What to Look for in an Automated GTM Solution
Many apparel and textile companies are considering implementing automated tools to assist with global trade management (GTM) and compliance. For apparel, footwear and textile industries utilizing foreign-trade zones (FTZs), an automated solution can track and correctly report necessary cotton fees, textile categories and visa programs, as well as utilize the First Sale method of valuation.
Automating the global trade process will enable companies to maintain a competitive edge in their industry. Customs is focusing more on importers of textiles and apparel and your company doesn’t want to get caught between Customs and a dishonest importer. Any automated solution should have a firm grasp on the three C’s of global trade – compliance, content and connectivity.
The most well-known of the three C’s is compliance because it is the focus of most software solutions. The second C – content – deals with real-time trade content. Trade data should be continually updated and those results should be sent to you automatically. The solution should be able to query the current list of HTS numbers in Customs’ ABI system to determine if product information is accurate. The third C – connectivity – is most often overlooked. Zone operators should be connected to government agencies through their GTM solution to submit admission data electronically to file their own e214 directly to CBP.
With all of the solutions available, how do you find the right solution for your company? In a recent Apparel Magazine article, Liz Connell of Integration Point, Inc., created questions that can help, separated into three areas: tools, software functionality and software implementation. The questions deal with the risk of non-compliance, cost/benefit analysis of a software program, and upfront and long-term costs of managing and maintaining a software program. View the article to see the full list of questions.
Software functionality is only one part of a complete GTM solution. A good, automated tool will incorporate the three C’s of GTM into your global trade management and compliance program. For more on the three C’s, download the Beyond Software: The Role of Content and Connectivity in Global Trade Management whitepaper by the ARC Group.
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