Global Logistics

Many companies aren’t fully aware of the risks that come with trading in the global market, according to JPMorgan Global Trade Services. In a recent white paper, the firm highlights five myths of import compliance: 1. A company’s exposure is limited to the amount of Customs duties. No, says JPMorgan—it’s equal to the value of the imported goods, plus duty. 2. You’re “out of the woods” when Customs releases your shipment. No, the statute of limitations on filing misstatements or omissions is five years. 3. Mistakes in the invoice are the fault of the seller. No, it’s the importer who’s responsible for what’s reported on the Customs entry. 4. It’s the customs broker’s problem when mistakes are made. No, the importer remains fully accountable for submissions made on its behalf. 5. The keeping of entry records is the exclusive job of the customs broker. Tough luck: importers are required to keep copies of all correspondence related to import transactions for five years. Bearing those facts in mind, JPMorgan said, allows companies to realize the full benefits of global sourcing.

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