However, with the right solution, importers can minimize costs and reduce inventory management efforts by automating the complicated steps of the programs. Combined with the effort required to manage customs clearance and the subsequent movement of goods, these are reasons why companies outsource this work, but at a price. e2open helps companies to manage their customs or bonded warehouse activities in-house easily and accurately.

Cost savings through bonded warehouses

Companies often lose millions of euros annually by paying unnecessary duties and taxes when products are imported into a country to be stored, distributed or manufactured there - even if these fees are later recovered on export. Once the capital is tied up, it cannot be used elsewhere - an opportunity cost that can amount to as much as 10 percent of the duty, and even if there are programs to help companies defer and reclaim their duty payments, these are usually difficult to manage.

However, if goods are stored in bonded warehouses, the importer does not have to pay the full customs duties. The goods remain in the bonded warehouses until they are finally sold on the target market outside the country. All applicable taxes and duties are only levied when the goods are exported for sale or manufacture. The difficulty, however, lies in the management of bonded warehouses. Specific programs allow companies to take advantage of customs savings programs without having to rely on costly service providers.

Bonded warehouse solution for import to Europe

e2open Bonded Warehouse Management is part of e2open's Global Trade Management Suite and enables companies to leverage duty savings programs without relying on expensive service providers. The application automates administrative tasks and creates an audit trail to meet the strict compliance and reporting requirements of the various programs. Companies use the in-depth automation capabilities to participate in Foreign Trade Zone (FTZ) and duty drawback programs in various countries, including many European countries, through a unified digital platform. As a result, they improve their profit margins and reduce the cost of goods sold (COGS).

e2open simplifies complex reporting requirements and maintains complete audit trails for full compliance, mitigating common program barriers so companies can reap the benefits.