QUESTION 1: How can Delmar ensure that a customer will have the lowest cost for services over time?
Firstly, low overheads, utilization of advanced technology, and network density provide Delmar significant buying leverage with ocean and ground freight service providers and enable Delmar to receive unique contract positions with steamship lines.
Secondly, through our Delmar Cargo Management System (DCMS) platform, Delmar provides visibility to the end-to-end supply chain, from point of origin to the final mile of destination. DCMS allows customers to manage orders by exception, eliminating documentation handling and storage, thereby delivering major savings on internal administration efforts and costs. Algorithms are employed to create a finite list of instructions along with step by step procedures to ensure that costs are minimized through the management of purchase orders, bookings and shipments. For example, by managing purchase orders rather than simply shipments, Delmar can consolidate shipments from various vendors at origin in order to provide lower shipping costs. Where applicable, seasonal products and new product introductions can be shipped “direct to store” i.e. consolidated at origin, bypassing the need to incur higher in and out costs at distribution centers. The DCMS platform allows cost savings opportunities to be easily identified within the end-to-end supply chain.
Customers can also leverage Delmar’s Inland Freight Duty Reduction Program. Transporting your goods through our international freight services, Delmar can reduce the transaction value paid to vendors by deducting the F.O.B. Costs (Ex. Delivery, origin customs clearance, security fees etc.). Delmar would deduct these F.O.B. costs from the value declared by your vendors as the sale price, resulting in a reduction of Duty and Goods and Services Taxes.
Customs-related issues relating to the supply chain structure in place also need to be given careful consideration. On numerous occasions, our customers have looked to change their product sourcing to reduce costs, only to realize that the resulting duty costs far outweigh any savings. In addition, potential income tax savings resulting in the implementation of a particular transaction structure could very well be diminished or countered by the resulting import or duty costs. Careful consideration for all contemplated supply chain structures and their underlying transactions need to be rigorously reviewed to ensure that any and all import, duty or compliance-related concerns are properly addressed. Delmar can provide this support. Duties can be refunded under what is known as a “duty drawback.” While often overlooked, there is the possibility to recover duties on imported goods that are subsequently exported. For example, if a Canadian-based enterprise expands into the United States, whether through the establishment of locations in the United States or through e-commerce, its goods — some of which were initially imported into Canada — will likely move to the U.S. Importers need to keep an eye on duty recovery opportunities when goods move between countries. Whether the movements are a result of returns, sales or inventory transfers, the opportunity to recover previously paid import duties needs to be taken into consideration.
Whether the movements are a result of returns, sales or inventory transfers, the opportunity to recover previously paid import duties needs to be taken into consideration.”
Moreover, Canada Customs manages more than 100 OGD regulations on behalf of various agencies and governmental departments including import permits, food safety requirements, hazardous goods, energy consumption guidelines and numerous other requirements related to imported goods. Certain goods may be restricted, controlled or prohibited. An importer’s failure to ensure that imported goods meet all applicable requirements and regulations could result in product seizures, fines and/or penalties. The costs involved in ensuring that goods are compliant, along with delays in getting the product to the consumer, can directly affect the importer’s bottom line. Delmar helps their clientele be aware and take advantage of any applicable origin-based duty relief opportunities. Importers who do take advantage of these opportunities also need to manage them appropriately and Delmar ensures that valid and complete documentation and the respective rules of origin are being followed.
Lastly, for those who use our Ocean Freight Services, Delmar utilizes the Port of Prince Rupert for all our LCL consolidations, resulting in transit time improvements of between 5-10 days over the traditional Vancouver gateway. This enables a reduction in the cost of inventory while offering a significantly more responsive supply chain.
QUESTION #2: What is Delmar’s experience and ability in terms of being able to assist customers as they move toward self-controlled freight? How will Delmar accelerate and implement this strategy to support it’s customers?
ANSWER: Delmar has a great deal of experience in enabling organizations to self-control their freight. We help customers prioritize the product lines and origin points which accumulate the greatest freight costs and duty costs thereby allowing them to work on the most impactful areas first. Delmar works closely with its customers and their vendors to utilize FOB terms in place of C&F which provides them the ability to self-control their freight. If any vendors are unwilling to work on an FOB model, Delmar is prepared to visit all vendors to secure their freight thus allowing our customers full visibility of costs in our management system.
QUESTION #3: What Delmar service would add value to their customers service and how would you implement it?
ANSWER: C.A.R.E Program (Customs Compliance)
For almost a decade now, Delmar has been advising its customers about the importance of Customs compliance. To assist its clientele in this respect, Delmar developed a Customs Assessment Review Engagement (C.A.R.E.) program which enables importers to manage their current customs compliance environment and reduce the risk of liabilities which may result from a customs audit.
An importer is responsible for the content and accuracy of the data declared to the CBSA. This is regardless of whom they rely on for the completion of documentation and declarations. i.e. Supplier, Customs Broker, etc. However, our experience has revealed that many importers still do not understand the ramifications of not taking customs compliance seriously.
Delmar, through its team of trade and customs specialists, is poised to assist importers in managing the risk factors related to AMPS (Administrative Monetary Penalty System). Through our C.A.R.E. program, we can tailor a compliance program that can be used by importers to become self-managed in the area of Compliance. To accomplish this, Delmar recommends the following steps:
Appoint a TradeAid Consultant to:
- Conduct an interview on the current level of Compliance.
- Analyze the client’s internal customs related systems, processes and documentation.
- Verify the links between client’s customs program and your accounting system and procedures.
- Develop and implement a Compliance Program within your company which would address any shortcomings identified in the Customs process and include a strategy for monitoring compliance on an ongoing basis.
For those clients who have gone through our audits, AMPS penalties ranging from tens of thousands to hundreds of thousands of dollars were discovered, and averted. In addition, our clients walked away with a better understanding of the importance of being proactive in regards to customs compliance issues.
Our C.A.R.E. program adds value to any organization by delivering actual measurable data specifically designed and tailored to meet the customers needs and provide them with a competitive advantage in your marketplace.
Are you currently in need of Freight Forwarding or Customs Brokerage services for your importing and exporting needs? Get in touch with us now at email@example.com for general questions or concerns or at firstname.lastname@example.org for more information on our rates. You can also call us by phone, toll free, at 1-888-4-DELMAR. Also, come visit us at http://www.delmarcargo.com and connect with us on our other social media platforms!