flunk export inspection; these can give any retailer a headache. Delays frustrate your customers, raise your return rates and reduce your margins. Failing to comply with often daunting trade regulations increases your risk of fines and penalties, and you run the risk of losing your license to export altogether.

To prevent these headaches, many retailers partner with an "exporter of record" who takes care of all aspects of international trade and Customs compliance, including clearance paperwork and ensuring that your shipments follow all export regulations set forth by the government of the country from which you ship internationally.

It pays to work with an expert who deeply understands the local rules, policies and filing processes of each country from which you ship. This way you can be sure they'll stop you from shipping goods you can be fined for, such as hazardous materials, endangered or protected species, restricted electronics and other export-controlled items.

For example, the Federal Aviation Administration and the International Air Transport Association regulate hazardous materials sent outside of the US by air cargo, which means you must be extraordinarily careful about where you ship fragrances, nail polish, hairspray and more. Likewise, US retailers who sell exotic goods made out of beaver, mink and alligator skin must contend with the US Fish and Wildlife Service. And a little-known law called the Migratory Bird Treaty Act of 1918 prohibits ostrich and down feathers from being exported overseas.

There's another notable benefit of partnering with a Customs and compliance expert. They can maximize your product availability across the world as regulations evolve. For example, a periodic review of your inventory can identify products that were previously restricted for export but can now be shipped under certain conditions; for example, a variety of cosmetics and bath products.

We recently discovered that one of our merchants, a large US department store, was losing around $17,000 in weekly sales from Canada because of unnecessary restrictions. Plus, because their customers had to leave checkout to remove the restricted items from their cart, their shopping experience was disrupted, which led to lower submit rates than other retailers in their peer group.

We also helped a beauty retailer open their catalog to Canadian customers through our "air restrictions" process, which makes regulated products like body sprays and colognes available to Canadians via ground shipping. The ability to ship fragrance sets-a popular gift item-and perfume samples can drive revenue during the critical holiday period and create a more consistent omnichannel experience.

Any good compliance partner will also prevent you from shipping items with potential import issues into other countries-and can suggest alternatives. For example, they'll stop you from trying to export chewing gum to Singapore, fishing nets to Russia or flick knives to the UK-so you'll avoid being fined as well as having your packages returned.

Customs and compliance experts take the challenges and risks out of international shipping so you can focus on growing your global customer base. You'll gain peace of mind knowing your items have shipped legally, and your customers will receive their packages without delays or added paperwork. Happy retailers and happy customers: that's cross-border ecommerce nirvana.