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EAST RUTHERFORD, NJ, May 29, 2013 -- Presenters at a recent retail seminar focused on
global
trade management best practices highlighted significant cost savings opportunities in the
areas of First Sale and duty drawback.
"First Sale savings within the
first five years is typically 10 to 20 percent on duties," said Laura Siegel Rabinowitz, of counsel, Sandler,
Travis & Rosenberg. "First Sale bases the duty rate on what the manufacturer paid for the goods rather than
on a middleman's markup price, which is what Customs duties are typically assessed on."
"Duty drawback can offer as much as a
99 percent refund of import duties, taxes or fees," said Dawn Olesky, director, drawback operations, Sandler & Travis
Trade Advisory Services. "With duty drawback, you have the ability to lower costs to customers and therefore should
increase sales," she noted.
The seminar, hosted by Amber Road, a leading
provider of global trade management (GTM) solutions, and Sandler & Travis Trade Advisory Services, a leading provider of
customs and international trade consulting services, took place in New York City on April 17th and was attended by
representatives from many of the world's best known retail brands.
Speakers from both the public and private sector included:
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Robert E. Perez, director, field operations, New York Field Office, U.S. Customs and Border Protection |
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Marianne Rowden, president and CEO, American Association of Exporters and Importers (AAEI) |
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Luiz Felipe de Seixas Corres, consul general, Brazil |
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Ty Bordner, vice president, product management and solutions consulting, Amber Road |
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Anu Gavini, senior vice president, consulting services, Sandler & Travis Trade Advisory Services |
"The benefits of using a GTM solution include
reducing inventory, decreasing cycle times and reducing safety stock and expedited freight," said Bordner, who noted some
typical reductions included a five to eight percent reduction in transportation costs; 10 to 15 percent reduction in cycle
stock inventory; and four to seven days' compression in order cycle times.
Bordner and Gavini spoke on effectively
managing global trade by uniting technology with services. "Software doesn't replace the user," said Bordner, who noted
that a big retail trend he has seen in recent years around Customs compliance is centralizing operations and bringing
back shared services.
Other topics covered were U.S. legislative
and regulatory updates (Rowden); doing business in Brazil (de Seixas Corres); and the underlying principles of key initiatives
from Customs & Border Patrol (Perez).
In June, Amber Road and Sandler & Travis will
be hosting a joint webinar revisiting "Financial Returns in Global Trade," discussing cost savings strategies including duty
drawback, First Sale rule, etc. More information on the webinar can be found at:
http://bit.ly/ROIofCompliance.
About Sandler & Travis Trade Advisory Group
Sandler & Travis Trade Advisory Services (STTAS) is a leading provider of customs and international trade consulting and managed
services provider to the public and private sectors. STTAS manages global trade operations for many of its Fortune 500 customers
today. For more information, please visit www.strtrade.com or call (248) 474-7200
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